CRH PUBLIC LTD CO 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Introduction Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and six months ended June 30, 2024. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report. The following discussion contains trend information and forward-looking statements. Actual results could differ materially from those discussed in or implied by these forward-looking statements, as well as from our historical performance, due to various factors, including those discussed elsewhere in this Quarterly Report, particularly "Forward-Looking Statements," and Item 1A. "Risk Factors" in our 2023 Form 10-K and in our other filings with the SEC. Our operating results depend upon economic cycles, seasonal and other weather‐related conditions, and trends in government expenditures, among other factors. Accordingly, financial results for any financial period presented, or period-to-period comparisons of reported results, may not be indicative of future operating results. Overview CRH is a leading provider of building materials solutions that build, connect and improve our world. Since formation in 1970, CRH has evolved from being a supplier of base materials to providing end-to-end value-added solutions that solve complex construction challenges for our customers. CRH works closely with customers across the entire project lifecycle from planning, design, manufacture, installation and maintenance through to end-of-life recycling, using our engineering and innovation expertise to provide superior materials, products and services. The Company integrates essential materials (aggregates and cement), value-added building products and construction services to provide our customers with complete end-to-end solutions. CRH’s capabilities, innovation and technical expertise enable it to be a valuable partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions. Operating in 28 countries, the Company has market leadership positions in North America and Europe. The United States is expected to be a key driver of future growth for CRH due to continued economic expansion, a growing population and significant public investment in construction. Our European business benefits from strong economic and construction growth prospects across Central and Eastern Europe as well as recurring repair and remodel demand in Western Europe. In both geographies there is significant government support for infrastructure and increasing demand for integrated solutions in major infrastructure and commercial projects. CRH has a proven track record in value creation through acquisitions which over the last decade has accounted for approximately two-thirds of the Company’s growth. We achieve this by acquiring businesses at attractive valuations and creating value by integrating them with our existing operations and generating synergies. The Company takes an active approach to portfolio management and continuously reviews the competitive landscape for attractive investment and divestiture opportunities to deliver further growth and value creation for shareholders. Seasonality Activity in the construction industry is dependent to a considerable extent on the seasonal impact of weather on the Company’s operating locations, with periods of higher activity in some markets during spring and summer which may reduce significantly in winter due to inclement weather. In addition to impacting demand for our products and services, adverse weather can negatively impact the production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures, heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year. Financial performance highlights Three months ended June 30, 2024 CRH delivered a strong second quarter performance compared to the second quarter of 2023, resulting in the following performance highlights for the three months ended June 30, 2024 (comparisons are versus the prior year's second quarter unless otherwise noted): • Total revenues decreased 1% to $9.7 billion; • Net income was $1.3 billion compared with $1.2 billion, an increase of $97 million, or 8%. Adjusted EBITDA* 1 was $2.3 billion, an increase of $241 million, or 12%; • Net income margin was 13.6% compared with 12.5%, an increase of 110 basis points (bps). Adjusted EBITDA margin* was 23.4%, an increase of 270bps on the prior year's second quarter Adjusted EBITDA margin* of 20.7%; and • Basic Earnings Per Share (EPS) was $1.89 compared to $1.63. Six months ended June 30, 2024 CRH delivered a stronger performance in the six months ended June 30, 2024 compared to the prior year, resulting in the following performance highlights (comparisons are versus the prior year's first six months unless otherwise noted): • Total revenues of $16.2 billion were flat; • Net income was $1.4 billion compared with $1.2 billion, an increase of $242 million, or 20%. Adjusted EBITDA* was $2.7 billion, an increase of $300 million, or 13%; • Net income margin was 8.8% compared with 7.3%, an increase of 150bps. Adjusted EBITDA margin* was 16.7%, an increase of 180bps on the prior year's half year Adjusted EBITDA margin* of 14.9%; and • Basic EPS was $2.05 compared to $1.57. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 1 CRH Form 10-Q 24 Capital allocation highlights Six months ended June 30, 2024 • Cash paid to shareholders through dividends was $1.2 billion, compared with $0.8 billion in the first half of the prior year. CRH transitioned to quarterly dividends during the first quarter of 2024, with a quarterly dividend of $0.35 per share declared in February 2024, a second quarterly dividend of $0.35 per share declared in May 2024, and a third quarterly dividend of $0.35 per share announced on August 8, 2024, representing an annualized increase of 5% on the prior year; • Cash returned to shareholders through share buybacks was $0.7 billion, a decrease of $0.2 billion versus the first half of the prior year. On August 7, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date cash returned to $0.9 billion. A further tranche has been announced, extending the ongoing share buyback program by an additional $0.3 billion to be completed no later than November 6, 2024; and • 16 acquisitions were completed for total consideration of $2.6 billion, compared with $0.2 billion in the first half of the prior year. A further $1.1 billion was invested in development and replacement capital expenditure projects, compared with $0.8 billion for the comparable 2023 period. Development Review In the three months ended June 30, 2024, CRH completed eight acquisitions for a total consideration of $0.4 billion, compared with $nil million in the same period of 2023. Americas Materials Solutions completed five acquisitions, Europe Materials Solutions completed two acquisitions, while Americas Building Solutions completed one acquisition. Overall, for the six months ended June 30, 2024, CRH completed 16 acquisitions for a total consideration of $2.6 billion, compared with $0.2 billion in the first half of the prior year. The largest acquisition, which was completed in the first quarter of 2024, was a portfolio of cement and readymixed concrete assets and operations in Texas by Americas Materials Solutions for a total consideration of $2.1 billion. On July 1, 2024, CRH completed the acquisition of a majority stake in Adbri. Adbri is an attractive business with high-quality assets and leading market positions in Australia that complements CRH’s core competencies in cement, concrete and aggregates and creates additional opportunities for growth and development for CRH's existing Australian business. With respect to divestitures, in the three months ended June 30, 2024, cash proceeds from divestitures and