CRH(CRH) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Key Financial Highlights CRH reported strong Q2 2025 financial results with revenue growth, increased Adjusted EBITDA, and a positive outlook for FY25, driven by favorable demand, commercial management, and acquisitions Q2 2025 Summary Financials | Summary Financials | Q2 2025 | YoY Change | | :----------------- | :------ | :--------- | | Total revenues | $10.2bn | +6% | | Net income | $1.3bn | +2% | | Net income margin | 13.1% | (50bps) | | Adjusted EBITDA* | $2.5bn | +9% | | Adjusted EBITDA margin* | 24.1% | +70bps | | Diluted Earnings Per Share | $1.94 | +3% | FY25 Guidance | FY25 Guidance | Amount (in $ billions) | | :------------ | :----- | | Net income | $3.8bn-$3.9bn | | Adjusted EBITDA* | $7.5bn-$7.7bn | CEO Statement & Strategic Overview CEO Jim Mintern highlighted strong Q2 performance due to favorable demand, disciplined commercial management, and acquisitions. The company's strategy drove higher sales, profits, and Adjusted EBITDA margins, with significant capital allocated to growth investments and shareholder returns, including 19 acquisitions year-to-date and a raised 2025 guidance - Strong Q2 performance driven by favorable underlying demand, disciplined commercial management, and contributions from acquisitions[6][7] - Allocated approximately $3 billion to growth investments and capital returns year-to-date, including 19 acquisitions[6][7] - Agreed to acquire Eco Material Technologies for $2.1 billion, accelerating cementitious growth strategy and securing long-term supply of critical materials[7][10] - Commencing a new $0.3 billion quarterly share buyback tranche, with $0.8 billion completed year-to-date, and declared a quarterly dividend of $0.37 per share (+6% YoY)[7][12][13] - Raised 2025 guidance, expecting positive activity across key end-use markets[6][7][15] Q2 2025 Financial Performance Overall Performance Overview CRH's Q2 2025 saw a 6% increase in total revenues to $10.2 billion, primarily due to acquisitions and commercial execution. Net income grew 2% to $1.3 billion, despite higher expenses and reduced divestiture gains. Adjusted EBITDA rose 9% to $2.5 billion, improving the Adjusted EBITDA margin to 24.1% Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total revenues | $10.2bn | $9.7bn | +6% | | Net income | $1.3bn | $1.3bn | +2% | | Net income margin | 13.1% | 13.6% | (50bps) | | Adjusted EBITDA* | $2.5bn | $2.3bn | +9% | | Adjusted EBITDA margin* | 24.1% | 23.4% | +70bps | | Diluted EPS | $1.94 | $1.88 | +3% | - Revenue growth driven by positive impact of acquisitions and disciplined commercial execution, offsetting lower activity in weather-impacted regions[8] - Net income growth reflects strong underlying operating performance, despite higher depreciation and interest expenses and reduced gains from divestitures[8] Acquisitions and Divestitures CRH completed five acquisitions totaling $0.1 billion in Q2 2025 and 13 acquisitions for $0.7 billion year-to-date. A significant agreement was reached to acquire Eco Material Technologies for $2.1 billion, enhancing CRH's position in cementitious materials. Divestiture proceeds were significantly lower compared to the prior year Acquisitions and Divestitures Summary | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Acquisitions (number) | 5 | N/A | 13 | N/A | | Acquisitions (consideration) | $0.1bn | $0.4bn | $0.7bn | $2.6bn | | Divestiture proceeds | $31m | $0.4bn | $0.1bn | $1.1bn | - Agreement to acquire Eco Material Technologies for $2.1 billion, a leading supplier of Supplementary Cementitious Materials (SCMs) in North America, expected to close in 2025[10] - The Eco Material acquisition positions CRH at the forefront of the transition to next-generation cement and concrete, securing long-term supply of high-value critical materials[10] Capital Allocation (Dividends and Share Buybacks) CRH declared a quarterly dividend of $0.37 per share, a 6% increase year-over-year, consistent with its long-term dividend growth policy. The company also completed $0.3 