Davy Morning Equity Briefing
Jul 29, 2026
Breedon Group
Solid H1 performance; FY26 expectations unchanged
Breedon has delivered a solid H1 performance, with positive like-for-like (LFL) revenue growth in Q1 (+2%) extending into Q2 (H1: +3% LFL). The benefits of the group's geographic diversification remain evident, with stronger performances in Ireland and the US more than offsetting ongoing weakness in Great Britain (GB). Against this backdrop, the reaffirmation of full-year expectations should be well received. While full year numbers have yet to include the acquisition of Falling Springs Quarry, we anticipate limited changes to our underlying FY26 forecasts.
Weir Group plc
H1 results
Weir’s H1 results are in line with our expectations. Earnings will be very skewed to H2 due to the phasing of orders. The book-to-bill of 1.12x at end-June supports this outlook. Cash conversion was low in H1 but should improve in H2 as the company executes its orderbook. We are leaving our forecasts unchanged.
Danone
H1-26 update: solid delivery
Danone delivered strong Q2 like-for-like (LFL) growth of +4.2% (VA: +3.7%), driven by pricing (+2.3%), with volume/mix improving sequentially to +1.9% (Q1: +1.5%; VA consensus: +2.2%). Volume/mix growth was broad based across regions and categories. Recurring EBIT was modestly ahead of expectations (c.1% beat), supported by ongoing productivity and expansion in Waters. The group reiterated full-year guidance; at first look, we expect limited changes to our forecasts.
Greggs plc
H1-26 update – solid profit delivery
Greggs delivered H1 like-for-like (LFL) growth of 2.1% (VA consensus: +2.3%, Q1: +2.5%, Q2 implied: +1.7%) across its company-managed estate. H1-26 profit growth was particularly strong with operating profit of £86.5m (VA: c.£82m, 5% beat), supported by disciplined cost control and the phasing of cost inflation. Management now expects overall input cost inflation of c.2.2% (previously 3%) and reiterates overall FY26 guidance. At first glance, we see moderate upside to our current forecasts.
Kerry Group
H1 EBITDA in line; guidance maintained; 2030 targets launched
Kerry Group delivered Q2 volume growth of 3.5%, representing significant market outperformance and modestly ahead of our 2.9% forecast. EBITDA, at €558m, was in line. With volume growth tracking ahead of our model and FX headwinds moderating, we expect to increase our EPS forecast to c.511c from 505.1c. The introduction of the group's 2030 financial targets is also noteworthy and, in our view, reflects a continuation of the positive operating momentum and ambition.
