CRH(CRH) - 2025 Q2 - Quarterly Report

General Information Filing Information This Form 10-Q quarterly report for CRH public limited company covers the period ended June 30, 2025 - The registrant is CRH public limited company, incorporated in Ireland, with its principal executive offices in Dublin[2] - As of July 23, 2025, the number of outstanding Ordinary Shares was 672,659,283 (excluding Treasury stock of 38,314,040 shares)[7] Securities Registered on NYSE | Title of each class: | Trading Symbols: | Name of each exchange on which registered: | | :------------------ | :--------------- | :--------------------------------------- | | Ordinary Shares of €0.32 each | CRH | New York Stock Exchange | | 5.200% Guaranteed Notes due 2029 | CRH/29 | New York Stock Exchange | | 5.125% Guaranteed Notes due 2030 | CRH/30 | New York Stock Exchange | | 6.400% Notes due 2033 | CRH/33A | New York Stock Exchange | | 5.400% Guaranteed Notes due 2034 | CRH/34 | New York Stock Exchange | | 5.500% Guaranteed Notes due 2035 | CRH/35 | New York Stock Exchange | | 5.875% Guaranteed Notes due 2055 | CRH/55 | New York Stock Exchange | Forward-Looking Statements The report contains forward-looking statements on CRH's future performance, which are subject to risks and uncertainties - Forward-looking statements are identified by words such as 'will', 'anticipates', 'should', 'could', 'would', 'targets', 'aims', 'may', 'continues', 'expects', 'is expected to', 'estimates', 'believes', 'intends' or similar expressions[13] - Key forward-looking statements include plans for 2025 performance drivers, demand outlook, macroeconomic trends, government funding, pricing, costs, weather, business strategy, cash returns, financial capacity, acquisitions, divestitures, and the pending acquisition of Eco Material[14] - Material factors that could cause actual results to differ include economic and financial conditions, industry cyclicality, competition, energy/labor/raw material costs, adverse laws/regulations, unfavorable weather, public sector funding, political uncertainty, and cyberattacks[16] PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents CRH's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 Condensed Consolidated Statements of Income Key Income Statement Data (Three Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Total revenues | 10,206 | 9,654 | 552 | 5.7% | | Gross profit | 4,026 | 3,675 | 351 | 9.5% | | Operating income | 1,935 | 1,829 | 106 | 5.8% | | Net income attributable to CRH | 1,319 | 1,297 | 22 | 1.7% | | Diluted EPS | $1.94 | $1.88 | $0.06 | 3.2% | Key Income Statement Data (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Total revenues | 16,962 | 16,187 | 775 | 4.8% | | Gross profit | 5,863 | 5,482 | 381 | 6.9% | | Operating income | 1,953 | 1,857 | 96 | 5.2% | | Net income attributable to CRH | 1,225 | 1,413 | (188) | -13.3% | | Diluted EPS | $1.78 | $2.03 | ($0.25) | -12.3% | Condensed Consolidated Statements of Comprehensive Income - Currency translation adjustment significantly impacted other comprehensive income, showing a gain of $511 million for the three months and $749 million for the six months ended June 30, 2025, compared to losses in the prior year periods[18] Comprehensive Income Attributable to CRH (Three Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | | :-------------------------------- | :---------------- | :---------------- | | Net income | 1,332 | 1,309 | | Other comprehensive income (loss) | 492 | (28) | | Comprehensive income attributable to CRH | 1,780 | 1,281 | Comprehensive Income Attributable to CRH (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | | :-------------------------------- | :---------------- | :---------------- | | Net income | 1,234 | 1,423 | | Other comprehensive income (loss) | 700 | (216) | | Comprehensive income attributable to CRH | 1,885 | 1,216 | Condensed Consolidated Balance Sheets - Goodwill increased to $11,673 million at June 30, 2025, from $11,061 million at December 31, 2024, reflecting