REG-CRH plc CRH Q2 2025 Results
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CRH Q2 2025 Results
CRH (NYSE: CRH), a leading provider of building materials solutions, today
reported second quarter 2025 financial results.
Key Highlights
Summary Financials Q2 2025 YoY Change
Total revenues $10.2bn +6%
Net income $1.3bn +2%
Net income margin 13.1% (50bps)
Adjusted EBITDA* $2.5bn +9%
Adjusted EBITDA margin* 24.1% +70bps
Diluted Earnings Per Share $1.94 +3%
* Strong performance backed by favorable underlying demand, positive pricing and
acquisition contributions
*Proven strategy and connected portfolio driving further growth and value
creation
*$1.0bn invested in 19 acquisitions YTD; strong pipeline of M&A
opportunities
*$2.1bn acquisition of Eco Material Technologies agreed; accelerating
cementitious growth strategy
*Ongoing share buyback; $0.8bn completed YTD; commencing new $0.3bn quarterly
tranche
*Declaring quarterly dividend of $0.37 per share (+6% YoY)
*Continue to expect positive activity across our key end-use markets in 2025
*FY25 guidance: Net income of $3.8bn-$3.9bn; Adjusted EBITDA* of $7.5bn-$7.7bn
Jim Mintern, Chief Executive Officer, said:
"Our strong second quarter performance was driven by favorable underlying
demand, disciplined commercial management and further contributions from
acquisitions. CRH's proven strategy continued to drive higher sales, profits
and Adjusted EBITDA margins*, while our robust balance sheet and financial
capacity enabled us to allocate approximately $3 billion to growth investments
and capital returns year-to-date. We completed 19 acquisitions year-to-date
and continue to see an active pipeline of opportunities to further strengthen
our market-leading positions in attractive growth markets. Underlying demand
in our key end-use markets remains positive and we are pleased to raise our
guidance for 2025."
*Represents non-GAAP measure. See 'Non-GAAP Reconciliation and Supplementary
Information' on pages 12 to 13.
Q2 2025 Results
Performance Overview
Total revenues of $10.2 billion (Q2 2024: $9.7 billion) increased by 6% driven
by the positive impact of acquisitions and disciplined commercial execution,
which offset lower activity levels in weather-impacted regions. Net income of
$1.3 billion (Q2 2024: $1.3 billion) was 2% ahead of the prior year. This
growth reflects a strong underlying operating performance, which more than
offset higher depreciation and interest expenses, as well as reduced gains
from divestitures and disposals of long-lived assets during the period.
Adjusted EBITDA* of $2.5 billion (Q2 2024: $2.3 billion) increased by 9% as a
result of the continued delivery of CRH's connected strategy, positive
pricing, good contributions from acquisitions and further operational
efficiencies. CRH's net income margin of 13.1% was behind Q2 2024 (13.6%),
while Adjusted EBITDA margin* of 24.1% (Q2 2024: 23.4%) was ahead of the
comparable prior year period. Diluted Earnings Per Share (EPS) for Q2 2025 was
$1.94 (Q2 2024: $1.88).
* Americas Materials Solutions' total revenues were 2% ahead of Q2 2024, driven
by continued positive pricing and contributions from acquisitions, which
offset weather-related activity challenges. Adjusted EBITDA was 4% ahead of
the prior year period, supported by contributions from acquisitions,
underlying commercial progress and ongoing cost management while the prior
year benefited from higher gains on disposal of long-lived assets.
* Americas Building Solutions' total revenues were 2% ahead of Q2 2024,
supported by contributions from acquisitions and strong demand in water
infrastructure and data center activity. Adjusted EBITDA was 5% ahead of the
prior year.
* International Solutions' total revenues were 13% ahead of Q2 2024, driven by
strong contributions from acquisitions and sustained pricing momentum.
Adjusted EBITDA was 23% ahead of the prior year, driven by good commercial
management, operational efficiencies and contributions from acquisitions.
Acquisitions and Divestitures
In the three months ended June 30, 2025, CRH completed five acquisitions for a
total consideration of $0.1 billion, compared with $0.4 billion in the same
period of 2024. Americas Materials Solutions completed two acquisitions, while
International Solutions completed three acquisitions.
For the six months ended June 30, 2025, CRH completed 13 acquisitions for a
total consideration of $0.7 billion, compared with $2.6 billion in the first
half of the prior year.
