CRH CEO Jim Mintern on stock outperforming the materials sector

Business Outlook & Strategy - CR is positioned as the number one infrastructure player in the US, focusing on roads, water, and re-industrialization, which are considered three major mega-trends [2] - The company views the current infrastructure build as still in its early stages, with only approximately 40% of the funding deployed, anticipating a ramp-up phase into 2026 and beyond [3][4] - CR emphasizes a connected product offering beyond just aggregates and concrete, including water, communications, and energy infrastructure, positioning them as often the first on site for re-industrialization projects [32][33][15] - The company highlights its ability to compound capital effectively in the building material space, emphasizing its track record over the past 1 to 50 years [34] Market Dynamics & Opportunities - The US road materials market is valued at approximately $45 billion, with about 90% of CR's revenue in this sector coming from public sector customers, providing a stable and recurring revenue stream [6][7] - The US water ecosystem represents an approximately $100 billion opportunity, with CR largely focused on storm water and water storage, seeing high growth potential in this area [8] - Reshoring and tariff policies are seen as a net positive, driving the return of critical industrial infrastructure to the US and benefiting CR's business [16][15] - Potential interest rate cuts are expected to positively impact the residential sector, where the current affordability issue is hindering new build residential projects, needing rates to begin with a 5% to stimulate growth [17][19] AI Buildout & Related Projects - CR is involved in AI buildout projects, including large chip manufacturing plants and data center projects, supplying subterranean infrastructure like water coolant, energy, and communications [21][22][24] - For a hypothetical $1 billion AI project, CR's involvement extends beyond just supplying rocks, encompassing water, ventilation, and other infrastructure needs from the green field location [25][26] - Nuclear energy is identified as a potential opportunity, with CR having expertise in nuclear facilities, particularly from international projects, which are heavy users of their products [29][30]