CRH PLC Ordinary Shares
CRH · NYSE
Next quarter
Reports Nov 4, 2026.
Consensus is $2.23 EPS for Sep 2026 across 2 estimates, ranging $2.21 to $2.25.
CRH Jun 2026
- 12.76%
- -1.03%
- $1.96
- $2.21
- —
- $10.78B
Reported results
- $10.78B
- 39.84%
- $2.08B
- 19.29%
- $1.49B
- $2.21
Highlights
- Earnings beat: Diluted EPS was $2.21, 12.8% above the $1.96 consensus and up 14% from $1.94 a year ago.
- Operating growth: Revenue increased 6% year over year to $10.78 billion, while Adjusted EBITDA rose 7% to $2.63 billion and its margin expanded 30 basis points to 24.4%.
- Reported profit: Net income rose 13% to $1.51 billion, with net income margin improving 90 basis points to 14.0%; the quarter included $266 million of pre-tax divestiture gains.
- Materials strength: Americas Materials Solutions revenue grew 10% to $4.96 billion and Adjusted EBITDA increased 12% to $1.38 billion, supported by pricing, volumes, acquisitions and cost control.
- Building weakness: Americas Building Solutions revenue declined 2% to $2.12 billion and Adjusted EBITDA fell 8% to $462 million as divestitures, subdued residential demand and inflation offset strong data-center and utility demand.
- International execution: International Solutions revenue increased 5% to $3.70 billion and Adjusted EBITDA rose 8% to $781 million, lifting margin 70 basis points to 21.1%.
- Portfolio repositioning: CRH completed 11 acquisitions for $1.1 billion in the quarter, including the $0.7 billion Axius Water deal, while receiving $1.7 billion from divestitures.
- Arcosa transaction: CRH agreed to acquire Arcosa for approximately $8.5 billion, expects closing in Q1 2027, and has arranged a $5.8 billion bridge facility, later reduced to $3.3 billion after adding a $2.5 billion term loan.
- Guidance maintained: FY26 guidance remains $3.9-$4.1 billion of net income, $8.1-$8.5 billion of Adjusted EBITDA and $5.60-$6.05 of diluted EPS; capital expenditure guidance was reduced to $2.7-$2.9 billion.
Analysis
CRH delivered a strong, expectation-beating second quarter, with diluted EPS of $2.21 versus the $1.96 consensus and $1.94 in Q2 2025. Revenue rose 6% year over year to $10.78 billion, operating income increased 7% to $2.08 billion and Adjusted EBITDA grew 7% to $2.63 billion. Net income reached $1.51 billion, up from $1.33 billion a year ago, although the comparison benefited from $266 million of pre-tax divestiture gains. The quarter was a major seasonal recovery from Q1 2026, when revenue was $7.37 billion and diluted EPS was negative $0.27. Against Q3 2025, revenue was 3% lower, but operating income was essentially flat at $2.08 billion, net income was broadly unchanged at $1.51 billion and EPS matched $2.21.
The print was defined by continued pricing and infrastructure demand in Americas Materials, improving International margins, and weakness in the residential-exposed Americas Building portfolio. CRH also accelerated portfolio reshaping, investing $1.1 billion in quarterly acquisitions while realizing $1.7 billion from disposals, and announced the $8.5 billion Arcosa acquisition. Net debt increased to $15.4 billion from $14.2 billion at year-end as CRH funded acquisitions and shareholder returns. Management nevertheless reaffirmed full-year earnings guidance, while lowering capital expenditure guidance by $0.1 billion at both ends of the range.
Quarterly financial performance
CRH's second-quarter growth reflected pricing, underlying demand, acquisitions and commercial execution. Gross profit increased 7% to $4.29 billion and gross margin expanded 40 basis points to 39.8%, despite higher energy, labor and depreciation costs. Interest expense rose $20 million year over year to $220 million as gross debt increased. The $282 million of other nonoperating income, versus a $9 million expense a year earlier, was primarily driven by divestiture gains, while the effective tax rate increased to 31% from 24% because of the transactions.
