Company Performance - CRH's stock closed at $92.44, reflecting a +1.19% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.74% [1] - Over the past month, CRH shares experienced a loss of 0.86%, which is better than the Construction sector's loss of 6.25% and the S&P 500's loss of 4.77% [1] Upcoming Earnings - CRH is set to release its earnings report on May 5, 2025, with an expected EPS of -$0.06, indicating a 200% decline compared to the same quarter last year [2] - The consensus estimate for CRH's revenue is $6.88 billion, representing a 5.38% increase from the prior-year quarter [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $5.78 per share and revenue of $37.8 billion, reflecting changes of +7.24% and +6.28% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for CRH are important as they reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - Adjustments in estimates are correlated with stock price performance, and the Zacks Rank system has been developed to integrate these changes [5] Zacks Rank and Valuation - CRH currently holds a Zacks Rank of 3 (Hold), with a 0.17% decline in the Zacks Consensus EPS estimate over the past month [6] - The company has a Forward P/E ratio of 15.81, which is a premium compared to the industry's average Forward P/E of 15.41, and a PEG ratio of 1.45, lower than the industry average PEG ratio of 1.82 [7] Industry Context - The Building Products - Miscellaneous industry, part of the Construction sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [8]

Oldcastle APG, a CRH plc (CRH) company, has announced the acquisition of the bagged and bulk mulch and soil assets of H&H General Excavating. This strategic move expands Oldcastle APG’s Lawn & Garden division, reinforcing its leadership in outdoor living solutions.Strengthening Northeast Market PresenceWith the addition of H&H’s facilities in Spring Grove and York, PA, Oldcastle APG broadens its product range and enhances its service capabilities in the Northeast. The acquisition ensures greater customer ac ...

Core Viewpoint - CRH's stock performance has lagged behind major indices, with a notable decline over the past month, and upcoming earnings are anticipated to show a significant drop in EPS compared to the previous year [1][2]. Financial Performance - The upcoming EPS for CRH is projected at -$0.06, indicating a 200% decrease year-over-year [2]. - Revenue is expected to reach $7.05 billion, reflecting a 7.9% increase compared to the same quarter last year [2]. - For the full year, earnings are projected at $5.82 per share and revenue at $38.09 billion, representing increases of 7.98% and 7.09% respectively from the prior year [3]. Analyst Estimates and Market Sentiment - Recent revisions to analyst estimates have shown a 3.76% decrease in the Zacks Consensus EPS estimate over the past month, indicating a bearish sentiment [5]. - CRH currently holds a Zacks Rank of 4 (Sell), suggesting a negative outlook from analysts [5]. Valuation Metrics - CRH is trading at a Forward P/E ratio of 16.68, which is above the industry average of 16.32, indicating a premium valuation [6]. - The company has a PEG ratio of 1.21, compared to the industry average of 1.76, suggesting a more favorable growth expectation relative to its price [7]. Industry Context - The Building Products - Miscellaneous industry, which includes CRH, has a Zacks Industry Rank of 155, placing it in the bottom 39% of over 250 industries [7].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on CRH, and highlights the disparity between brokerage ratings and actual stock performance, suggesting that investors should be cautious in relying solely on these recommendations [1][4][9]. Group 1: Brokerage Recommendations for CRH - CRH has an average brokerage recommendation (ABR) of 1.29, indicating a consensus between Strong Buy and Buy, with 79% of recommendations being Strong Buy and 10.5% being Buy [2][12]. - The ABR is based on recommendations from 19 brokerage firms, with 15 Strong Buy and 2 Buy ratings [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often do not successfully guide investors in selecting stocks with the highest price increase potential [4][9]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, issuing five Strong Buy recommendations for every Strong Sell [5][9]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which are more effective in predicting near-term stock price movements [7][10]. - Unlike the ABR, which may not be up-to-date, the Zacks Rank reflects timely changes in earnings estimates, providing a more accurate prediction of future stock prices [11]. Group 4: Current Earnings Estimates for CRH - The Zacks Consensus Estimate for CRH has declined by 4% over the past month to $5.84, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for CRH, suggesting that the positive ABR should be viewed with caution [13].

