Ireland's CRH Q2 revenue beats on pricing, demand

Overview

• Ireland building materials supplier's Q2 revenue rose 6% yr/yr, beating analyst expectations

• Q2 adjusted EBITDA grew 7% on strong operating performance and acquisitions

• Company reaffirmed 2026 guidance and highlighted pending $8.5 bln Arcosa acquisition

Outlook

• CRH reaffirms FY26 guidance for net income of $3.9 bln-$4.1 bln

• Company expects FY26 adj EBITDA of $8.1 bln-$8.5 bln and diluted EPS of $5.60-$6.05

• CRH lowers FY26 capital expenditure guidance to $2.7 bln-$2.9 bln

Result Drivers

• PRICING AND DEMAND - Co said positive pricing momentum and favorable underlying demand drove revenue growth, especially in Americas Materials and International Solutions

• ACQUISITIONS - Contributions from acquisitions supported revenue and profit growth, with 11 deals completed in the quarter

• DIVESTITURES AND RESIDENTIAL DEMAND - Revenue and EBITDA in Americas Building Solutions declined due to divestitures and subdued residential demand, partly offset by strong energy and data infrastructure markets

Company press release: ID:nBw3gC0Cha

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for CRH PLC is $143.50, about 43.9% above its July 29 closing price of $99.71

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 29 - Vulcan Materials beats quarterly profit estimates on strong construction materials demand

• July 30 - Heidelberg Materials tones down profit outlook as Iran war drives up energy costs

• July 28 - Titan America Q2 revenue rises 9.6% on Keystone deal

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)