recent acquisitions[19] Key Balance Sheet Data (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | Change (%) | | :----------------------------------- | :------------------------- | :----------------------------- | :------------------ | :--------- | | Total assets | 53,984 | 50,613 | 3,371 | 6.7% | | Total liabilities | 30,354 | 27,763 | 2,591 | 9.3% | | Total equity | 23,241 | 22,466 | 775 | 3.4% | | Cash and cash equivalents | 2,876 | 3,720 | (844) | -22.7% | | Long-term debt | 14,642 | 10,969 | 3,673 | 33.5% | Condensed Consolidated Statements of Cash Flows - Acquisitions, net of cash acquired, decreased significantly to $648 million in H1 2025 from $2,522 million in H1 2024[20] - Proceeds from debt issuances increased to $4,542 million in H1 2025 from $3,370 million in H1 2024, while payments on debt also increased to $3,352 million from $1,691 million[21] Key Cash Flow Data (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Net cash provided by operating activities | 719 | 773 | (54) | -7.0% | | Net cash used in investing activities | (1,795) | (2,617) | 822 | -31.4% | | Net cash used in financing activities | (12) | (515) | 503 | -97.7% | | Decrease in cash and cash equivalents | (883) | (2,444) | 1,561 | -63.9% | Condensed Consolidated Statements of Changes in Equity - Dividends declared on Common stock were $0.37 per common share for the three months ended June 30, 2025, and $0.74 per common share for the six months ended June 30, 2025[22][23] Changes in Equity Attributable to CRH Shareholders (Six Months Ended June 30, 2025) | Item | Amount ($ millions) | | :------------------------------------------ | :------------------ | | Balance at December 31, 2024 | 21,607 | | Net income | 1,225 | | Other comprehensive income | 660 | | Share-based compensation | 66 | | Repurchases and retirement of common stock | (644) | | Shares issued under employee share plans | (56) | | Dividends declared on common stock | (500) | | Adjustment of redeemable noncontrolling interests | (13) | | Balance at June 30, 2025 | 22,345 | Notes to Condensed Consolidated Financial Statements 1. Summary of Significant Accounting Policies CRH operates in the building materials industry and prepares its financial statements in accordance with U.S. GAAP - CRH is a major producer of aggregates, cement, readymixed concrete, asphalt, precast concrete, and outdoor living products, and a supplier of paving and construction services[28] - Restricted cash at June 30, 2025, was $6 million, primarily linked to government licenses for quarrying[33] 2. Revenue Revenue is disaggregated by three operating segments and four principal activities and products - On June 30, 2025, the Company had $4,046 million of transaction price allocated to remaining performance obligations, with the majority expected to be recognized within 12 months[43] Total Revenues by Segment (Three Months Ended June 30) | Segment | 2025 ($ millions) | 2024 ($ millions) | | :------------------------ | :---------------- | :---------------- | | Americas Materials Solutions | 4,509 | 4,406 | | Americas Building Solutions | 2,159 | 2,116 | | International Solutions | 3,538 | 3,132 | | Total | 10,206 | 9,654 | Total Revenues by Segment (Six Months Ended June 30) | Segment | 2025 ($ millions) | 2024 ($ millions) | | :------------------------ | :---------------- | :---------------- | | Americas Materials Solutions | 6,752 | 6,608 | | Americas Building Solutions | 3,841 | 3,809 | | International Solutions | 6,369 | 5,770 | | Total | 16,962 | 16,187 | 3. Acquisitions CRH completed 13 acquisitions for $648 million and announced a binding agreement to acquire Eco Material Technologies - Total cash consideration for acquisitions, net of cash acquired, was $648 million for the six months ended June 30, 2025[45][46] - Goodwill of $371 million was recognized from acquisitions, with $324 million expected to be tax deductible[47] - On July 29, 2025, CRH announced the acquisition of Eco Material Technologies for $2.1 billion, positioning