Executive Summary

Record Q3 with revenue $11.07B (+5% y/y), Adjusted EBITDA $2.70B (+10% y/y), and diluted EPS $2.21 (+12% y/y), driven by pricing, solid demand, and M&A; margins expanded 100 bps (Adj. EBITDA) and 50 bps (net income) y/y .
Mixed vs S&P Global consensus: slight revenue miss ($11.14B est.) but slight EPS beat ($2.21 est.); management raised FY25 Adjusted EBITDA midpoint to $7.65B and reaffirmed net income and EPS ranges . Values with asterisks are from S&P Global.
Guidance change: FY25 Adjusted EBITDA midpoint raised (to $7.60–$7.70B from $7.50–$7.70B), capital expenditure tightened lower ($2.7–$2.8B vs $2.8–$3.0B), net income and EPS maintained; dividend declared at $0.37 (+6% y/y) and new $0.3B buyback tranche .
2026 setup constructive: strong U.S. infrastructure funding runway (IIJA 60% yet to be deployed), robust reindustrialization/data center activity, ongoing pricing discipline; CFO flagged Eco Material timing/financing costs make Q4 EPS dilutive, with ~$200M of net incremental M&A EBITDA expected in 2026 .

What Went Well and What Went Wrong

What Went Well

Broad-based outperformance: Q3 revenue +5% y/y to $11.07B, Adjusted EBITDA +10% to $2.70B, diluted EPS +12% to $2.21; Adj. EBITDA margin +100 bps to 24.3% on pricing and acquisitions .
Segment execution: Americas Building Solutions Adjusted EBITDA +22% y/y with notable margin expansion, aided by asset optimization and land disposals; International Solutions Adjusted EBITDA +15% y/y with +170 bps margin expansion on pricing and efficiencies .
Positive forward narrative and guidance: FY25 Adjusted EBITDA midpoint raised; CEO emphasized “record third quarter performance” and confidence in benefiting from transportation, water, and reindustrialization megatrends .

What Went Wrong

Financing headwind and leverage up: Interest expense rose to $209M in Q3 (from $164M), and Net Debt increased to $15.0B, reflecting acquisitions and capital returns; gross debt was $18.7B at quarter-end .
EPS dilution in Q4 from Eco Material transaction timing and related costs; management flagged this near‑term drag despite positive strategic fit .
Revenue modestly below S&P Global consensus while Adjusted EBITDA benefited in part from $110M gains on disposal of long‑lived assets in Q3, tempering pure operating leverage optics .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenue ($B)	$10.52	$10.21	$11.07
Net Income ($B)	$1.39	$1.33	$1.52
Net Income Margin (%)	13.2%	13.1%	13.7%
Adjusted EBITDA ($B)	$2.45	$2.46	$2.70
Adjusted EBITDA Margin (%)	23.3%	24.1%	24.3%
Diluted EPS ($)	$1.97	$1.94	$2.21

Estimates vs Actual (Q3 2025):

Revenue: $11.14B* consensus vs $11.07B actual → slight miss .
Diluted EPS: $2.21* consensus vs $2.21 actual → slight beat.
Values with asterisks are from S&P Global.

Segment snapshot (y/y in Q3):

Americas Materials Solutions: Revenue +6%; Adjusted EBITDA +5%; margin “approximately 28%” with strength in aggregates (+4% price; +6% mix-adjusted) and steady cement (+1%) .
Americas Building Solutions: Revenue +2%; Adjusted EBITDA +22%; margin expansion aided by asset optimization (land disposals) and strong energy/data center demand .
International Solutions: Revenue +5%; Adjusted EBITDA +15%; margin +170 bps on pricing, efficiencies, and M&A .

KPIs and other items:

Gain on disposal of long‑lived assets: $110M in Q3 .
Interest expense: $209M in Q3; Interest income $37M .
Net Debt: $15.0B; Cash & equivalents plus restricted cash: $4.3B; Undrawn committed facilities: $4.2B .
Dividend: $0.37 per share declared (+6% y/y) .
Data centers: ~98 active projects across stages; strong early involvement via critical water/energy infrastructure .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income ($B)	FY25	3.8 – 3.9	3.8 – 3.9	Maintained
Adjusted EBITDA ($B)	FY25	7.5 – 7.7	7.6 – 7.7	Raised midpoint
Diluted EPS ($)	FY25	$5.49 – $5.72	$5.49 – $5.72	Maintained
Capital Expenditure ($B)	FY25	2.8 – 3.0	2.7 – 2.8	Lowered