- Revenue and profit: Revenue was $10.78 billion, operating income was $2.08 billion, net income was $1.51 billion and diluted EPS was $2.21, compared with $10.21 billion, $1.94 billion, $1.33 billion and $1.94 billion, respectively, in Q2 2025.
- Sequential recovery: Q2 revenue and operating income rose from $7.37 billion and negative $38 million in Q1 2026, reflecting CRH's seasonal construction pattern; Q1 net income was negative $176 million.
- Underlying earnings: Adjusted EBITDA increased $164 million to $2.63 billion, with margin rising to 24.4% from 24.1%.
Segment performance
Americas Materials was the central operating driver, while International Solutions delivered broad-based improvement. Americas Building Solutions remained the weak spot: its infrastructure businesses grew, but residential and divested outdoor-living operations reduced reported revenue and profitability.
- Americas Materials: Revenue increased 10% to $4.96 billion and Adjusted EBITDA rose 12% to $1.38 billion. Aggregates volumes increased 2% and prices 5%; in Road Solutions, asphalt volumes rose 3% and pricing 6%.
- Americas Building: Revenue declined 2% to $2.12 billion and Adjusted EBITDA fell 8% to $462 million. Building and Infrastructure Solutions revenue grew 10% on energy, utility and data-center demand, but Outdoor Living revenue fell 7%; margin contracted 140 basis points to 21.8%.
- International Solutions: Revenue grew 5% to $3.70 billion and Adjusted EBITDA increased 8% to $781 million. Aggregates and cement volumes rose 10% and 6%, respectively, while margin expanded 70 basis points to 21.1%.
Portfolio repositioning
CRH continued shifting capital toward connected, infrastructure-oriented businesses while exiting non-core operations. The quarter's largest acquisition was Axius Water, a North American provider of specialized water-quality solutions. The announced Arcosa deal would add U.S. aggregates and energy-infrastructure exposure, but remains subject to shareholder and regulatory approval.
- Acquisitions: CRH completed 11 deals for $1.1 billion in Q2, bringing the six-month total to 16 acquisitions and $1.2 billion of consideration; year-to-date consideration reached $1.4 billion after a further July acquisition.
- Divestitures: Proceeds from disposals and long-lived assets were $1.7 billion in Q2, primarily from construction accessories for $0.7 billion, lawn and garden for $1.1 billion and MoistureShield decking for $0.1 billion.
- Arcosa financing: The approximately $8.5 billion all-cash Arcosa transaction is expected to close in Q1 2027. CRH had no bridge borrowings at quarter-end; a July $2.5 billion term loan reduced bridge commitments from $5.8 billion to $3.3 billion.
Balance sheet and returns
CRH generated less operating cash in the first half while continuing to fund acquisitions, capital expenditure, dividends and buybacks. The company ended June with substantial liquidity, but the Arcosa financing will increase leverage and CRH has paused the initiation of a new buyback tranche.
- Leverage: Net debt was $15.4 billion at June 30, up from $14.2 billion at December 31, 2025 and $13.4 billion a year earlier; gross debt was $17.9 billion.
- Cash generation: Six-month operating cash flow was $513 million, down from $719 million, primarily because of working-capital outflows and higher taxes related to divestitures.
- Shareholder returns: CRH repurchased $0.3 billion of shares in Q2 and $0.7 billion year to date. The quarterly dividend was raised 5% year over year to $0.39 per share.
FY26 outlook
Management expects public infrastructure investment and reindustrialization to support demand, with repair and remodeling described as resilient but new residential construction still subdued. The outlook assumes normal seasonal weather and no major additional geopolitical or macroeconomic disruption.
- Reaffirmed earnings ranges: FY26 net income guidance is $3.9-$4.1 billion, Adjusted EBITDA is $8.1-$8.5 billion and diluted EPS is $5.60-$6.05.
- Capital expenditure: Guidance was reduced from $2.8-$3.0 billion to $2.7-$2.9 billion because of project timing and lower maintenance spending.
- First-half progress: Six-month revenue was $18.15 billion, Adjusted EBITDA was $3.21 billion and diluted EPS was $1.93, or $2.01 before the $48 million impairment recorded in International Solutions.
