Executive Summary

Q1 2025 delivered a solid start in a seasonally small quarter: revenue $6.76B (+3% y/y), Adjusted EBITDA $495M (+11% y/y) with 50bps margin expansion to 7.3%, while diluted EPS was ($0.15) due to non-recurring gains in the prior year and adverse weather .
Versus consensus: revenue slightly beat, EBITDA beat, EPS missed; management reaffirmed full-year FY25 guidance (Net income $3.7–$4.1B, Adjusted EBITDA $7.3–$7.7B, EPS $5.34–$5.80, Capex $2.8–$3.0B) and highlighted positive underlying demand and pricing momentum across markets ; Revenue Consensus Mean $6.74B*, EBITDA Consensus Mean $476M*, Primary EPS Consensus Mean ($0.086)*.
Segment performance was mixed: International Solutions strong (+7% revenue, +22% EBITDA), Americas Materials modestly positive (+2% revenue, sharp EBITDA uplift), Americas Building slightly down (−1% revenue, −7% EBITDA) amid weather and subdued residential .
Capital allocation remained active: eight bolt-on acquisitions ($0.6B), $0.5B YTD buybacks completed with new $0.3B tranche, dividend raised 6% to $0.37 per share; balance sheet remains robust (Net Debt $12.7B, cash $3.4B, $3.9B undrawn facilities) .
Catalyst setup: reaffirmed FY25 guidance, improving backlogs/bidding, favorable infrastructure tailwinds (IIJA), and integration synergies (Adbri) support estimate revisions in EBITDA/margins; EPS miss was largely non-operational (prior-year divestiture gain non-recurrence), limiting negative read-through .

What Went Well and What Went Wrong

What Went Well
- “Good start to the year… continued strength of underlying demand… reaffirm our financial guidance for 2025” — CEO Jim Mintern, with Q1 revenue +3% y/y and Adjusted EBITDA +11%; margin +50bps to 7.3% .
- International Solutions: revenue +7% y/y; Adjusted EBITDA +22% y/y; benefits from pricing, operational efficiencies, and Adbri integration; readymix volumes +22% and prices +9% .
- Americas Materials Solutions: disciplined pricing (aggregates +8%, cement +4%), operational efficiencies drove a material Adjusted EBITDA increase and +190bps margin expansion despite weather .
What Went Wrong
- Diluted EPS ($0.15) vs prior-year $0.16, reflecting non-recurrence of prior-year divestiture gains and weather-impacted volumes; Net loss margin (1.5%) vs prior-year net income margin 1.7% .
- Americas Building Solutions: revenue −1% y/y and Adjusted EBITDA −7% y/y; outdoor living demand delayed by adverse weather; subdued new-build residential activity .
- Higher interest expense ($181M vs $133M) and D&A ($477M vs $397M) driven by increased gross debt and acquisitions, weighing on GAAP earnings .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$6.53	$8.87*	$6.76
Adjusted EBITDA ($USD Millions)	$445	$1,741*	$495
Adjusted EBITDA Margin %	6.8%	—	7.3%
Diluted EPS ($USD)	$0.16	$1.18*	($0.15)

Values marked with * retrieved from S&P Global.

Actual vs Consensus (Q1 2025):

Metric	Q1 2025 Actual	Q1 2025 Consensus
Revenue ($USD Billions)	$6.756	$6.740*
Adjusted EBITDA ($USD Millions)	$495	$476*
Primary EPS ($USD)	($0.15)	($0.086)*

Values marked with * retrieved from S&P Global.

Segment Performance (Q1 2025):

Segment	Revenue ($USD Millions)	YoY Change	Adjusted EBITDA ($USD Millions)	YoY Change	EBITDA Margin
Americas Materials Solutions	$2,243	+2%	$59	+293%	2.6%
Americas Building Solutions	$1,682	−1%	$287	−7%	17.1%
International Solutions	$2,831	+7%	$149	+22%	5.3%

KPIs and Balance Sheet (Quarter-End):

KPI	Q1 2024	Q4 2024	Q1 2025
Net Debt ($USD Billions)	$9.60	$10.53	$12.69
Total Debt ($USD Billions)	$12.67	$13.97	$15.67
Cash & Equivalents ($USD Billions)	$3.31	$3.72	$3.35
Capex ($USD Millions, QTD)	$506	—	$645
Share Buybacks (QTD/YTD)	$0.56B (Q1’24)	$0.30B (Q3’24 tranche)	$0.5B YTD; new $0.3B tranche
Dividend per share	$0.35 (Q3’24)	—	$0.37 (Q1’25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income ($USD Billions)	FY 2025	3.7–4.1	3.7–4.1	Maintained
Adjusted EBITDA ($USD Billions)	FY 2025	7.3–7.7	7.3–7.7	Maintained
Diluted EPS ($USD)	FY 2025	$5.34–$5.80	$5.34–$5.80	Maintained
Capital Expenditure ($USD Billions)	FY 2025	—	2.8–3.0	New/Specified

