CRH shares fall despite another record quarter

(Sharecast News) - Shares in CRH fell more than 3.5% on Thursday morning, despite the building materials group reporting another record quarter and lifting its full-year earnings guidance, as investors took profits following a strong year-to-date rally. The Dublin-based company posted higher revenues, margins and earnings, underpinned by resilient demand, firm pricing and a wave of recent acquisitions, and announced further shareholder returns through a dividend increase and new share buyback programme.

Third-quarter revenue rose 5% year on year to $11.1bn, while net income climbed 9% to $1.5bn.

Adjusted EBITDA increased 10% to $2.7bn, lifting the margin to 24.3% from 23.3% a year earlier.

Diluted earnings per share rose 12% to $2.21.

CRH said it now expected full-year adjusted EBITDA of $7.6bn to $7.7bn, up from previous guidance of $7.5bn to $7.7bn, while reaffirming its net income outlook of $3.8bn to $3.9bn.

"CRH delivered a strong third quarter performance driven by favorable underlying demand, positive pricing momentum and further contributions from acquisitions," said chief executive Jim Mintern.

"We are pleased to reaffirm net income and raise our adjusted EBITDA guidance for 2025, representing another record year for CRH.

"Backed by our robust balance sheet and strong cash generation, we have invested $4.7bn in growth investments year-to-date while returning approximately $1.8bn to our shareholders through dividends and share buybacks."

The company said trading was strong across all major divisions.

Americas Materials Solutions revenue grew 6%, supported by firm activity levels and sustained pricing, while Americas Building Solutions revenue rose 2% on higher demand in the energy sector and reindustrialisation activity.

International Solutions revenue increased 5%, with adjusted EBITDA up 15% on operational efficiencies and acquisition contributions.

CRH said it had invested $3.5bn in 27 acquisitions this year, including Eco Material Technologies, with $2.5bn of deals completed in the third quarter alone.

The group said it ended September with $4.3bn in cash and $4.2bn of undrawn facilities.

Net debt stood at $15bn, up from $10.5bn at the end of 2024, reflecting its acquisition programme and shareholder distributions.

The company declared a quarterly dividend of 37 cents per share, a 6% increase on the prior year, payable on 17 December.

It also completed the latest $300m phase of its share buyback programme and launched a further tranche of the same size, running until mid-February.

Mintern said CRH remained positioned for another year of growth.

"Looking ahead to 2026, we expect favorable market dynamics and the continued execution of our strategy to underpin another year of growth and shareholder value creation," he said.

The group said it expected continued tailwinds from infrastructure and reindustrialisation spending next year, with resilient repair and remodel activity offsetting weakness in new residential construction.

At 1027 GMT, CRH shares were down 3.66% in London at 8,601.04p.

Reporting by Josh White for Sharecast.com.