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1. Company Snapshot

1.a. Company Description

CRH plc, through its subsidiaries, manufactures and distributes building materials.It operates in three segments: Americas Materials, Europe Materials, and Building Products.The company manufactures and supplies cement, lime, aggregates, precast, ready mixed concrete, and asphalt products; concrete masonry and hardscape products comprising pavers, blocks and kerbs, retaining walls, and related patio products; and glass and glazing products, including architectural glass, custom-engineered curtain and window walls, architectural windows, storefront systems, doors, skylights, and architectural hardware.


It also offers precast concrete and polymer-based products, such as underground vaults, drainage pipes and structures, utility enclosures, and modular precast structures to the water, energy, communication, transportation, and building structures markets; and construction accessories, such as anchoring, fixing, and connection solutions, as well as lifting systems, formwork accessories, and other accessories used in construction applications.In addition, the company offers network access products, which include composite access chambers, covers, passive safety systems, retention sockets, sealants, and meter boxes; and paving and construction services.Further, it provides building and civil engineering contracting, contract surfacing, operates logistics and owned railway infrastructure; sells and distributes cement; and supplies access chambers and ducting products.


It serves governments, contractors, homebuilders, homeowners, and sub-contractors.The company operates primarily in the Republic of Ireland, the United Kingdom, the rest of Europe, the United States, and internationally.CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on CRH

CRH plc's recent performance was driven by strong revenue and net income growth, highlighting market interest in its outlook and operational performance. The company's raised earnings guidance for 2025, reflecting a positive business outlook driven by infrastructure investments and robust non-residential activity, also contributed to its momentum. Additionally, CRH's acquisition of Eco Material Technologies, valued at $2.1B, and the appointment of Patrick Decker to its board of directors, strengthened its finance expertise. A 6% dividend increase also underscores the company's confidence in its financials. RBC Capital maintains an 'Outperform' rating.

1.c. Company Highlights

2. CRH's Q3 2025 Earnings: A Record Performance

CRH's third-quarter 2025 financial performance was impressive, with total revenues reaching $11.1 billion, a 5% increase over the prior year, driven by positive underlying demand, continued pricing momentum, and contributions from acquisitions. The company's adjusted EBITDA margin also expanded, contributing to a diluted EPS of $1.64, beating analyst estimates of $1.46. The strong EPS performance was a significant beat, indicating a robust operational performance.

Publication Date: Nov -07

📋 Highlights
  • EBITDA Guidance Raised: CRH increased 2025 adjusted EBITDA guidance to $7.6–$7.7 billion, a 10% midpoint rise over prior expectations.
  • Q3 Revenue Growth: Total revenues reached $11.1 billion, up 5% year-over-year, driven by demand, pricing momentum, and acquisitions.
  • Capital Allocation: $3.5 billion invested in 27 acquisitions and $1.2 billion in growth CapEx, alongside $1.8 billion in shareholder returns (dividends + buybacks).
  • Infrastructure Megatrends: 60% of IIJA funds remain unspent, with $40 billion in projected financial capacity by 2030 (70% for growth, 30% for shareholder returns).
  • Eco Material Acquisition: $3.5 billion acquisition expected to unlock cementitious growth, with $60/ton profit margin potential in asphalt production via the connected portfolio.

Financial Highlights and Guidance

The company's financial highlights for the quarter were notable, with revenues, adjusted EBITDA margin, and diluted EPS all ahead of the prior year period. CRH raised its adjusted EBITDA guidance for 2025, expecting full-year adjusted EBITDA to be between $7.6 billion and $7.7 billion, representing a 10% increase at the midpoint. The company's guidance for net income and diluted earnings per share was also updated, with expectations of $3.8 billion to $3.9 billion and $5.49 to $5.72, respectively.

Operational Performance and Outlook

CRH's operational performance was driven by strong demand in its Americas Materials Solutions and Americas Building Solutions businesses. The company's growth algorithm, focused on transportation, water, and reindustrialization megatrends, is expected to continue driving growth. The acquisition of Eco Material Technologies is also expected to contribute to future growth, with CRH anticipating unlocking strong future growth and synergy realization.

