CRH plc

What they do

CRH manufactures and supplies aggregates, cementitious materials and value-added building products, and provides road construction, paving and infrastructure solutions across 25 countries. Its connected portfolio spans Essential Materials, Road Solutions and Building & Infrastructure Solutions, serving transportation, water, energy, telecommunications, reindustrialization and commercial and residential construction. In 2025, 40% of revenue came from infrastructure, 32% from residential and 28% from non-residential, with 60% from new-build and 40% from repair and remodel. The company has completed over 1,250 acquisitions in its history.

Revenue drivers

• Americas Materials Solutions — Supplies aggregates, cementitious materials and road construction materials and services in North America; Q2 2026 total revenues rose 10% year-over-year on pricing and acquisitions, with Adjusted EBITDA up 12%.
• Americas Building Solutions — Provides building products and utility infrastructure solutions; Q2 2026 total revenues fell 2% year-over-year as divestitures and subdued residential demand offset strength in energy and data infrastructure, and Adjusted EBITDA declined 8%.
• International Solutions — Covers Europe and Australia building materials and products; Q2 2026 total revenues rose 5% and Adjusted EBITDA rose 8% on pricing, higher activity and acquisitions, partly offset by divestitures.
• End-market mix — In 2025, 40% of total revenue came from infrastructure, 32% from residential and 28% from non-residential construction, with 40% from repair and remodel activity.

Recent performance

Q2 2026 total revenues were $10.8 billion, up 6% from $10.2 billion in Q2 2025, driven by pricing, underlying demand and acquisitions. Net income rose 13% to $1.5 billion, with net income margin of 14.0% versus 13.1%, and Adjusted EBITDA increased 7% to $2.6 billion at a 24.4% margin. Diluted EPS was $2.21 versus $1.94, and for the six months ended June 30, 2026, revenue rose 7% to $18.1 billion with diluted EPS of $1.93. Q2 2026 revenue fell sequentially from $11.07 billion in Q3 2025 and $9.42 billion in Q4 2025, and the company reaffirmed full-year 2026 guidance.

Strategy

CRH is pursuing active portfolio management, completing three non-core divestitures in the quarter while reallocating capital into higher-growth connected businesses. Year-to-date it invested $1.4 billion in 17 acquisitions, and it agreed an $8.5 billion acquisition of Arcosa, subject to Arcosa stockholder and regulatory approvals, which management says reinforces its position as the leading aggregates and critical infrastructure player in North America. On June 22, 2026, in connection with the Arcosa agreement, CRH did not initiate a new tranche of its share buyback program; year-to-date repurchases reached $0.7 billion after the July 28, 2026 tranche completion. The first 2026 quarterly dividend of $0.39 per share was declared in February 2026.

Risks

• Construction cyclicality and economic conditions — CRH's business depends on construction demand, which is inherently cyclical and sensitive to global and national economic conditions, monetary policy and consumer sentiment.
• Local market concentration — Many core products cannot be transported cost-effectively over long distances, making operations particularly sensitive to economic conditions in the local markets where CRH operates.
• Credit availability and project delays — Economic uncertainty and rising interest rates can prevent customers from obtaining credit or issuing bonds, leading to postponed, delayed or cancelled projects and lower demand for building materials.
• Weather and seasonality — Construction activity is dependent on seasonal weather, with activity reduced in winter or during extreme conditions, and adverse weather can also disrupt production processes.

Outlook

Management reaffirmed full-year 2026 guidance for Net income of $3.9 billion to $4.1 billion, Adjusted EBITDA of $8.1 billion to $8.5 billion and Diluted EPS of $5.60 to $6.05. CEO Jim Mintern said the company remains encouraged by underlying demand across key markets notwithstanding geopolitical and macroeconomic uncertainties, and expects another year of growth underpinned by its strategy and connected portfolio. The pending $8.5 billion Arcosa acquisition is subject to Arcosa stockholder approval, regulatory approvals and other customary closing conditions.