What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-07 compared with 2024-08-08 · 236 added, 248 removed, 322 unchanged (60% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.

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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.

Since its 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.

The Company integrates essential material s (aggregates and cement), val ue-added building pro ducts 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.

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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.

In addition to impacting demand for our products and services, adverse weather can negatively impact 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.

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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;

Three months ended September 30, 2024

CRH delivered a strong third quarter performance compared to the third quarter of 2023, resulting in the following performance highlights for the three months ended September 30, 2024 (comparisons are versus the prior year's third quarter unless otherwise noted):

• Total revenues increased 4% to $10.5 billion;

• Net income was $1.4 billion compared with $1.3 billion, an increase of $71 million, or 5%.

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• Net income margin was 13.2% compared with 13.0%, an increase of 20 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%;

• 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;

Adjusted EBITDA margin* was 23.3%, an increase of 170bps on the prior year's third quarter Adjusted EBITDA margin* of 21.6%;

• Basic E arnings Per Sha re (EPS) w as $1.99 compared to $1.81.

Nine months ended September 30, 2024

CRH also delivered a strong performance in the nine months ended September 30, 2024 compared to the prior year, resulting in the following performance highlights (comparisons are versus the prior year's first nine months unless otherwise noted):

• Total revenues of $26.7 billion were 2% higher;

• Net income was $2.8 billion compared with $2.5 billion, an increase of $313 million, or 13%.

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• Net income margin was 10.5% compared with 9.5%, an increase of 100bps.

Adjusted EBITDA margin* was 16.7%, an increase of 180bps on the prior year's half year Adjusted EBITDA margin* of 14.9%;

Adjusted EBITDA margin* was 19.3%, an increase of 180bps ahead of prior year Adjusted EBITDA margin* of 17.5%;

• Basic EPS was $4.03 compared to $3.36.

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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;

• 16 acquisitions were completed for total consideration of $2.6 billion, compared with $0.2 billion in the first half of the prior year.

Nine months ended September 30, 2024

• Cash paid to shareholders through dividends was $1.5 billion, compared with $0.8 billion in t he first nine months of t he 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, May 202 4 and August 2024 and a fourth quarterly dividend of $0.35 per share announced on November 7, 2024, repr esenting an annualized increase of 5% on the prior year;

• Cash returned to shareholders through share buybacks was $1.0 billio n, a decrease of $1.0 billion versus the first nine months of the prior year.

On November 6, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date cash returned to $1.2 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 February 26, 2025;

• 28 acquisitions were completed for total consideration of $3.9 billion, compared wit h $0.6 billion in the first nine months of the prior year.

A further $1.6 billion was invested in development and replacement capital expenditure projects, compared with $1.2 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.

During the three months ended September 30, 2024, CRH completed 12 acquisitions for a total consideration of $1.4 billion, compared with $0.4 billion in the same period of 2023.

Americas Materials Solutions compl eted seven acquisitions, Americas Building Solutions completed three acquisitions and Europe Materials Solutions completed two acquisitions.

Overall, during the nine months ended September 30, 2024, CRH completed 28 acquisitions for a total consideration of $3.9 billion, compared with $0.6 billion in the first nine months of the prior year.

On July 1, 2024, CRH completed the acquisition of a majority stake in Adbri Ltd (Adbri) for a total consideration of $0.8 billion.

Adbri is an integrated materials business with high-quality assets and leading market positions in Australia that complements our core competencies in cement, concrete and aggregates and creates additional growth and development opportunities for our existing Australian business.

During the three months ended September 30, 2024, cash proceeds from divestitures and disposals of long-lived assets were $0.1 billion, including the third and final phase of the divestiture of the European Lime operations, which was completed on August 30, 2024.

For the nine months ended September 30, 2024, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.2 billion, primarily related to the divestiture of the European Lime operations.

No divestitures occurred in the first nine months of the prior year.

We are pleased to reaffirm our guidance¹ midpoint for 2024, reflecting the continued strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from portfolio activity.

Looking ahead to 2025 and notwithstanding some macroeconomic uncertainties, we expect positive underlying demand across our key end-use markets, underpinned by significant public investment in infrastructure and re-industrialization activity.

A lower interest rate environment is expected to aid a gradual recovery in new-build residential construction activity.

