REG-CRH plc CRH Q1 2025 Results
06/05/2025 07:00
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CRH Q1 2025 Results
CRH (NYSE: CRH), a leading provider of building materials solutions, today
reported first quarter 2025 financial results.
Key Highlights
Summary Financials Q1 2025 Change
Total revenues $6.8bn +3%
Net (loss) income ($98m) n/m(1)
Net (loss) income margin (1.5%) (320bps)
Adjusted EBITDA* $495m +11%
Adjusted EBITDA margin* 7.3% +50bps
Diluted (loss) earnings per share ($0.15) n/m(1)
* Good start to the year despite unfavorable weather in the seasonally least
significant quarter
*Performance driven by differentiated strategy, positive pricing and
contributions from acquisitions
*Completed eight value-accretive bolt-on acquisitions for $0.6bn
*Ongoing share buyback; $0.5bn completed YTD; commencing new $0.3bn quarterly
tranche
*Declaring quarterly dividend of $0.37 per share (+6% y/y)
*Underlying demand across key markets remains positive
*Reaffirming guidance; expect FY25 Net income of $3.7bn-$4.1bn; Adjusted EBITDA
of $7.3bn-$7.7bn
Jim Mintern, Chief Executive Officer, said:
"The strength of our first quarter performance reflects the benefits of our
differentiated strategy, good commercial management and contributions from
acquisitions. Although the first quarter is typically the seasonally least
significant period for our business, we are encouraged by the continued
strength of underlying demand across our key markets. Our relentless focus on
financial control and discipline enabled us to maintain our strong balance
sheet in the first quarter. Notwithstanding the current macroeconomic
uncertainty, the outlook for our business remains positive and we are pleased
to reaffirm our financial guidance for 2025, leaving us well positioned for
another year of growth and value creation ahead."
* Represents non-GAAP measure. See 'Non-GAAP Reconciliation and Supplementary
Information' on pages 12 to 13.
( 1 )n/m - not meaningful.
Q1 2025 Results
Performance Overview
Total revenues of $6.8 billion (Q1 2024: $6.5 billion) were 3% ahead as
contributions from acquisitions and strong commercial management more than
offset the impact of divestitures and lower activity levels due to adverse
weather in many regions. Net loss of ($98) million (Q1 2024 net income: $114
million) was behind the prior year, with a solid underlying operating
performance offset by the non-recurrence of gains on prior year divestitures.
Adjusted EBITDA* of $495 million (Q1 2024: $445 million) was 11% ahead as a
result of the continued delivery of CRH's differentiated strategy, positive
pricing, ongoing cost control and further operational efficiencies. CRH's net
loss margin of (1.5%) was behind Q1 2024 (Q1 2024 net income margin: 1.7%),
while Adjusted EBITDA margin* of 7.3% (Q1 2024: 6.8%) was ahead of the
comparable prior year period. Diluted (loss) earnings per share for Q1 2025
was ($0.15) (Q1 2024: $0.16).
* Americas Materials Solutions' total revenues were 2% ahead of Q1 2024, driven
by continued pricing progress across all lines of business along with positive
contributions from acquisitions, which offset the effects of lower activity
due to weather disruption in many regions. Adjusted EBITDA was well ahead of
the prior year period, driven by commercial progress, ongoing cost management
and operational efficiencies.
* Americas Building Solutions' total revenues were 1% behind Q1 2024 as
contributions from acquisitions and strong performances in the water and
energy markets were offset by weather-impacted demand. Adjusted EBITDA
declined by 7% due to adverse weather and subdued residential activity.
* International Solutions' total revenues were 7% ahead of Q1 2024, driven by
good contributions from acquisitions and continued pricing progress, more than
offsetting the impact of lower activity levels due to challenging weather in
certain markets. Adjusted EBITDA was 22% ahead of the prior year, driven by
good commercial management, operational efficiencies and contributions from
acquisitions.
