CRH (CRH) Financials

CRH's financial performance over the past four years shows a general trend of revenue and profit growth, with some fluctuations influenced by macroeconomic and operational factors.

Positive Highlights:

• Operating revenue has increased from approximately $6.43 billion in Q1 2023 to $10.21 billion in Q2 2025, showing significant top-line growth over two years.
• Net income attributable to common shareholders improved from a loss of $28 million in Q1 2023 to a profit of around $1.32 billion in Q2 2025, indicating a strong turnaround in profitability.
• Gross profit margins have strengthened, with total gross profit rising from $1.62 billion in Q1 2023 to $4.03 billion in Q2 2025, pointing to better cost management or pricing power.
• Depreciation expenses have increased, suggesting ongoing investment in fixed assets which could support future growth.
• Cash and equivalents remained relatively stable and increased from about $3.3 billion in Q1 2024 to $2.9 billion in Q2 2025, preserving liquidity despite capital investments and debt repayments.
• CRH has consistently generated positive net cash from operating activities in recent quarters, with $1.38 billion in Q2 2025 indicating solid operational cash flow generation.
• The company has been actively repaying debt (e.g., $1.82 billion repaid in Q2 2025) while also managing debt issuance effectively to balance capital structure.
• Issuance of equity has been low, indicating limited dilution pressure to shareholders along with active stock repurchasing supporting earnings per share growth.

Neutral Aspects:

• Total assets increased from approximately $45 billion in early 2023 to about $54 billion in mid-2025, mainly driven by increases in plant, property, & equipment and goodwill, reflecting acquisitions and capital expenditures.
• Liabilities also rose from about $23 billion to $30.3 billion over the same period, with a balanced increase in long-term debt and current liabilities, indicating leveraged growth strategy.
• Interest expenses generally increased along with debt levels, but remain well-covered by operating income and interest income.
• Changes in operating assets and liabilities have occasionally caused volatility in operating cash flows, notably a large negative impact of $1.05 billion in Q1 2025 reversed by a positive $524 million in Q2 2025.

Negative Considerations:

• There was a notable loss in Q1 2025, with net income at a negative $98 million and negative operating cash flow of $659 million, signaling a challenging quarter likely due to operating headwinds or restructuring.
• Capital expenditures and acquisitions represent significant cash outflows, e.g., $655 million spent on property, plant and equipment plus $63 million on acquisitions in Q2 2025, which may pressure free cash flow in the short term.
• Repurchase of common equity remains substantial ($334 million in Q2 2025), which while supporting share price, reduces cash reserves.
• Income tax expense has increased consistently, weighing on net profitability, with $425 million paid in Q2 2025.

Summary: CRH has demonstrated strong revenue and profit growth over recent years with robust operational cash flow and strategic investments in assets and acquisitions. The company has managed its capital structure by balancing debt repayments with new debt issuance and share repurchases. However, the loss and negative cash flow in Q1 2025 highlight some operational volatility possibly warranting further monitoring. Overall, the financial data suggest CRH is on a growth trajectory with essentially stable liquidity and improving profitability, supported by effective financial management.