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1. Company Snapshot

1.a. Company Description

CRH plc, through its subsidiaries, manufactures and distributes building materials.It operates in three segments: Americas Materials, Europe Materials, and Building Products.The company manufactures and supplies cement, lime, aggregates, precast, ready mixed concrete, and asphalt products; concrete masonry and hardscape products comprising pavers, blocks and kerbs, retaining walls, and related patio products; and glass and glazing products, including architectural glass, custom-engineered curtain and window walls, architectural windows, storefront systems, doors, skylights, and architectural hardware.


It also offers precast concrete and polymer-based products, such as underground vaults, drainage pipes and structures, utility enclosures, and modular precast structures to the water, energy, communication, transportation, and building structures markets; and construction accessories, such as anchoring, fixing, and connection solutions, as well as lifting systems, formwork accessories, and other accessories used in construction applications.In addition, the company offers network access products, which include composite access chambers, covers, passive safety systems, retention sockets, sealants, and meter boxes; and paving and construction services.Further, it provides building and civil engineering contracting, contract surfacing, operates logistics and owned railway infrastructure; sells and distributes cement; and supplies access chambers and ducting products.


It serves governments, contractors, homebuilders, homeowners, and sub-contractors.The company operates primarily in the Republic of Ireland, the United Kingdom, the rest of Europe, the United States, and internationally.CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on CRH

CRH plc's recent performance was driven by strong revenue and net income growth, highlighting market interest in its outlook and operational performance. The company's raised earnings guidance for 2025, reflecting a positive business outlook driven by infrastructure investments and robust non-residential activity, also contributed to its momentum. Additionally, CRH's acquisition of Eco Material Technologies, valued at $2.1B, and the appointment of Patrick Decker to its board of directors, strengthened its finance expertise. A 6% dividend increase also underscores the company's confidence in its financials. RBC Capital maintains an 'Outperform' rating.

1.c. Company Highlights

2. CRH's Record Performance Driven by Strong Operational Growth

CRH reported a record financial performance for 2025, with revenues reaching $37.4 billion, 5% ahead of the prior year, and adjusted EBITDA of $7.7 billion, representing an 11% increase. The company's adjusted EBITDA margin expanded for the 12th consecutive year. Earnings per share (EPS) came in at $1.41, in line with analyst estimates. The company's strong financial performance was driven by double-digit growth in adjusted EBITDA across its business segments.

Publication Date: Feb -23

📋 Highlights
  • Record Financial Performance:: CRH achieved $37.4B revenue (+5%) and $7.7B adjusted EBITDA (+11%) in 2025, with 12% margin expansion.
  • Capital Deployment:: $4.1B in 38 acquisitions and $1.7B in growth CapEx, alongside $300M quarterly share buybacks and a 5% dividend increase.
  • Adjusted Free Cash Flow:: Generated $5B in 2025, a 130% conversion of net income, with a net debt/EBITDA ratio of 1.8x.
  • International Growth:: International Solutions posted 8% revenue growth and 23% EBITDA increase, driven by strong performance in Eastern/Western Europe and Australia.
  • Future Financial Capacity:: $40B in financial capacity over 5 years, with 70% allocated to M&A and growth CapEx, including $75M+ in new production facilities.

Segment Performance

The Americas Materials Solutions segment delivered a strong performance, with revenues 5% ahead of the prior year and adjusted EBITDA 7% higher. The Americas Building Solutions segment reported 1% revenue growth and a 6% increase in adjusted EBITDA. The International Solutions segment saw an 8% increase in revenue and a 23% increase in adjusted EBITDA, driven by strong performances in Eastern Europe, Western Europe, and Australia.

Cash Flow and Balance Sheet

CRH generated $5 billion of adjusted free cash flow in 2025, representing a conversion ratio of 130% of net income. The company's net debt to adjusted EBITDA ratio stood at 1.8x at year-end. With approximately $40 billion in financial capacity expected to be available over the next 5 years, CRH is well-positioned to invest in growth opportunities and deliver shareholder returns.

Outlook and Guidance

For 2026, CRH expects full-year adjusted EBITDA to be between $8.1 billion and $8.5 billion. The company is optimistic about the outlook for its businesses, driven by megatrends such as transportation infrastructure, water, and reindustrialization. CRH expects volume growth in its road business and margin progression in 2026, despite an inflationary environment.

