BRCK Group Plc (LON:BRCK) has delivered FY26 results that were broadly in line with expectations, according to the latest research note, with the business showing resilience despite a difficult backdrop for UK construction markets.
Revenue rose 1.3% to £645.4m, adjusted EBITDA increased 4.4% to £51.0m and adjusted EPS came in at 8.91p, slightly ahead of forecast. The note says the performance reflects the benefits of BRCK’s diversified model, with strength in higher-margin activities helping to offset continued weakness in parts of the traditional building materials market.
The analyst said the results demonstrate “the benefits of BRCK’s diversification strategy”, a theme that runs throughout the report and underpins the positive outlook.
Highlights from the FY26 results include:
- Revenue increased to £645.4m from £637.1m in FY25.
- Adjusted EBITDA rose to £51.0m from £48.8m.
- Adjusted EPS improved to 8.91p, up 8.0% year on year.
- Period-end net debt was £60.5m, in line with expectations.
- The dividend was maintained at 3.5p per share.
- Design & Install delivered the strongest growth, rising 8.8% year on year.
The company has also moved to a new two-division reporting structure, separating Distribution from Design & Install. Distribution, which covers bricks, timber, cladding, roof tiles and radiators, reported broadly flat revenue of £519.4m, with resilience supported by pricing discipline, cost control and product mix. Within this division, the note points to continued subdued housebuilding activity and weak RMI demand, but says BRCK has maintained market share through specialist positions and strong customer relationships.
Design & Install, meanwhile, increased revenue to £126.4m in FY26, helped by fire remediation work and geographic expansion in roofing. The report highlights that this division benefits from structurally higher margins and is increasingly exposed to regulatory, safety and technical specification trends. It also notes that the acquisition of Jackson Fencing, completed after the period end, adds a premium brand in fencing and perimeter security and opens up new opportunities in energy, infrastructure and other government-backed projects.
On forecasts, the note makes no changes to FY27E or FY28E revenue or earnings estimates, while introducing FY29E forecasts. It assumes no meaningful recovery in demand in FY27E, modest improvement in FY28E and a more visible recovery in FY29E. Under those assumptions, revenue is forecast to rise to £674.0m in FY27E, £720.0m in FY28E and £764.3m in FY29E, while adjusted EPS is expected to move to 8.2p, 8.7p and 10.1p respectively.
The valuation case remains a central part of the positive stance. The shares trade on a FY27E P/E of 5.9x and a dividend yield of 7.4%, which the note compares with a wider construction materials and services peer group trading on 12.2x P/E and a 3.8% dividend yield. Cavendish maintains a Buy rating and a 100p target price, implying significant upside from the current share price.
Cash generation also remains a strength. The note forecasts underlying free cash flow of £5.8m in FY27E, rising to £13.5m in FY29E, while net debt to EBITDA is expected to stay at a prudent 1.7x in FY27E and 1.6x in FY28E. That leaves room for continued investment and further growth, even in a cautious market environment.
Overall, the latest research note presents BRCK Group as a business that has continued to perform well through a weak cycle, supported by diversification, disciplined execution and a growing mix of higher-value services. With Jackson Fencing now added to the portfolio and medium-term recovery assumptions still to come through, the note argues that the shares offer both structural and cyclical earnings upside.