As announced on July 29, 2025, CRH has reached an agreement to acquire Eco
Material Technologies (Eco Material), a leading supplier of Supplementary
Cementitious Materials (SCMs) in North America, for a total consideration of
$2.1 billion. The proposed acquisition puts CRH at the forefront of the
transition to next generation cement and concrete and secures the long-term
supply of high-value critical materials to unlock strong future growth
opportunities. Eco Material is headquartered in Utah and operates a national
network of fresh and harvested fly ash, pozzolans, synthetic gypsum and green
cement operations distributed across a network of over 125 utility source
locations, production facilities and terminals. The proposed transaction is
subject to regulatory approval and customary closing conditions and is
expected to close in 2025.
With respect to divestitures, in the three months ended June 30, 2025, cash
proceeds from divestitures and disposals of long-lived assets were $31
million, compared with $0.4 billion in the same period in 2024. For the six
months ended June 30, 2025, CRH realized cash proceeds from divestitures and
disposals of long-lived assets of $0.1 billion, compared with $1.1 billion in
the same period 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.
As part of its ongoing share buyback program, CRH repurchased approximately
3.7 million Ordinary Shares in Q2 2025 for a total consideration of $0.3
billion. On August 5, 2025, the latest tranche of the share buyback program
was completed, bringing the year-to-date repurchases to $0.8 billion. The
Company is pleased to announce that it is commencing an additional $0.3
billion tranche to be completed no later than November 5, 2025.
2025 Full Year Outlook
The outlook for our business remains positive and we raise our financial
guidance for 2025. We continue to expect favorable 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 proven
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)) Updated Guidance Previous Guidance
(in $ billions, except per share data) Low High Low High
Net income ((ii)) 3.8 3.9 3.7 4.1
Adjusted EBITDA* 7.5 7.7 7.3 7.7
Diluted EPS ((ii)) $5.49 $5.72 $5.34 $5.80
Capital expenditure 2.8 3.0 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 EPS are based on approximately $0.6 billion
interest expense, net, effective tax rate of approximately 23% and a
year-to-date average of approximately 682 million diluted common shares
outstanding.
Americas Materials Solutions
Analysis of Change
in $ millions Q2 2024 Currency Acquisitions Divestitures Organic Q2 2025 % change
Total revenues 4,406 (3) +214 — (108) 4,509 +2%
Adjusted EBITDA 1,193 (1) +47 — +2 1,241 +4%
Adjusted EBITDA margin 27.1% 27.5%
Americas Materials Solutions’ total revenues were 2% ahead of the second
quarter of 2024, primarily driven by contributions from acquisitions and
further pricing improvements.
In Essential Materials, total revenues increased by 4% due to positive pricing
and favorable underlying demand in most regions. Aggregates pricing increased
4% year-on-year, reflecting a shift in product mix due to weather-related
delays in the period. Cement pricing was up 2% reflecting regional variances
across the footprint. Aggregates and cement volumes increased by 5% and 1%,
respectively, with contributions from acquisitions offsetting the impact of
adverse weather.
In Road Solutions, total revenues increased by 2%. Asphalt volumes decreased
by 2% over the prior year due to adverse weather conditions, while pricing was
stable. Readymixed concrete volumes increased by 6% over the prior year
supported by acquisitions while pricing increased by 2%. Paving and
construction revenues decreased by 2% due to weather-impacted activity levels.
Second quarter Adjusted EBITDA for Americas Materials Solutions was 4% ahead
of the prior year, driven by acquisitions, improved pricing, and disciplined
cost management while the prior year benefited from higher gains on disposal
of long-lived assets. Adjusted EBITDA margin was 40bps ahead of the second
quarter of 2024.
Americas Building Solutions
Analysis of Change
in $ millions Q2 2024 Currency Acquisitions Divestitures Organic Q2 2025 % change
Total revenues 2,116 (1) +83 (11) (28) 2,159 +2%
Adjusted EBITDA 476 — +22 (2) +5 501 +5%
Adjusted EBITDA margin 22.5% 23.2%
Americas Building Solutions' total revenues were 2% ahead of the second
quarter of 2024, as good commercial management and contributions from
acquisitions offset adverse weather impacts in some markets.
In Building & Infrastructure Solutions, total revenues were 3% ahead of Q2
2024, driven by positive contributions from acquisitions and strong demand in
water infrastructure and data center activity.
In Outdoor Living Solutions, total revenues were 2% ahead of the prior year
period, with acquisitions mitigating the effects of subdued residential
activity.
Adjusted EBITDA for Americas Building Solutions was 5% ahead of the second
quarter of 2024 driven by acquisitions and cost savings initiatives. Adjusted
EBITDA margin was 70bps ahead of the prior year period.
