CRH PLC Ordinary Shares
CRH · NYSE
Next quarter
Expected to report Feb 17, 2027 — estimated from last year’s reporting date.
Consensus is $1.58 EPS for Dec 2026 across 2 estimates, ranging $1.52 to $1.64.
CRH Sep 2026
- 2.34%
- $2.14
- $2.09
- —
- $11.40B
Reported results
- $11.40B
- 38.79%
- $1.90B
- 16.64%
- $1.25B
- $1.86
Highlights
- Quarterly earnings: Q3 revenue rose 3% year over year to $11.4B, but Adjusted EBITDA was essentially flat at $2.68B and its margin narrowed 80 bps to 23.5%; GAAP diluted EPS was $1.86 versus $2.21 a year ago.
- EPS versus expectations: The supplied consensus comparison puts EPS at $2.09 versus $2.14, a 2.3% miss; $2.09 is CRH’s pre-impairment EPS, while reported GAAP diluted EPS was $1.86.
- Guidance cut: FY26 Adjusted EBITDA guidance fell to $7.8B-$8.0B from $8.1B-$8.5B, and net income guidance to $3.1B-$3.3B from $3.9B-$4.1B, reflecting cost inflation, softer residential activity and the updated Q4 outlook.
- Cost pressure and demand: Management cited a sharp rise in energy, particularly diesel, which was up 40% from its mid-July low, alongside higher haulage costs and subdued U.S. residential activity; infrastructure and reindustrialization demand remained supportive.
- Segment divergence: Americas Materials revenue increased 6% and EBITDA 1%; Americas Building revenue fell 3% and EBITDA 18%; International revenue rose 1% and EBITDA 6%, with its margin expanding 110 bps.
- Arcosa completed: CRH closed its $8.5B acquisition on October 23, adding aggregates and critical infrastructure exposure; it expects $175M of annual run-rate cost synergies by year three, including $60M in the first year.
- Velocity launched: The two-year operating transformation targets $400M of annual run-rate benefits by end-2028, against approximately $400M of total costs; management expects about 40% of benefits in 2027.
- Capital returns and leverage: CRH authorized a share buyback of up to $6B through end-2030 and raised its quarterly dividend 5% to $0.39 per share; Q3 net debt was $15.0B, versus $14.2B at year-end 2025.
Analysis
CRH’s Q3 combined modest top-line growth with resilient but flat underlying earnings, then reset full-year expectations lower. Revenue of $11.40B was up 3% year over year and 6% sequentially from Q2’s $10.78B, but Adjusted EBITDA of $2.68B was slightly below the year-ago $2.70B and the margin slipped to 23.5% from 24.3%. GAAP diluted EPS of $1.86 compared with $2.21 a year ago and $2.21 in Q2. Against the supplied $2.14 consensus, the $2.09 pre-impairment EPS measure was 2.3% short; the reported GAAP figure was lower at $1.86. Net income was $1.18B, down from $1.52B a year ago and $1.49B in Q2, with impairments contributing to the decline.
The defining operational issue was a sharp second-half increase in energy and haulage costs arriving as U.S. residential activity softened, while infrastructure and reindustrialization demand remained constructive. This pressure was clearest in Americas Building Solutions; International Solutions expanded margins. CRH cut FY26 Adjusted EBITDA guidance to $7.8B-$8.0B from $8.1B-$8.5B. At the same time, the Arcosa acquisition closed after quarter-end and Velocity began, adding near-term execution priorities alongside a new $6B buyback authorization. Management expects positive price-cost spread and margin expansion in 2027, but the guidance reduction captures the near-term cost and demand headwinds.
Guidance and cost pressures
The revised FY26 outlook incorporates Q3 performance and a more cautious Q4 view, including energy costs remaining elevated, subdued residential construction and Arcosa’s partial-year contribution. Management said the cost shock was most pronounced in U.S. materials, where diesel rose 40% from its mid-July low and fed through to haulage and other inputs. Pricing actions and fuel surcharges are underway, but the timing makes full recovery difficult late in the season.
- Revised ranges: Net income is now expected at $3.1B-$3.3B versus prior guidance of $3.9B-$4.1B; Adjusted EBITDA at $7.8B-$8.0B versus $8.1B-$8.5B; and diluted EPS at $4.63-$4.85 versus $5.60-$6.05.
- Underlying measures: New adjusted diluted EPS guidance is $5.37-$5.59. Capital expenditure guidance is $2.6B-$2.8B, compared with the previous $2.7B-$2.9B.