billion in share repurchases in Q2 2025, bringing year-to-date repurchases to $0.8 billion, and announced a new $0.3 billion tranche - Declared a quarterly dividend of $0.37 per share, representing a 6% increase from the prior year[12] - Repurchased approximately 3.7 million Ordinary Shares for $0.3 billion in Q2 2025, with year-to-date repurchases totaling $0.8 billion[13] - Commencing an additional $0.3 billion share buyback tranche to be completed by November 5, 2025[13] Segment Performance Americas Materials Solutions Americas Materials Solutions reported a 2% increase in total revenues and a 4% rise in Adjusted EBITDA for Q2 2025. Growth was primarily driven by acquisitions and pricing improvements, which helped offset weather-related challenges. Essential Materials saw a 4% revenue increase with positive pricing and demand, while Road Solutions revenues increased by 2% despite a decline in asphalt volumes Americas Materials Solutions Q2 2025 Performance | in $ millions | Q2 2024 | Acquisitions | Organic | Q2 2025 | % change | | :------------ | :------ | :----------- | :------ | :------ | :------- | | Total revenues | 4,406 | +214 | (108) | 4,509 | +2% | | Adjusted EBITDA | 1,193 | +47 | +2 | 1,241 | +4% | | Adjusted EBITDA margin | 27.1% | | | 27.5% | | - Essential Materials revenues increased by 4% due to positive pricing (Aggregates +4%, Cement +2%) and favorable underlying demand, with volumes up 5% for Aggregates and 1% for Cement[20] - Road Solutions revenues increased by 2%, with readymixed concrete volumes up 6% and pricing up 2%, while asphalt volumes decreased by 2% due to adverse weather[21] Americas Building Solutions Americas Building Solutions achieved a 2% increase in total revenues and a 5% rise in Adjusted EBITDA for Q2 2025. This growth was supported by acquisitions and strong demand in water infrastructure and data center activity, which helped mitigate adverse weather impacts and subdued residential activity Americas Building Solutions Q2 2025 Performance | in $ millions | Q2 2024 | Acquisitions | Organic | Q2 2025 | % change | | :------------ | :------ | :----------- | :------ | :------ | :------- | | Total revenues | 2,116 | +83 | (28) | 2,159 | +2% | | Adjusted EBITDA | 476 | +22 | +5 | 501 | +5% | | Adjusted EBITDA margin | 22.5% | | | 23.2% | | - Building & Infrastructure Solutions revenues were 3% ahead, driven by acquisitions and strong demand in water infrastructure and data center activity[24] - Outdoor Living Solutions revenues were 2% ahead, with acquisitions mitigating subdued residential activity[24] International Solutions International Solutions delivered robust performance in Q2 2025, with total revenues up 13% and Adjusted EBITDA up 23%. This strong growth was primarily fueled by significant contributions from acquisitions, sustained pricing momentum, and operational efficiencies, despite reduced activity in some markets International Solutions Q2 2025 Performance | in $ millions | Q2 2024 | Acquisitions | Organic | Q2 2025 | % change | | :------------ | :------ | :----------- | :------ | :------ | :------- | | Total revenues | 3,132 | +430 | (96) | 3,538 | +13% | | Adjusted EBITDA | 586 | +74 | +29 | 721 | +23% | | Adjusted EBITDA margin | 18.7% | | | 20.4% | | - Essential Materials revenues increased by 14%, with aggregates and cement volumes up 5% and 12% respectively, and pricing up 3% and 2%[27] - Road Solutions revenues increased by 16%, driven by readymixed concrete volumes up 21% and pricing up 9%, benefiting from the Adbri acquisition[28] - Adjusted EBITDA margin increased by 170bps, driven by successful integration of acquisitions, increased pricing, and operational efficiencies[29] Financial Position & Outlook Other Financial Items In Q2 2025, depreciation, depletion, and amortization charges increased by $0.1 billion to $0.5 billion due to acquisitions and higher capital expenditure. Gains on asset disposals decreased significantly, and interest expense rose to $200 million due to increased gross debt balances, while diluted EPS improved to $1.94 Q2 