CRH Q2 Earnings Call Highlights

Key Points

• Record Q2 performance: CRH’s revenue rose 6% year over year to $10.8 billion, adjusted EBITDA increased 7% to more than $2.6 billion, margins expanded, and diluted EPS climbed 14%. The company cited resilient infrastructure demand, pricing, acquisitions and cost discipline despite weather and inflationary pressures.
• Materials and infrastructure drove growth: Americas Materials Solutions delivered 10% revenue growth and 12% adjusted EBITDA growth, while International Solutions also posted higher revenue, EBITDA and margins. Americas Building Solutions underperformed due to divestitures, weak U.S. new construction and elevated haulage costs.
• Expansion and outlook remain intact: CRH reaffirmed its 2026 adjusted EBITDA guidance of $8.1 billion to $8.5 billion and expects continued margin expansion. The planned $8.5 billion Arcosa acquisition would add aggregate capacity and is expected to generate approximately $175 million in annual cost synergies by year three, though share repurchases will be paused while the deal proceeds.

CRH NYSE: CRH reported record second-quarter results for 2026, with revenue, adjusted EBITDA, margins and diluted earnings per share rising from the prior-year period. The building materials company reaffirmed its full-year guidance, citing resilient infrastructure demand, pricing momentum and contributions from acquisitions despite weather disruptions, inflationary costs and macroeconomic uncertainty.

Second-quarter revenue totaled $10.8 billion, up 6% year over year, while adjusted EBITDA increased 7% to more than $2.6 billion. Adjusted EBITDA margin expanded 30 basis points as the company emphasized commercial execution and cost discipline. Diluted EPS rose 14%, including a $0.16 net gain on divestitures during the period.

Chief Executive Officer Jim Mintern said the results reflected “favorable underlying demand, disciplined commercial execution, and contributions from acquisitions.” He said CRH was maintaining its focus on portfolio management and investments in its aggregates, cementitious materials, roads and water businesses.

Materials business leads quarterly growth

Americas Materials Solutions delivered the strongest operating performance among CRH’s business segments. Revenue rose 10% and adjusted EBITDA increased 12% from the prior year, supported by underlying demand, pricing and acquired businesses. Segment margins expanded 40 basis points despite inflationary costs.

Within Essential Materials, revenue increased 20%. Aggregates volume grew 2% and pricing rose 5%, while cement volume declined 2% because of adverse weather in certain markets. Cement pricing fell 1%, reflecting regional differences across the company’s operating footprint. Chief Operating Officer Randy Lake said Eco Material, an acquired supplier of supplementary cementitious materials, was performing well.

Road Solutions revenue increased 6%, driven by higher asphalt volumes and prices and increased paving activity. Lake said bidding activity and backlog trends remained positive, with transportation and water infrastructure supported by state and federal funding. He also cited major manufacturing and data-center projects as contributors to reindustrialization demand.

Americas Building Solutions faced a more difficult quarter. Revenue declined 2% and adjusted EBITDA fell 8%, reflecting recently completed divestitures, subdued U.S. new-build residential activity and elevated haulage rates. Mintern said residential repair and remodel demand remained resilient, while the company saw growth in data center, water and energy markets.

CRH has implemented price surcharges and cost-reduction measures to offset higher haulage costs, Mintern said. He expects the impact of those costs to moderate in the third and fourth quarters.

International Solutions revenue rose 5%, while adjusted EBITDA grew 8% and margins expanded 70 basis points. The company attributed the performance to increased activity in some markets, pricing, cost control and acquisitions. CRH cited favorable infrastructure and reindustrialization activity in Europe, as well as demand, operational improvements and acquisition synergies in Australia.

Arcosa deal and capital deployment

CRH said it invested $1.4 billion in 17 acquisitions year to date and completed three divestitures of non-core businesses for $1.9 billion in total consideration. The largest acquisition completed during the period was Axius Water, purchased for approximately $700 million.

In June, CRH agreed to acquire Arcosa for $150 per share in cash, representing an enterprise value of approximately $8.5 billion. The transaction remains subject to Arcosa shareholder approval, regulatory approvals and customary closing conditions, with closing expected in the first quarter of 2027.

Mintern said the acquisition would add 35 million tons of annual high-quality aggregates capacity and strengthen CRH’s U.S. aggregates position. The company expects approximately $175 million in run-rate cost synergies by the third year of ownership, including $60 million in the first year, according to Lake. Identified opportunities include operational improvements, materials self-supply, procurement and administrative efficiencies.

Management also pointed to the deal’s presence in Dallas and Phoenix, which Mintern described as high-growth geographic areas where CRH already has other parts of its connected portfolio. The company said the Arcosa business also includes engineered structures serving energy transmission markets.

Through the second quarter, CRH invested about $800 million in growth capital expenditures, including projects aimed at expanding capacity, improving efficiency, increasing automation and optimizing energy use. It returned $1.2 billion to shareholders through dividends and buybacks year to date.

The board declared a quarterly dividend of $0.39 per share, up 5% from a year earlier. CRH said it will pause share repurchases following the completion of its latest tranche in connection with the Arcosa agreement and will reassess the program later.

Outlook reaffirmed

CRH reaffirmed its 2026 outlook, assuming normal seasonal weather for the rest of the year and no additional major geopolitical or macroeconomic disruption. The company expects:

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

Mintern said CRH expects approximately 40% of Infrastructure Investment and Jobs Act funding to remain unspent at year-end. Lake said CRH does not expect disruptions to infrastructure activity through the rest of 2026 or into 2027, even if federal funding legislation proceeds through a continuing resolution.

Management said it is seeing a meaningful increase in reindustrialization activity, including data centers, advanced manufacturing, semiconductor facilities and liquefied natural gas projects. Mintern said CRH is active on 200 data-center projects across the U.S. and has facilities within 25 miles of 85% of announced U.S. data centers.

The company expects another year of margin expansion, which Mintern said would mark its 13th consecutive year of margin improvement. CRH also reiterated long-term 2030 targets of annual revenue growth of 7% to 9%, adjusted EBITDA margin of 22% to 24%, and average adjusted free-cash-flow conversion above 100%.

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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