Group 1 - CRH plc (NYSE: CRH) recently reported Q4 results, prompting a detailed analysis of the numbers and short-term outlook [1] - The analysis reflects a skeptical view on the immediate future, indicating a preference for long-term investment strategies with a 5-10 year horizon [1] - The investment philosophy emphasizes a diversified portfolio consisting of growth, value, and dividend-paying stocks, with a particular focus on value [1]

Financial Data and Key Metrics Changes - Total full year revenues reached $35.6 billion, a 2% increase from the prior year, driven by resilient underlying demand and contributions from acquisitions [14] - Adjusted EBITDA for the full year was $6.9 billion, up 12% year-over-year, with a margin expansion of 180 basis points [14] - Earnings per share increased by 18% compared to the previous year, with returns improving to 15.5% in 2024, up 20 basis points [15] Business Line Data and Key Metrics Changes - **Americas Materials Solutions**: Full year sales and adjusted EBITDA were up 5% and 22% respectively, primarily due to price increases and operational efficiencies [17] - **Essential Materials**: Revenues increased by 5%, supported by a 10% price growth in aggregates and 8% in cement [17] - **Road Solutions**: Revenues also rose by 5%, driven by improved pricing in asphalt and ready-mix concrete [17] - **Americas Building Solutions**: Profitability was slightly behind the previous year due to challenging weather and subdued demand in new-build residential segments [22] - **International Solutions**: Adjusted EBITDA increased by 7% with a 120 basis point margin expansion, supported by positive pricing momentum [23] Market Data and Key Metrics Changes - Infrastructure remains the largest end-market, supported by robust state and federal funding, with only a third of highway funds from the IIJA deployed to date [19][50] - Non-residential construction segments, including manufacturing facilities and data centers, showed good activity levels [20] - In international markets, demand in Central and Eastern Europe is supported by public and private funding, while Western Europe is stabilizing [23][24] Company Strategy and Development Direction - The company focuses on capital allocation to support strategic growth initiatives, having invested $5 billion in 40 acquisitions in 2024 [11][30] - The strategy emphasizes a customer-connected solutions approach, integrating materials and services across the construction value chain to maximize growth and profitability [12] - Future growth is expected to be driven by urbanization, transportation, and critical infrastructure megatrends [43][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive market backdrop for 2025, particularly in infrastructure and non-residential sectors [58][61] - The company anticipates continued demand supported by state and federal funding, with expectations for adjusted EBITDA between $7.3 billion and $7.7 billion for 2025 [52] - The outlook for residential construction remains subdued in the short term, but long-term fundamentals are considered attractive [50] Other Important Information - The company declared a new quarterly dividend of $0.37 per share, representing a 6% increase from the prior year, continuing a track record of over 40 years of dividend growth [32] - The net debt at year-end was $10.5 billion, with a net debt to adjusted EBITDA ratio of 1.5 times [31] Q&A Session Summary Question: Additional color on the '25 outlook in terms of end-markets segments - Management highlighted a positive market backdrop across key markets, particularly in U.S. infrastructure supported by ongoing funding [58][61] Question: Guidance for U.S. aggregates volumes and pricing - Expected low single-digit volume improvement and mid-to-high single-digit pricing growth for aggregates in 2025, supported by strong backlogs [72] Question: M&A expectations for acquired assets - Management expects outsized margin improvement from acquired assets, driven by operational performance and synergies [75][77] Question: Changes in strategic direction under new CEO - The company will continue its successful strategy while focusing more on innovation and technology to enhance construction processes [83][85] Question: Focus areas for M&A in 2025 - The company sees opportunities in higher growth markets and emphasizes the connected nature of its portfolio for superior returns [90][92] Question: Update on the cost environment for 2025 - The company anticipates mid single-digit cost increases due to inflationary pressures, highlighting the importance of continued pricing momentum [100][101] Question: Infrastructure funding concerns - Management remains optimistic about bipartisan support for infrastructure investment, with significant funding still to be deployed [109][111] Question: Margin trajectory for the business - The company aims for continued margin expansion, emphasizing a culture of continuous improvement and operational excellence [120][121]