International Solutions
Analysis of Change
in $ millions Q2 2024 Currency Acquisitions Divestitures Organic Q2 2025 % change
Total revenues 3,132 +163 +430 (91) (96) 3,538 +13%
Adjusted EBITDA 586 +27 +74 +5 +29 721 +23%
Adjusted EBITDA margin 18.7% 20.4%
International Solutions' total revenues were 13% ahead of the second quarter
of 2024 primarily driven by contributions from acquisitions and favorable
pricing, which were partially offset by reduced activity in some markets.
In Essential Materials, total revenues were 14% ahead of the comparable period
in 2024 supported by positive pricing and strong contributions from
acquisitions. Aggregates and cement volumes were 5% and 12% ahead of the
comparable period in 2024, with pricing 3% and 2% ahead, respectively.
In Road Solutions, total revenues were 16% ahead of the comparable period in
2024, with volumes and prices in readymixed concrete ahead of 2024 by 21% and
9%, respectively, benefiting from higher activity levels and contributions
from the Adbri acquisition. Asphalt volumes declined by 3%, as a result of
lower activity levels while asphalt pricing declined 4% compared to the prior
year.
Within Building & Infrastructure Solutions and Outdoor Living Solutions,
total revenues were 6% ahead of the comparable period in 2024 supported by
contributions from acquisitions.
Adjusted EBITDA in International Solutions was 23% ahead of the second quarter
of 2024, driven by the successful integration of acquisitions, increased
pricing and operational efficiencies. Adjusted EBITDA margin increased by
170bps compared to the prior year.
Other Financial Items
Depreciation, depletion and amortization charges of $0.5 billion were $0.1
billion higher than the prior year (Q2 2024: $0.4 billion), primarily due to
the impact of acquisitions and higher capital expenditure.
Gains on the disposal of long-lived assets of $29 million were lower than the
prior year period (Q2 2024: $102 million) primarily due to the non-recurrence
of certain land asset disposals in North America.
Interest income was $30 million for the three months ended June 30, 2025, a
decrease of $6 million from the comparable period in 2024. Interest expense of
$200 million was higher than the comparable period (Q2 2024: $155 million),
primarily due to an increase in gross debt balances.
Other nonoperating (expense) income, net was ($9) million (Q2 2024: $23
million income) reflective of a loss on divestitures made during the period.
Diluted EPS rose to $1.94 (Q2 2024: $1.88), supported by a strong operating
performance and the ongoing share buyback program.
Balance Sheet and Liquidity
Total short and long-term debt was $15.8 billion at June 30, 2025, compared
with $14.0 billion at December 31, 2024, and $13.1 billion at June 30, 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 six months ended June 30, 2025,
$0.3 billion of Euro Commercial Paper was repaid, and the $1.25 billion Senior
Notes due 2025 were repaid on maturity in May.
Net Debt* at June 30, 2025, was $13.4 billion, compared to $10.5 billion at
December 31, 2024, and $10.3 billion at June 30, 2024. The increase in Net
Debt* compared to December 31, 2024, reflects cash returns to shareholders
through continued share buybacks and dividends, acquisitions, as well as the
purchase of property, plant and equipment partially offset by inflows from
operating activities.
As of June 30, 2025, CRH had $2.9 billion of cash and cash equivalents and
restricted cash on hand (June 30, 2024: $3.9 billion) and $4.2 billion of
undrawn committed facilities. During April 2025, the Company exercised a
second one-year extension option on $4.1 billion of the undrawn committed
facilities extending the maturity date to May 2030. At June 30, 2025, the
weighted average maturity of the term debt (net of cash and cash equivalents)
was 8.1 years.
As at June 30, 2025, the Company had a $4.0 billion U.S. Dollar Commercial
Paper Program and a €1.5 billion Euro Commercial Paper Program. As at June
30, 2025, there was $1.0 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.