Assumptions noted: ~$0.6B net interest expense, ~23% effective tax rate, ~683M diluted shares for FY25 EPS/Net Income framework .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Infrastructure/IIJA	Reaffirmed funding support; segment backlog positive	Only ~1/3 of IIJA funds deployed; strong bidding/backlogs	Backlogs ahead y/y; weekly bidding rising; constructive across states	Strengthening runway
Pricing Discipline	Pricing drove margin expansion across segments	Mid/high single-digit pricing embedded in guidance	Aggregates +8%, cement +4%; readymix price +1–9% regionally	Positive momentum
Weather Impact	Adverse weather weighed on activity	Weather headwinds in 2024 acknowledged	Seasonally small quarter; weather delayed outdoor living start	Transitory; easing into spring
M&A/Capital Allocation	Active program; Adbri acquisition closed	40 deals in 2024 ($5B); pipeline robust	8 bolt-ons ($0.6B); buybacks $0.5B YTD; new $0.3B tranche	Ongoing, disciplined
International/Adbri Integration	Europe materials margin expansion; energy cost tailwind	International EBITDA +7%; margin +120bps; Adbri synergies	International revenue +7%, EBITDA +22%; synergy progress above plan	Improving
Residential	Subdued new-build; resilient R&R	US new-build subdued; R&R resilient; stabilization in EU	Outdoor living delayed by weather; recovery visible; R&R resilient	Stabilizing
Cost Inflation	—	Mid-single-digit cost inflation expected	Mid-single-digit cost inflation; pricing key to margin	Manageable via pricing

Management Commentary

CEO: “We are encouraged by the continued strength of underlying demand across our key markets… we are pleased to reaffirm our financial guidance for 2025” .
COO on Americas Materials: “Backlogs… are ahead of the prior year in both volume and margin… only 1/3 of IIJA highway funding has been deployed to date” .
Interim CFO on FY25 bridge: “Net scope contribution ~$320M adjusted EBITDA including 2025 activity; FX remains volatile; land sales normalize to ~$75M vs $237M in 2024” .
CEO on International: “Good pricing environment… integration [Adbri] is going well and ahead of where we expected” .

Q&A Highlights

Guidance drivers: M&A contribution (~~$320M adj. EBITDA), normalized land sales (~~$75M vs $237M last year), FX monitoring; guidance reaffirmed early in construction season .
Volumes/pricing: Aggregates low-single-digit volume growth with mid- to high-single-digit pricing; cement low-single-digit volume with mid-single-digit pricing; March/April activity improved as weather normalized .
International margins: Pricing, operational efficiencies, and Adbri synergies drove strong margin expansion; Western Europe recovering; Central/Eastern Europe underpinned by EU infrastructure funding .
Infrastructure outlook: Strong state/federal support; multiyear projects; expectation that 5-year IIJA takes ~7 years to deploy; bidding and backlogs supportive .
Cost environment: Mid-single-digit inflation across labor/materials/subcontractors; emphasis on pricing momentum to expand margins .

Estimates Context

Q1 2025 outcomes vs consensus: revenue beat (Actual $6.756B vs $6.740B*), EBITDA beat (Actual $495M vs $476M*), EPS miss (Actual ($0.15) vs ($0.086)*). Miss in EPS explained by non-recurrence of prior-year divestiture gains and higher D&A/interest from acquisitions/debt .
FY25 Street framing broadly aligns with guidance: FY25 Revenue Consensus Mean $37.60B*, EBITDA Consensus Mean $7.65B*, Primary EPS Consensus Mean $5.58*; management reiterated its ranges and demand/pricing assumptions . Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Reaffirmed FY25 guidance, price discipline, and improving backlogs under IIJA support EBITDA/margin estimates; EPS volatility in Q1 has low read-through given seasonal and non-recurring factors .
International momentum (Adbri synergies, pricing) is a key lever for continued margin expansion; watch Western Europe recovery and CEE infrastructure tailwinds .
Americas Materials poised for seasonal acceleration with robust bidding/backlogs; aggregates/cement pricing cadence likely to sustain margin gains through peak season .
Capital allocation remains a catalyst: ongoing buybacks ($0.3B tranche) and disciplined bolt-ons ($0.6B QTD) enhance per-share metrics; dividend up 6% signals confidence .
Balance sheet capacity intact (BBB+ target, $3.9B undrawn facilities) to support M&A and growth capex while keeping Net Debt/EBITDA ~1.8x TTM; monitor interest expense trajectory .
Near-term trading: expect sequential revenue/EBITDA uptick into Q2/Q3 as activity normalizes and outdoor living recovers; EPS should benefit from seasonal mix, pricing, and synergy realization .
Risk watch: FX volatility, weather variability, and inflation in labor/materials; management emphasizing pricing and operational discipline to offset cost pressures .

CRH PUBLIC LTD CO (CRH)·Q1 2025 Earnings Summary