Dividend: $0.37 per share declared for payment Dec 17, 2025 (+6% y/y) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
U.S. infrastructure (IIJA)	Positive demand backdrop; public investment underpins 2025; reinforced in Q2 outlook	60% of IIJA funds yet to be deployed; DOT budgets strong; largest U.S. paver; recurring revenue base	Strengthening
Reindustrialization/data centers	Demand tailwind referenced; strong water infrastructure and data center activity in Q2	~98 data center projects; early access via water/energy infra; higher share of wallet	Strengthening
Residential	New build subdued; R&R resilient (Q1, Q2 outlooks)	U.S. new build subdued until late 2026; R&R resilient; EU residential recovering with lower rates	Mixed (US subdued, EU improving)
Pricing discipline	Pricing supported margins in Q1/Q2	Aggregates +4% (+6% mix-adjusted), cement +1%; positive momentum expected to continue	Stable/Positive
Margins/targets	Margin progress, Q2 Adj. EBITDA margin +70 bps	No structural ceiling; ambition for 22–24% margins by 2030; expect further expansion in 2026	Upward bias
M&A (Eco Material)	Agreement to acquire Eco Material ($2.1B)	Closed in Sept; strategic fit, 55 terminals, ~8,000 railcars; integration progressing well	Executing
International/EU	Q1/Q2: acquisitions/efficiencies supporting growth	EU infra funding supportive; residential recovery with rate cuts; Australia synergy delivery	Improving
Capital returns	Ongoing buybacks and higher dividend in Q1/Q2	Additional $0.3B buyback tranche; $0.37 dividend declared (+6% y/y)	Ongoing

Management Commentary

“We are pleased to report a record third quarter performance and raise the midpoint of our adjusted EBITDA guidance for 2025” (CEO) .
“As the leading infrastructure play in North America, we are uniquely positioned to capitalize on transportation, water and reindustrialization megatrends” (CEO) .
“Our margin improvement… will be our twelfth consecutive year… we don’t see any structural ceiling to where we can take the margins” (CEO) .
“Eco Material… creates a unique national distribution network… early integration is progressing well” (COO) .
“We have invested $3.5B in 27 value accretive acquisitions year-to-date” (CFO) .

Q&A Highlights

2026 outlook: backlog/bidding visibility supports low-single-digit aggregates volume growth and mid-single-digit pricing; EBITDA from 2025 M&A expected to add ~$200M net incremental in 2026 (CFO) .
Margins: management reiterated no structural ceiling; growth capex and automation underpin further expansion in 2026 despite ongoing inflation (CEO/COO) .
Guidance drivers: Q3 benefited partly from land sales, though YTD land sales are down y/y; Eco timing/financing costs make 2025 EPS dilutive even as EBITDA contributes (CEO/CFO) .
Roads funding: IIJA deployment still early; state budgets strong; positive early discussions on 2026 reauthorization tilt more dollars to roads/bridges (COO) .
Building Solutions: strong profit growth and margin expansion from energy/data center demand and asset optimization; Outdoor Living resilient in R&R (CEO/COO) .

Estimates Context

Versus S&P Global: Q3 revenue modest miss ($11.14B* est. vs $11.07B actual), EPS slight beat ($2.21* est. vs $2.21 actual). Management raised FY25 Adjusted EBITDA midpoint and maintained EPS, suggesting mix/operational levers are offsetting higher interest and transaction timing .
Forward consensus snapshots: Q4 2025 revenue $9.46B*, EPS $1.54*; Q1 2026 revenue $7.08B*, EPS -$0.18*; Q2 2026 revenue $10.75B*, EPS $2.12* (seasonality evident). Values with asterisks are from S&P Global.

Values with asterisks are from S&P Global.

Key Takeaways for Investors

Durable Compounding: Q3 delivered record revenue/EPS/margins with 100 bps y/y Adj. EBITDA margin expansion; management raised FY25 Adj. EBITDA midpoint while maintaining EPS—a constructive quality signal .
Infrastructure Flywheel: IIJA deployment runway and strong state budgets, plus CRH’s #1 U.S. road paver position and connected portfolio, support multi‑year volume and margin tailwinds .
AI/Data Center Exposure: Deepening participation (≈98 projects) with early‑phase critical infrastructure work enhances share of wallet and pricing power .
Portfolio & Scale: Eco Material adds national cementitious reach and logistics/innovation advantages; integration “going really well,” supporting future synergies .
Watch Near‑Term EPS Noise: Eco-related timing/financing costs dilute EPS in Q4 despite EBITDA contribution; higher interest expense and elevated net debt are near‑term drags .
2026 Setup: Management indicates additional margin expansion next year, with ~$200M net incremental M&A EBITDA and continued pricing momentum .
Capital Returns Intact: Ongoing buybacks ($0.3B tranche) and dividend growth (+6% y/y to $0.37) continue alongside disciplined growth capex .

Appendix: Additional Tables

Estimates vs Actual (Q3 2025) – S&P Global

Metric	Consensus	Actual
Revenue ($B)	11.14*	11.07
Diluted EPS ($)	2.21*	2.21