disposals from long-lived assets were $0.4 billion. The largest divestiture related to Americas Materials Solutions' disposal of certain cement, aggregates and readymixed concrete operations in Quebec, Canada. For the six months ended June 30, 2024, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.1 billion, primarily related to the divestiture of phases one and two of the European Lime operations which completed in Q1 2024. The remaining phase, consisting of Lime operations in Poland, is expected to complete in the second half of 2024. No divestitures occurred in the first half of the prior year. Full Year Outlook We are pleased to announce that we are raising our previous guidance for 2024, reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity Our operations in North America are expected to benefit from significant infrastructure activity and increased investment in key non-residential segments, while in Europe, we expect good underlying demand in infrastructure and key non-residential markets, further supported by disciplined cost control. Residential construction, particularly new-build activity, is expected to remain subdued across our markets in the near term. Assuming normal seasonal weather patterns and no major dislocations in the macroeconomic environment, CRH remains well positioned to deliver another record year in 2024. CRH Form 10-Q 25 Results of Operations Revenues are derived from a range of products and services across four segments. The Materials Solutions segments in Americas and Europe utilize an extensive network of reserve-backed quarry locations to produce and supply a range of materials including aggregates, cement, readymixed concrete and asphalt, as well as providing paving and construction services. The Americas and Europe Building Solutions segments manufacture, supply and deliver high quality building products and solutions. The table below summarizes the Company’s unaudited Condensed Consolidated Statements of Income for the periods indicated. 2 Condensed Consolidated Statements of Income (Unaudited) (in $ millions, except per share data) Three months ended Six months ended June 30 June 30 2024 2023 2024 2023 Total revenues 9,654 9,709 16,187 16,136 Total cost of revenues (5,979) (6,079) (10,705) (10,887) Gross profit 3,675 3,630 5,482 5,249 Selling, general and administrative expenses (1,948) (2,035) (3,735) (3,657) Gain on disposal of long-lived assets 102 18 110 23 Operating income 1,829 1,613 1,857 1,615 Interest income 36 36 79 76 Interest expense (155) (73) (288) (154) Other nonoperating income, net 23 2 184 2 Income from operations before income tax expense and income from equity method investments 1,733 1,578 1,832 1,539 Income tax expense (430) (379) (411) (365) Income from equity method investments 6 13 2 7 Net income 1,309 1,212 1,423 1,181 Net (income) attributable to redeemable noncontrolling interests (10) (10) (12) (12) Net (income) loss attributable to noncontrolling interests (2) (3) 2 2 Net income attributable to CRH plc 1,297 1,199 1,413 1,171 Basic earnings per share attributable to CRH plc $1.89 $1.63 $2.05 $1.57 Adjusted EBITDA* 2,255 2,014 2,700 2,400 Total revenues Total revenues were $9.7 billion for the three months ended June 30, 2024, a decrease of $0.1 billion, or 1%, compared with the second quarter of 2023, as lower volumes, due to unfavorable weather in certain regions and divestitures, offset continued pricing progress and contributions from acquisitions. In Americas Materials Solutions, total revenues increased by 6%, with total revenues in Essential Materials and Road Solutions increasing by 5% and 6%, respectively. In Americas Building Solutions total revenues decreased by 1%, with total revenues in Building & Infrastructure Solutions in line and total revenues in Outdoor Living Solutions decreasing by 2%. In Europe Materials Solutions, total revenues decreased by 8%, with total revenues in Essential Materials finishing 13% behind the three months ended June 30, 2023, while Road Solutions' total revenues were 3% behind. In Europe Building Solutions total revenues decreased by 7%, with total revenues in Building & Infrastructure Solutions decreasing by 11%, while total revenues in Outdoor Living Solutions were 7% ahead. For the six months ended June 30, 2024, total revenues were $16.2 billion, an increase of $0.1 billion from the first six months of 2023, reflecting continued pricing progress and contributions from acquisitions which offset lower volumes and the divestiture of the Lime operations. In Americas Materials Solutions, total revenues increased by 9%, with total revenues in Essential Materials and Road Solutions increasing by 7% and 10%, respectively. In Americas Building Solutions total revenues were flat, with total revenues in Building & Infrastructure Solutions decreasing by 2% and total revenues in Outdoor Living Solutions increasing by 1%. In Europe Materials Solutions, total revenues decreased by 8%, with total revenues in Essential Materials finishing 11% behind the six months ended June 30, 2023, while Road Solutions' total revenues were 4% behind. In Europe Building Solutions total revenues decreased by 8%, with total revenues in Building & Infrastructure Solutions decreasing by 12%, while total revenues in Outdoor Living Solutions were 5% ahead. For additional discussion on segment revenues, see “Segments” section on pages 28 to 31. Gross profit Gross profit for the three months ended June 30, 2024, was $3.7 billion, an increase of $45 million, or 1%, from the same period in 2023, reflecting total revenues decline of 1%, while total cost of revenues decreased by 2%. The gross profit margin of 38.1% increased 70bps from 37.4% for the second quarter of the prior year. Total cost of revenues decreased primarily as a result of a 19% reduction in energy costs due to divestitures, reduced volumes and a decline in energy prices, as well as lower raw materials costs which decreased 2%. These cost decreases were partially offset by labor and subcontractor cost increases of 6% and 5%, respectively. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 2 CRH Form 10-Q 26 For the six months ended June 30, 2024, gross profit was $5.5 billion, an increase of $0.2 billion, or 4%, from the same period in 2023, with total revenues $0.1 billion ahead of the same period in 2023, while total cost of revenues decreased by 2%. The gross profit margin of 33.9% increased 140bps from 32.5% for the first half of the prior year. Total cost of revenues decreased primarily as a result of a 22% reduction in energy costs due to divestitures, reduced volumes and a decline in energy prices, as well as lower raw materials costs which decreased 4%. These cost decreases were partially offset by labor and subcontractor cost increases of 6% and 8%, respectively. Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administration expenses, were $1.9 billion for the three months ended June 30, 2024, a decrease of $0.1 billion, or 4%, from the comparable 2023 period. SG&A expenses decreased mainly due to cost control actions and a 3% reduction in haulage costs from lower volumes. These decreases were partly offset by a 7% increase in labor costs due to higher headcount from acquisitions and wage inflation . For the six months ended June 30, 2024, SG&A expenses were $3.7 billion, an increase of $0.1 billion, or 2%, from the comparable 2023 period. SG&A expenses increased primarily due to labor cost increases of 9% as a result of higher headcount from acquisitions, and wage inflation; partially offset by cost control actions and lower haulage costs which decreased 3% compared with 2023 due to lower volumes. Gain on disposal of long-lived assets Gain on disposal of long-lived assets was $102 million for the three months ended June 30, 2024, an increase of $84 million compared with 2023, and $110 million for the six months ended June 30, 2024, an increase of $87 million. The increase mainly related to a sale of certain land assets in North America. Interest income Interest income was $36 million for the three months ended June 30, 2024, in line with the comparable period in 2023 and $79 million for the six months ended June 30, 2024, an increase of $3 million on the comparable period in 2023. Interest expense Interest expense was $155 million in the three months ended June 30, 2024, an increase of $82 million from the comparable period in 2023 and $288 million for the six months ended June 30, 2024, an increase of $134 million from the prior period. The increase was primarily due to an increase in gross debt balances and higher interest rates on new debt issued. Other nonoperating income, net Other nonoperating income, net, was $23 million for the three months ended June 30, 2024, compared with $2 million in the comparable period for 2023. Other nonoperating income, net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The increase in other nonoperating income, net was primarily related to gains on certain divestitures. Other nonoperating income, net, was $184 million for the six months ended June 30, 2024, compared with $2 million in the comparable period for 2023. The increase in other nonoperating income, net, was primarily related to gains on the completed divestiture of phases one and two of the European Lime operations and unrealized gains on certain investments. Income tax For the three months ended June 30, 2024, the Company had an income tax expense of $430 million, compared to $379 million for the comparable period in 2023. The effective tax rate was 25% for the second quarter in 2024 compared with an effective tax rate of 24% for the second quarter in 2023. The movement in the effective tax rate was primarily driven by a change in the mix of income earned in jurisdictions with a higher rate of tax. For the six months ended June 30, 2024, the Company had an income tax expense of $411 million compared to $365 million for the comparable period in 2023. The effective tax rate was 22% for the first half of 2024 compared with an effective tax rate of 24% for the same period in 2023. The movement in the effective tax rate was primarily due to the offset of items arising in the first quarter including the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations. Income from equity method investments For the three months ended June 30, 2024, a gain of $6 million was recorded in equity method investments, a decrease of $7 million from the comparable period in 2023 and a gain of $2 million was recorded for the six months ended June 30, 2024, a decrease of $5 million from the comparable period in 2023. Net income Net income was $1.3 billion for the three months ended June 30, 2024, an increase of $97 million from the comparable period in 2023. This result was primarily driven by a higher gain on disposal of long-lived assets, along with higher gross profit and lower SG&A expenses which offset higher interest exp enses and income tax expenses compared with the second quarter of 2023. Net income was $1.4 billion for the six months ended June 30, 2024, an increase of $242 million from the comparable period in 2023, primarily driven by higher gross pr ofit, gain on disposal of long-lived assets and other nonoperating income, net, which offset higher SG&A expenses and interest exp enses compared with the same period of 2023. Net income attributable to CRH plc and earnings per share Net income attributable to CRH plc was $1.3 billion for the three months ended June 30, 2024, an increase of $98 million from the comparable period in 2023. The increase in net income attributable to CRH plc was driven by increased net income of $97 million and a decrease of $1 million in net income attributable to noncontrolling interests. Basic EPS for the three months ended June 30, 2024, was $1.89, compared with $1.63 for the three months ended June 30, 2023. Net income attributable to CRH plc was $1.4 billion for the six months ended June 30, 2024, an increase of $242 million from the comparable period in 2023. The increase in net income attributable to CRH plc was driven by increased net income of $242 million. Basic EPS for the six months ended June 30, 2024, was $2.05, compared with $1.57 for the six months ended June 30, 2023. CRH Form 10-Q 27 Segments CRH is organized through four reportable segments across two divisions. CRH’s Americas Division comprises two segments: Americas Materials Solutions and Americas Building Solutions; and CRH’s Europe Division comprises the other two segments: Europe Materials Solutions and Europe Building Solutions. Within CRH’s segments, revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. The Company’s measure of segment profit is Adjusted EBITDA, which is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments , income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component. Americas Materials Solutions 3 Three months ended June 30, 2024 Analysis of Change in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change Total revenues 4,164 (5) +125 (34) +156 4,406 +6% Adjusted EBITDA 935 (1) +38 (8) +229 1,193 +28% Adjusted EBITDA margin 22.5% 27.1% Americas Materials Solutions’ total revenues, including the acquisition of cement and readymixed concrete assets in Texas which closed in February 2024, were 6% ahead of the second quarter of 2023. Organic total revenues* were 4% ahead driven by price increases across all lines of business. In Essential Materials, total revenues increased by 5% supported by pricing growth in both aggregates and cement, ahead by 12% and 8% respectively. Aggregates and cement volumes declined by 3% and 2%, respectively, impacted by adverse weather conditions and subdued new-build residential demand. In Road Solutions, total revenues increased by 6% driven by improved pricing in all lines of business and continued funding support relating to the Infrastructure Investment and Jobs Act (IIJA). Paving and construction revenue increased by 8% with good growth in the South and West regions. Asphalt volumes and pricing increased by 1% and 4%, respectively, while readymixed concrete prices increased by 9%, offsetting a decline in volumes of 6%. Construction backlogs were ahead of the prior year supported by positive momentum in bidding activity. Second quarter 2024 Adjusted EBITDA for Americas Materials Solutions of $1.2 billion was 28% ahead of the prior year as cost management, pricing initiatives and operational efficiencies along with a gain on certain land asset sales, mitigated the impact of higher labor and raw materials costs. Organic Adjusted EBITDA* was 25% ahead of the second quarter of 2023. Adjusted EBITDA margin increased by 460bps. Americas Materials Solutions Six months ended June 30, 2024 Analysis of Change in $ millions Six months ended June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended June 30, 2024 % change Total revenues 6,059 (5) +194 (34) +394 6,608 +9% Adjusted EBITDA 900 (1) +63 (8) +254 1,208 +34% Adjusted EBITDA margin 14.9% 18.3% Americas Materials Solutions’ total revenues were 9% ahead in the first six months of the year as price increases, higher volumes across most lines of business and a positive contribution from acquisitions, including the acquisition of cement and readymixed concrete assets in Texas which closed in early February 2024, offset adverse weather. Organic total revenues* were 7% ahead. In Essential Materials, total revenues increased by 7%. Aggregates