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CRH PUBLIC LTD CO (CRH)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered resilient top-line and strong profitability: revenue $8.87B (+2% y/y), Adjusted EBITDA $1.78B (+12% y/y), net income $0.71B (+24% y/y), and continued margin expansion (Adj. EBITDA margin 20.0%, +170 bps y/y) .
  • Segment mix: Americas Materials drove margin gains despite weather; International Solutions grew revenue and EBITDA; Building Solutions was modestly up on revenue but impacted by adverse weather, compressing margins .
  • FY 2025 guidance introduced: Net income $3.7–$4.1B, Adjusted EBITDA $7.3–$7.7B, diluted EPS $5.34–$5.80, capex $2.8–$3.0B; dividend raised to $0.37 and new $0.3B quarterly buyback announced, highlighting capital returns and growth investment capacity .
  • Expected stock reaction catalysts: continued multi-year margin expansion, increased dividend/buyback, infrastructure funding tailwinds (IIJA deployment still early), and visible M&A-driven scope and synergy momentum .

What Went Well and What Went Wrong

  • What Went Well

    • “11th consecutive year of margin improvement” and double‑digit profit growth; management emphasized relentless commercial/operational excellence and capital allocation discipline .
    • Americas Materials Q4 Adjusted EBITDA +20% y/y with margin up 430 bps (24.7%) on pricing and efficiencies despite weather headwinds .
    • International Solutions Q4 revenue +7% and Adjusted EBITDA +9% y/y, supported by pricing, lower energy costs, and efficiencies; strong volumes/pricing in CEE .

  • What Went Wrong

    • Americas Building Solutions Q4 Adjusted EBITDA −9% y/y and margin compression (−210 bps) due to adverse winter weather and subdued new-build residential demand .
    • Organic revenue softness in certain sub-businesses: International Solutions organic revenue −1% in Q4 (pricing and CEE strength offset by Western Europe and subdued residential activity) .
    • Net debt increased to $10.5B on acquisitions and shareholder returns; interest expense higher y/y reflecting increased gross debt and rates .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Billions)$9.654 $10.515 $8.870
Net Income ($USD Billions)$1.309 $1.389 $0.709
Basic EPS ($USD)$1.89 $1.99 $1.03
Net Income Margin (%)13.6% 13.2% 8.0%
Adjusted EBITDA ($USD Billions)$2.255 $2.454 $1.776
Adjusted EBITDA Margin (%)23.4% 23.3% 20.0%

Segment breakdown (Q4 2024):

SegmentRevenue ($USD Billions)YoY Change (%)Adjusted EBITDA ($USD Billions)YoY Change (%)Adjusted EBITDA Margin (%)
Americas Materials Solutions$4.266 (1%) $1.053 +20% 24.7%
Americas Building Solutions$1.493 +2% $0.250 (9%) 16.7%
International Solutions$3.111 +7% $0.473 +9% 15.2%

Selected KPIs:

KPIValue
Net Cash Provided by Operating Activities (FY 2024)$4.989B
Total Short- and Long-term Debt (12/31/24)$14.0B
Net Debt (12/31/24)$10.532B
Cash & Cash Equivalents (12/31/24)$3.720B
Return on Net Assets (RONA, FY 2024)15.5%
Quarterly Dividend (Declared)$0.37 per share
Share Buyback Tranche$0.3B, to be completed by May 2, 2025

Notes: Adjusted EBITDA is a non-GAAP measure defined and reconciled in the release .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Income ($USD Billions)FY 2025N/A3.7–4.1 New
Adjusted EBITDA ($USD Billions)FY 2025N/A7.3–7.7 New
Diluted EPS ($USD)FY 2025N/A$5.34–$5.80 New
Capital Expenditure ($USD Billions)FY 2025 vs FY 20242.4–2.6 (FY 2024) 2.8–3.0 (FY 2025) Raised vs FY24
Interest Expense, net ($USD Billions)FY 2025 AssumptionN/A~0.6 Disclosure
Effective Tax Rate (%)FY 2025 AssumptionN/A~23% Disclosure
Diluted Shares (Millions)FY 2025 AssumptionN/A~683 Disclosure
Quarterly Dividend ($USD)Q1 2025 vs Q4 2024$0.35 $0.37 Raised
Share Buyback Tranche ($USD Billions)Q1 2025 vs Q3 2024$0.3 $0.3 Maintained cadence