Through a combination of continued positive price momentum, favorable underlying demand and the benefits of our integrated, value-based solutions strategy we expect another year of progress in 2025.

2 ¹ The above guidance does not reflect the potential Q4 impairment in the range of $0.3-$0.4 billion.

See the discussion within 'Critical Accounting Policies and Estimates' on page 36.

CRH Form 10-Q 25

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(in $ millions, except per share data)

Three months ended Six months ended

June 30 June 30

Three months ended Nine months ended

September 30 September 30

2024 2023 2024 2023

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Net (income) attributable to redeemable noncontrolling interests (9) (9) (21) (21)

Net (income) loss attributable to noncontrolling interests (2) (3) 2 2

Net (income) attributable to noncontrolling interests (4) (3) (2) (1)

Net income attributable to CRH plc 1,376 1,306 2,789 2,477

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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.

Total revenues were $10.5 billion for the three months ended September 30, 2024, an increase of $0.4 billion, or 4%, compared with the third quarter of 2023, driven by continued pricing progress and contributions from acquisitions partly offset by lower activity levels in certain regions due to adverse weather and divestitures.

Similar trends were experienced for the nine months ended September 30, 2024 resulting in total revenues of $26.7 billion, an increase of $0.4 billion or 2% from the first nine months of 2023.

For additional discussion on segment revenues, see “Segments” section on pages 28 to 31.

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.

Gross profit for the three months ended September 30, 2024, was $4.1 billion, an increase of $0.3 billion, or 8%, from the same period in 2023, reflecting total revenues increase of 4%, while total cost of revenues increased by 1%.

The gross profit margin of 38.6% increased 140bps from 37.2% for the third quarter of the prior year.

Total cost of revenues increased primarily as a result of an increase in labor costs of 9% and 18% higher depreciation charges mainly due to acquisitions.

These were partly offset by lower energy costs of 13%.

For the nine months ended September 30, 2024, gross profit was $9.5 billion, an increase of $0.5 billion, or 6%, from the same period in 2023, with total revenues 2% ahead of the same period in 2023, while total cost of revenues decreased by 1%.

The gross profit margin of 35.7% increased 140bps from 34.3% for the first nine months of the prior year.

Total cost of revenues decreased from the first nine months of the prior year, with a 19% reduction in energy costs due to divestitures, a decline in energy prices and lower activity levels.

These were partly offset by labor cost increases of 7%.

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 $2.2 billion for the three months ended September 30, 2024, an increase of $0.2 billion, or 10%, from the comparable 2023 period.

This increase was primarily due to labor cost increases of 13% as a result of increased headcount from acquisitions, and wage inflation along with a 6% increase in haulage costs, mainly driven by acquisitions.

For the nine months ended September 30, 2024, SG&A expenses were $5.9 billion, an increase of $0.3 billion, or 5%, from the comparable 2023 period.

SG&A expenses increased primarily due to labor cost increases of 10% as a result of higher headcount from acquisitions, and wage inflation.

* Represents a non-GAAP measure.

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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.

Gain on disposal of long-lived assets was $89 million for the three months ended September 30, 2024, an increase of $74 million compared with 2023, an d $199 million for the nine months ended September 30, 2024, an increase of $161 million.

The increase mainly related to the disposal of certain land assets.

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 income was $33 million for the three months ended September 30, 2024, a decrease of $29 million from the comparable period in 2023, and $112 million for the nine months ended September 30, 2024, a decrease of $26 million from the comparable period in 2023, in both instances, primarily due to lower levels of cash deposits.

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.

Interest expense was $164 million for the three months ended September 30, 2024, an increase of $33 million from the comparable period in 2023, and $452 million for the nine months ended September 30, 2024, an increase of $167 million from the prior period.

The increases were primarily due to higher gross debt balances.

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, was $62 million for the three months ended September 30, 2024, compared with $1 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.

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.

The increase in other nonoperating income, net, was primarily related to gain s on div estitures.

Other nonoperating income, net, was $246 million for the nine months ended September 30, 2024, compared with $3 million in the comparable period for 2023.

The increase in other nonoperating income, net, was primarily related to gains on the completed divestiture of the Company's European Lime operations and unrealized gains on certain investments.