and cement pricing were ahead by 11% and 8%, respectively. Aggregates volumes increased 1% and cement volumes benefited from the impact from acquisitions, increasing 1% on the same period from the prior year. Weather negatively impacted revenues in the latter part of the half especially in Texas and the central United States. In Road Solutions, total revenues increased by 10% driven by higher pricing and sustained activity levels through continued funding support relating to the IIJA. Asphalt prices increased by 4% while volumes were 2% ahead of the comparable period in 2023 due to early-season project activity. Paving and construction revenues increased 11% on the same period in the prior year. Readymixed concrete pricing was 9% higher than the first half of the prior year, while volumes were flat. We have seen continued momentum in bidding activity, with construction backlogs ahead of the prior year comparable period. First half 2024 Adjusted EBITDA for Americas Materials Solutions of $1.2 billion was ahead of the first half of the prior year as increased pricing and operational efficiencies along with a gain on certain land asset sales mitigated the impact of higher labor, subcontractor and raw materials costs. Organic Adjusted EBITDA* was 28% ahead of the first six months of 2023. Adjusted EBITDA margin increased by 340bps. 3 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. CRH Form 10-Q 28 Americas Building Solutions Three months ended June 30, 2024 Analysis of Change in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change Total revenues 2,148 (2) +61 – (91) 2,116 (1)% Adjusted EBITDA 474 (1) +15 – (12) 476 – Adjusted EBITDA margin 22.1% 22.5% Americas Building Solutions reported a 1% decline in total revenues, impacted by lower activity levels due to subdued new-build residential demand and challenging weather conditions. Overall performance in the quarter was supported by pricing discipline and contributions from acquisitions. Organic total revenues* were 4% behind the second quarter of 2023. In Building & Infrastructure Solutions, total revenues were in line with the prior year as good acquisition performance was offset by unfavorable weather in certain markets as well as the impact of lower new-build residential demand. The non-residential and infrastructure backdrop remains underpinned by significant IIJA funding. In Outdoor Living Solutions, total revenues decreased by 2%, primarily due to the impact of adverse weather in the quarter, particularly in Texas and Central regions. Second quarter 2024 Adjusted EBITDA for Americas Building Solutions was in line with the comparable period in 2023, 3% behind on an organic* basis. Solid growth in the water and energy end-markets as well as growth in higher margin products in Outdoor Living Solutions were offset by adverse weather impacts and project delays in the telecommunications sector. Adjusted EBITDA margin was 40bps ahead of the second quarter of 2023. Americas Building Solutions 4 Six months ended June 30, 2024 Analysis of Change in $ millions Six months ended June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended June 30, 2024 % change Total revenues 3,809 (2) +99 – (97) 3,809 – Adjusted EBITDA 775 (1) +20 – (10) 784 +1% Adjusted EBITDA margin 20.3% 20.6% In the first six months of the year, Americas Building Solutions recorded total revenue in line with the prior year, driven by positive acquisition contribution and pricing discipline offset by subdued residential demand and negative weather impact. Organic total revenues* were 3% behind the first half of 2023. In Building & Infrastructure Solutions, total revenues declined by 2% versus prior year impacted by adverse weather and lower residential activity. In Outdoor Living Solutions, total revenues increased by 1%, with growth across most regions, driven by strong sales into the retail channel, particularly in lawn and garden products and fencing, decking and railing businesses. First half 2024 Adjusted EBITDA for Americas Building Solutions was 1% ahead of the comparable period in 2023, 1% behind on an organic* basis, impacted by adverse weather and rising input costs particularly labor and subcontractor costs. Cost containment initiatives offset the impact of cost inflation and resulted in Adjusted EBITDA margin 30bps ahead of the first half of the prior year. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 4 CRH Form 10-Q 29 Europe Materials Solutions 5 Three months ended June 30, 2024 Analysis of Change in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change Total revenues 2,614 +24 +40 (130) (144) 2,404 (8)% Adjusted EBITDA 515 +5 +7 (38) +10 499 (3)% Adjusted EBITDA margin 19.7% 20.8% Total revenues in Europe Materials Solutions declined by 8%, or 5% on an organic* basis, as good volume growth in Central and Eastern Europe and continued pricing progress was more than offset by lower activity levels in Western Europe due to subdued conditions in certain markets and adverse weather in the quarter. In Essential Materials, total revenues declined by 13% compared with the second quarter of 2023, impacted by the completed divestiture of phases one and two of the European Lime operations. Aggregates volumes were 1% behind the comparable period in 2023 while cement volumes were 2% behind due to lower activity levels, particularly in Western Europe and the Philippines, partly offset by good volume growth in Central and Eastern Europe. Aggregates pricing was 3% ahead and overall cement pricing, which was adversely impacted by geographic mix, was also 1% ahead of the second quarter of 2023. In Road Solutions, revenues declined by 3% compared with the second quarter of 2023. Asphalt volumes declined by 1%, with lower volumes in the United Kingdom and Ireland partially offset by higher volumes in Poland. Paving and construction revenues decreased by 8% driven by lower activity levels in the United Kingdom. Readymixed concrete volumes decreased by 2%, compared to the comparable period in 2023 with higher volumes in Central and Eastern Europe only partially offsetting lower volumes in Western Europe. Adjusted EBITDA in Europe Materials Solutions for the second quarter of 2024 was $499 million, 2% ahead of the comparable period in 2023 on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 110bps compared with the second quarter of 2023. Europe Materials Solutions Six months ended June 30, 2024 Analysis of Change in $ millions Six months ended June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended June 30, 2024 % change Total revenues 4,792 +64 +66 (247) (258) 4,417 (8)% Adjusted EBITDA 583 +6 +11 (62) +51 589 +1% Adjusted EBITDA margin 12.2% 13.3% In the first six months of the year, total revenues in Europe Materials Solutions declined by 8%, or 5% on an organic* basis, with positive pricing momentum offset by lower volumes across Western Europe and the Philippines. Volume growth continued in Central and Eastern Europe during the first six months of the year supported by a number of larger infrastructure projects. In Essential Materials, total revenues were 11% behind the comparable period in 2023 primarily due to the completed divestiture of phases one and two of the European Lime operations. Aggregates pricing was 3% ahead with cement pricing 1% ahead of the comparable period in 2023, impacted by geographic mix. In Road Solutions, revenues were 4% behind the comparable period in 2023 due to reduced volumes. Asphalt pricing was in line with the comparable period in 2023, while volumes declined by 5%. Paving and construction revenues decreased by 6% mainly in the United Kingdom. Poland and Romania experienced higher readymixed concrete volumes in the first six months of the year, but this was offset by lower volumes in Western Europe leading to an overall decrease of 7%. Adjusted EBITDA for the first six months of the year in Europe Materials Solutions was $589 million, 1% ahead of the comparable period in 2023, and 9% ahead on an organic* basis, primarily driven by increased pricing, reduced energy costs and operational efficiencies more than offsetting the impact of lower volumes. Adjusted EBITDA margin increased by 110bps compared with the first six months of 2023. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 5 CRH Form 10-Q 30 Europe Building Solutions Three months ended June 30, 2024 Analysis of Change in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change Total revenues 783 +2 +6 – (63) 728 (7)% Adjusted EBITDA 90 +1 +1 – (5) 87 (3)% Adjusted EBITDA margin 11.5% 12.0% Total revenues in Europe Building Solutions declined by 7%, compared with the second quarter of 2023, amid continued weak new-build residential activity. Within Building & Infrastructure Solutions, total revenues declined by 11% compared with the second quarter of 2023. Infrastructure Products revenues increased, as contributions from acquisitions more than offset lower activity levels. Revenues in Precast and Construction Accessories were negatively impacted by subdued demand in key markets. Revenues in Outdoor Living Solutions were 7% ahead of the comparable period in 2023 with increased activity in the second quarter following prolonged winter weather in certain key markets earlier in the year. Adjusted EBITDA in Europe Building Solutions declined by 3% compared with the second quarter of 2023. Adjusted EBITDA margin increased by 50bps compared with the same period in 2023, supported by disciplined commercial management and cost saving initiatives. Europe Building Solutions Six months ended June 30, 2024 Analysis of Change in $ millions Six months ended June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended June 30, 2024 % change Total revenues 1,476 +8 +13 – (144) 1,353 (8)% Adjusted EBITDA 142 +1 +2 – (26) 119 (16)% Adjusted EBITDA margin 9.6% 8.8% Total revenues in Europe Building Solutions declined by 8% for the first six months of the year, with weak new-build residential activity continuing throughout 2024. Within Building & Infrastructure Solutions, total revenues were 12% behind the comparable period in 2023. Infrastructure Products revenues increased, benefiting from acquisitions offsetting lower activity levels. Revenues in Precast and Construction Accessories were negatively impacted by subdued new-build residential activity continuing across several markets, with the adverse weather conditions experienced in the first quarter impacting the overall performance. Revenues in Outdoor Living Solutions were 5% ahead of the comparable period in 2023 with the increased activity in the second quarter more than offsetting the impact of prolonged winter weather in certain key markets in the first quarter of 2024. Adjusted EBITDA for the first six months of the year in Europe Building Solutions was 16% behind the comparable period of 2023. Adjusted EBITDA margin decreased by 80bps compared with the first six months of 2023, with lower sales only partially offset by disciplined commercial management and cost saving initiatives. CRH Form 10-Q 31 Non-GAAP Reconciliation and Supplementary Information CRH uses a number of non-GAAP performance measures to monitor financial performance. These measures are referred to throughout the discussion of our reported financial position and operating performance on a continuing operations basis unless otherwise defined and are measures which are regularly reviewed by CRH management. These performance measures may not be uniformly defined by all companies and accordingly may not be directly comparable with similarly titled measures and disclosures by other companies. Certain information presented is derived from amounts calculated in accordance with U.S. GAAP but is not itself an expressly permitted GAAP measure. The non-GAAP performance measures as summarized below should not be viewed in isolation or as an alternative to the equivalent GAAP measure. Adjusted EBITDA: Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments, i ncome/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component. It is quoted by management in conjunction with other GAAP and non-GAAP financial measures to aid investors in their analysis of the performance of the Company. Adjusted EBITDA by segment is monitored by management in order to allocate resources between segments and to assess performance. Adjusted EBITDA margin is calculated by expressing Adjusted EBITDA as a percentage of total revenues. Reconciliation to its nearest GAAP measure is presented below: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Net income 1,309 1,212 1,423 1,181 Income from equity method investments (6) (13) (2) (7) Income tax expense 430 379 411 365 Gain on divestitures and unrealized gains on investments (i) (23) – (183) – Pension income excluding current service cost component (i) (1) (2) (2) (2) Other interest, net (i) 1 – 1 – Interest expense 155 73 288 154 Interest income (36) (36) (79) (76) Depreciation, depletion and amortization 424 401 821 785 Substantial acquisition-related costs (ii) 2 – 22 – Adjusted EBITDA 2,255 2,014 2,700 2,400 Total revenues 9,654 9,709 16,187 16,136 Net income margin 13.6% 12.5% 8.8% 7.3% Adjusted EBITDA margin 23.4% 20.7% 16.7% 14.9% (i) Gain on divestitures and unrealized loss/gains on investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating income, net in the Condensed Consolidated Statements of Income. (ii) Represents expenses associated with non-routine substantial acquisitions, which meet the criteria for being separately reported in Note 4 “Acquisitions” of the unaudited financial statements. Expenses in the second quarter of 2024 primarily include legal and consulting expenses related to these non-routine substantial acquisitions. Net Debt: Net Debt is used by management as it gives additional insight into the Company’s current debt position less available cash. Net Debt is provided to enable investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. Net Debt comprises short and long-term debt, finance lease liabilities, cash and cash equivalents and current and noncurrent derivative financial instruments (net) . Reconciliation to its nearest GAAP measure is presented below : June 30 December 31 June 30 in $ millions 2024 2023 2023 Short and long-term debt (13,118) (11,642) (9,748) Cash and cash equivalents (i) 3,077 6,390 4,275 Finance lease liabilities (147) (117) (91) Derivative financial instruments (net) (91) (37) (111) Net Debt (10,279) (5,406) (5,675) (i) Cash and cash equivalents at June 30, 2024 includes $11 million cash and cash equivalents reclassified as held for sale. Cash and cash equivalents at December 31, 2023 includes $49 million cash and cash equivalents reclassified as held for sale. Cash and cash equivalents at June 30, 2023 includes $nil million cash and cash equivalents reclassified as held for sale. CRH Form 10-Q 32 Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total spend on acquisitions and investments of $2.5 billion in the six months ended June 30, 2024, compared with $0.2 billion for the same period in 2023. Acquisitions completed in 2023 and the first half of 2024 contributed incremental total revenues of $232 million and Adjusted EBITDA of $61 million for the three months ended June 30, 2024 and total revenues of $372 million and Adjusted EBITDA of $96 million for the six months ended June 30, 2024. Cash proceeds from divestitures and disposals of long-lived assets amounted to $1.1 