- 2027 commentary: Management expects high-single-digit aggregates pricing, low-single-digit U.S. cementitious volume growth and pricing, and mid-single-digit pricing in international cement. It expects positive price-cost spread and margin expansion, while U.S. residential activity is expected to remain subdued.
Segment performance
The portfolio’s connected infrastructure exposure helped sustain overall earnings, but results diverged materially by business. Rising costs and a weaker residential backdrop weighed on U.S. margins, while International Solutions paired pricing and activity growth with improved profitability.
- Americas Materials Solutions: Revenue increased 6% to $5.99B and Adjusted EBITDA rose 1% to $1.58B, but margin declined 130 bps to 26.3%. Aggregates volumes rose 2% and pricing 5%; asphalt pricing increased 7%, while asphalt volumes fell 2%.
- Americas Building Solutions: Revenue declined 3% to $1.75B and Adjusted EBITDA fell 18% to $353M, with margin down 390 bps to 20.1%. Utility, water, energy and data-center demand supported Building & Infrastructure Solutions revenue growth of 16%, but subdued residential demand, divestitures and the absence of a prior-year land-disposal gain pressured reported results.
- International Solutions: Revenue increased 1% to $3.66B and Adjusted EBITDA rose 6% to $754M; margin expanded 110 bps to 20.6%. Aggregates and cement pricing rose 5% and 6%, respectively, with higher activity and acquisitions offsetting divestitures.
Impairments and earnings
The GAAP earnings decline was steeper than the movement in Adjusted EBITDA. Net income was $1.184B, compared with $1.519B a year earlier; operating income fell to $1.896B from $2.081B. The reported $1.86 diluted EPS includes impairment effects and other below-the-line pressures, while the company’s pre-impairment measure was $2.09.
- Impairment charge: Q3 loss on impairments was $178M, versus $40M a year ago, principally from the Philippines reporting unit in International Solutions.
- Other earnings effects: The company recorded a $41M loss from equity-method investments, compared with $26M of income a year ago; the current-period loss primarily reflected an impairment of its China investment. Tax expense increased to $494M from $428M, and the effective tax rate rose to 29% from 22%.
- Year-to-date context: Nine-month revenue increased 5% to $29.5B and Adjusted EBITDA rose 4% to $5.9B, while net income declined 9% to $2.5B and diluted EPS fell 5% to $3.79.
Arcosa and portfolio
The $8.5B Arcosa acquisition closed on October 23, after the quarter ended, and was included in the updated full-year outlook for a partial Q4 contribution. CRH positioned the deal as both an aggregates expansion and a step-up in exposure to infrastructure tied to energy transmission, electrification and data centers. The acquisition was financed with borrowings and cash on hand.
- Strategic scale: Arcosa adds 35 million tons of annual aggregates production; combined annualized CRH U.S. aggregates capacity is expected to exceed 265 million tons.
- Synergies: CRH expects approximately $175M of annual run-rate cost synergies by year three, with about $60M in the first year.
- Broader portfolio activity: CRH completed 27 additional acquisitions for $1.9B year to date, alongside Arcosa, and received $1.9B in net proceeds from divestitures and long-lived asset disposals in the first nine months.
Velocity and capital returns
CRH paired the acquisition with a company-wide operating-model initiative and a multi-year shareholder-return authorization. Velocity is intended to simplify structures, use technology and data more effectively, and accelerate operational decision-making. Both the benefits and restructuring costs are substantial, and delivery will be spread across several years.
- Velocity economics: The two-year program targets approximately $400M of annual run-rate benefits by end-2028, with approximately $400M of total non-routine costs. Management expects about 40% of benefits in 2027; $49M of transformation costs had been recognized through Q3.
- Margin ambition: Management raised its 2030 Adjusted EBITDA margin target to approximately 24%, the upper end of its previously guided range.
- Shareholder returns: The new buyback authorization is up to $6B through end-2030. CRH repurchased approximately $0.1B of shares in Q3 and $0.7B in the first nine months, and announced a quarterly dividend of $0.39 per share, up 5% year over year.
Balance sheet and liquidity
Net debt increased from $14.2B at December 31, 2025, to $15.0B at September 30, reflecting investment, acquisitions and shareholder returns, partly offset by operating cash flow and divestiture proceeds. The quarter-end figures precede the October Arcosa closing and its related financing.
- Liquidity: CRH ended Q3 with $5.1B of cash and cash equivalents and $4.5B of undrawn committed facilities.
- Debt and cash generation: Short- and long-term debt was $19.6B, up from $17.7B at year-end 2025. Nine-month operating cash flow was $2.3B versus $2.7B a year earlier, with the decline attributed primarily to higher working-capital outflows and lower operating income.