Acquisitions and Divestitures
In the three months ended March 31, 2025, CRH completed eight acquisitions for
a total consideration of $0.6 billion, compared with $2.2 billion in the first
quarter of 2024. Americas Materials Solutions completed five acquisitions, the
largest of which being Talley Construction, a vertically integrated asphalt
and paving company with operations in Tennessee, Georgia, Alabama and North
Carolina, while Americas Building Solutions completed three acquisitions.
With respect to divestitures, CRH realized proceeds from divestitures and
disposals of long-lived assets of $0.1 billion, compared with $0.7 billion in
the first quarter of the prior year.
Dividends and Share Buybacks
In line with the Company's policy of consistent long-term dividend growth, the
Board has declared a quarterly dividend of $0.37 per share. This represents an
increase of 6% on the prior year. The dividend will be paid wholly in cash on
June 25, 2025, to shareholders registered at the close of business on May 23,
2025. The ex-dividend date will be May 23, 2025.
As part of its ongoing share buyback program, CRH repurchased approximately
3.2 million Ordinary Shares in Q1 2025 for a total consideration of $0.3
billion. On May 2, 2025, the latest tranche of the share buyback program was
completed, bringing the year-to-date repurchases to $0.5 billion. The Company
is pleased to announce that it is commencing an additional $0.3 billion
tranche to be completed no later than August 5, 2025.
Innovation and Sustainability
CRH is committed to driving profitable growth by providing its customers with
innovative solutions that support the transition to a more sustainable built
environment. The Company's customer-centric approach to innovation gives CRH
the ability to leverage the benefits of existing and emerging technologies to
drive efficiency and margin expansion. CRH's ability to transform essential
materials into value-added and innovative solutions enables the Company to
better serve its customers' needs, address the global challenges of water,
circularity and decarbonization and make construction simpler, safer and more
sustainable.
2025 Full Year Outlook
Due to the localized nature of our operations, we do not expect a material
direct impact from recent changes in global trade policies on our business.
Notwithstanding the current macroeconomic uncertainty, the outlook for our
business remains positive and we reaffirm our financial guidance for 2025.
While it is still early in the construction season, we continue to expect
positive underlying demand across our key end-use markets in 2025, underpinned
by significant public investment in critical infrastructure and continued
re-industrialization activity in key non-residential segments. Within the
residential sector, the new-build segment is expected to remain subdued, while
repair and remodel activity remains resilient. Assuming normal seasonal
weather patterns and absent any major dislocations in the political or
macroeconomic environment, CRH’s differentiated strategy and leading
positions of scale in attractive higher-growth markets, together with our
strong and flexible balance sheet, are expected to underpin another year of
growth and value creation in 2025.
2025 Guidance (i)
(in $ billions, except per share data) Low High
Net income (ii) 3.7 4.1
Adjusted EBITDA* 7.3 7.7
Diluted earnings per share (ii) $5.34 $5.80
Capital expenditure 2.8 3.0
(i) The 2025 guidance does not assume any significant one-off or non-recurring
items, including the impact of further potential changes to global trade
policies, impairments or other unforeseen events.
(ii) 2025 net income and diluted earnings per share are based on approximately
$0.6 billion interest expense, net, effective tax rate of approximately 23%
and a year-to-date average of approximately 683 million diluted common shares
outstanding.
Americas Materials Solutions
Analysis of Change
in $ millions Q1 2024 Currency Acquisitions Divestitures Organic Q1 2025 % change
Total revenues 2,202 (10) +144 (16) (77) 2,243 +2%
Adjusted EBITDA 15 — +10 +6 +28 59 +293%
Adjusted EBITDA margin 0.7% 2.6%
Americas Materials Solutions’ total revenues were 2% ahead of the first
quarter of 2024, as pricing progress and contributions from acquisitions more
than offset weather-impacted volumes in many regions.