billion for the six months ended June 30, 2024, compared with $42 million for the six months ended June 30, 2023. The total revenues impact of divestitures was a negative $164 million and the impact at an Adjusted EBITDA level was a negative $46 million for the three months ended June 30, 2024. For the six months ended June 30, 2024, the total revenues impact of divestitures was a negative $281 million and the impact at an Adjusted EBITDA level was a negative $70 million. The U.S. Dollar weakened against most major currencies during the three months ended June 30, 2024, from the comparable period in 2023, resulting in an overall positive currency exchange impact. Because of the impact of acquisitions, divestitures, currency exchange translation and other non-recurring items on reported results each reporting period, CRH uses organic revenue and organic Adjusted EBITDA as additional performance indicators to assess performance of pre-existing (also referred to as underlying, heritage, like-for-like or ongoing) operations each reporting period. Organic revenue and organic Adjusted EBITDA are arrived at by excluding the incremental revenue and Adjusted EBITDA contributions from current and prior year acquisitions and divestitures, the impact of exchange translation, and the impact of any one-off items. In Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section on pages 28 to 31, changes in organic revenue and organic Adjusted EBITDA are presented as additional measures of revenue and Adjusted EBITDA to provide a greater understanding of the performance of the Company. Organic change % is calculated by expressing the organic movement as a percentage of the prior year reporting period (adjusted for currency exchange effects). A reconciliation of the changes in organic revenue and organic Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA by segment, is presented with the discussion within each segment’s performance in tables contained in the segment discussion in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” commencing on page 24. Liquidity and Capital Resources The Company’s primary source of incremental liquidity is cash flows from operating activities, which combined with the cash and cash equivalents balance, the U.S. Dollar and Euro Commercial Paper Programs, and committed credit lines, is expected to be sufficient to meet the Company’s working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities, and other liquidity requirements associated with our operations for the foreseeable future. In addition, the Company believes that it will have the ability to fund additional acquisitions via cash flows from internally available cash, cash flows from operating activities and, subject to market conditions, via obtaining additional borrowings and/or issuing additional debt or equity securities. Total short and long-term debt was $13.1 billion at June 30, 2024, compared to $11.6 billion at December 31, 2023, and $9.7 billion at June 30, 2023. In May 2024, wholly owned subsidiaries of the Company completed the issuance of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034. In the six months ended June 30, 2024, a net $0.8 billion of commercial paper was issued across the U.S. Dollar and Euro Commercial Paper Programs. In January 2024, €600 million 1.875% euro Senior Notes were repaid on maturity. Net Debt* at June 30, 2024, was $10.3 billion, compared to $5.4 billion at December 31, 2023, and $5.7 billion at June 30, 2023. The increase in Net Debt* 6 compared to December 31, 2023, reflects acquisitions, cash returns to shareholders through dividends and continued share buybacks, as well as the purchase of property, plant and equipment, partially offset by inflows from operating activities and proceeds from the completed divestiture of phases one and two of the European Lime operations. In addition, the Company had restricted cash of $ 0.9 billion at June 30, 2024, included within restricted cash in the Condensed Consolidated Balance Sheets. This restricted cash consists of amounts held in escrow related to transactions expected to close in a future period, primarily related to amounts payable for the acquisition of Adbri as referenced in Note 4. CRH continued its ongoing share buyback program in the first six months of 2024 repurchasing approximately 9.4 million ordinary shares for a total consideration of $0.7 billion and the Company is commencing an additional $0.3 billion tranche to be completed no later than November 6, 2024. The Company also made cash dividend payments of $1.2 billion in the first six months of 2024. Other than items updated in this Quarterly Report, CRH's financial condition and the nature and composition of the Company’s material cash requirements, which include debt service and related interest payments, operating lease obligations, share repurchase commitments and other purchase obligations arising in the normal course of business, have not materially changed from those disclosed in the 2023 Form 10-K. Cash flows At June 30, 2024, CRH had cash and cash equivalents and restricted cash of $3.9 billion compared with $4.3 billion at June 30, 2023. At June 30, 2024, CRH had outstanding total short and long-term debt of $13.1 billion compared with $9.7 billion at June 30, 2023. Total lease liabilities were $1.5 billion compared with $1.3 billion at June 30, 2023. At June 30, 2024, CRH had $3.7 billion of undrawn committed facilities which were available until May 2029. At June 30, 2024, CRH had sufficient cash balances to meet all maturing debt obligations for the next 1.0 year and the weighted average maturity of the remaining term debt was 8.1 years. Cash flows from operating activities Six months ended June 30 in $ millions 2024 2023 Net cash provided by operating activities 773 963 Net cash provided by operating activities was $0.8 billion for the six months ended June 30, 2024, a decrease of $190 million, compared to the same period in 2023. The decrease in net cash provided by operating activities was primarily due to higher outflows related to working capital which offset an increase in net income. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 6 CRH Form 10-Q 33 Cash flows from investing activities Six months ended June 30 in $ millions 2024 2023 Net cash used in investing activities (2,617) (970) Net cash used in investing activities was $2.6 billion for the six months ended June 30, 2024, compared to $1.0 billion in the same period for 2023, an increase of $1.6 billion. During the six months ended June 30, 2024, the Company invested $2.5 billion on acquisitions, an increase of $2.3 billion on the same period in 2023. This outflow was partially offset by proceeds from divestitures and disposals of long-lived assets of $1.1 billion, primarily related to the completed divestiture of phases one and two of the European Lime operations and the divestiture of certain operations in Canada. Further to this, capital expenditure totaled $1.1 billion in the first six months of 2024, resulting in an increased outflow of $0.4 billion versus the comparable prior year period. Cash flows from financing activities Six months ended June 30 in $ millions 2024 2023 Net cash used in financing activities (515) (1,746) Net cash used in financing activities was $0.5 billion for the six months ended June 30, 2024, a decrease of $1.2 billion compared with the same period in the prior year. Proceeds from debt issuances were $3.4 billion compared to $0.9 billion for the first six months of 2023, an increase of $2.5 billion, which was primarily related to the issuance and sale of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034, as well as the issuance of $1.8 billion under the