Valuation

CRH's current valuation multiples, including a P/E Ratio of 16.09 and EV/EBITDA of 14.31, suggest that the market is pricing in a moderate growth outlook. With a Dividend Yield of 1.19% and Free Cash Flow Yield of 3.05%, the company offers an attractive return profile. The ROE of 25.15% and ROIC of 14.75% indicate a strong ability to generate returns on equity and invested capital.

3. NewsRoom

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Transaction in Own Shares

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Transaction in Own Shares

Mar -31

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Transaction in Own Shares

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Re: Notice of Meeting and Definitive Proxy Statement for 2026 Annual General Meeting

Mar -27

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Transaction in Own Shares

Mar -27

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Holding(s) in Company

Mar -26

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Transaction in Own Shares

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Transaction in Own Shares

Mar -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.20%)

6. Segments

Americas Materials Solutions

Expected Growth: 4.5%

The segment is expected to experience steady growth driven by increasing demand for infrastructure development and residential construction in the United States, supported by government investments in roads and public works projects. Additionally, the growing trend towards sustainable building materials will contribute to growth.

International Solutions

Expected Growth: 6.2%

The segment is anticipated to experience robust growth driven by rapid urbanization, infrastructure development, and increasing demand for housing in emerging markets. Moreover, the company's strategic expansion into new markets and diversification of product offerings will contribute to its growth.

Americas Building Solutions

Expected Growth: 5.5%

The segment is expected to experience strong growth driven by an increasing focus on sustainable and energy-efficient building solutions, as well as growth in the US residential and commercial construction sectors. Moreover, the trend towards renovation and repair activities will contribute to growth.

7. Detailed Products

Cement

CRH plc produces a range of cement products for construction, infrastructure, and industrial applications.

Aggregates

CRH plc supplies a range of aggregates including crushed stone, sand, and gravel for construction and infrastructure projects.

Asphalt

CRH plc produces asphalt products for road construction, maintenance, and repair.

Ready-Mix Concrete

CRH plc supplies ready-mix concrete for construction, infrastructure, and industrial applications.

Paving Products

CRH plc manufactures paving products including concrete pavers, blocks, and kerbs for landscaping and infrastructure projects.

Architectural Products

CRH plc supplies architectural products including concrete masonry units, brick, and block for building facades and interior design.

Distribution Products

CRH plc distributes a range of construction materials including drywall, roofing, and insulation products.

8. CRH plc's Porter Forces

Forces Ranking

Threat Of Substitutes

CRH plc operates in the building materials industry, where substitutes are limited. However, there is a growing trend towards sustainable and eco-friendly alternatives, which could pose a threat to the company's traditional products.

Bargaining Power Of Customers

CRH plc's customers are primarily construction companies and contractors, who have limited bargaining power due to the company's strong market position and diversified product offerings.

Bargaining Power Of Suppliers

CRH plc relies on a network of suppliers for raw materials, which can lead to fluctuations in costs and availability. However, the company's scale and diversification help to mitigate this risk.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge CRH plc's market position.

Intensity Of Rivalry

The building materials industry is highly competitive, with several large players vying for market share. CRH plc faces intense rivalry from companies such as LafargeHolcim and HeidelbergCement.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.44%
Debt Cost 3.95%
Equity Weight 61.56%
Equity Cost 10.75%
WACC 8.14%
Leverage 62.44%

11. Quality Control: CRH plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vicat

A-Score: 7.0/10

Value: 7.4

Growth: 6.1

Quality: 4.8

Yield: 6.9

Momentum: 10.0

Volatility: 6.7

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Titan Cement

A-Score: 6.6/10

Value: 5.5

Growth: 8.2

Quality: 6.2

Yield: 6.9

Momentum: 6.0

Volatility: 6.7

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Buzzi Unicem

A-Score: 6.0/10

Value: 6.2

Growth: 7.3

Quality: 7.4

Yield: 3.8

Momentum: 7.5

Volatility: 4.0

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HeidelbergCement

A-Score: 5.7/10

Value: 3.9

Growth: 5.6

Quality: 6.2

Yield: 4.4

Momentum: 9.5

Volatility: 4.7

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Breedon

A-Score: 5.3/10

Value: 6.7

Growth: 6.0

Quality: 4.7

Yield: 6.9

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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CRH

A-Score: 4.9/10

Value: 2.2

Growth: 7.3

Quality: 5.4

Yield: 4.4

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.46$

Current Price

80.46$

Potential

-0.00%

Expected Cash-Flows