CRH (NYSE:CRH) Issues Quarterly Earnings Results

Key Points

• CRH beat quarterly earnings expectations, reporting $2.09 in EPS versus the $2.06 consensus, while revenue of $11.40 billion fell short of the $11.56 billion estimate but increased 3% year over year.
• CRH lowered its 2026 Adjusted EBITDA guidance to $7.8–$8.0 billion, citing weaker U.S. residential activity and higher diesel and transportation costs. The company also completed its $8.5 billion Arcosa acquisition, which is expected to generate $175 million in annual cost synergies by year three.
• The company announced a $6 billion share buyback through 2030, raised its quarterly dividend by 5%, and launched a transformation program targeting $400 million in annual EBITDA benefits by the end of 2028.

CRH (NYSE:CRH - Get Free Report) posted its earnings results on Thursday. The construction company reported $2.09 EPS for the quarter, topping the consensus estimate of $2.06 by $0.03, FiscalAI reports. The firm had revenue of $11.40 billion during the quarter, compared to analysts' expectations of $11.56 billion. CRH had a net margin of 9.93% and a return on equity of 15.76%. The company's quarterly revenue was up 3.0% compared to the same quarter last year. During the same period last year, the company posted $2.21 EPS.

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

• 2026 guidance was reduced to Adjusted EBITDA of $7.8–$8.0 billion, reflecting softer U.S. residential activity, elevated diesel and haulage costs, and only a partial-year contribution from Arcosa.
• CRH completed its $8.5 billion Arcosa acquisition and expects approximately $175 million of annual cost synergies by year three, while expanding its exposure to aggregates, energy infrastructure, grid modernization, and data centers.
• The company announced a new $6 billion share buyback through 2030 and raised its quarterly dividend by 5%, supported by its cash generation and commitment to maintaining an investment-grade credit rating.
• CRH launched its Velocity transformation program, targeting $400 million of annual Adjusted EBITDA benefits by the end of 2028 through organizational simplification, technology, AI, and operating efficiencies; approximately 40% of the benefits are expected in 2027.
• Management expects infrastructure, reindustrialization, energy, water, and data-center demand to support growth in 2027, but U.S. residential activity may remain subdued until at least 2028 because of affordability challenges.

CRH Trading Up 4.8%

CRH stock traded up $4.19 during midday trading on Thursday, hitting $90.73. The company's stock had a trading volume of 8,473,379 shares, compared to its average volume of 4,957,845. The firm's 50-day moving average is $87.32 and its 200-day moving average is $104.64. CRH has a 12 month low of $78.62 and a 12 month high of $131.55. The company has a market cap of $60.36 billion, a PE ratio of 16.00, a P/E/G ratio of 1.54 and a beta of 1.31.

Analyst Ratings Changes

CRH has been the topic of several research reports. Wells Fargo & Company dropped their price objective on shares of CRH from $107.00 to $106.00 and set an "overweight" rating on the stock in a research note on Monday, October 5th. Truist Financial decreased their target price on shares of CRH from $130.00 to $105.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Citigroup lowered their target price on shares of CRH from $122.00 to $106.00 and set a "buy" rating for the company in a report on Friday, October 2nd. Weiss Ratings cut CRH from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 16th. Finally, Stephens cut their price target on CRH from $125.00 to $105.00 and set an "overweight" rating on the stock in a research note on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $126.50.

CRH Company Profile

CRH plc is a global building materials company that supplies products and solutions used in residential, commercial and infrastructure construction. Its activities include the production and distribution of aggregates, asphalt, ready-mixed concrete, cement and other construction materials, as well as value-added products such as precast concrete, architectural products and site-development solutions.

The company serves customers across North America and Europe, including contractors, construction companies, infrastructure developers, distributors and public-sector organizations.

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