CRH to meet demand for cementitious products in North America[48] 4. Accounts Receivable, Net Accounts receivable, net, increased to $6,490 million at June 30, 2025, driven by higher trade receivables - The allowance for credit losses increased from $140 million at January 1, 2025, to $151 million at June 30, 2025, primarily due to foreign currency translation and other adjustments[53] Accounts Receivable, Net ($ millions) | Category | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------- | :------------ | :---------------- | :------------ | | Trade receivables | 5,326 | 3,829 | 4,788 | | Construction contract assets | 834 | 690 | 887 | | Total accounts receivable | 6,160 | 4,519 | 5,675 | | Less: allowance for credit losses | (151) | (140) | (142) | | Other current receivables | 481 | 441 | 360 | | Total accounts receivable, net | 6,490 | 4,820 | 5,893 | 5. Inventories Total inventories increased to $5,051 million at June 30, 2025, mainly due to an increase in raw materials Inventories ($ millions) | Category | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------- | :------------ | :---------------- | :------------ | | Raw materials | 2,434 | 2,074 | 2,158 | | Work-in-process | 270 | 267 | 200 | | Finished goods | 2,347 | 2,414 | 2,156 | | Total inventories | 5,051 | 4,755 | 4,514 | 6. Goodwill Goodwill increased to $11,673 million at June 30, 2025, due to acquisitions and foreign currency adjustments Goodwill Carrying Value by Segment ($ millions) | Segment | Dec 31, 2024 | Acquisitions | FX Adjustment | Divestitures | June 30, 2025 | | :------------------------ | :----------- | :----------- | :------------ | :----------- | :------------ | | Americas Materials Solutions | 5,803 | 182 | 23 | – | 6,008 | | Americas Building Solutions | 3,070 | 142 | 11 | – | 3,223 | | International Solutions | 2,188 | 47 | 210 | (3) | 2,442 | | Total | 11,061 | 371 | 244 | (3) | 11,673 | 7. Additional Financial Information This section details changes in other current assets, accrued expenses, and other current/noncurrent liabilities Other Current Assets ($ millions) | Category | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------ | :------------ | :---------------- | :------------ | | Prepayments | 451 | 303 | 343 | | Income tax recoverable | 214 | 216 | 140 | | Other | 69 | 230 | 221 | | Total | 734 | 749 | 704 | Other Current Liabilities ($ millions) | Category | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------- | :------------ | :---------------- | :------------ | | Construction contract liabilities | 396 | 500 | 448 | | Insurance liability | 184 | 185 | 162 | | Income tax payable | 58 | 97 | 26 | | Other | 1,059 | 795 | 786 | | Total | 1,697 | 1,577 | 1,422 | 8. Debt Total long-term debt increased to $15,706 million at June 30, 2025, due to new Senior Notes issuances - In January 2025, CRH issued $1.25 billion 5.125% Senior Notes due 2030, $1.25 billion 5.500% Senior Notes due 2035, and $0.5 billion 5.875% Senior Notes due 2055[63] - The company's €3,500 million Revolving Credit Facility (RCF) was undrawn at June 30, 2025, with $4,104 million (€3,500 million equivalent) available[65] Total Long-Term Debt ($ millions) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--------------------------------- | :------------ | :---------------- | :------------ | | Total long-term debt | 15,706 | 13,851 | 12,959 | | Less: current portion of long-term debt | (1,064) | (2,882) | (3,059) | | Long-term debt (non-current) | 14,642 | 10,969 | 9,900 | Long-Term Debt Maturities (Net of Discounts/Costs) as of June 30, 2025 ($ millions) | Period | Amount | | :------------------ | :----- | | Remainder of 2025 | 1,064 | | 2026 | 2,939 | | 2027 | 1,478 | | 2028 | 1,457 | | 2029 | 2,744 | | 2030 and thereafter | 6,024 | | Total | 15,706 | 9. Fair Value Measurement CRH's long-term debt is classified as Level 2, while redeemable noncontrolling interests are Level 3 - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable market data other than quoted