For the three months ended September 30, 2024, the Company had an income tax expense of $531 million, compared to $416 million for the comparable period in 2023.

The effective tax rate was 28% for the third quarter in 2024 compared with an effective tax rate of 24% for the third quarter in 2023.

The movement in the effective tax rate was mainly driven by the timing of discrete items occurring throughout the year, including non-deductible acquisition-related costs in the third quarter.

For the nine months ended September 30, 2024, the Company had an income tax expense of $942 million compared to $781 million for the comparable period in 2023.

The effective tax rate was 25% for the first nine months 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 a change in the mix of income earned in jurisdictions with a higher rate of tax and non-deductible acquisition-related costs which is partially offset by items arising in the first quarter (being 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 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.

For the three months ended September 30, 2024, a gain of $25 million was recorded in equity method investments, an increase of $11 million from the comparable period in 2023 and a gain of $27 million was recorded for the nine months ended September 30, 2024, an increase of $6 million from the comparable period in 2023.

Net income was $1.4 billion for the three months ended September 30, 2024, an increase of $0.1 billion from the comparable period in 2023.

For the nine months ended September 30, 2024 net income increased by $0.3 billion to $2.8 billion.

The results with respect to prior year comparative periods were primarily driven by higher gross profit along with higher gains on disposal of long-lived assets and divestitures, which offset higher interest expenses and higher SG&A expenses.

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.

Net income attributable to CRH plc was $1.4 billion for the three months ended September 30, 2024, an increase of $0.1 billion from the comparable period in 2023.

Basic EPS for the three months ended September 30, 2024, was $1.99, compared with $1.81 for the three months ended September 30, 2023.

Net income attributable to CRH plc was $2.8 billion f or the nine months ended September 30, 2024, an increase of $0.3 billion from the comparable period in 2023.

Basic EPS for the nine months ended September 30, 2024, was $4.03, compared with $3.36 for the nine months ended September 30, 2023.

CRH Form 10-Q 27

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Within CRH’s segments, revenue is disaggregated by principal activities and products.

Business lines are reviewed and evaluated as follows:

Business lines are revi ewed and evaluated as follows:

(1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions.

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Americas Materials Solutions 4

Three months ended June 30, 2024

Three months ended September 30, 2024

Analysis of Change

in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change

in $ millions Three months ended September 30, 2023 Currency Acquisitions Divestitures Organic Three months ended September 30, 2024 % change

Total revenues 5,080 (7) +232 (44) +38 5,299 +4%

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Adjusted EBITDA margin 25.3% 28.0%

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%.

Americas Materials Solutions’ total revenues were 4% ahead of the third quarter of 2023.

Continued positive pricing across all lines of business was partly offset by adverse weather impacting volumes, resulting in organic total revenues* 1% ahead of the prior year.

In Essential Materials, total revenues increased by 5% driven by pricing growth in both aggregates and cement, ahead by 10% and 9%, respectively.

Cement volumes increased by 1%, as acquisition activity offset the adverse impact of major hurricanes.

Aggregates volumes declined by 4%, negatively impacted by adverse weather.

In Road Solutions, total revenues increased by 4% driven by improved pricing across all lines of business and continued funding support relating to the Infrastructure Investment and Jobs Act (IIJA) more than offsetting challenging weather in certain regions.

Paving and construction revenue increased by 3% with growth in the Northeast and West regions.

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.

Asphalt volumes decreased by 2% and pricing increased by 3%, while readymixed concrete volumes and prices increased by 2% and 7%, respectively.

Third quarter Adjusted EBITDA for Americas Materials Solutions of $1.5 billion was 16% ahead of the prior year as pricing initiatives, cost management and operational efficiencies along with gains on certain land asset sales mitigated the impact of higher labor and raw materials costs.

Organic Adjusted EBITDA* was 12% ahead of the third quarter of 2023.

Adjusted EBITDA margin increased by 270bps.

Americas Materials Solutions

Six months ended June 30, 2024

Nine months ended September 30, 2024

Analysis of Change

in $ millions Six months ended

June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended

June 30, 2024 % change

in $ millions Nine months ended

September 30, 2023 Currency Acquisitions Divestitures Organic Nine months ended

September 30, 2024 % change

Total revenues 11,139 (12) +426 (78) +432 11,907 +7%

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Adjusted EBITDA margin 19.6% 22.6%

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.