Q2 2025 Conference Call
CRH will host a conference call and webcast presentation at 8:00 a.m. (EDT) on
Thursday, August 7, 2025 to discuss the Q2 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=54303871&newsitemid=20250806838306&lan=en-US&anchor=www.crh.com%2Finvestors&index=1&md5=b96db1887f6855553f168fa804ce32c2)
. 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, and 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: August 22 2025
Record Date: August 22 2025
Payment Date: September 24 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
August 22, 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 August 26, 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 and six months ended June 30, 2025, and do not present all
necessary information for a complete understanding of the Company's financial
condition as of June 30, 2025. The full Condensed Consolidated Financial
Statements prepared in accordance with U.S. GAAP for the three months ended
June 30, 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 Six months ended
June 30 June 30
2025 2024 2025 2024
Product revenues 7,919 7,308 13,531 12,676
Service revenues 2,287 2,346 3,431 3,511
Total revenues 10,206 9,654 16,962 16,187
Cost of product revenues (4,083) (3,759) (7,909) (7,336)
Cost of service revenues (2,097) (2,220) (3,190) (3,369)
Total cost of revenues (6,180) (5,979) (11,099) (10,705)
Gross profit 4,026 3,675 5,863 5,482
Selling, general and administrative expenses (2,120) (1,948) (3,953) (3,735)
Gain on disposal of long-lived assets 29 102 43 110
Operating income 1,935 1,829 1,953 1,857
Interest income 30 36 67 79
Interest expense (200) (155) (381) (288)
Other nonoperating (expense) income, net (9) 23 (29) 184
Income from operations before income tax expense and income from equity method 1,756 1,733 1,610 1,832
investments
Income tax expense (425) (430) (367) (411)
Income (loss) from equity method investments 1 6 (9) 2
Net income 1,332 1,309 1,234 1,423
Net (income) attributable to redeemable noncontrolling interests (8) (10) (8) (12)
Net (income) loss attributable to noncontrolling interests (5) (2) (1) 2
Net income attributable to CRH 1,319 1,297 1,225 1,413
Earnings per share attributable to CRH
Basic $1.95 $1.89 $1.79 $2.05
Diluted $1.94 $1.88 $1.78 $2.03
Weighted average common shares outstanding
Basic 674.8 685.5 675.8 686.6
Diluted 677.7 688.8 679.9 691.1
Condensed Consolidated Balance Sheets (Unaudited)
(in $ millions, except share data)
June 30 December 31 June 30
2025 2024 2024
Assets
Current assets:
Cash and cash equivalents 2,876 3,720 3,066
Restricted cash – 39 869
Accounts receivable, net 6,490 4,820 5,893
Inventories 5,051 4,755 4,514
Assets held for sale – – 67
Other current assets 734 749 704
Total current assets 15,151 14,083 15,113
Property, plant and equipment, net 23,017 21,452 19,235
Equity method investments 712 737 484
Goodwill 11,673 11,061 10,251
Intangible assets, net 1,239 1,211 1,086
Operating lease right-of-use assets, net 1,295 1,274 1,279
Other noncurrent assets 897 795 657
Total assets 53,984 50,613 48,105
Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable 3,303 3,207 3,363
Accrued expenses 2,266 2,248 2,272
Current portion of long-term debt 1,171 2,999 3,218
Operating lease liabilities 247 265 259
Liabilities held for sale – – 14
Other current liabilities 1,697 1,577 1,422
Total current liabilities 8,684 10,296 10,548
Long-term debt 14,642 10,969 9,900
Deferred income tax liabilities 3,202 3,105 2,914
Noncurrent operating lease liabilities 1,096 1,074 1,114
Other noncurrent liabilities 2,730 2,319 2,178
Total liabilities 30,354 27,763 26,654
Commitments and contingencies
Redeemable noncontrolling interests 389 384 335
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 June 30,
2025, December 31, 2024, and June 30, 2024
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 711,792,599, 288 290 292
718,647,277 and 725,113,896 issued and outstanding, as of June 30, 2025,
December 31, 2024, and June 30, 2024 respectively
Treasury stock, at cost (38,589,802, 41,355,384 and 41,540,247 shares as of (2,028) (2,137) (2,143)
June 30, 2025, December 31, 2024 and June 30, 2024 respectively)
Additional paid-in capital 323 422 359
Accumulated other comprehensive loss (345) (1,005) (813)
Retained earnings 24,106 24,036 23,030
Total shareholders’ equity attributable to CRH shareholders 22,345 21,607 20,726
Noncontrolling interests 896 859 390
Total equity 23,241 22,466 21,116
Total liabilities, redeemable noncontrolling interests and equity 53,984 50,613 48,105
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Six months ended
June 30
2025 2024
Cash Flows from Operating Activities:
Net income 1,234 1,423
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation, depletion and amortization 1,005 821
Share-based compensation 66 63
Gains on disposals from businesses and long-lived assets, net (12) (248)
Deferred tax expense 5 197
Loss (income) from equity method investments 9 (2)
Pension and other postretirement benefits net periodic benefit cost 12 18
Non-cash operating lease costs 134 151
Other items, net 2 (16)
Changes in operating assets and liabilities, net of effects of acquisitions
and divestitures:
Accounts receivable, net (1,397) (1,371)
