CRH shares soar as building materials giant forecasts further rise in earnings

Total revenue in the year rose by 7% to $34.9bn, boosted by the impact of acquisitions and price hikes

Albert Manifold, Group Chief Executive of CRH.

CRH has said its earnings will rise by up to 10.5% in 2024 following another "record year" for the building materials giant, with shares in the group rising by more than 7% in London on Thursday morning.

Benefitting from "good underlying demand" across both its American and European markets, the firm posted a 15% rise in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), rising to $6.2bn (€5.7m) in 2023. 

The building giant said it expected earnings to increase by between 5.6% and 10.5% this year to between $6.55bn and $6.85bn. The group's EBITDA margin increased to 17.7%, up by 1.2% on the previous year.

Total revenue in the year rose by 7% to $34.9bn, boosted by the impact of acquisitions and positive pricing.

"2023 marked another record year of financial delivery for CRH," said chief executive, Albert Manifold. "Despite continued inflationary cost pressures during 2023 we expanded our margins and delivered further growth in profits, cash generation and returns."

The giant's largest division, Americas Materials Solutions, was its main earnings driver, with its EBITDA rising by 16% to $3.06bn as a result of price rises of up to 15%. Americas Building Solutions’ EBITDA increased 18% to $1.44bn.

The group's European Materials Solutions posted a 7% decline in volumes, with price hikes offsetting weaker demand. The division's revenue fell by 2% in the period, while its earnings fell by 17% as homebuilding activity slowed. 

CRH’s dividend per share for the year stood at $1.33, a rise of 5% from 2022. It has also announced a new quarterly dividend of $0.35.

Last year, the group completed its move to the New York Stock Exchange, with it delisting from Euronext Dublin. The firm was the largest traded company on the Euronext Dublin exchange.

Looking forward, the materials giant said it expects growth will continue into this year, as investment and pricing continue to increase.

"We expect a favorable market backdrop and continued positive pricing momentum in 2024 driven by significant infrastructure investment and re-industrialization activity across our key markets in North America and Europe," the company said.

"Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned for another year of growth in 2024."