CRH raises full-year outlook as revenue reaches €14.8bn

CRH said it was well-positioned to achieve another record year in 2024, as the construction giant posted revenue of $9.7 billion (€8.9 billion) in the three months from April to June.

CRH said that despite a slight decline of 1% over the past three months, total group revenues for the year were $16.2 million (€14.8 billion), with positive pricing and acquisition impacts partially offsetting the impact of lower activity levels due to adverse weather in some regions and divestitures.

The Irish construction giant has once again raised its outlook, citing solid financial results, positive underlying momentum and a positive impact from recent portfolio activity, the company said on Thursday.

CRH now projects net income to be between $3.7 billion and $3.85 billion, up from its original guidance of $3.55 billion to $3.8 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to rise to between $6.82 billion and $7.02 billion, up from its previous guidance of $6.55 billion to $6.85 billion.

The company said its adjusted EBITDA increased by 12% to $2.3 billion (€2.1 billion) in the three months from April to June, driven by the continued execution of CRH’s integrated solutions strategy, strong commercial progress, continued cost control and continued operational efficiencies.

“We are pleased to report another period of continued earnings growth and margin expansion for CRH,” said Chief Executive Officer Albert Manifold.

“The execution of our differentiated solutions strategy continues to deliver solid financial performance, while the strength of our balance sheet and continued focus on the disciplined allocation of our capital position us to capitalize on the opportunities we see for further growth and value creation.”

“We are raising our forecasts and are on track to achieve another record year in 2024.”

Total revenues for the group’s European materials business were down 8% year-on-year, as activity levels were impacted by the sale of its European limestone operations, adverse weather conditions and weaker demand in some markets.

Across the company’s European Building Solutions business, total revenue was 7% lower compared to the same period in 2023, driven by subdued demand in new-build residential markets.

Total revenue for the company’s Americas Materials Solutions business was 6% higher than the same period in 2023, as pricing progress across all business lines and the impact of recent acquisitions offset the impact of lower activity.

Meanwhile, total revenue for the Americas Building Solutions business was 1% lower than in the second quarter of 2023, as challenging weather conditions and weak demand for new residential construction were partially offset by acquisition revenue.

During the three months ended June, CRH made eight acquisitions for a total of $400 million. Americas Materials Solutions made five acquisitions, Europe Materials Solutions made two acquisitions and Americas Building Solutions made one acquisition.

In total, CRH completed 16 acquisitions in the six months to June for a total value of $2.6 billion, compared with €200 million in the first half of the previous year.

The largest acquisition completed in the first three months of 2024 was the acquisition of a portfolio of cement and ready-mix concrete assets and operations in Texas by Americas Materials Solutions for a total consideration of $2.1 billion.