Building materials giant on course to deliver net income of up to $3.85bn this year
The company said it expects to generate adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of between $6.87bn and $6.97bn (€6.38bn and €6.47bn) this year. Net income should be between $3.78bn and $3.85bn.
CRH generated more than half its $35bn in revenues last year in the Americas – most of it in the United States. The region also accounted for more than half its $6.2bn adjusted ebitda in 2023.
Releasing third-quarter results on Thursday, the company said that its revenue in the period rose 4pc to $10.5bn, while in the first nine months of the year it was 2pc higher, at $26.7bn. Organic total revenues were 1pc behind the corresponding period in 2023, however.
Its adjusted ebitda was $2.5bn in the three months to the end of September, which was 12pc higher year-on-year. It said the increase came on the back of the delivery of its integrated solutions strategy, positive pricing, on-going cost control and further operational efficiencies.
“Our third quarter results represent another strong performance with further growth in sales, profits and margins,” said CRH chief executive Albert Manifold, whose retiring at the end of this year and handing over the reins to chief financial officer Jim Mintern.
“Despite contending with adverse weather in the quarter, our differentiated solutions strategy continues to deliver industry-leading performance, while the strength of our balance sheet combined with our disciplined approach to capital allocation leaves us well positioned to capitalise on the growth and value creation opportunities that lie ahead,” added Mr Manifold.
In CRH’s Americas Materials Solutions division, revenue was up 4pc in the quarter. CRH said it was driven by strong pricing across all lines of business, along with contributions from acquisitions which mitigated the effects of lower activity in certain markets due to weather disruption.
Adjusted ebidta in the unit was 16pc ahead of the prior year period, driven by pricing improvements, operational efficiencies and good cost management, along with gains on the disposal of certain land assets, according to the group, whose shares are now listed in New York.
Those shares already received a boost on news of Donald Trump’s election win, and were more than 2pc ahead in pre-market trading on Thursday morning, giving the group a market capitalisation of just under $68bn. Its shares have jumped 44pc since the start of this year.
The group’s Europe Materials Solutions division saw revenues climb 7pc in the third quarter, benefiting from the acquisition of Adbri in Australia in July, and partly offset by the sale of its European lime operations, as well as lower activity in some markets.
CRH completed 28 acquisitions for a total consideration of $3.9bn in the first nine months of the year.
“Looking ahead to 2025 and notwithstanding some macroeconomic uncertainties, we expect positive underlying demand across our key end-use markets, underpinned by significant public investment in infrastructure and re-industrialisation activity,” the company noted on Thursday.
“A lower interest rate environment is expected to aid a gradual recovery in new-build residential construction activity,” it added.