Company’s commercial paper programs in the first half of 2024. Payments on debt in the first half of 2024 were $1.7 billion, primarily the repayment of the €600 million 1.875% euro Senior Notes on maturity in January 2024 as well as the repayment of $1.0 billion issued under the Company’s commercial paper programs. This is compared with $0.8 billion in the prior year relating to the repayment of the €750 million 3.125% euro Senior Notes which were repaid on maturity in April 2023. Dividends paid for the first six months of 2024 were $1.2 billion compared to $0.8 billion in the same period in the prior year. In 2024, the Company moved to quarterly dividends with a payment of both the first and second quarter dividends in the first half of the year in addition to the payment of the 2023 final dividend while the same period in the prior year saw an outflow solely related to the final 2022 dividend. Outflows related to the purchases of common stock were $0.9 billion in the first six months of 2024 compared to $1.0 billion for the same period in 2023. Debt Facilities The following section summarizes certain material provisions of our debt facilities and long-term debt obligations. The following description is only a summary, does not purport to be complete and is qualified in its entirety by reference to the documents governing such indebtedness (available in the Investors section on www.crh.com). At June 30, 2024, we expect maturitie s for the next two quarters as follows: 2024 Debt Maturities Third Quarter (i) $1.7 billion Fourth Quarter (ii) $0.3 billion (i) Of which $1.5 billion is related to the commercial paper programs. (ii) Of which $0.3 billion is related to the commercial paper programs. Unsecured Senior Notes The main sources of Company debt funding are public bond markets in North America and Europe. See Note 9 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding our debt obligations. In May 2024, wholly owned subsidiaries of the Company completed the issuance and sale of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034. Revolving Credit Facilities The Company manages its borrowing ability by entering into committed borrowing agreements. The Company’s multi-currency RCF, dated May 2023, is made available from a syndicate of lenders, consisting of a €3.5 billion unsecured, revolving loan facility with maturity in May 2029. See Note 9 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding the RCF. At June 30, 2024, the RCF was undrawn. Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $12.8 billion in respect of loans and borrowings, bank advances and derivative obligations, and $0.4 billion in respect of letters of credit due within one year at June 30, 2024. CRH Form 10-Q 34 Commercial Paper Programs As of June 30, 2024, the Company had a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program. As of June 30, 2024, there was $1.3 billion of outstanding issued notes on the U.S. Dollar Commercial Paper Program and $0.5 billion of outstanding issued notes on the Euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity as required. Off-Balance Sheet Arrangements CRH does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on CRH’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that may be material to investors. Debt Ratings Our debt ratings and outlooks at June 30, 2024, were as follows: Short-Term Long-Term Outlook S&P A-2 BBB+ Stable Moody’s P-2 Baa1 Stable Fitch F1 BBB+ Stable Contractual Obligations An analysis of the maturity profile of debt, leases capitalized, purchase obligations, deferred and contingent acquisition consideration and pension scheme contribution commitments at June 30, 2024, is as follows : Payments due by period Total Less than 1 year 2-3 years 4-5 years More than 5 years in $ millions Short and long-term debt (i) 13,208 3,246 1,711 2,827 5,424 Lease liabilities (ii) 1,948 303 474 295 876 Estimated interest payments on contractually committed debt (iii) 3,789 495 783 622 1,889 Deferred and contingent acquisition consideration 26 21 3 1 1 Purchase obligations (iv) 2,199 1,177 578 218 226 Retirement benefit obligation commitments (v) 20 3 6 5 6 Total (vi) 21,190 5,245 3,555 3,968 8,422 (i) Of the $13.2 billion short and long-term debt, $0.2 billion is drawn on revolving facilities which may be repaid and redrawn up to the date of maturity. (ii) Lease liabilities are presented on an undiscounted basis. (iii) These interest payments have been estimated on the basis of the following assumptions: (a) no change in variable interest rates; (b) no change in exchange rates; (c) that all debt is repaid as if it falls due from future cash generation; and (d) that none is refinanced by future debt issuance. (iv) Purchase obligations include contracted-for capital expenditure. These expenditures for replacement and new projects are in the ordinary course of business and will be financed from internal resources. (v) These retirement benefit commitments comprise the contracted payments related to our pension schemes in the United Kingdom. (vi) Over the long term, CRH believes that our available cash and cash equivalents, cash from operating activities, along with the access to borrowing facilities will be sufficient to fund our long-term contractual obligations, maturing debt obligations and capital expenditures. CRH Form 10-Q 35 Supplemental Guarantor Information Guarantor Financial Information As of June 30, 2024, CRH plc (the 'Guarantor') has fully and unconditionally guaranteed $300 million 6.400% Senior Notes due 2033 (i) (the '6.400% Notes') issued by CRH America, Inc. (CRH America), $750 million 5.200% Senior Notes due 2029 (the '5.200% Notes') issued by CRH SMW Finance Designated Activity Company (SMW Finance) and $750 million 5.400% Senior Notes due 2034 (the '5.400% Notes', and together with the 6.400% Notes and the 5.200% Notes, the 'Notes') issued by CRH America Finance, Inc. (America Finance, and together with CRH America and SMW Finance, the 'Issuers'). The Issuers are each 100% owned by CRH plc., directly and indirectly. SMW Finance is an indirect wholly owned finance subsidiary of CRH plc incorporated under the laws of Ireland and a financing vehicle for CRH’s group companies. America Finance is an indirect wholly owned finance subsidiary of CRH plc incorporated under the laws of the State of Delaware and a financing vehicle for CRH’s U.S. operating companies. Each series of Notes is unsecured and ranks equally with all other present and future unsecured and unsubordinated obligations of the relevant Issuer and CRH plc, subject to exceptions for obligations required by law. Each series of Notes is fully and unconditionally guaranteed by CRH plc as defined in the respective indenture governing each series of Notes. Each guarantee is a full, irrevocable, and unconditional guarantee of the principal, interest, premium, if any, and any other amounts due in respect of the relevant series of Notes given by CRH plc. (i) Originally issued in September 2003 as $300 million 6.400% Senior Notes due 2033. CRH subsequently acquired $87 million of the 6.400% Notes in liability management exercises in August 2009 and December 2010. Basis of Presentation The following summarized financial information reflects, on a combined basis, the Balance Sheet as of June 30, 2024 and as of December 31, 2023 and the Income Statement for the six months ended June 30, 2024, and for the year ended December 31, 2023 of CRH America and CRH plc, which guarantees the registered debt; collectively the ‘Obligor Group’. Intercompany balances and transactions within the Obligor Group have been eliminated in the summarized financial information below. Amounts attributable to the Obligor