Revenue Breakdown - In 2024, approximately 35% of revenues came from infrastructure, 30% from non-residential construction, and 35% from residential construction[20] - The Americas Materials Solutions segment accounted for approximately 45% of CRH's total revenues and 54% of Adjusted EBITDA in 2024[37] - In 2024, the Americas Building Solutions segment accounted for approximately 20% of CRH's total revenues and 20% of Adjusted EBITDA, with 65% of segment revenues from residential sales[42] - The International Division accounted for approximately 35% of CRH's total revenues and 26% of Adjusted EBITDA in 2024, with 35% of segment revenues from infrastructure projects[45] Acquisitions and Investments - CRH completed 40 acquisitions for a total consideration of $5.0 billion in 2024, compared to $0.7 billion in 2023[22] - The largest acquisition in 2024 was in the Americas Materials Solutions segment, involving cement and readymixed concrete operations in Texas[22] - CRH's investment in innovation includes a $250 million Venturing and Innovation Fund to support new technologies and solutions[31] - The company is investing $250 million in its Venturing and Innovation Fund to support the development of new technologies and innovative solutions[31] - CRH has established a $250 million Venturing and Innovation Fund to support the development of new technologies and innovative solutions[79] Sustainability and Environmental Impact - Revenues from products with enhanced sustainability attributes reached $14.6 billion in 2024, an increase of 5% compared to 2023 and 16% compared to 2022[32] - CRH's absolute carbon emissions decreased by 4% from 31.0 million tonnes in 2023 to 29.7 million tonnes in 2024, while cement-specific net CO2 emissions per tonne reduced to 537kg[62] - In 2024, CRH recycled 44.7 million tonnes of by-products and wastes for use as alternative materials and fuels, up from 43.9 million tonnes in 2023[62] - CRH aims for a 30% reduction in absolute carbon dioxide emissions by 2030 from a 2021 base year, with a validated target in line with a 1.5°C trajectory[62] - The company is committed to a sustainable and resilient supply chain, actively monitoring its resilience to ensure access to required inputs[65] Operational Performance - Approximately 72% of net income and 74% of Adjusted EBITDA were generated in North America in 2024[21] - Annualized aggregates sales volumes in 2024 were 229.8 million tons for the Americas Division and 143.1 million tons for the International Division[47] - Annualized cement sales volumes in 2024 were 13.9 million tons for the Americas Division and 35.7 million tons for the International Division[48] - Annualized readymixed concrete sales volumes in 2024 were 17.4 million cubic yards for the Americas Division and 21.1 million cubic yards for the International Division[48] - Annualized asphalt sales volumes in 2024 were 52.2 million tons for the Americas Division and 10.0 million tons for the International Division[49] Workforce and Safety - The company employs approximately 79,800 people across 3,816 locations in 28 countries, with 47,400 in the Americas Division and 32,400 in the International Division[72] - In 2024, CRH achieved a lost time incident rate of 0.22, with 94% of locations reporting zero accidents[74] - The company employs approximately 47,400 people at 2,008 locations across the United States and Canada[36] Strategic Focus - CRH's strategy focuses on integrating building materials, products, and services to provide complete solutions for construction challenges[24] - The company continues to expand its North American and International operations to meet increasing demand for customer-connected solutions[21] - CRH prioritizes investment in markets with attractive fundamentals, driving demand for construction amid strong competition in fragmented markets[67] - The company operates in 28 countries, with significant market leadership in North America, Europe, and Australia[21] - The company is focused on research initiatives including hydrogen use, carbon mineralization projects, and Carbon Capture Usage and Storage (CCUS)[79]

