CRH raises full-year guidance as revenues reach €14.8bn

Irish building giant said it was "well-positioned" to deliver another record year in 2024

Albert Manifold, Group Chief Executive, CRH. Pic:Naoise Culhane-no fee

CRH has said it is well-positioned to deliver another record year in 2024 with the building giant posting revenues of $9.7bn (€8.9bn) in the three months from April to June. 

Despite a slight 1% fall in the last three months, the group's total revenues this year have reached $16.2m (€14.8bn), with positive pricing and contributions from acquisitions partly offsetting the impact of lower activity levels due to unfavourable weather in certain regions and divestitures, CRH said. 

The Irish-headquartered building giant raised its guidance once again on the back of its strong financial performance, positive underlying momentum and the positive contribution from recent portfolio activity, the company said on Thursday.

CRH now anticipates net income to be between $3.7bn-$3.85bn, up from original guidance of $3.55bn-3.8bn, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are forecasted to rise to between $6.82bn-$7.02bn, up from a previous guidance of $6.55bn-$6.85bn.

Its adjusted EBITDA increased by 12% to $2.3bn (€2.1bn) in the three months from April to June, underpinned by continued delivery of CRH's integrated solutions strategy, strong commercial progress, ongoing cost control and further operational efficiencies, the company said.

"We are pleased to report another period of further profit growth and margin expansion for CRH," said chief executive, Albert Manifold. 

"The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation."

"We are raising our guidance and remain well positioned to deliver another record year in 2024.”

Total revenues across the group's European materials division were 8% behind the same period last year as activity levels were impacted by the divestiture of the European Lime operations, poor weather and subdued demand in certain markets. 

Across its European building solutions business, total revenues were 7% behind the same period in 2023 as a result of subdued demand in new-build residential markets.

Total revenues across the company's Americas Materials Solutions division were 6% ahead of the same three-month period in 2023, as pricing progress across all lines of business and contributions from recent acquisitions offset the impact of lower activity.

Meanwhile, total revenues in its Americas Building solution division were 1% behind Q2 2023 as challenging weather and subdued new-build residential demand were partially offset by contributions from acquisitions.

In the three months ending in June, CRH completed eight acquisitions for a total consideration of $400m. Americas Materials Solutions completed five acquisitions, Europe Materials Solutions completed two acquisitions, while Americas Building Solutions completed one acquisition.

Overall, for the six months ending in June, CRH completed 16 acquisitions for a total consideration of $2.6bn, compared with €200m in the first half of the prior year. 

The largest acquisition, which was completed in the first three months of 2024, was a portfolio of cement and ready-mixed concrete assets and operations in Texas by Americas Materials Solutions for a total consideration of $2.1bn.