CRH plc

Financial Performance

5Y price score: 120

10Y return: 224.1%

DATE RANGE:

US$ Per
Share

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92.5

52-week range

131.5

96.2

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Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

5 %

Dividend Yield TTM

1.6 %

Market cap $

$ 64,281

Price / Earnings TTM

Price / Book TTM

2.2

PEG TTM

0.4

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(13.2) %

102.2 %

224.1 %

Free cash flow per share growth

(17.5) %

40 %

141.8 %

Earnings per share growth

33.9 %

288 %

512.2 %

Founded: 1,970

Employees: 79,800

Business Summary:CRH plc, established in Dublin, Ireland, in 1936, is a global provider of diverse building materials and integrated solutions. The company operates across numerous regions, including Ireland, the United States, the United Kingdom, and the wider European continent, through its three primary segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions. CRH's comprehensive offerings cater to the construction, maintenance, and renovation of a broad spectrum of projects, from public infrastructure and critical utility networks to commercial and residential developments, alongside outdoor living spaces. Its foundational product range includes aggregates, cement, ready-mixed concrete, mortars, and asphalt. Beyond these core materials, the company specializes in advanced concrete products, such as precast and pre-stressed elements like floor and wall components, beams, pipes, and manholes. It also supplies concrete and polymer-based solutions, including underground vaults, drainage systems, and modular structures, essential for sectors like water, energy, telecommunications, and rail. CRH further provides crushed stone, sand, and gravel, alongside engineered steel and polymer anchoring, fixing, and connecting solutions for new builds. Its hardscape collection features concrete masonry, pavers, blocks, retaining walls, and slabs, while consumer-focused items encompass fencing, railing systems, composite decking, and lawn and garden products. Additionally, CRH offers specialized paving and construction services.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Jul 30, 2026)

1) Strategic Positioning and Leadership
- CRH reported a record Q2 2026, driven by strong revenue growth, adjusted EBITDA, and margin expansion.
- The company completed 3 strategic divestitures totaling $1.9 billion and made 17 acquisitions for $1.4 billion, focusing on building a higher growth portfolio.
- A significant acquisition of Arcosa is expected to enhance CRH's position in the aggregates and critical infrastructure market in North America.
- The leadership emphasized a disciplined capital allocation strategy to maximize shareholder value and maintain a strong market position.

2) Financial and Segment Results
- Total revenues reached $10.8 billion, a 6% increase YoY, with adjusted EBITDA exceeding $2.6 billion, marking a 7% increase.
- Margin expanded by 30 basis points, and diluted EPS increased by 14%, aided by a $0.16 net gain from divestitures.
- Segment Performance: | Segment | Revenue Growth YoY | Adjusted EBITDA Growth YoY | Margin Expansion | |-----------------------------|---------------------|----------------------------|------------------| | Americas Materials Solutions | 10% | 12% | 40 bps | | Essential Materials | 20% | Not specified | Not specified | | Americas Building Solutions | -2% | -8% | Not specified | | International Solutions | 5% | 8% | 70 bps |

3) Challenges and Headwinds
- The Americas Building Solutions segment faced challenges due to recent divestitures and a subdued new build residential market, leading to a decline in revenues and EBITDA.
- Inflationary pressures, particularly in haulage rates, have impacted costs, although operational initiatives are being implemented to mitigate these effects.
- Weather disruptions in certain regions affected cement volumes, contributing to a mixed performance across segments.

4) Operational and Product Plans
- CRH is focusing on increasing exposure to infrastructure megatrends, including transportation, water, and reindustrialization, to drive long-term growth.
- The company is actively pursuing M&A opportunities, with a robust pipeline supported by its strong financial position and operational capabilities.
- The acquisition of Arcosa is expected to yield approximately $175 million in run-rate cost synergies by year three, with $60 million anticipated in the first year.
- CRH's connected portfolio strategy is designed to leverage synergies across its various business units, enhancing operational efficiency and market competitiveness.

5) Guidance and Outlook
- CRH reaffirmed its adjusted EBITDA guidance for 2026, projecting a range between $8.1 billion and $8.5 billion, with net income expected between $3.9 billion and $4.1 billion.
- The company anticipates continued margin expansion and strong performance driven by positive demand across key markets, despite geopolitical and macroeconomic uncertainties.
- The transcript lacks detailed figures on specific acquisitions' contributions and the exact impact of inflation on future pricing strategies.

Bottom line: CRH's strong Q2 performance, strategic acquisitions, and disciplined capital allocation position it well for continued growth and value creation, despite facing challenges in certain segments and macroeconomic headwinds. Shareholders can expect robust financial performance and a commitment to enhancing shareholder value through strategic initiatives.

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