Financial Performance - Total revenues for Q4 2024 were $8.9 billion, a 2% increase from Q4 2023, while full year revenues reached $35.6 billion, also up 2% year-over-year[3][8] - Net income for Q4 2024 was $0.7 billion, a 24% increase compared to Q4 2023, with full year net income at $3.5 billion, reflecting a 15% growth[3][8] - Adjusted EBITDA for Q4 2024 was $1.8 billion, a 12% increase year-over-year, with full year Adjusted EBITDA at $6.9 billion, also up 12%[3][8] - Basic earnings per share rose by 16% to $5.06, driven by improved operating performance and higher gains from asset disposals[52] - Net income for the year 2024 was $3,521 million, representing a 14.6% increase compared to $3,072 million in 2023[67] - Adjusted EBITDA for the year 2024 was $6,930 million, up 12.2% from $6,176 million in 2023[74] - Operating income for 2024 increased to $4,925 million from $4,186 million in 2023, reflecting a growth of 17.7%[80] - The company reported a net income margin of 9.9% for the year 2024, up from 8.8% in 2023[74] Acquisitions and Investments - The company completed 40 acquisitions in 2024 for a total consideration of $5.0 billion, significantly higher than $0.7 billion in 2023[9][10] - The largest acquisition in 2024 was a $2.1 billion purchase of cement and readymixed concrete assets in Texas[10] Future Outlook - For FY 2025, the company expects net income between $3.7 billion and $4.1 billion, and Adjusted EBITDA between $7.3 billion and $7.7 billion[5][23] - Positive underlying demand is anticipated in 2025, supported by significant public investment in infrastructure and ongoing re-industrialization activities[19][20] - The company plans to host a conference call on February 27, 2025, to discuss 2024 results and the outlook for 2025[57] Shareholder Returns - The company plans to increase its quarterly dividend to $0.37 per share, a 6% year-over-year increase, and has initiated a new $0.3 billion share buyback program[5][16][17] Segment Performance - The Americas Materials Solutions segment reported total revenues of $16.2 billion for FY 2024, a 5% increase from the previous year, driven by price increases and acquisitions[29] - Total revenues for Essential Materials increased by 5% year-over-year, driven by aggregates and cement pricing, which rose by 10% and 8%, respectively[30] - Adjusted EBITDA for Americas Materials Solutions reached $3.7 billion, 22% higher than the previous year, with an 18% organic growth[32] - Americas Building Solutions reported total revenues of $7,059 million for 2024, a 1% increase from 2023, while organic revenues were 2% lower[36] - Adjusted EBITDA for Americas Building Solutions was $1,389 million, a 4% decrease from 2023, with a margin of 19.7%[36] - International Solutions' total revenues for 2024 were $12,340 million, a 1% decline from the prior year, with organic revenues down by 4%[44] - Adjusted EBITDA for International Solutions increased by 7% to $1,796 million, with an adjusted EBITDA margin of 14.6%[44] Debt and Cash Flow - Total debt increased to $14.0 billion by the end of 2024, up from $11.6 billion in 2023, reflecting acquisitions and cash returns to shareholders[54] - Net cash provided by operating activities remained stable at $5.0 billion, consistent with the previous year[53] - Cash and cash equivalents decreased to $3,720 million at the end of 2024, down from $6,341 million at the end of 2023[66] - Long-term debt increased to $10,969 million in 2024, compared to $9,776 million in 2023[66] - Net Debt rose significantly to $10,532 million in 2024, compared to $5,406 million in 2023, highlighting increased leverage[84] Asset Management - Segment assets increased to $45,534 million in 2024 from $38,868 million in 2023, a rise of 17.2%[80] - Total assets reported in the Consolidated Balance Sheets increased to $50,613 million in 2024 from $47,469 million in 2023[80] - Average net assets for 2024 were $32,865 million, up from $29,706 million in 2023, reflecting a growth of 7.3%[80] Sustainability Initiatives - The company is committed to reducing absolute carbon emissions by 30% by 2030, focusing on innovative solutions and sustainability[18] Impairments - The company incurred a loss on impairments of $161 million for the year 2024, consistent with the previous year[67] - The total impairment loss for 2024 was $161 million, compared to $357 million in 2023, indicating a reduction in impairment charges[80]

Company Performance - CRH's stock closed at $102.07, reflecting a -1.23% change from the previous day's closing price, which is less than the S&P 500's daily gain of 0.67% [1] - Over the past month, CRH's stock has increased by 12.6%, outperforming the Construction sector's gain of 1.44% and the S&P 500's gain of 2.07% [1] Upcoming Earnings - CRH is expected to report an EPS of $1.49, representing a 15.5% increase from the same quarter last year [2] - The consensus estimate for CRH's revenue is $9.27 billion, indicating a growth of 6.76% compared to the corresponding quarter of the previous year [2] Analyst Estimates - Recent changes to analyst estimates for CRH reflect evolving short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for stock performance [4] Zacks Rank and Valuation - CRH currently holds a Zacks Rank of 3 (Hold), with a 0.5% decline in the Zacks Consensus EPS estimate over the past month [5] - The company is trading at a Forward P/E ratio of 17.15, which is a discount compared to the industry's average Forward P/E of 17.73 [6] - CRH has a PEG ratio of 1.16, while the average PEG ratio for the Building Products - Miscellaneous industry is 1.9 [6] Industry Context - The Building Products - Miscellaneous industry is part of the Construction sector and has a Zacks Industry Rank of 133, placing it in the bottom 48% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1: Company Performance - CRH closed at $98.61, reflecting a +1.3% change from the previous session, outperforming the S&P 500's daily gain of 0.72% [1] - Over the past month, CRH shares gained 3.98%, surpassing the Construction sector's loss of 1.03% and the S&P 500's gain of 1.02% [1] Group 2: Earnings Forecast - Analysts predict CRH will report an EPS of $1.48, indicating a 14.73% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $9.27 billion, up 6.76% from the year-ago period [2] Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for CRH reflect favorable short-term business trends, indicating a positive outlook on the company's health and profitability [3] - CRH currently holds a Zacks Rank of 3 (Hold), with a 0.36% rise in the Zacks Consensus EPS estimate over the past month [5] Group 4: Valuation Metrics - CRH has a Forward P/E ratio of 16.09, which is a discount compared to the industry's average Forward P/E of 17.33 [6] - The company has a PEG ratio of 1.06, compared to the average PEG ratio of 1.81 for the Building Products - Miscellaneous industry [7] Group 5: Industry Context - The Building Products - Miscellaneous industry is part of the Construction sector and has a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [8]