Valuation and Return Metrics

CRH's valuation metrics indicate a relatively high P/E Ratio of 26.58, suggesting that the market has already priced in significant growth expectations. The company's ROE of 13.41% and ROIC of 7.44% indicate a strong return on equity and invested capital, respectively. The EV/EBITDA ratio of 14.18 is relatively moderate, considering the company's growth prospects. With a dividend yield of 1.27%, CRH offers a relatively attractive income stream.

Outlook and Growth Prospects

CRH's outlook for 2026 is positive, with expectations of continued investment in transportation infrastructure, water infrastructure, and reindustrialization. The company is well-positioned to benefit from these trends, with a unique connected portfolio and unmatched scale. Analysts estimate revenue growth of 5.7% next year, which is consistent with CRH's guidance. The company's strong operational performance, combined with its attractive valuation metrics, makes it an interesting investment opportunity.

3. NewsRoom

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Transaction in Own Shares

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These Stocks Could Join the S&P 500 in Rebalancing

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.20%)

6. Segments

Americas Materials Solutions

Expected Growth: 4.5%

The segment is expected to experience steady growth driven by increasing demand for infrastructure development and residential construction in the United States, supported by government investments in roads and public works projects. Additionally, the growing trend towards sustainable building materials will contribute to growth.

International Solutions

Expected Growth: 6.2%

The segment is anticipated to experience robust growth driven by rapid urbanization, infrastructure development, and increasing demand for housing in emerging markets. Moreover, the company's strategic expansion into new markets and diversification of product offerings will contribute to its growth.

Americas Building Solutions

Expected Growth: 5.5%

The segment is expected to experience strong growth driven by an increasing focus on sustainable and energy-efficient building solutions, as well as growth in the US residential and commercial construction sectors. Moreover, the trend towards renovation and repair activities will contribute to growth.

7. Detailed Products

Cement

CRH plc produces a range of cement products for construction, infrastructure, and industrial applications.

Aggregates

CRH plc supplies a range of aggregates including crushed stone, sand, and gravel for construction and infrastructure projects.

Asphalt

CRH plc produces asphalt products for road construction, maintenance, and repair.

Ready-Mix Concrete

CRH plc supplies ready-mix concrete for construction, infrastructure, and industrial applications.

Paving Products

CRH plc manufactures paving products including concrete pavers, blocks, and kerbs for landscaping and infrastructure projects.

Architectural Products

CRH plc supplies architectural products including concrete masonry units, brick, and block for building facades and interior design.

Distribution Products

CRH plc distributes a range of construction materials including drywall, roofing, and insulation products.

8. CRH plc's Porter Forces

Forces Ranking

Threat Of Substitutes

CRH plc operates in the building materials industry, where substitutes are limited. However, there is a growing trend towards sustainable and eco-friendly alternatives, which could pose a threat to the company's traditional products.

Bargaining Power Of Customers

CRH plc's customers are primarily construction companies and contractors, who have limited bargaining power due to the company's strong market position and diversified product offerings.

Bargaining Power Of Suppliers

CRH plc relies on a network of suppliers for raw materials, which can lead to fluctuations in costs and availability. However, the company's scale and diversification help to mitigate this risk.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge CRH plc's market position.

Intensity Of Rivalry

The building materials industry is highly competitive, with several large players vying for market share. CRH plc faces intense rivalry from companies such as LafargeHolcim and HeidelbergCement.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.44%
Debt Cost 3.95%
Equity Weight 61.56%
Equity Cost 10.75%
WACC 8.14%
Leverage 62.44%

11. Quality Control: CRH plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vicat

A-Score: 7.1/10

Value: 7.9

Growth: 6.1

Quality: 4.8

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

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Titan Cement

A-Score: 7.0/10

Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

Volatility: 6.7

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Buzzi Unicem

A-Score: 6.1/10

Value: 6.1

Growth: 7.3

Quality: 7.2

Yield: 3.8

Momentum: 8.0

Volatility: 4.3

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HeidelbergCement

A-Score: 5.8/10

Value: 4.7

Growth: 5.6

Quality: 5.9

Yield: 4.4

Momentum: 9.5

Volatility: 5.0

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Breedon

A-Score: 5.5/10

Value: 6.4

Growth: 6.0

Quality: 4.7

Yield: 6.9

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

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CRH

A-Score: 5.4/10

Value: 2.6

Growth: 7.2

Quality: 5.3

Yield: 4.4

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.52$

Current Price

90.52$

Potential

-0.00%

Expected Cash-Flows