CRH CEO Jim Mintern on stock outperforming the materials sector

Core Viewpoint - The company is optimistic about its business outlook, particularly in the infrastructure sector, driven by ongoing funding and the need for re-industrialization in the U.S. economy [2][5][36] Infrastructure Outlook - The company identifies itself as the number one player in U.S. infrastructure, focusing on roads, water, and re-industrialization, with a positive outlook due to significant funding opportunities [2][5] - Currently, only about 40% of the capital from the bipartisan infrastructure bill has been deployed, indicating a long runway for future investments [3][4] - The company emphasizes the need for infrastructure to support reshoring and re-industrialization efforts, addressing decades of underinvestment [5][10] Revenue Streams - The U.S. road materials market is valued at approximately $45 billion, with 90% of the company's revenue coming from public sector customers, providing a stable revenue stream [6][7] - The water infrastructure market presents a $100 billion opportunity, with a focus on stormwater and water storage, which is expected to grow alongside the roads business [8][9] Economic Factors - The company anticipates that tax and spending policies, including bonus depreciation, will stimulate capital expenditure spending, benefiting its business [11][12] - Early signs of increased capital spending are being observed, particularly in the re-industrialization sector, as companies gain certainty around economic policies [13][14] Project Involvement - The company is involved in significant projects related to AI buildout, including large chip manufacturing plants and data centers, indicating a strong position in emerging technology sectors [21][22][23] - The company differentiates itself by providing a holistic product offering, including essential infrastructure components for major projects [23][35] Future Opportunities - The company sees potential in nuclear energy projects, leveraging its expertise from international operations, which could enhance its product demand [29][30] - The company plans to highlight the quality and reliability of its roads and water infrastructure businesses during its upcoming investor day, emphasizing their low capital intensity and strong cash profiles [37][38]