CRH (CRH) H1 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with 8% net income growth to $1.3bn, 12% Adjusted EBITDA growth to $2.3bn, and significant margin expansion, despite weather disruptions and inflationary pressures.

• Raised FY24 guidance for Adjusted EBITDA to $6.82–$7.02bn, net income to $3.7–$3.85bn, and EPS to $5.40–$5.60, reflecting positive momentum and recent acquisitions.

• $3.7bn invested in M&A year-to-date, including a majority stake in Adbri and major U.S. and European deals.

• Ongoing share buybacks ($0.9bn YTD) and a 5% increase in the quarterly dividend to $0.35 per share, with a new $0.3bn tranche announced.

• Continued focus on integrated solutions, portfolio management, and disciplined capital allocation to drive shareholder value.

Financial highlights

• Q2 2024 revenues were $9.7bn, down 1% year-over-year; H1 2024 revenues reached $16.2bn (flat YoY).

• Q2 Adjusted EBITDA reached $2.3bn, up 12% year-over-year, with margin expanding by 270bps to 23.4%.

• Q2 EPS increased 16% to $1.89; H1 EPS was $2.05 (+31% YoY).

• Organic EBITDA growth was 11% like-for-like, with acquisitions contributing an additional $15m.

• Net debt at end of June was $10.3bn, with a net debt to Adjusted EBITDA ratio of 1.6x.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA expected between $6.82–$7.02bn; net income $3.7–$3.85bn; EPS $5.40–$5.60; capital expenditure guidance $2.2bn–$2.4bn.

• Positive demand outlook in infrastructure and non-residential segments; residential new build remains subdued but long-term fundamentals are strong.

• Pricing momentum expected to continue, supported by disciplined commercial management.