CRH PLC (CRH) Earnings & Analysis

Latest quarter

CRH reported Q2 FY2026 revenue of $10.8 billion, above the consensus estimate of $10.7 billion. Adjusted earnings were $2.21 per share, compared with the consensus estimate of $1.96.

Revenue rose from $10.2 billion a year earlier, while diluted earnings per share increased from $1.94 to $2.21. CEO Jim Mintern attributed the quarter’s revenue and adjusted EBITDA growth to underlying demand, commercial execution and acquisitions. He said diluted earnings included a 16 cent net gain on divestitures.

Mintern said Americas Materials Solutions expanded its margin despite weather disruption and inflation. In Americas Building Solutions, he said growth in data centers and reindustrialization was accompanied by the effects of divestitures, subdued new-home construction and higher haulage costs.

CRH’s gross margin was 39.8%, compared with 39.4% a year earlier, and operating margin was 18.8%, compared with 18.7%. Free cash flow fell to $558.0 million from $753.0 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the Q2 call, CEO Jim Mintern said infrastructure demand supported the business in both the U.S. and international markets. He also described a pickup in reindustrialization projects, including data centers and advanced manufacturing facilities. U.S. new-home construction remained subdued, he said, while repair and remodeling held up; in Europe, he saw pockets of residential recovery.

Asked about pricing and the assumptions behind guidance, Mintern said early-season increases had been followed by mid-year pricing. He said those increases gave CRH confidence in its outlook for mid-single-digit pricing for the full year and another year of margin expansion.

An analyst asked about margin pressure in Americas Building Solutions and the timing of a recovery. Mintern said higher haulage rates had affected some delivered products, and CRH had responded with additional price surcharges and cost reductions. He expected cost inflation’s effect to moderate in the third quarter and further in the fourth.

Discussing U.S. ready-mix demand, Mintern said new-home construction was a major user of the product and that CRH did not expect a recovery during 2026. He said a recovery would be in the back end of 2027 at best.

On capital allocation, CFO Aylwyn Bryan said CRH had invested $1.4 billion in 17 acquisitions year to date, including Axios Water for approximately $700 million. Bryan said three divestitures had generated $1.9 billion in consideration and growth capital expenditure through the second quarter was approximately $800 million. CRH had paused its share-buyback program following its agreement to acquire Arcosa and would reassess it later, she said.

Mintern told analysts that the connected portfolio allowed CRH to supply several stages of a project, from underground infrastructure and site preparation to concrete and paving. Bryan said acquisition and divestiture activity was expected to contribute approximately $200 million of incremental EBITDA for 2026.

Guidance

In its October 29 release, CRH lowered its FY2026 adjusted EBITDA outlook to $7.8 billion–$8.0 billion from $8.1 billion–$8.5 billion, and its net income outlook to $3.1 billion–$3.3 billion from $3.9 billion–$4.1 billion.

In July, CRH lowered its 2026 capital expenditure guidance to $2.7 billion to $2.9 billion from $2.8 billion to $3.0 billion, citing project timing and lower maintenance spending.