2025 Other Financial Items | Item | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Depreciation, depletion, amortization | $0.5bn | $0.4bn | +$0.1bn | | Gains on disposal of long-lived assets | $29m | $102m | -$73m | | Interest income | $30m | $36m | -$6m | | Interest expense | $200m | $155m | +$45m | | Other nonoperating (expense) income, net | ($9)m | $23m | -$32m | | Diluted EPS | $1.94 | $1.88 | +$0.06 | - Increase in depreciation, depletion, and amortization primarily due to the impact of acquisitions and higher capital expenditure[30] - Higher interest expense primarily due to an increase in gross debt balances[31] Balance Sheet and Liquidity CRH's total debt increased to $15.8 billion at June 30, 2025, with Net Debt rising to $13.4 billion, reflecting cash returns to shareholders, acquisitions, and capital expenditures. The company maintained strong liquidity with $2.9 billion in cash and $4.2 billion in undrawn committed facilities, and remains committed to an investment-grade credit rating Debt and Liquidity Overview | Metric | June 30, 2025 (in $ billions) | Dec 31, 2024 (in $ billions) | June 30, 2024 (in $ billions) | | :-------------------------------- | :------------ | :----------- | :------------ | | Total short and long-term debt | $15.8bn | $14.0bn | $13.1bn | | Net Debt* | $13.4bn | $10.5bn | $10.3bn | | Cash and cash equivalents | $2.9bn | $3.7bn | $3.9bn | | Undrawn committed facilities | $4.2bn | N/A | N/A | - Issued $3.0 billion in Senior Notes in January 2025 and repaid $0.3 billion of Euro Commercial Paper and $1.25 billion Senior Notes due 2025[33] - Weighted average maturity of term debt (net of cash) was 8.1 years at June 30, 2025[35] - Maintains a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program, with $1.0 billion outstanding under the U.S. program[36] - Committed to maintaining a strong investment-grade credit rating (BBB+ or equivalent)[36] 2025 Full Year Outlook CRH raised its financial guidance for 2025, anticipating favorable underlying demand across key end-use markets, supported by public investment in infrastructure and re-industrialization. While the new-build residential segment is expected to remain subdued, repair and remodel activity is resilient, underpinning another year of growth and value creation Updated 2025 Full Year Guidance | 2025 Guidance (in $ billions, except per share data) | Updated Guidance (Low) | Updated Guidance (High) | Previous Guidance (Low) | Previous Guidance (High) | | :------------------------------------------------- | :--------------------- | :---------------------- | :---------------------- | :----------------------- | | Net income (ii) | 3.8 | 3.9 | 3.7 | 4.1 | | Adjusted EBITDA* | 7.5 | 7.7 | 7.3 | 7.7 | | Diluted EPS (ii) | $5.49 | $5.72 | $5.34 | $5.80 | | Capital expenditure | 2.8 | 3.0 | 2.8 | 3.0 | - Expects favorable underlying demand in 2025, driven by significant public investment in critical infrastructure and continued re-industrialization in non-residential segments[15] - New-build residential segment expected to remain subdued, while repair and remodel activity remains resilient[15] Additional Information Conference Call & Dividend Timetable CRH will host a conference call and webcast on August 7, 2025, to discuss Q2 2025 results and the 2025 outlook. The timetable for the quarterly dividend payment of $0.37 per share has been set, with an ex-dividend date of August 22, 2025, and payment on September 24, 2025 - Conference call and webcast scheduled for August 7, 2025, at 8:00 a.m. (EDT) to discuss Q2 2025 results and 2025 outlook[37] Quarterly Dividend Timetable | Event | Date | | :-------------- | :------------- | | Ex-dividend Date | August 22, 2025 | | Record Date | August 22, 2025 | | Payment Date | September 24, 2025 | - Default payment currency is U.S. Dollar for DTC participants and registered shareholders, with Euro as default for Depository Interests holders, who can elect U.S. Dollar or Pounds Sterling[38][39] Appendices The appendices provide detailed financial statements, including condensed