Americas Materials Solutions’ total revenues were 7% ahead in the first nine months of the year as price increases and the positive contribution from acquisitions more than offset lower activity levels due to adverse weather.

Organic total revenues* were 4% 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 Essential Materials, total revenues increased by 6%, supported by aggregates and cement pricing which were ahead by 11% and 9%, respectively.

Aggregates volumes declined 1% and cement volumes increased 1% compared to the same period in 2023.

Weather negatively impacted revenues throughout the year, especially toward the end of the third quarter.

In Road Solutions, total revenues increased by 7% 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.

Asphalt prices increased by 4% while volumes were in line with the comparable period in 2023.

Paving and construction revenues increased 7% 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.

Readymixed concrete pricing was 8% higher, while volumes were 1% ahead.

Construction backlogs were ahead of the comparable period of the prior year supported by continued momentum in bidding activity.

Adjusted EBITDA for Americas Materials Solutions of $2.7 billion was ahead of the prior year by 23% with good growth across key markets.

Increased pricing and operational efficiencies along with gains on certain land asset sales helped offset the impact of higher raw material, labor and subcontractor costs.

Organic Adjusted EBITDA* was 19% ahead of the first nine months of 2023.

Adjusted EBITDA margin increased by 300bps.

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Americas Building Solutions

Three months ended June 30, 2024

Three months ended September 30, 2024

Analysis of Change

in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change

in $ millions Three months ended September 30, 2023 Currency Acquisitions Divestitures Organic Three months ended September 30, 2024 % change

Total revenues 1,738 (2) +45 – (24) 1,757 +1%

1 unchanged sentence

Adjusted EBITDA margin 22.5% 20.2%

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' total revenues were 1% ahead of the prior year period as contributions from acquisitions more than offset the impact of lower activity levels due to challenging weather and subdued new-build residential demand.

Organic total revenues* were 1% behind the third quarter of 2023.

In Building & Infrastructure Solutions, total revenues were 3% ahead of Q3 2023 driven by a strong performance from acquisitions which offset weaker new-build residential demand and challenging weather conditions in certain markets.

In Outdoor Living Solutions, total revenues were in line with the prior year period as lower activity levels, impacted by adverse weather in the period, were offset by positive contributions from acquisitions.

Third quarter Adjusted EBITDA for Americas Building Solutions was 9% behind a strong prior year comparative, 11% behind on an organic* basis as adverse weather and subdued residential demand impacted profitability.

Adjusted EBITDA margin was 230bps behind the third quarter of 2023.

Americas Building Solutions 5

Six months ended June 30, 2024

Nine months ended September 30, 2024

Analysis of Change

in $ millions Six months ended

June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended

June 30, 2024 % change

in $ millions Nine months ended

September 30, 2023 Currency Acquisitions Divestitures Organic Nine months ended

September 30, 2024 % change

Total revenues 5,547 (4) +144 – (121) 5,566 –

1 unchanged sentence

Adjusted EBITDA margin 21.0% 20.5%

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.

In the first nine months of the year, Americas Building Solutions' total revenues were in line with the prior year as positive contributions from acquisitions were offset by subdued residential demand and adverse weather.

Organic total revenues* were 2% behind the prior year period.

In Building & Infrastructure Solutions, total revenues were in line as contributions from acquisitions were offset by adverse weather.

In Outdoor Living Solutions, total revenues increased by 1% despite adverse weather, with growth driven by strong sales into the retail channel, particularly in lawn and garden and decking and railing.

Adjusted EBITDA for Americas Building Solutions was 2% behind the comparable period in 2023, 5% behind on an organic* basis, impacted by adverse weather and subdued residential demand .

Adjusted EBITDA margin was 50bps behind prior year.

* Represents a non-GAAP measure.

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Europe Materials Solutions 6

Three months ended June 30, 2024

Three months ended September 30, 2024

Analysis of Change

in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change

in $ millions Three months ended September 30, 2023 Currency Acquisitions Divestitures Organic Three months ended September 30, 2024 % change

Total revenues 2,617 +42 +354 (131) (87) 2,795 +7%

1 unchanged sentence

Adjusted EBITDA margin 17.0% 19.8%

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' total revenues, including the acquisition of a majority stake in Adbri which closed in July 2024, were 7% ahead of the third quarter of 2023.

