CRH Q1 Earnings Call Highlights

CRH NYSE: CRH reported a “strong first quarter performance” and reaffirmed its full-year 2026 guidance, citing early-season project activity, disciplined commercial execution, and contributions from acquisitions. Chief Executive Officer Jim Mintern said the company delivered year-over-year growth in revenue, adjusted EBITDA, and margin in the first three months of the year, while continuing an active portfolio strategy that includes agreed divestitures, new acquisitions, and shareholder returns.

First-quarter results show revenue growth and margin expansion

For the first quarter of 2026, CRH posted total revenue of $7.4 billion, up 9% versus the prior-year period. Adjusted EBITDA rose 18% to $586 million, and adjusted EBITDA margin expanded by 70 basis points, which Mintern attributed to “continued operational improvements and strong cost discipline across our businesses.”

Mintern said results reflected “good momentum from early-season project activity” and “positive contributions from acquisitions,” while the company continued to prioritize capital allocation into “higher growth” areas and a “connected portfolio” of businesses.

Business segment performance: strong Americas Materials and International gains

Chief Operating Officer Randy Lake highlighted strong growth in Americas Materials Solutions, where total revenues were 21% higher than the prior year, driven by “robust volumes across all product lines,” early-season project activity, and acquisitions. In Essential Materials, first-quarter revenues increased 31%.

• Aggregates: Volumes increased 14% while pricing was down 1%, which Lake said reflected “geographic and project-related mix effects.” On a mix-adjusted basis, he said aggregate pricing was up 5%.
• Cement: Volumes rose 10%, while pricing declined 1% due to “regional variances” across the footprint, according to Lake.
• Road Solutions: Revenue rose 16% on higher asphalt and ready-mix volumes and increased paving activity.

Lake pointed to several projects contributing to early activity, including the widening and reconstruction of I-95 in South Carolina (with CRH supplying more than 500,000 tons of asphalt and 250,000 tons of aggregates), a large chip plant in Boise, Idaho (more than 500,000 tons of aggregates and cementitious materials), and a data center facility in Michigan (over 1.2 million tons of aggregates delivered in the first quarter).

Americas Building Solutions produced what Lake described as a “solid performance” despite adverse weather and subdued new-build residential activity. Revenue in building and infrastructure solutions increased 4% year over year, supported by data center and utility infrastructure demand. Outdoor living solutions revenue declined 3%, with Lake citing a delayed seasonal start due to weather, while noting residential repair and remodel demand remained “resilient.”

International Solutions delivered stronger profitability, with 5% revenue growth translating into a 32% increase in adjusted EBITDA and 130 basis points of margin expansion. Lake said results reflected pricing momentum, cost control, improved operational efficiencies, and acquisition contributions. He noted Western Europe was supported by infrastructure and reindustrialization demand, Central and Eastern Europe activity was recovering from adverse winter weather, and Australia continued to perform well with operational improvements and synergy delivery from recent acquisitions.

Portfolio actions: divestitures, acquisitions, and water platform expansion

Management emphasized ongoing portfolio reshaping. Mintern said CRH agreed to divest three non-core businesses for total consideration of $1.9 billion. In addition to a previously announced construction accessories divestiture, CRH reached agreements to sell its lawn and garden business—described as a manufacturer and supplier of mulch, soil, and decorative stone—for $1.1 billion, as well as MoistureShield, a composite decking manufacturer. Mintern said the MoistureShield divestiture closed in early April, while the construction accessories and lawn and garden transactions are expected to close in the second quarter of 2026, subject to customary conditions and regulatory approvals.

On acquisitions, Mintern said the company announced about $900 million of investment across nine “value accretive acquisitions.” The largest is an agreement to acquire Axius Water for approximately $700 million. Mintern described Axius as a provider of water quality and nutrient removal solutions in North America and said the deal would strengthen CRH’s U.S. water infrastructure position. He said Axius brings “best-in-class customer-centric design and engineering capabilities” and “extensive R&D capabilities,” and he pointed to commercial, operational, and self-supply synergy opportunities through CRH’s connected portfolio. The transaction is expected to complete in the second quarter, subject to customary closing conditions and regulatory approvals.

Mintern framed the water business as a key growth platform supported by resilient public funding and non-discretionary investment needs tied to reindustrialization and aging infrastructure. He said roughly one-third of U.S. water infrastructure is more than 50 years old and that CRH is focused on water transmission and water quality, which he called the “fastest growing segments” of the more than $100 billion U.S. water ecosystem.

Capital returns, cost outlook, and reaffirmed full-year guidance

CRH also reiterated its shareholder return priorities. Mintern said the company’s ongoing share buyback program returned about $400 million year to date and that CRH is commencing a new $300 million quarterly tranche to be completed no later than July 28. The board declared a quarterly dividend of $0.39 per share, representing a 5% increase from the prior year.

On the outlook, Mintern said that despite macroeconomic uncertainty, underlying demand across key markets remains positive, and CRH reaffirmed 2026 guidance. Assuming “normal seasonal weather patterns” and no major geopolitical or macroeconomic dislocations, the company expects:

• Adjusted EBITDA: $8.1 billion to $8.5 billion
• Net income: $3.9 billion to $4.1 billion
• Diluted EPS: $5.60 to $6.05

In response to analyst questions, Mintern pointed to strong early-season project activity into March and April, “nicely up year-over-year” backlogs, and pricing momentum as key building blocks behind guidance. CFO Nancy Buese said CRH’s divestitures and acquisitions implied about $200 million of net incremental EBITDA contribution for 2026, which she said was unchanged from previous guidance and now incorporates the additional transactions announced.

Management also addressed cost pressures and energy volatility. Mintern said energy represents about 5% of total annual revenues and that CRH has a “very mature hedging policy” typically covering on a rolling nine-month basis, providing visibility into costs. Lake said commercial teams are working “market by market” to recover input cost increases and protect margins, noting that CRH had already initiated targeted midyear price increases. Mintern added that the company continues to see inflation beyond energy in labor, raw materials, maintenance, and subcontractors, and that CRH still expects mid-single-digit inflation across those categories in 2026.

On demand drivers, Mintern said transportation conditions remain robust, supported by the continued rollout of federal funding under the IIJA, with about 50% of highway funds yet to be deployed, and that 2026 Department of Transportation budgets at the state level are up 6% year over year. Lake said CRH is seeing increasing bid activity and improving year-over-year volumes and revenues, and expressed optimism that a highway funding bill could be passed in the second half of the year, while noting that even in a continuing resolution scenario, funding visibility remains supported by elevated infrastructure investment levels.

CRH said it will provide its next update when it reports second-quarter 2026 results in July.

About CRH NYSE: CRH

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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