Group’s investment in non-obligor subsidiaries have also been excluded. Intercompany receivables/payables and transactions with non-obligor subsidiaries are separately disclosed as applicable. This summarized financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 13-01 and is not intended to present the financial position and results of operations of the Obligor Group in accordance with U.S. GAAP. The summarized Income Statement information is as follows: in $ millions For the six months ended June 30, 2024 For the year ended December 31, 2023 Income from operations before income tax expense and income from equity method investments (i) 103 4,016 - of which relates to transactions with non-obligor subsidiaries 150 4,044 Net income – all of which is attributable to equity holders of the Company 103 4,014 - of which relates to transactions with non-obligor subsidiaries 150 4,044 (i) Revenues and gross profit for the Obligor Group for the six months ended June 30, 2024 and for the year ended December 31, 2023 amounted to $nil million and $nil million, respectively. The summarized Balance Sheet information is as follows: June 30, 2024 December 31, 2023 Current assets 926 1,314 Current assets – of which is due from non-obligor subsidiaries 393 332 Noncurrent assets 3,275 3,655 Noncurrent assets – of which is due from non-obligor subsidiaries 3,275 3,655 Current liabilities 4,105 1,728 Current liabilities – of which is due to non-obligor subsidiaries 2,867 1,706 Noncurrent liabilities 777 2,006 Critical Accounting Policies and Estimates There have been no material changes during the three months ended June 30, 2024, to our critical accounting policies and/or estimates disclosed in our 2023 Form 10-K. CRH Form 10-Q 36 Available Information The Company maintains an internet address at www.crh.com and makes available free of charge through its website its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, if any, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, which are available as soon as reasonably practicable after CRH files or furnishes such information to the SEC. Investors may also access such documents via the SEC’s website www.sec.gov. References in this document to other documents on the CRH website are included only as an aid to their location and are not incorporated by reference into this Quarterly Report. CRH’s website provides the full text of earnings updates, copies of presentations to analysts and investors and circulars to shareholders. Further, copies of CRH’s key corporate governance policies and other reports, including its Code of Business Conduct, Sustainability Performance Report, and the charters for Committees of the Board, may be found on the CRH website. The Company undertakes no obligation to update any statements contained in this Quarterly Report or the documents incorporated by reference herein for revisions or changes after the filing date of this Quarterly Report, other than as required by law. We post on our website news releases, announcements and other statements about our business performance, results of operations and sustainability matters, some of which may contain information that may be deemed material to investors. Additionally, we use our LinkedIn account (www.linkedin.com/company/crh), as well as our other social media channels from time to time, to post announcements that may contain information that may be deemed material to investors. Our officers may use similar social media channels to disclose public information. We encourage investors, the media and others interested in CRH to review the business and financial information we or our officers post on our website and the social media channels identified above. Information on CRH’s website or such social media channels does not form part of, and is not incorporated into, this Quarterly Report. Forward-Looking Statements In order to utilize the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, CRH is providing the following cautionary statement. This document, and the documents incorporated by reference herein, contain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations, business, viability, and future performance of CRH and certain of the plans and objectives of CRH. These forward-looking statements may generally, but not always, be identified by the use of words such as “will”, “anticipates”, “should”, “could”, “would”, “targets”, “aims”, “may”, “continues”, “expects”, “is expected to”, “estimates”, “believes”, “intends” or similar expressions. These forward-looking statements include all matters that are not historical facts or matters of fact at the date of this document. In particular, the following, among other statements, are all forward looking in nature: plans and expectations regarding drivers of CRH’s performance in 2024, demand outlook, macroeconomic trends in CRH’s markets, government funding initiatives and manufacturing trends, pricing trends, costs and weather patterns; plans and expectations regarding business strategy and cash returns for shareholders, including expectations regarding dividends and share buybacks; plans and expectations regarding CRH’s financial capacity, including our ability to fund acquisitions and meet working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities and other liquidity requirements; plans and expectations regarding the timing of our acquisitions and divestments, including with respect to the timing and completion of the divestiture of phase three of the European Lime operations and valuation and purchase price allocation; CRH’s status as a foreign private issuer and transition to U.S. domestic issuer status; and plans and expectations regarding the strategic risks and uncertainties facing CRH. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect our current expectations and assumptions as to such future events and circumstances that may not prove accurate. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. We expressly disclaim any obligation or undertaking to publicly update or revise these forward-looking statements other than as required by applicable law. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, certain of which are beyond our control, and which include, among other factors: economic and financial conditions, including changes in interest rates, inflation, price volatility and/or labor and materials shortages; demand for infrastructure, residential and non-residential construction and our products in geographic markets in which we operate; increased competition and its impact on prices and market position; increases in energy, labor and/or other raw materials costs; adverse changes to laws and regulations, including in relation to climate change; the impact of unfavorable weather; investor and/or consumer sentiment regarding the importance of sustainable practices and products; availability of public sector funding for infrastructure programs; political uncertainty, including as a result of political and social conditions in the jurisdictions CRH operates in, or adverse political developments, including the ongoing geopolitical conflicts in Ukraine and the Middle East; failure to complete or successfully integrate acquisitions or make timely divestments; cyberattacks and exposure of associates, contractors, customers, suppliers and other individuals to health and safety risks, including due to product failures. Additional factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those expressed by the forward-looking statements in this report including, but not limited to, the risks and uncertainties described herein and under “Risk Factors” in our 2023 Form 10-K and in our other filings with the SEC. CRH Form 10-Q 37