In Essential Materials, total revenues decreased by 3% due to lower volumes in
most regions. Prices in aggregates and cement were ahead by 8% and 4%,
respectively. Aggregates volumes declined by 5% while cement volumes declined
by 2%, due to adverse weather in certain markets, partly offset by
contributions from acquisitions.
In Road Solutions, total revenues increased by 5% led by increased paving
activity along with growth in both asphalt and readymixed concrete. Asphalt
volumes increased 4% over the prior year while pricing increased by 3%.
Readymixed concrete volumes were up 4% over the prior year and pricing
increased by 1%. Construction backlogs increased on the prior year, supported
by positive momentum in bidding activity.
First quarter Adjusted EBITDA for Americas Materials Solutions was well ahead
of the prior year, driven by pricing improvements, disciplined cost management
and operational efficiencies. Adjusted EBITDA margin increased by 190bps.
Americas Building Solutions
Analysis of Change
in $ millions Q1 2024 Currency Acquisitions Divestitures Organic Q1 2025 % change
Total revenues 1,693 (4) +60 (8) (59) 1,682 (1%)
Adjusted EBITDA 308 — +15 (1) (35) 287 (7%)
Adjusted EBITDA margin 18.2% 17.1%
Americas Building Solutions' total revenues were 1% behind the first quarter
of 2024, as solid underlying demand in key markets as well as contributions
from acquisitions were offset by adverse weather impacts.
In Building & Infrastructure Solutions, total revenues were 4% ahead of Q1
2024, supported by increased volumes in the water and energy markets, along
with the positive impact from acquisitions.
In Outdoor Living Solutions, total revenues were 3% behind the prior year
period as demand was impacted by adverse weather across certain key markets.
Adjusted EBITDA for Americas Building Solutions was 7% behind the first
quarter of 2024 as adverse weather and subdued residential activity impacted
results. Adjusted EBITDA margin was 110bps behind the prior year period.
International Solutions
Analysis of Change
in $ millions Q1 2024 Currency Acquisitions Divestitures Organic Q1 2025 % change
Total revenues 2,638 (57) +370 (67) (53) 2,831 +7%
Adjusted EBITDA 122 (1) +29 (16) +15 149 +22%
Adjusted EBITDA margin 4.6% 5.3%
International Solutions' total revenues were 7% ahead of the first quarter of
2024 supported by continued pricing progress and good contributions from
acquisitions which offset the impact of adverse weather and lower activity in
certain geographies.
In Essential Materials, total revenues were 7% ahead of the comparable period
in 2024 as positive pricing and contributions from acquisitions offset lower
weather-impacted activity in some regions and the divestiture of the European
Lime operations. Overall aggregates and cement volumes were 9% and 11% ahead
of the comparable period in 2024, with pricing 5% and 2% ahead, respectively,
benefiting from contributions from the Adbri acquisition.
In Road Solutions, total revenues were 11% ahead of the comparable period in
2024, with volumes and prices in readymixed concrete ahead of 2024 by 22% and
9%, respectively, benefiting from higher activity levels in a number of
European countries, and contributions from the Adbri acquisition. Asphalt
volumes declined by 4% as a result of lower activity in the United Kingdom and
Ireland, while asphalt pricing declined 1% compared to the prior year.
Within Building & Infrastructure Solutions and Outdoor Living Solutions,
total revenues were 1% ahead of the comparable period in 2024 supported by
contributions from acquisitions.
Adjusted EBITDA in International Solutions was 22% ahead of the first quarter
of 2024, primarily driven by increased pricing, operational efficiencies and
contributions from acquisitions. Adjusted EBITDA margin increased by 70bps
compared to the prior year.
Other Financial Items
Depreciation, depletion and amortization charges of $477 million were $80
million higher than the first quarter of the prior year (Q1 2024: $397
million), primarily due to the impact of acquisitions.
Interest income of $37 million was lower than the first quarter of the prior
year (Q1 2024: $43 million), primarily due to lower cash deposits. Interest
expense of $181 million was higher than the comparable period in 2024 (Q1
2024: $133 million), primarily due to an increase in gross debt balances.