Organic total revenues* were 3% behind as continued pricing progress and growth in Central and Eastern Europe were more than offset by subdued residential activity in Western Europe.

In Essential Materials, total revenues increa sed by 6% compared with the third quarter of 2023, supported by contributions from acquisitions and positive pricing in both aggregates and cement, ahead by 4% and 5%, respectively.

Aggregates and cement volumes were both ahead by 6%.

In Road Solutions, revenues increased by 8% with volumes and prices ahead in the readymixed concrete business, benefiting from acquisition activity in the quarter.

Asphalt volumes and pricing declined 5% and 1%, respectively, while paving and construction revenues were impacted by lower activity levels in Western Europe.

Adjusted EBITDA in Europe Materials Solutions was $0.6 billion, 24% ahead of the comparable period in 2023, and 18% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs, operational efficiencies and contributions from acquisitions.

Adjusted EBITDA margin increased by 280bps compared with the third quarter of 2023.

Europe Materials Solutions

Six months ended June 30, 2024

Nine months ended September 30, 2024

Analysis of Change

in $ millions Six months ended

June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended

June 30, 2024 % change

in $ millions Nine months ended

September 30, 2023 Currency Acquisitions Divestitures Organic Nine months ended

September 30, 2024 % change

Total revenues 7,409 +106 +420 (378) (345) 7,212 (3%)

1 unchanged sentence

Adjusted EBITDA margin 13.9% 15.8%

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.

In the first nine months of the year, total revenues in Europe Materials Solutions declined by 3%, or 5% on an organic* basis.

Positive pricing momentum and good volume growth supported by a number of larger infrastructure projects acros s Central and Eastern Europe were offset by lower volumes across Western Europe and the Philippines.

In Essential Materials, total revenues were 5% behind the comparable period in 2023 primarily due to the completed divestiture of the European Lime operations, partly offset by the acquisition of Adbri in July 2024.

Aggregates pricing was 3% ahead with cement pricing 2% ahead of the prior year.

In Road Solutions, revenues were in line with the comparable period in 2023 with the benefit of acquisitions in the period offset by lower volumes.

Asphalt volumes were 5% behind with pricing in line with the comparable period in 2023.

Paving and construction revenues decreased by 4% mainly due to lower activity levels in Western Europe.

Readymixed concrete volumes were 2% ahead of the prior year driven by growth in Central and Eastern Europe and contributions from acquisitions offsetting declines in Western Europe.

Adjusted EBITDA in Europe Materials Solutions was $1.1 billion, 11% ahead of the comparable period in 2023, and 13% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies more than offsetting the impact of lower activity levels.

Adjusted EBITDA margin expanded by 190bps compared with the first nine months of 2023.

* Represents a non-GAAP measure.

2 unchanged sentences

Europe Building Solutions

Three months ended June 30, 2024

Three months ended September 30, 2024

Analysis of Change

in $ millions Three months ended June 30, 2023 Currency Acquisitions Divestitures Organic Three months ended June 30, 2024 % change

in $ millions Three months ended September 30, 2023 Currency Acquisitions Divestitures Organic Three months ended September 30, 2024 % change

Total revenues 693 +11 +4 (4) (40) 664 (4%)

1 unchanged sentence

Adjusted EBITDA margin 10.0% 9.3%

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.

Total revenues in Europe Building Solutions declined by 4% compared with the third quarter of 2023, amid continued subdued new-build residential activity.

Within Building & Infrastructure Solutions, total revenues were 6% behind the comparable period in 2023.

Infrastructure Products was ahead of the prior year, with contributions from acquisitions more than offsetting lower activity levels.

Revenues in Precast and Construction Accessories were behind the comparable period in 2023 amid continued lower demand in certain key markets.

Revenues in Outdoor Living Solutions increased by 2% compared with the third quarter of 2023 despite lower activity levels which were impacted by adverse weather and continued subdued new-build residential demand.

Adjusted EBITDA in Europe Building Solutions declined by 10% compared with the third quarter of 2023.