prices), and Level 3 (unobservable data)[71][72] Long-Term Debt Carrying vs. Fair Value ($ millions) | Date | Carrying Value | Fair Value | | :---------------- | :------------- | :--------- | | June 30, 2025 | 15,706 | 15,587 | | December 31, 2024 | 13,851 | 13,604 | | June 30, 2024 | 12,959 | 12,520 | 10. Income Taxes The effective tax rate was 24% for the three months and 23% for the six months ended June 30, 2025 Income Tax Expense and Effective Rate | Period | 2025 ($ millions) | 2024 ($ millions) | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :------------------ | :---------------- | :---------------- | :---------------------- | :---------------------- | | Three months ended June 30 | 425 | 430 | 24% | 25% | | Six months ended June 30 | 367 | 411 | 23% | 22% | 11. Earnings Per Share (EPS) Diluted EPS for the six months ended June 30, 2025, decreased to $1.78 from $2.03 in the prior year Earnings Per Share Attributable to CRH | Period | Basic EPS 2025 | Basic EPS 2024 | Diluted EPS 2025 | Diluted EPS 2024 | | :------------------ | :------------- | :------------- | :--------------- | :--------------- | | Three months ended June 30 | $1.95 | $1.89 | $1.94 | $1.88 | | Six months ended June 30 | $1.79 | $2.05 | $1.78 | $2.03 | Weighted Average Common Shares Outstanding (millions) | Period | Basic 2025 | Basic 2024 | Diluted 2025 | Diluted 2024 | | :------------------ | :--------- | :--------- | :----------- | :----------- | | Three months ended June 30 | 674.8 | 685.5 | 677.7 | 688.8 | | Six months ended June 30 | 675.8 | 686.6 | 679.9 | 691.1 | 12. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss decreased to $345 million due to positive currency translation adjustments - Currency translation adjustment contributed $511 million in other comprehensive income for the three months ended June 30, 2025, and $749 million for the six months ended June 30, 2025[80] Accumulated Other Comprehensive Loss Components ($ millions) | Component | Balance at March 31, 2025 | Net current-period OCI (loss) | Balance at June 30, 2025 | | :-------------------------- | :------------------------ | :-------------------------- | :----------------------- | | Currency Translation | (627) | 511 | (147) | | Cash Flow Hedges | (86) | (10) | (96) | | Pension and Other Postretirement Plans | (93) | (9) | (102) | | Total | (806) | 492 | (345) | 13. Segment Information CRH operates through three reportable segments, all of which showed Adjusted EBITDA growth for the period - Americas Materials Solutions provides aggregates, cement, readymixed concrete, asphalt, and paving/construction services in North America[81] - Americas Building Solutions manufactures and supplies building and infrastructure solutions, including water, energy, telecommunications projects, and outdoor living products[82] - International Solutions offers integrated building solutions across Europe and Australia, covering infrastructure, commercial, residential, and outdoor living spaces[83] Adjusted EBITDA by Segment (Three Months Ended June 30) | Segment | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Americas Materials Solutions | 1,241 | 1,193 | 48 | 4.0% | | Americas Building Solutions | 501 | 476 | 25 | 5.3% | | International Solutions | 721 | 586 | 135 | 23.0% | | Total Adjusted EBITDA | 2,463 | 2,255 | 208 | 9.2% | Adjusted EBITDA by Segment (Six Months Ended June 30) | Segment | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Americas Materials Solutions | 1,300 | 1,208 | 92 | 7.6% | | Americas Building Solutions | 788 | 784 | 4 | 0.5% | | International Solutions | 870 | 708 | 162 | 22.9% | | Total Adjusted EBITDA | 2,958 | 2,700 | 258 | 9.6% | 14. Pension and Other Postretirement Benefits Net periodic benefit cost for pension plans totaled $12 million for the six months ended June 30, 2025 Net Periodic Benefit Cost (Six Months Ended June 30, 2025) | Component | U.S. ($ millions) | Non-U.S. ($ millions) | | :---------------------- | :---------------- | :-------------------- | | Service