Other nonoperating (expense) income, net was ($20) million (Q1 2024: $161
million) with the decrease versus prior year primarily related to the
non-recurrence of the gain on the divestiture of the European Lime operations
and unrealized gains on certain investments.
Diluted (loss) earnings per share of ($0.15) was lower than Q1 2024 (Q1 2024:
$0.16) primarily due to non-recurrence of gains on prior year divestitures.
Balance Sheet and Liquidity
Total short and long-term debt was $15.7 billion at March 31, 2025, compared
with $14.0 billion at December 31, 2024, and $12.7 billion at March 31, 2024.
In January 2025, the Company completed the issuance of $1.25 billion 5.125%
Senior Notes due 2030, $1.25 billion 5.50% Senior Notes due 2035, and $0.5
billion 5.875% Senior Notes due 2055. In the three months ended March 31,
2025, a net $1.5 billion of commercial paper was repaid across the U.S. Dollar
and Euro Commercial Paper Programs.
Net Debt* at March 31, 2025, was $12.7 billion, compared to $10.5 billion at
December 31, 2024, and $9.6 billion at March 31, 2024. The increase in Net
Debt* compared to December 31, 2024, reflects the seasonal net cash outflow
from operating activities, acquisitions, cash returns to shareholders through
continued share buybacks, as well as the purchase of property, plant and
equipment.
CRH ended Q1 2025 with $3.4 billion of cash and cash equivalents (Q1 2024:
$3.3 billion) and $3.9 billion of undrawn committed facilities. At March 31,
2025, the weighted average maturity of the term debt (net of cash and cash
equivalents) was 8.6 years.
As at March 31, 2025, the Company had a $4.0 billion U.S. Dollar Commercial
Paper Program and a €1.5 billion Euro Commercial Paper Program available. As
at March 31, 2025, there was $0.1 billion of outstanding issued notes under
the U.S. Dollar Commercial Paper Program and no outstanding issued notes under
the Euro Commercial Paper Program. CRH remains committed to maintaining its
robust balance sheet and expects to maintain a strong investment-grade credit
rating with a BBB+ or equivalent rating with each of the three main rating
agencies.
Q1 2025 Conference Call
CRH will host a conference call and webcast presentation at 8:00 a.m. (EDT) on
Tuesday, May 6, 2025 to discuss the Q1 2025 results and 2025 outlook.
Registration details are available on www.crh.com/investors
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.crh.com%2Finvestors&esheet=54248684&newsitemid=20250505931589&lan=en-US&anchor=www.crh.com%2Finvestors&index=1&md5=47edefd5cc7ac3ea7cb1ed286a2b0e9a)
. Upon registration, a link to join the call and dial-in details will be made
available. The accompanying investor presentation will be available on the
investor section of the CRH website in advance of the conference call, while a
recording of the conference call will be made available afterwards.
Dividend Timetable
The timetable for payment of the quarterly dividend of $0.37 per share is as
follows:
Ex-dividend Date: May 23, 2025
Record Date: May 23, 2025
Payment Date: June 25, 2025
The default payment currency is U.S. Dollar for shareholders who hold their
Ordinary Shares through a Depository Trust Company (DTC) participant. It is
also U.S. Dollar for shareholders holding their Ordinary Shares in registered
form, unless a currency election has been registered with CRH’s Transfer
Agent, Computershare Trust Company N.A. by 5:00 p.m. (EDT)/10:00 p.m. (BST) on
May 23, 2025.
The default payment currency for shareholders holding their Ordinary Shares in
the form of Depository Interests is Euro. Such shareholders can elect to
receive the dividend in U.S. Dollar or Pounds Sterling by providing their
instructions to the Company’s Depositary Interest provider, Computershare
Investor Services plc, by 12:00 p.m. (EDT)/5:00 p.m. (BST) on May 27, 2025.
