CRH (NYSE:CRH) Issues Earnings Results, Beats Expectations By $0.19 EPS

Key Points

• CRH beat second-quarter expectations: EPS was $2.21 versus the $2.02 consensus, while revenue reached $10.78 billion, up 5.6% year over year. Adjusted EBITDA rose 7% to more than $2.6 billion, with diluted EPS increasing 14%.
• Management reaffirmed its 2026 outlook, including adjusted EBITDA guidance of $8.1 billion to $8.5 billion and EPS guidance of $5.60 to $6.05. Growth is supported by infrastructure demand, pricing, backlogs and reindustrialization activity, although weaker residential demand remains a headwind.
• CRH is advancing its $8.5 billion Arcosa acquisition, which is expected to add 35 million tons of annual aggregates production and approximately $175 million in run-rate cost synergies by year three; the deal is expected to close in the first quarter of 2027.

CRH (NYSE:CRH - Get Free Report) announced its earnings results on Thursday. The construction company reported $2.21 earnings per share for the quarter, beating the consensus estimate of $2.02 by $0.19, FiscalAI reports. CRH had a net margin of 9.65% and a return on equity of 15.37%. The firm had revenue of $10.78 billion during the quarter, compared to the consensus estimate of $10.68 billion. During the same quarter in the previous year, the company posted $1.94 EPS. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. CRH updated its FY 2026 guidance to 5.600-6.050 EPS.

Here are the key takeaways from CRH's conference call:

• Record Q2 performance: Revenue rose 6% to $10.8 billion, Adjusted EBITDA increased 7% to more than $2.6 billion, margins expanded by 30 basis points, and diluted EPS grew 14% year over year.
• CRH reaffirmed its 2026 guidance, including Adjusted EBITDA of $8.1 billion to $8.5 billion, supported by resilient infrastructure demand, positive pricing, growing backlogs, and stronger reindustrialization activity such as data centers and advanced manufacturing.
• The planned $8.5 billion Arcosa acquisition is expected to add 35 million tons of annual aggregates production and generate approximately $175 million in run-rate cost synergies by year three; closing is expected in the first quarter of 2027.
• Americas Building Solutions EBITDA declined 8% as divestitures, subdued U.S. new-build residential demand, and higher haulage costs weighed on results, while the company paused its share buyback program following the Arcosa agreement.

CRH Trading Down 0.7%

NYSE:CRH traded down $0.63 during mid-day trading on Friday, hitting $95.37. The company had a trading volume of 3,330,973 shares, compared to its average volume of 4,912,351. The business has a fifty day simple moving average of $105.36 and a 200-day simple moving average of $111.47. The firm has a market capitalization of $63.73 billion, a price-to-earnings ratio of 17.68, a PEG ratio of 1.72 and a beta of 1.32. CRH has a 1 year low of $93.58 and a 1 year high of $131.55.

CRH Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Friday, August 14th will be issued a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, August 14th. CRH's dividend payout ratio is currently 28.89%.

Key Stories Impacting CRH

Here are the key news stories impacting CRH this week:

• Positive Sentiment: Second-quarter earnings and revenue exceeded expectations. CRH reported EPS of $2.21 versus the $2.02 consensus estimate, while revenue reached $10.78 billion compared with expectations of $10.68 billion. Revenue increased 5.6% year over year to approximately $10.8 billion, and net income rose 13% to $1.5 billion. CRH Reports Second Quarter 2026 Results
• Positive Sentiment: Pricing, demand and acquisitions drove growth. Management cited positive pricing momentum, solid underlying demand and contributions from acquisitions, particularly in infrastructure-related markets. These trends helped offset weaker residential activity in some businesses. CRH Stock Up on Q2 Earnings and Revenue Beat
• Positive Sentiment: Acquisition strategy could add longer-term value. CRH is advancing its Arcosa transaction and is targeting approximately $175 million in synergies. The company also outlined 2026 adjusted EBITDA guidance of $8.1 billion to $8.5 billion. CRH 2026 EBITDA Outlook and Arcosa Deal
• Neutral Sentiment: Truist remains bullish but reduced its target. Truist Financial lowered its price target from $140 to $130 while retaining a “buy” rating. The revised target still implies roughly 35% upside from the referenced $95.98 share price, but the reduction signals more cautious near-term valuation expectations. Truist Price Target Update
• Negative Sentiment: Full-year EPS guidance leaves limited room for upside surprises. CRH projected FY 2026 EPS of $5.60 to $6.05, with a midpoint below the approximately $5.95 analyst consensus. Subdued residential demand and the execution risk associated with the Arcosa deal remain potential headwinds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Jefferies Financial Group boosted their price objective on shares of CRH from $149.00 to $165.60 and gave the company a "buy" rating in a research report on Friday, June 26th. Wells Fargo & Company decreased their target price on shares of CRH from $135.00 to $132.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 8th. Stephens lowered their target price on shares of CRH from $135.00 to $125.00 and set an "overweight" rating for the company in a research note on Friday. Sanford C. Bernstein reiterated an "outperform" rating on shares of CRH in a report on Tuesday, June 23rd. Finally, Weiss Ratings lowered CRH from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 18th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $139.44.

Institutional Investors Weigh In On CRH

Several hedge funds have recently modified their holdings of CRH. State Street Corp boosted its holdings in CRH by 81.3% in the 4th quarter. State Street Corp now owns 24,895,205 shares of the construction company's stock worth $3,106,927,000 after acquiring an additional 11,167,189 shares during the period. Boston Partners raised its stake in shares of CRH by 1.7% during the third quarter. Boston Partners now owns 9,816,938 shares of the construction company's stock valued at $1,176,530,000 after purchasing an additional 162,110 shares during the period. Morgan Stanley raised its stake in shares of CRH by 13.7% during the fourth quarter. Morgan Stanley now owns 9,742,448 shares of the construction company's stock valued at $1,215,858,000 after purchasing an additional 1,177,283 shares during the period. Invesco Ltd. lifted its position in shares of CRH by 5.9% during the fourth quarter. Invesco Ltd. now owns 7,889,452 shares of the construction company's stock worth $984,604,000 after purchasing an additional 440,065 shares in the last quarter. Finally, Northern Trust Corp lifted its position in shares of CRH by 33.4% during the fourth quarter. Northern Trust Corp now owns 5,566,178 shares of the construction company's stock worth $694,659,000 after purchasing an additional 1,392,573 shares in the last quarter. 62.50% of the stock is currently owned by hedge funds and other institutional investors.

CRH Company Profile

CRH plc, originally formed as Cement Roadstone Holdings in 1970 and headquartered in Dublin, Ireland, is a global building materials group. The company has grown from its Irish roots into one of the largest international suppliers of construction materials, expanding primarily through acquisitions and regional business development. CRH operates an integrated network of manufacturing and distribution businesses that serve both public and private construction markets.

CRH's core activities include the production and distribution of aggregates, cement, asphalt, ready-mixed concrete and other bulk materials, together with a broad range of value-added building products such as precast concrete, masonry, bricks, roofing products, pipe and drainage systems, and construction accessories.

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