cost | 1 | 20 | | Interest cost | 12 | 42 | | Expected return on assets | (11) | (49) | | Amortization of past service credit | – | (6) | | Amortization of actuarial loss | – | 3 | | Net periodic benefit cost | 2 | 10 | 15. Variable Interest Entities CRH consolidates its Philippines operations as a Variable Interest Entity (VIE) with total assets of $1,283 million - CRH's Philippines operations are consolidated as a VIE due to the Company's 55% share of earnings and distributions and control through contractual relationships, despite holding only 40% equity[92] Consolidated VIE Balance Sheet Data ($ millions) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------- | :------------ | :---------------- | :------------ | | Total assets | 1,283 | 1,264 | 1,277 | | Total liabilities | 704 | 673 | 658 | Consolidated VIE Operating Results (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | | :------------- | :---------------- | :---------------- | | Total revenues | 166 | 194 | | Gross (loss) profit | 1 | 18 | | Net loss | (30) | (12) | | Net cash used in operating activities | (12) | (2) | 16. Redeemable Noncontrolling Interests Redeemable noncontrolling interests increased to $389 million and are classified as temporary equity - Redeemable noncontrolling interests are adjusted to their expected redemption values, with an offsetting entry to retained earnings, if those amounts exceed their carrying values[95] Redeemable Noncontrolling Interests ($ millions) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :---------------- | :------------ | | Balance at period start | 384 | 384 | 333 | | Net income attributable to redeemable NCI | 8 | 8 | 12 | | Adjustment to the redemption value | 13 | 13 | 7 | | Dividends paid | (16) | (16) | (17) | | Balance at period end | 389 | 384 | 335 | 17. Commitments and Contingencies CRH has provided letters of guarantee totaling $14.9 billion for subsidiary obligations as of June 30, 2025 - Letters of guarantee for subsidiary obligations (loans, borrowings, bank advances, derivatives) amounted to $14.9 billion at June 30, 2025[97] - Letters of credit due within one year totaled $0.5 billion at June 30, 2025[97] 18. Subsequent Events No subsequent events requiring adjustment or disclosure were identified after the reporting period - No subsequent events requiring adjustment or disclosure were identified[99] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses CRH's operational and financial performance for the six months ended June 30, 2025 Introduction and Overview - CRH is a leading provider of building materials, integrating essential materials, value-added building products, and construction services across 28 countries[103][105] - The United States is expected to be a key driver of future growth due to economic expansion, population growth, and significant public investment in construction[105] - Acquisitions have accounted for approximately 60% of CRH's profit growth over the last decade, achieved by integrating businesses and generating synergies[106] - Construction industry activity is seasonal, with higher activity in spring, summer, and autumn, and can be significantly impacted by adverse weather conditions[107] Financial Performance Highlights Financial Performance Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | Change (%) | | :-------------------- | :--------- | :--------- | :------- | :--------- | | Total revenues | $10.2 billion | $9.654 billion | +$0.552 billion | +6% | | Net income | $1.3 billion | $1.309 billion | +$23 million | +1.8% | | Adjusted EBITDA* | $2.5 billion | $2.255 billion | +$208 million | +9% | | Net income margin | 13.1% | 13.6% | -50 bps | | | Adjusted EBITDA margin* | 24.1% | 23.4% | +70 bps | | | Diluted EPS | $1.94 | $1.88 | +$0.06 | +3.2% | Financial Performance Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | Change (%) | | :-------------------- | :--------- | :--------- | :------- | :--------- | | Total revenues | $17.0 billion | $16.187 billion | +$0.775 billion | +5% | | Net income | $1.2 billion | $1.4 billion | -$189 million | -13.5% | | Adjusted EBITDA* | $3.0 billion | $2.7 billion | +$258 million | +10% | | Net income margin | 7.3% | 8.8% | -150 bps | | | Adjusted EBITDA margin* | 17.4% | 16.7% | +70 bps | | | Diluted EPS | $1.78 | $2.03 | -$0.25 | -12.3% | Capital Allocation Highlights - Cash returned to shareholders through share buybacks was $0.6 billion in the first six months of 2025, with an additional $0.3 billion tranche announced[115] - Cash paid to shareholders through dividends was $0.5 billion, a decrease from $1.2 billion in the prior year due to a non-recurring second interim 2023 dividend in Q1 2024[115] - 13 acquisitions were completed for $0.7 billion, and $1.3 billion was invested in development and replacement capital expenditure projects[115] Development Review - CRH completed five acquisitions for $0.1 billion in Q2 2025 and 13 acquisitions for $0.7 billion in H1 2025[111] - The acquisition of Eco Material Technologies for $2.1 billion is expected to close in 2025, enhancing CRH's position in North American cementitious products[112] - Cash proceeds from divestitures and disposals of long-lived assets were $31 million in Q2 2025 and $0.1 billion in H1 2025, significantly lower than the prior year[113] Outlook - CRH raises its financial guidance for 2025, expecting favorable underlying demand driven by significant public investment in infrastructure and re-industrialization[114] - The new-build residential segment is expected to remain subdued, while repair and remodel activity is anticipated to be resilient[114] - The company anticipates another year of growth and value creation in 2025, assuming normal seasonal weather and stable political/macroeconomic conditions[114] Results of Operations Analysis - Gross profit margin increased by 130bps to 39.4% for Q2 2025 and by 70bps to 34.6% for H1 2025, despite higher labor costs and depreciation/amortization[120][121] - Interest expense increased by $45 million (Q2) and $93 million (H1) due to higher gross debt balances[127] - Net income for H1 2025 decreased by $189 million, primarily due to the non-recurrence of gains on prior year divestitures[134] Key Financial Metrics (Three Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Total revenues | 10,206 | 9,654 | 552 | 5.7% | | Gross profit | 4,026 | 3,675 | 351 | 9.5% | | Selling, general and administrative expenses | (2,120) | (1,948) | (172) | 8.8% | | Operating income | 1,935 | 1,829 | 106 | 5.8% | | Net income attributable to CRH | 1,319 | 1,297 | 22 | 1.7% | | Diluted EPS | $1.94 | $1.88 | $0.06 | 3.2% | Key Financial Metrics (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | | :------------------------------------------------ | :---------------- | :---------------- | :------------------ | :--------- | | Total revenues | 16,962 | 16,187 | 775 | 4.8% | | Gross profit | 5,863 | 5,482 | 381 | 6.9% | | Selling, general and administrative expenses | (3,953) | (3,735) | (218) | 5.8% | | Operating income | 1,953 | 1,857 | 96 | 5.2% | | Net income attributable to CRH | 1,225 | 1,413 | (188) | -13.3% | | Diluted EPS | $1.78 | $2.03 | ($0.25) | -12.3% | Segment Performance Analysis - International Solutions saw strong growth in Essential Materials (11% revenue increase) and Road Solutions (14% revenue increase) for H1 2025, benefiting from acquisitions and pricing[159][160] Americas Materials Solutions Performance (Six Months Ended June 30) | Metric | 2024 ($ millions) | Acquisitions | Divestitures | Organic | 2025 ($ millions) | % Change | | :---------------- | :---------------- | :----------- | :----------- | :------ | :---------------- | :------- | | Total revenues | 6,608 | +358 | (16) | (185) | 6,752 | +2% | | Adjusted EBITDA | 1,208 | +57 | +6 | +30 | 1,300 | +8% | | Adjusted EBITDA margin | 18.3% | | | | 19.3% | +100bps | Americas Building Solutions Performance (Six Months Ended June 30) | Metric | 2024 ($ millions) | Acquisitions | Divestitures | Organic | 2025 ($ millions) | % Change | | :---------------- | :---------------- | :----------- | :----------- | :------ | :---------------- | :------- | | Total revenues | 3,809 | +143 | (19) | (87) | 3,841 | +1% | | Adjusted EBITDA | 784 | +37 | (3) | (30) | 788 | +1% | | Adjusted EBITDA margin | 20.6% | | | | 20.5% | -10bps | International Solutions Performance (Six Months Ended June 30) | Metric | 2024 ($ millions) | Acquisitions | Divestitures | Organic | 2025 ($ millions) | % Change | | :---------------- | :---------------- | :----------- | :----------- | :------ | :---------------- | :------- | | Total revenues | 5,770 | +800 | (158) | (149) | 6,369 | +10% | | Adjusted EBITDA | 708 | +103 | (11) | +44 | 870 | +23% | | Adjusted EBITDA margin | 12.3% | | | | 13.7% | +140bps | Non-GAAP Reconciliation and Supplementary Information - CRH uses non-GAAP measures like Adjusted EBITDA, Net Debt, Organic Revenue, and Organic Adjusted EBITDA to monitor financial performance and provide additional insight to investors[163][165][168][171] Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Metric | 2025 ($ millions) | 2024 ($ millions) | | :------------------------------------ | :---------------- | :---------------- | | Net income | 1,234 | 1,423 | | Income tax expense | 367 | 411 | | Interest expense, net of interest income | 314 | 209 | | Depreciation, depletion and amortization | 1,005 | 821 | | Substantial acquisition-related costs | – | 22 | | Adjusted EBITDA | 2,958 | 2,700 | Net Debt Reconciliation ($ millions) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------ | :------------ | :---------------- | :------------ | | Short and long-term debt | (15,813) | (13,968) | (13,118) | | Cash and cash equivalents | 2,876 | 3,720 | 3,077 | | Finance lease liabilities | (442) | (257) | (147) | | Derivative financial instruments (net) | (27) | (27) | (91) | | Net Debt | (13,406) | (10,532) | (10,279) | Liquidity and Capital Resources - CRH's primary liquidity sources are cash flows from operating activities, cash and cash equivalents, uncommitted commercial paper programs, and committed credit lines[173] - Total short and long-term debt increased to $15.8 billion at June 30, 2025, from $14.0 billion at December 31, 2024, driven by new Senior Notes issuances[174] - Net Debt increased to $13.4 billion at June 30, 2025, from $10.5 billion at December 31, 2024, reflecting cash returns to shareholders and acquisitions[175] - Net cash provided by operating activities decreased by $54 million to $0.7 billion for H1 2025, primarily due to higher working capital investments[179] - Net cash used in investing activities decreased by $0.8 billion to $1.8 billion for H1 2025, mainly due to lower acquisition spend[181] - Net cash used in financing activities decreased by $503 million to $12 million for H1 2025, driven by increased debt issuances and lower dividend payments[182] Credit Ratings at June 30, 2025 | Agency | Short-Term | Long-Term | Outlook | | :----- | :--------- | :-------- | :------ | | S&P | A-2 | BBB+ | Stable | | Moody's | P-2 | Baa1 | Stable | | Fitch | F1 | BBB+ | Stable | Contractual Obligations Maturity Profile at June 30, 2025 ($ millions) | Category | Total | Less than 1 year | 2-3 years | 4-5 years | More than 5 years | | :------------------------------------------ | :---- | :--------------- | :-------- | :-------- | :---------------- | | Short and long-term debt | 15,886 | 1,185 | 4,452 | 4,216 | 6,033 | | Lease liabilities | 2,321 | 350 | 662 | 354 | 955 | | Estimated interest payments on committed debt | 5,355 | 633 | 1,112 | 839 | 2,771 | | Deferred and contingent acquisition consideration | 51 | 31 | 16 | 3 | 1 | | Purchase obligations | 2,266 | 1,291 | 614 | 114 | 247 | | Retirement benefit obligation commitments | 18 | 3 | 6 | 4 | 5 | | Total | 25,897 | 3,493 | 6,862 | 5,530 | 10,012 | Critical Accounting Policies and Estimates & Available Information - There have been no material changes to critical accounting policies and estimates disclosed in the 2024 Form 10-K[201] - CRH