Appendices
Appendix 1 - Primary Statements
The following financial statements are an extract of the Company’s Condensed
Consolidated Financial Statements prepared in accordance with U.S. GAAP for
the three months ended March 31, 2025, and do not present all necessary
information for a complete understanding of the Company's financial condition
as of March 31, 2025. The full Condensed Consolidated Financial Statements
prepared in accordance with U.S. GAAP for the three months ended March 31,
2025, including notes thereto, will be included as a part of the Company’s
Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange
Commission (SEC).
Condensed Consolidated Statements of Income (Unaudited)
(in $ millions, except share and per share data)
Three months ended
March 31
2025 2024
Product revenues 5,612 5,368
Service revenues 1,144 1,165
Total revenues 6,756 6,533
Cost of product revenues (3,826) (3,577)
Cost of service revenues (1,093) (1,149)
Total cost of revenues (4,919) (4,726)
Gross profit 1,837 1,807
Selling, general and administrative expenses (1,833) (1,787)
Gain on disposal of long-lived assets 14 8
Operating income 18 28
Interest income 37 43
Interest expense (181) (133)
Other nonoperating (expense) income, net (20) 161
(Loss) income from operations before income tax expense and income from equity (146) 99
method investments
Income tax benefit 58 19
Loss from equity method investments (10) (4)
Net (loss) income (98) 114
Net (income) attributable to redeemable noncontrolling interests – (2)
Net loss attributable to noncontrolling interests 4 4
Net (loss) income attributable to CRH (94) 116
(Loss) earnings per share attributable to CRH
Basic ($0.15) $0.16
Diluted ($0.15) $0.16
Weighted average common shares outstanding
Basic 676.7 687.8
Diluted 676.7 693.4
Condensed Consolidated Balance Sheets (Unaudited)
(in $ millions, except share data)
March 31 December 31 March 31
2025 2024 2024
Assets
Current assets:
Cash and cash equivalents 3,352 3,720 3,308
Restricted cash – 39 –
Accounts receivable, net 5,141 4,820 4,798
Inventories 4,960 4,755 4,619
Assets held for sale – – 236
Other current assets 789 749 748
Total current assets 14,242 14,083 13,709
Property, plant and equipment, net 22,179 21,452 18,878
Equity method investments 732 737 609
Goodwill 11,475 11,061 10,125
Intangible assets, net 1,208 1,211 1,093
Operating lease right-of-use assets, net 1,272 1,274 1,285
Other noncurrent assets 813 795 634
Total assets 51,921 50,613 46,333
Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable 2,777 3,207 2,730
Accrued expenses 2,270 2,248 2,241
Current portion of long-term debt 1,458 2,999 2,992
Operating lease liabilities 247 265 255
Liabilities held for sale – – 44
Other current liabilities 1,960 1,577 1,735
Total current liabilities 8,712 10,296 9,997
Long-term debt 14,213 10,969 9,680
Deferred income tax liabilities 3,141 3,105 2,684
Noncurrent operating lease liabilities 1,075 1,074 1,120
Other noncurrent liabilities 2,423 2,319 2,110
Total liabilities 29,564 27,763 25,591
Commitments and contingencies
Redeemable noncontrolling interests 379 384 326
Shareholders’ equity
Preferred stock, €1.27 par value, 150,000 shares authorized and 50,000 1 1 1
shares issued and outstanding for 5% preferred stock and 872,000 shares
authorized, issued and outstanding for 7% 'A' preferred stock, as of March 31,
2025, December 31, 2024, and March 31, 2024
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 715,487,343, 289 290 294
718,647,277 and 729,477,337 issued and outstanding, as of March 31, 2025,
December 31, 2024, and March 31, 2024 respectively
Treasury stock, at cost (38,850,691, 41,355,384 and 41,897,429 shares as of (2,038) (2,137) (2,166)
March 31, 2025, December 31, 2024 and March 31, 2024 respectively)
Additional paid-in capital 298 422 337
Accumulated other comprehensive loss (806) (1,005) (797)
Retained earnings 23,375 24,036 22,346