Inventories (107) (175)
Accounts payable (58) 232
Operating lease liabilities (153) (151)
Other assets (250) (107)
Other liabilities 249 (39)
Pension and other postretirement benefits contributions (20) (23)
Net cash provided by operating activities 719 773
Cash Flows from Investing Activities:
Purchases of property, plant and equipment (1,300) (1,130)
Acquisitions, net of cash acquired (648) (2,522)
Proceeds from divestitures 37 978
Proceeds from disposal of long-lived assets 65 118
Dividends received from equity method investments 13 15
Settlements of derivatives (33) (3)
Deferred divestiture consideration received 38 55
Other investing activities, net 33 (128)
Net cash used in investing activities (1,795) (2,617)
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in $ millions)
Six months ended
June 30
2025 2024
Cash Flows from Financing Activities:
Proceeds from debt issuances 4,542 3,370
Payments on debt (3,352) (1,691)
Settlements of derivatives 77 (3)
Payments of finance lease obligations (46) (21)
Deferred and contingent acquisition consideration paid (13) (10)
Dividends paid (500) (1,231)
Distributions to noncontrolling and redeemable noncontrolling interests (22) (22)
Transactions involving noncontrolling interests 2 –
Repurchases of common stock (644) (907)
Amounts related to employee share plans (56) –
Net cash used in financing activities (12) (515)
Effect of exchange rate changes on cash and cash equivalents, including 205 (85)
restricted cash
Decrease in cash and cash equivalents, including restricted cash (883) (2,444)
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 2,876 3,946
Supplemental cash flow information:
Cash paid for interest (including finance leases) 251 216
Cash paid for income taxes 304 304
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents presented in the Condensed Consolidated Balance 2,876 3,066
Sheets
Cash and cash equivalents included in Assets held for sale – 11
Restricted cash presented in the Condensed Consolidated Balance Sheets – 869
Total cash and cash equivalents and restricted cash presented in the Condensed 2,876 3,946
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 Six months ended
June 30 June 30
in $ millions 2025 2024 2025 2024
Net income 1,332 1,309 1,234 1,423
(Income) loss from equity method investments (1) (6) 9 (2)
Income tax expense 425 430 367 411
Loss (gain) on divestitures and investments ((i)) 16 (23) 42 (183)
Pension income excluding current service cost component ((i)) (5) (1) (9) (2)
Other interest, net ((i)) (2) 1 (4) 1
Interest expense 200 155 381 288
Interest income (30) (36) (67) (79)
Depreciation, depletion and amortization 528 424 1,005 821
Substantial acquisition-related costs ((ii)) – 2 – 22
Adjusted EBITDA 2,463 2,255 2,958 2,700
Total revenues 10,206 9,654 16,962 16,187
Net income margin 13.1% 13.6% 7.3% 8.8%
Adjusted EBITDA margin 24.1% 23.4% 17.4% 16.7%
(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 second 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:
Updated Guidance Previous Guidance
in $ billions 2025 2025
Mid-Point
Mid-Point
Net income 3.9 3.9
Income tax expense 1.1 1.1
Interest expense, net 0.6 0.6
Depreciation, depletion and amortization 2.1 1.9
Other ((i)) (0.1) –
Adjusted EBITDA 7.6 7.5
(i) Other primarily relates to (income) loss from equity method investments
and other nonoperating (income) expense, net.
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:
June 30 December 31 June 30
in $ millions 2025 2024 2024
Short and long-term debt (15,813) (13,968) (13,118)
Cash and cash equivalents ((i)) 2,876 3,720 3,077
Finance lease liabilities (442) (257) (147)
Derivative financial instruments (net) (27) (27) (91)
Net Debt (13,406) (10,532) (10,279)
(i) Cash and cash equivalents include cash and cash equivalents reclassified
as held for sale of $11 million at June 30, 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 connected strategy; plans and expectations
regarding government funding initiatives, including expected public investment
in critical infrastructure and re-industrialization activity; plans and
expectations regarding pricing momentum, costs, demand, and trends in
residential and non-residential markets and macroeconomic and other market
trends and dynamics in key end-use markets and other regions where CRH
operates; expectations with respect to the impact of further potential changes
to global trade policies; plans and expectations regarding acquisitions and
divestitures and resulting synergies, benefits and contributions statements
regarding the pipeline of M&A and other growth opportunities; statements
regarding the consummation (including timing thereof), expectations and
benefits of the pending acquisition of Eco Material; statements regarding
CRH's supply of critical materials to support future growth; statements
regarding CRH's position with respect to the transition to the next generation
of cement and concrete; 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 EPS,
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.
Tom Holmes
Head of Investor Relations
tholmes@crh.com (mailto:tholmes@crh.com)
Lauren Schulz
Chief Communications Officer
lschulz@crh.com (mailto:lschulz@crh.com)
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