makes its SEC filings, earnings updates, presentations, and corporate governance policies available on its website (www.crh.com) and uses social media channels like LinkedIn for announcements[202][203][205] Item 3. Quantitative and Qualitative Disclosures About Market Risk CRH is exposed to market risks from foreign exchange, interest rates, and commodity prices - CRH uses interest rate swaps, foreign exchange forwards and swaps, and commodity contracts to manage market risks[207] - At June 30, 2025, 86% of total debt was fixed rate ($14.0 billion) and 14% was floating rate ($2.3 billion)[210] - A 100bps increase in interest rates would result in an approximately $6 million favorable impact on before-tax earnings and cash flows at June 30, 2025[211] - The U.S. Dollar equivalent gross notional amount of foreign exchange forward contracts was $3.8 billion at June 30, 2025[213] - A 10% weakening in foreign currency exchange rates versus the U.S. Dollar would decrease the fair market value of foreign currency contracts by approximately $27 million[214] - Commodity price risks (oil, electricity, coal, carbon credits) are managed through negotiated supply contracts, forward contracts, and derivative hedging programs[215][216] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, providing reasonable assurance[218] - No material changes in internal control over financial reporting occurred during the quarter[221] PART II - OTHER INFORMATION Item 1. Legal Proceedings The company is not involved in any legal proceedings expected to have a material adverse effect - No pending legal proceedings are expected to have a material adverse effect on the Company's financial condition, results of operations, or liquidity[222] - No relevant legal proceedings under environmental laws met the $1 million disclosure threshold[222] Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K - No material changes to risk factors disclosed in the 2024 Form 10-K[223] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities CRH repurchased 3.7 million Ordinary Shares for $0.3 billion during the second quarter of 2025 - The share repurchase program has returned a total of $9.0 billion to shareholders since its commencement in May 2018[224] Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------- | :----------------------------- | :--------------------------- | | April 1 – April 30, 2025 | 1,582,410 | $86.53 | | May 1 – May 31, 2025 | 1,047,549 | $95.70 | | June 1 – June 30, 2025 | 1,064,785 | $90.89 | | Total | 3,694,744 | | Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the reporting period - None[225] Item 4. Mine Safety Disclosures Mine safety violation information is included in Exhibit 95 to this Quarterly Report - Mine safety disclosures are provided in Exhibit 95 of this Quarterly Report[226] Item 5. Other Information This section details an amended CEO service agreement and deadlines for shareholder proposals for the 2026 AGM - The CEO's (Jim Mintern) service agreement was amended to align with updated compensation frameworks and U.S. market practice, specifically regarding Change in Control benefits[227] - Shareholder proposals for the 2026 AGM under Rule 14a-8 must be received by November 28, 2025[232] - Other nominations or business proposals for the 2026 AGM must be received between January 8, 2026, and February 7, 2026[233] - No Director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[235] Item 6. Exhibits This section lists all exhibits filed as part of, or incorporated by reference into, this Quarterly Report - Key exhibits include the Memorandum and Articles of Association, CRH plc Equity Incentive Plan, various share unit award agreements, the Amended & Restated Group Chief Executive Officer Service Agreement, and certifications from the CEO and CFO[239] Signatures The report is duly signed on behalf of the company by the Chief Financial Officer on August 6, 2025 - The report was signed by Nancy Buese, Chief Financial Officer, on August 6, 2025[240]