consolidated statements of income, balance sheets, and cash flows, prepared in accordance with U.S. GAAP. They also include reconciliations for non-GAAP measures like Adjusted EBITDA and Net Debt, along with a disclaimer regarding forward-looking statements and associated risks Primary Statements Appendix 1 presents the unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025, including Statements of Income, Balance Sheets, and Cash Flows, which are extracts from the upcoming Form 10-Q filing Condensed Consolidated Statements of Income (Unaudited) - Q2 2025 | (in $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Total revenues | 10,206 | 9,654 | | Gross profit | 4,026 | 3,675 | | Operating income | 1,935 | 1,829 | | Net income | 1,332 | 1,309 | | Diluted EPS | $1.94 | $1.88 | Condensed Consolidated Balance Sheets (Unaudited) - June 30, 2025 | (in $ millions) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :---------------- | :------------ | | Total current assets | 15,151 | 14,083 | 15,113 | | Total assets | 53,984 | 50,613 | 48,105 | | Total current liabilities | 8,684 | 10,296 | 10,548 | | Long-term debt | 14,642 | 10,969 | 9,900 | | Total liabilities | 30,354 | 27,763 | 26,654 | | Total equity | 23,241 | 22,466 | 21,116 | Condensed Consolidated Statements of Cash Flows (Unaudited) - Six months ended June 30, 2025 | (in $ millions) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 719 | 773 | | Net cash used in investing activities | (1,795) | (2,617) | | Net cash used in financing activities | (12) | (515) | | Cash and cash equivalents and restricted cash at end of period | 2,876 | 3,946 | Non-GAAP Reconciliation and Supplementary Information Appendix 2 defines and reconciles non-GAAP financial measures used by CRH, including Adjusted EBITDA, Net Debt, Organic Revenue, and Organic Adjusted EBITDA. These measures provide additional insights into financial performance and are regularly reviewed by management, but should not be considered alternatives to GAAP measures - Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and investments, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component[51] Adjusted EBITDA Reconciliation (Q2 2025) | (in $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | | Net income | 1,332 | 1,309 | | Interest expense | 200 | 155 | | Depreciation, depletion and amortization | 528 | 424 | | Adjusted EBITDA | 2,463 | 2,255 | | Adjusted EBITDA margin | 24.1% | 23.4% | - Net Debt comprises short and long-term debt, finance lease liabilities, cash and cash equivalents and current and noncurrent derivative financial instruments (net)[55] Net Debt Reconciliation (June 30, 2025) | (in $ millions) | 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 | | Net Debt | (13,406) | (10,532) | (10,279) | - Organic revenue and organic Adjusted EBITDA exclude incremental contributions from current and prior year acquisitions and divestitures, currency exchange translation, and one-off items to assess performance of pre-existing operations[56][57] Disclaimer/Forward-Looking Statements Appendix 3 provides a disclaimer regarding forward-looking statements, emphasizing that they involve inherent risks and uncertainties and are not guarantees of future performance. It outlines various material factors that could cause actual results to differ, including economic conditions, competition, regulatory changes, and the inability to successfully integrate acquisitions - Forward-looking statements involve risk and uncertainty, relating to future events and depending on circumstances that may not occur or prove accurate[59][61] - Key forward-looking statements include plans for demand outlook, government funding, pricing, M&A, the Eco Material acquisition, capital returns, credit ratings, and 2025 full-year performance[60] - Material factors that could cause actual results to differ include economic and financial conditions, industry cyclicality, increased competition, energy/labor costs, adverse laws/regulations, unfavorable weather, political uncertainty, and M&A integration failures[62]