FTSE 250 round-up: Breedon, Harbour Energy, Hill & Smith, Bodycote

A weaker FTSE 250 index today included pockets of cheer as results by the “leaner and fitter” Breedon Group (LSE:BREE) drew a strong response alongside Hill & Smith (LSE:HILS) and mid-cap stalwart Bodycote (LSE:BOY).

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The UK-focused benchmark tracked the weaker performance of the FTSE 100 index, meaning it has now fallen 6% since the start of the Iran war at the end of February.

The conflict has added another layer of uncertainty to the outlook for US-focused corporate merchandise firm 4imprint Group (LSE:FOUR), which led the fallers board with a decline of 370p to 3,495p.

Today’s reverse to the lowest level since November came as 4imprint said that orders and revenues were slightly lower in the first two months of the year as the business deals with the evolving situation on US tariffs.

Other fallers included Harbour Energy (LSE:HBR), which dropped 21.8p to 261.6p as a major shareholder raised £153 million by placing shares at a price of 255p.

On the risers board, Breedon rallied off last night’s two-year low as the building materials supplier reported a post-Covid peak for cash generation at £133.2 million.

The 17% increase was the third successive year of improvement and led to a rapid deleveraging from the company’s mid-year peak. A dividend of 10.25p a share is also due to be paid on 10 July, which increases the total for the year by 3% to 15p.

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The award represents a payout ratio of 47%, slightly ahead of the through-the-cycle guidance of 40% and takes the total since Breedon started to pay dividends in 2021 to £210 million.

Today’s results showed a 3% rise in underlying earnings to £278.8 million, which was in-line with guidance given in November and slightly above City forecasts.

Chief executive Rob Wood said: “We achieved a great deal in 2025 despite challenging markets, political uncertainty and weak business and consumer confidence, the missing ingredients for construction project activity. ”

Breedon entered the US market in 2024 following the acquisition of BMC before it bought another Missouri-based business in Lionmark last year.

The infrastructure sector now accounts for about half its customer base, with 20% being residential and 30% industrial and commercial.

The shares rose 15.4p to 337.2p, having fallen from 450p since last summer.

RBC Capital said: “The group enters the year leaner and fitter than it was a year ago and with a bigger business in the US. It does not need help from the market to perform well in the year ahead, but it could do with the market not working against it.”

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Peel Hunt, which has a price target of 425p, added: “After a difficult 2025 for the share price, we think valuations have dropped to very attractive levels for what is a well-run business with decent assets, which should see a reasonable cyclical bounce over the next few years.”

Hill & Smith rose 45p to 2,290p after it said it expected strong US trading momentum to continue in 2026, offset by caution over the degree of recovery in UK market conditions.

The group, whose products and services enhance the resilience of infrastructure and the built environment, generated 79% of operating profit from the US in today’s annual results.

The overall profit figure showed an underlying 8% rise to £151.3 million as Hill & Smith declared a dividend of 35p for payment on 3 July, lifting the total for the year by 8% to 53p.

It has also increased its exposure to higher growth end markets such as data centres and power generation after unveiling a deal worth up to £37 million to buy California-based Freeberg.

The acquisition is set to provide a platform for further expansion within its higher margin US Engineered Solutions division.

The recent strong run for Bodycote shares has faltered in recent sessions, although robust guidance and launch of an £80 million of share buyback plan meant they rallied today.

The heat treatment and specialist thermal processing firm, which has been stock market listed since 1972, described 2025 as a year of significant progress as it continues to invest in improving the quality of the portfolio and positioning for growth.

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Market conditions were mixed, with continued challenges in automotive and industrial markets partly offset by acceleration in aerospace and defence and industrial gas turbines.

Core organic revenue was broadly stable for the year but grew in the second half and is expected to show further improvement in 2026.

The margin fell from 18.4% to 16.8% in 2025 but is set to show progress this year while Bodycote said it remains confident it will deliver on medium-term financial targets.

The group, which has a 38-year track record of growing or maintaining its dividend, intends to distribute 16.1p a share on 11 June. This results in an unchanged total of 23p.