• Total Revenue: $35.6 billion, 2% increase from the prior year.
• Adjusted EBITDA: $6.9 billion, 12% increase from the prior year.
• Margin Expansion: 180 basis points improvement.
• Earnings Per Share (EPS): Increased by 18% from the prior year.
• Net Debt: $10.5 billion at year-end, with a net debt to adjusted EBITDA ratio of 1.5 times.
• Capital Expenditure: $2.6 billion invested for growth.
• Acquisitions: $5 billion spent on 40 acquisitions.
• Dividends and Share Buybacks: $3 billion returned to shareholders.
• Quarterly Dividend: $0.37 per share, a 6% increase from the prior year.
• 2025 Financial Guidance: Expected adjusted EBITDA between $7.3 billion and $7.7 billion.

• Warning! GuruFocus has detected 4 Warning Sign with CRH.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CRH PLC (NYSE:CRH) reported an industry-leading performance for 2024, with total full-year revenues of $35.6 billion, a 2% increase from the previous year.
• The company achieved an adjusted EBITDA of $6.9 billion, which is 12% higher than the prior year, along with a 180 basis points margin expansion.
• CRH PLC (NYSE:CRH) completed 40 value-accretive acquisitions in 2024, investing $5 billion, which contributed to their growth and market leadership.
• The company maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 1.5 times, allowing for continued investment and shareholder returns.
• CRH PLC (NYSE:CRH) declared a new quarterly dividend of $0.37 per share, representing an annualized increase of 6%, continuing their track record of over 40 consecutive years of dividend growth.

Negative Points

• The company faced challenging weather conditions in the United States, which impacted activity levels and operations in several regions.
• There was subdued demand in the new build residential segment, affecting the performance of CRH PLC (NYSE:CRH)'s Americas Building Solutions business.
• The company anticipates mid-single-digit cost increases in 2025 due to inflationary pressures in labor, raw materials, and subcontractor costs.
• Currency exchange posed a headwind of $50 million due to a stronger US dollar relative to other currencies.
• CRH PLC (NYSE:CRH) expects a more normal year for land or long-lived asset sales in 2025, which may not match the higher-than-normal sales seen in 2024.

Q & A Highlights

Q: Can you provide additional color on the 2025 outlook in terms of end markets and segments? A: Jim Mintern, CEO, explained that CRH is stepping off a strong 2024 performance with double-digit growth. The positive market backdrop in both the Americas and International markets supports confidence for 2025. In the US, infrastructure is underpinned by state and federal funding, with only one-third of the IIJA funding spent so far. Non-residential construction is supported by onshoring and reindustrialization, while new build residential remains subdued but is expected to improve in the medium to long term. Internationally, infrastructure and non-residential demand remain robust, with signs of improvement in residential activity in Central and Eastern Europe.

Q: What does the guidance embed for US aggregates volume and pricing over the year? A: Randy Lake, COO, stated that for 2025, CRH expects aggregates volumes to improve in the low single-digit range and pricing in the mid to high single digits. This is supported by a positive backlog and market conditions. Cement is also expected to see low single-digit volume growth and mid-single-digit pricing increases.

Q: Are you expecting outsized margin improvement on acquired assets in 2025 versus 2024? A: Randy Lake, COO, confirmed that CRH expects to drive value and improvement in acquired businesses through operational performance, commercial engagement, and procurement synergies. The Hunter acquisition, in particular, is progressing well with raised synergy expectations.

Q: With your new position as CEO, should we expect any changes in the strategic direction of CRH? A: Jim Mintern, CEO, emphasized a continuation of CRH's successful strategy, focusing on innovation and technology to make construction quicker, simpler, and safer. The company will maintain a focus on performance, delivering consistent growth and margin expansion, while leveraging its financial capacity for strategic investments.

Q: Can you provide an update on the cost environment and expectations for 2025? A: Alan Connolly, Interim CFO, noted that CRH is operating in an inflationary cost environment, particularly in labor, raw materials, and subcontractor costs, with expected mid-single-digit cost increases. The company will focus on pricing momentum, commercial excellence, and operational efficiency to achieve margin expansion in 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.