Al Root
Construction services company CRH delivered solid earnings and a strong outlook.
That can help calm investors' nerves about the state of the U.S. economy.
Wednesday evening, CRH, one of the largest construction firms in the world, reported fourth-quarter earnings per share of $1.45 from sales of $8.9 billion. Wall Street was looking for EPS of $1.44 from sales of just under $9 billion, according to FactSet.
Looking ahead, CRH expects 2025 earnings before interest, taxes, depreciation, and amortization, or Ebitda, of about $7.5 billion, up from $6.9 billion reported in 2024. Wall Street currently projects about $7.5 billion.
The quarter and guidance are right in line. CRH stock was up 0.8% in after-hours trading at $103.12. Shares had gained 2% in regular trading on Wednesday, while the S&P 500 finished flat and Dow Jones Industrial Average dropped about 0.4%.
"We delivered another year of double-digit profit growth and an eleventh consecutive year of margin expansion," said CEO Jim Mintern in a news release. "The outlook for our business remains positive, underpinned by favorable demand and positive pricing momentum, leaving us well positioned for another year of growth and value creation ahead."
Public infrastructure investment and increased "re-industrialization activity" are expected to keep the company's business and prices for its services moving up.
The positive outlook is good news for investors. Analysts and investors can ask for more details about 2025 when the company hosts an earnings conference call at 8 a.m. Eastern time on Thursday morning.
Through Wednesday trading, CRH stock was up almost 30% over the past 12 months. Earnings growth has helped shares. Adjusted full-year earnings per share landed at $5.48, up about 18% from 2023.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
February 26, 2025 16:46 ET (21:46 GMT)
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