2024 Guidance and Momentum
Q: What's the update on 2024 guidance and key drivers?
A: The company reaffirmed the midpoint of its 2024 guidance, anticipating another year of double-digit growth. Adjusted EBITDA is up 12% year-to-date, showing strong underlying momentum despite weather challenges. Excluding land and asset sales, they're still expecting double-digit growth, marking the 11th consecutive year of margin expansion.

American Materials Pricing
Q: What's the outlook for aggregates and cement pricing into 2025?
A: In Q3, aggregates pricing increased by 10%, with expectations for double-digit pricing growth for the full year. Strong demand supports positive pricing momentum. For 2025, they expect mid- to high single-digit pricing increases, underpinned by robust backlogs and ongoing infrastructure spending from the IIJA, with less than 30% of funding having hit the ground.

Input Costs and Inflation
Q: How are input costs trending, and can margin expansion continue?
A: The company continues to face mid-single-digit cost inflation in labor, raw materials, subcontractor costs, and maintenance. Energy costs are moderately lower on a per-unit basis in 2024. They aim to maintain positive price momentum to offset inflation and expect continued inflation into 2025, reinforcing the need for pricing actions.

M&A Impact on 2025 EBITDA
Q: What's the expected EBITDA impact from recent M&A activity?
A: Having completed $4.6 billion in acquisitions this year, including two large deals—Hunter and Adelaide Brighton—the company anticipates an incremental $250 million in adjusted EBITDA rolling over into 2025, net of divestitures like their Lime business.

Net Debt and Leverage
Q: Where will net debt stand at year-end 2024?
A: The company expects to exit 2024 with a net debt to EBITDA ratio of around 1.6x, reflecting disciplined capital management amid significant acquisition activity.

End-Market Outlook for 2025
Q: What's the 2025 outlook for residential, non-residential, and public construction?
A: They foresee strong fundamentals across all segments. Infrastructure spending is buoyed by the IIJA, with major states set to benefit over a 7-year timeframe. Non-residential demand remains robust in energy, water, data centers, and manufacturing, while residential markets are stabilizing, with green shoots expected in the back half of 2025, particularly in the RMI segment.

Supply Chain and Material Availability
Q: How is CRH managing supply chain complexities and material shortages?
A: With increasing project complexity, their solutions model provides early engagement and visibility, helping to mitigate bottlenecks. The U.S. imports about 20% of its cementitious demand; CRH is well-positioned with excellent global supply lines and is not experiencing significant supply issues this year.

Building Solutions Outlook
Q: What's the outlook for the Building Solutions segment into 2025?
A: Despite weather impacts, underlying demand remains strong, supported by energy and water projects tied to IIJA funding and other legislation. Backlogs are solid, and the outlook is positive over the next 6 to 9 months, with expectations of continued strength in infrastructure and reshoring mega projects.

Impact of Political Changes
Q: How might governmental shifts affect infrastructure spending and CRH's business?
A: While it's early to speculate on political impacts, CRH operates in a sector with bipartisan support. The company has navigated multiple administrations over 50 years, consistently delivering performance through cycles, with a total shareholder return of over 16% in both 10- and 50-year periods, indicating resilience to political changes.

Resilience Amid Weather Challenges
Q: How did CRH perform despite weather challenges in Q3?
A: CRH delivered double-digit EBITDA growth, emphasizing its diversified and resilient business model. Their solutions strategy provides less exposure to weather and economic cycles, enabling consistent delivery and less volatility compared to peers.