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
AI/technology initiativesFocus on innovative solutions; investment in FIDO AI; expanding water infrastructure data/solutions Continued AI adoption (FIDO AI) and accelerator programs for sustainability Consistent emphasis; scaling tech-enabled solutions
Infrastructure tailwinds (IIJA/EU)Positive pricing and IIJA support; backlogs improving IIJA only ~1/3 deployed; multi-year runway; robust EU/government funding in International Strengthening multi-year demand visibility
Pricing, aggregates/cementQ2: aggregates +12%, cement +8%; Q3: aggregates +10%, cement +9% pricing Q4: aggregates +7%, cement +8%; volumes mixed (aggregates −9%, cement +3%) Pricing resilience; volumes recovering with weather normalization
Regional trendsWestern Europe subdued; CEE strength; Australia added via Adbri CEE continued strength; Western Europe subdued but stabilizing; integration of Adbri progressing Steady; mix shift toward higher-growth regions
Macro/cost inflationAdverse weather; inflation pressures offset by pricing and efficiencies Mid‑single‑digit cost increases expected in 2025; pricing momentum key to margin expansion Cost pressures persist; managed via price/mix
M&A and scope$3.7B+ YTD M&A (Q2) and $4.6B YTD (Q3), Texas and Adbri integrations 40 acquisitions in 2024 ($5.0B); ~$280M scope contribution expected in 2025 Active pipeline; early synergy realization

Management Commentary

  • “We delivered our 11th consecutive year of margin improvement in 2024… disciplined and value-focused capital allocation… 40 value-accretive acquisitions” — CEO Jim Mintern .
  • “We are uniquely positioned to benefit from secular tailwinds… largest building materials business in North America and Europe… leadership in aggregates in North America” — CEO Jim Mintern .
  • “For 2025… Adjusted EBITDA $7.3–$7.7B; Net income $3.7–$4.1B; diluted EPS $5.34–$5.80” — Prepared remarks/outlook .
  • “Net debt of $10.5B at year-end; net debt to Adjusted EBITDA ~1.5x… commencing $300M buyback; dividend increased to $0.37” — Interim CFO Alan Connolly .

Q&A Highlights

  • Aggregates and cement outlook: low single-digit volume growth in 2025; pricing mid-to-high single digits (aggregates) and mid-single digits (cement) supported by strong backlogs .
  • M&A synergy/margins: outsized margin improvement expected on acquired assets; Hunter/Texas acquisition synergy targets raised; pipeline remains opportunity‑rich .
  • Cost inflation: mid‑single‑digit cost increases (labor, raw materials, subcontractors); aim for another year of margin expansion via pricing and operational excellence .
  • Infrastructure funding: bipartisan support; IIJA deployment still early; multiyear projects and reduced red tape cited as supportive .
  • Margin trajectory: +180 bps in 2024; management sees continued expansion as a “journey,” supported by portfolio mix and growth capex .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS/revenue/EBITDA was unavailable due to SPGI daily limit constraints at retrieval time; therefore, explicit beat/miss vs consensus cannot be determined in this recap (values unavailable from S&P Global).
  • Given management’s guidance and y/y performance, sell-side models may need to reflect: stronger pricing durability, infrastructure backlog visibility, and a higher capex cadence in 2025 .

Key Takeaways for Investors

  • Margin durability: continued multi‑year expansion driven by pricing discipline, operational efficiencies, and portfolio mix; Q4 Adj. EBITDA margin 20.0% (+170 bps y/y) .
  • Infrastructure exposure: significant runway as IIJA remains early in deployment; robust state/federal funding supports Americas Materials and Building backlogs .
  • Capital allocation: dividend increased to $0.37 and new $0.3B buyback; scope growth from 40 acquisitions ($5.0B 2024) positions 2025 EBITDA for further uplift .
  • Segment positioning: overweight Americas Materials with margin leadership; International Solutions delivering growth via pricing/energy tailwinds; monitor ABS weather sensitivity and residential demand stabilization .
  • 2025 setup: Net income $3.7–$4.1B, Adj. EBITDA $7.3–$7.7B, EPS $5.34–$5.80 on ~23% ETR and ~$0.6B net interest; capex step-up to $2.8–$3.0B supports organic growth .
  • Risk watch: weather variability, cost inflation (mid‑single digits), and higher interest expense y/y; mitigated by pricing momentum, balance sheet flexibility, and diversified end‑markets .
  • Trading lens: near-term catalysts include dividend/buyback, favorable spring construction seasonality, and visible infrastructure backlog conversion; medium‑term thesis anchored on secular reindustrialization, IIJA/EU funding, and disciplined M&A synergies .

Sources: Q4/FY press release and 8‑K item 2.02, and Q4 earnings call transcript . Prior quarters: Q3 press release/8‑K and call; Q2 press release .