Total shareholders’ equity attributable to CRH shareholders 21,119 21,607 20,015
Noncontrolling interests 859 859 401
Total equity 21,978 22,466 20,416
Total liabilities, redeemable noncontrolling interests and equity 51,921 50,613 46,333
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Three months ended
March 31
2025 2024
Cash Flows from Operating Activities:
Net (loss) income (98) 114
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation, depletion and amortization 477 397
Share-based compensation 32 30
Loss (gain) on disposals from businesses and long-lived assets, net 1 (123)
Deferred tax expense (benefit) 4 (36)
Loss from equity method investments 10 4
Pension and other postretirement benefits net periodic benefit cost 6 9
Non-cash operating lease costs 59 75
Other items, net (14) (25)
Changes in operating assets and liabilities, net of effects of acquisitions
and divestitures:
Accounts receivable, net (268) (326)
Inventories (139) (270)
Accounts payable (503) (396)
Operating lease liabilities (78) (75)
Other assets (210) (77)
Other liabilities 72 1
Pension and other postretirement benefits contributions (10) (14)
Net cash used in operating activities (659) (712)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment (645) (506)
Acquisitions, net of cash acquired (585) (2,206)
Proceeds from divestitures 36 729
Proceeds from disposal of long-lived assets 35 10
Dividends received from equity method investments 9 6
Settlements of derivatives 20 (13)
Deferred divestiture consideration received 36 –
Other investing activities, net 130 (116)
Net cash used in investing activities (964) (2,096)
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Three months ended
March 31
2025 2024
Cash Flows from Financing Activities:
Proceeds from debt issuances 3,017 1,818
Payments on debt (1,533) (651)
Settlements of derivatives 15 (1)
Payments of finance lease obligations (21) (9)
Deferred and contingent acquisition consideration paid (11) (7)
Dividends paid – (750)
Distributions to noncontrolling and redeemable noncontrolling interests (17) (17)
Repurchases of common stock (310) (559)
Proceeds from exercise of stock options 1 –
Net cash provided by (used in) financing activities 1,141 (176)
Effect of exchange rate changes on cash and cash equivalents, including 75 (97)
restricted cash
Decrease in cash and cash equivalents, including restricted cash (407) (3,081)
Cash and cash equivalents and restricted cash at the beginning of period 3,759 6,390
Cash and cash equivalents and restricted cash at the end of period 3,352 3,309
Supplemental cash flow information:
Cash paid for interest (including finance leases) 63 45
Cash paid for income taxes 134 159
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents presented in the Condensed Consolidated Balance 3,352 3,308
Sheets
Cash and cash equivalents included in Assets held for sale – 1
Total cash and cash equivalents and restricted cash presented in the Condensed 3,352 3,309
Consolidated Statements of Cash Flows
Appendix 2 - Non-GAAP Reconciliation and Supplementary Information
CRH uses a number of non-GAAP performance measures to monitor financial
performance. These measures are referred to throughout the discussion of our
reported financial position and operating performance on a continuing
operations basis unless otherwise defined and are measures which are regularly
reviewed by CRH management. These performance measures may not be uniformly
defined by all companies and accordingly may not be directly comparable with
similarly titled measures and disclosures by other companies.
Certain information presented is derived from amounts calculated in accordance
with U.S. GAAP but is not itself an expressly permitted GAAP measure. The
non-GAAP performance measures as summarized below should not be viewed in
isolation or as an alternative to the equivalent GAAP measure.
Adjusted EBITDA: Adjusted EBITDA is defined as earnings from continuing
operations before interest, taxes, depreciation, depletion, amortization, loss
on impairments, gain/loss on divestitures and investments, income/loss from
equity method investments, substantial acquisition-related costs and pension
expense/income excluding current service cost component. It is quoted by
management in conjunction with other GAAP and non-GAAP financial measures to
aid investors in their analysis of the performance of the Company. Adjusted
EBITDA by segment is monitored by management in order to allocate resources
between segments and to assess performance. Adjusted EBITDA margin is
calculated by expressing Adjusted EBITDA as a percentage of total revenues.
Reconciliation to its nearest GAAP measure is presented below:
Three months ended
March 31
in $ millions 2025 2024
Net (loss) income (98) 114
Loss from equity method investments 10 4
Income tax benefit (58) (19)
Loss (gain) on divestitures and investments (i) 26 (160)
Pension income excluding current service cost component (i) (4) (1)
Other interest, net (i) (2) –
Interest expense 181 133
Interest income (37) (43)
Depreciation, depletion and amortization 477 397
Substantial acquisition-related costs (ii) – 20
Adjusted EBITDA 495 445
Total revenues 6,756 6,533
Net (loss) income margin (1.5%) 1.7%
Adjusted EBITDA margin 7.3% 6.8%
(i) Loss (gain) on divestitures and investments, pension income excluding
current service cost component and other interest, net have been included in
Other nonoperating (expense) income, net in the Condensed Consolidated
Statements of Income.
(ii) Represents expenses associated with non-routine substantial acquisitions,
which meet the criteria for being separately reported in Note 3
“Acquisitions” of the unaudited financial statements in the Quarterly
Report on Form 10-Q. Expenses in the first quarter of 2024 primarily include
legal and consulting expenses related to these non-routine substantial
acquisitions.
Adjusted EBITDA is not defined by GAAP and should not be considered as an
alternative to earnings measures defined by GAAP. Reconciliation to its
nearest GAAP measure for the mid-point of the 2025 Adjusted EBITDA guidance is
presented below:
in $ billions 2025
Mid-Point
Net income 3.9
Income tax expense 1.1
Interest expense, net 0.6
Depreciation, depletion and amortization 1.9
Adjusted EBITDA 7.5
Net Debt: Net Debt is used by management as it gives additional insight into
the Company’s current debt position less available cash. Net Debt is
provided to enable investors to see the economic effect of gross debt, related
hedges and cash and cash equivalents in total. Net Debt comprises short and
long-term debt, finance lease liabilities, cash and cash equivalents and
current and noncurrent derivative financial instruments (net).
Reconciliation to its nearest GAAP measure is presented below:
March 31 December 31 March 31
in $ millions 2025 2024 2024
Short and long-term debt (15,671) (13,968) (12,672)
Cash and cash equivalents (i) 3,352 3,720 3,309
Finance lease liabilities (336) (257) (145)
Derivative financial instruments (net) (31) (27) (92)
Net Debt (12,686) (10,532) (9,600)
(i) Cash and cash equivalents include cash and cash equivalents reclassified
as held for sale of $1 million at March 31, 2024.
Organic Revenue and Organic Adjusted EBITDA: Because of the impact of
acquisitions, divestitures, currency exchange translation and other
non-recurring items on reported results each reporting period, CRH uses
organic revenue and organic Adjusted EBITDA as additional performance
indicators to assess performance of pre-existing (also referred to as
underlying, like-for-like or ongoing) operations each reporting period.
Organic revenue and organic Adjusted EBITDA are arrived at by excluding the
incremental revenue and Adjusted EBITDA contributions from current and prior
year acquisitions and divestitures, the impact of currency exchange
translation, and the impact of any one-off items. Changes in organic revenue
and organic Adjusted EBITDA are presented as additional measures of revenue
and Adjusted EBITDA to provide a greater understanding of the performance of
the Company. Organic change % is calculated by expressing the organic movement
as a percentage of the prior year reporting period (adjusted for currency
exchange effects). A reconciliation of the changes in organic revenue and
organic Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA
by segment is presented with the discussion within each segment’s
performance in tables contained in the segment discussion commencing on page
4.
Appendix 3 - Disclaimer/Forward-Looking Statements
In order to utilize the “Safe Harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995, CRH is providing the
following cautionary statement.
This document contains statements that are, or may be deemed to be,
forward-looking statements with respect to the financial condition, results of
operations, business, viability and future performance of CRH and certain of
the plans and objectives of CRH. These forward-looking statements may
generally, but not always, be identified by the use of words such as
“will”, “anticipates”, “should”, “could”, “would”,
“targets”, “aims”, “may”, “continues”, “expects”, “is
expected to”, “estimates”, “believes”, “intends” or similar
expressions. These forward-looking statements include all matters that are not
historical facts or matters of fact at the date of this document.
In particular, the following, among other statements, are all forward-looking
in nature: plans and expectations regarding demand outlook for 2025, including
stability resulting from CRH's customer-connected portfolio; plans and
expectations regarding government funding initiatives and re-industrialization
activity, including expected public investment in critical infrastructure;
plans and expectations regarding pricing momentum, costs, demand, bidding
activity, backlogs and trends in residential and non-residential markets and
macroeconomic and other market trends and dynamics in regions where CRH
operates; plans and expectations regarding operational efficiencies and cost
controls and management; expectations with respect to the impact of existing
and further potential global trade and tariff policies; plans and expectations
regarding investments in innovation and sustainability and the enhancement of
CRH's ability to address global challenges; plans and expectations regarding
CRH's ability to leverage the benefits of existing and emerging technologies;
plans and expectations regarding acquisitions and divestitures and resulting
synergies, benefits and contributions and further growth opportunities; plans
and expectations regarding return of cash to shareholders, including the
timing, consistency and amount of share buybacks and dividends; expectations
regarding CRH's credit rating with each of the three main ratings agencies;
and plans and expectations regarding CRH's 2025 full year performance,
including net income, Adjusted EBITDA, diluted earnings per share, capital
expenditures, assumed interest expense and assumed effective tax rate.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that may or may not
occur in the future and reflect the Company’s current expectations and
assumptions as to such future events and circumstances that may not prove
accurate. You are cautioned not to place undue reliance on any forward-looking
statements. These forward-looking statements are made as of the date of this
document. The Company expressly disclaims any obligation or undertaking to
publicly update or revise these forward-looking statements other than as
required by applicable law.
A number of material factors could cause actual results and developments to
differ materially from those expressed or implied by these forward-looking
statements, certain of which are beyond our control, and which include, among
other factors: economic and financial conditions, including changes in
interest rates, inflation, price volatility and/or labor and materials
shortages; industry cyclicality and the demand for infrastructure,
residential and non-residential construction and our products in geographic
markets in which we operate; increased competition and its impact on prices
and market position; increases in energy, labor and/or other raw materials
costs; adverse changes to laws and regulations, including in relation to
climate change; the impact of unfavorable weather; investor and/or consumer
sentiment regarding the importance of sustainable practices and products;
availability of, or reductions or delays to, public sector funding for
infrastructure programs; political uncertainty, including as a result of
political and social conditions in the jurisdictions CRH operates in, or
adverse public policy, economic, social and political developments, including
the ongoing geopolitical conflicts in Ukraine and the Middle East; failure to
complete or successfully integrate acquisitions or make timely divestitures;
cyberattacks and exposure of associates, contractors, customers, suppliers and
other individuals to health and safety risks, including due to product
failures. Additional factors, risks and uncertainties that could cause actual
outcomes and results to be materially different from those expressed by the
forward-looking statements in this report include the risks and uncertainties
described under “Risk Factors” in Part 1, Item 1A of the Annual Report on
Form 10-K “Risk Factors” in CRH’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2024 as filed with the SEC and in CRH's other
filings with the SEC.
ir@crh.com
(mailto:ir@crh.com)
media@crh.com (mailto:media@crh.com)
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