Europe Building Solutions

Six months ended June 30, 2024

Nine months ended September 30, 2024

Analysis of Change

in $ millions Six months ended

June 30, 2023 Currency Acquisitions Divestitures Organic Six months ended

June 30, 2024 % change

in $ millions Nine months ended

September 30, 2023 Currency Acquisitions Divestitures Organic Nine months ended

September 30, 2024 % change

Total revenues 2,169 +19 +17 (4) (184) 2,017 (7%)

1 unchanged sentence

Adjusted EBITDA margin 9.7% 9.0%

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.

Total revenues in Europe Building Solutions declined by 7% for the first nine months of the year, with subdued new-build residential market activity continuing throughout 2024.

Within Building & Infrastructure Solutions, total revenues were 10% 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.

Revenues in Precast and Construction Accessories were negatively impacted by subdued new-build residential activity continuing across several markets.

Revenues in Outdoor Living Solutions were 4% ahead of the comparable period in 2023, driven by commercial progress in certain markets despite subdued residential demand.

Adjusted EBITDA for the first nine months of the year in Europe Building Solutions was 14% behind the comparable period of 2023.

Adjusted EBITDA margin decreased by 70bps compared with the first nine months of 2023, with lower activity levels partially offset by disciplined commercial management and cost saving initiatives.

CRH Form 10-Q 31

7 unchanged sentences

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.

Adjusted EBITDA is d efined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impair ments, 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.

2 unchanged sentences

Reconciliation to its nearest GAAP measure is presented below:

Three months ended Six months ended

June 30 June 30

Three months ended Nine months ended

September 30 September 30

in $ millions 2024 2023 2024 2023

13 unchanged sentences

Adjusted EBITDA margin 23.3% 21.6% 19.3% 17.5%

(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.

(i) Gain on divestitures and unrealized 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.

Expenses in the third quarter of 2024 primarily include legal and consulting expenses related to these non-routine substantial acquisitions.

Net Debt is used by management as it gives additional insight into the Company’s current debt position less available cash.

2 unchanged sentences

Reconciliation to its nearest GAAP measure is presented below :

June 30 December 31 June 30

September 30 December 31 September 30

in $ millions 2024 2023 2023

4 unchanged sentences

Net Debt (11,175) (5,406) (5,887)

(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.

(i) Cash and cash equivalents includes cash and cash equivalents reclassified as held for sale of $nil million, $49 million, and $nil million at September 30, 2024, December 31, 2023 and September 30, 2023, respectively.

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.

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.

CRH pursues a strategy of growth through acquisitions and investments, with total spend on acquisitions and investments of $3.9 billion in the nine months ended September 30, 2024, compared with $0.6 billion for the same period in 2023.

Acquisitions completed in 2023 and the first nine months of 2024 contributed incremental total revenues of $0.6 billion and Adjusted EBITDA of $0.1 billion for the three months ended September 30, 2024 and total revenues of $1.0 billion and Adjusted EBITDA of $0.2 billion for the nine months ended September 30, 2024.

Cash proceeds from divestitures and disposals of long-lived assets amounted to $1.2 billion for the nine months ended September 30, 2024, compared with $0.1 billion for the nine months ended September 30, 2023.

The total revenues impact of divestitures was a negative $0.2 billion and the impact at an Adjusted EBITDA level was a negative $46 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2024, the total revenues impact of divestitures was a negative $0.5 billion and the impact at an Adjusted EBITDA level was a negative $0.1 billion.

Dollar weakened against most major currencies during the three months ended September 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, 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.

6 unchanged sentences

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.

Dollar and Euro Commercial Paper Programs, and committed credit lines, is expected to be sufficient to meet the Company’s working capital needs, c apital 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.

Total short and long-term debt was $13.9 billion at September 30, 2024, compared to $11.6 billion at December 31, 2023, and $11.4 billion at September 30, 2023.

I n January 2024, €600 million 1.875% euro Senior Notes were repaid on maturity.

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.

In July 2024, as part of the Adbri acquisition $0.5 billion of external debt was acquired.

In the nine months ended September 30, 2024, a net $0.6 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.

Net Debt* at September 30, 2024, was $11.2 billion, compared to $5.4 billion at December 31, 2023, and $5.9 billion at September 30, 2023.

The increase in Net Debt* 7 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 divestitures.

CRH continued its ongoing share buyback program in the first nine months of 2024 repurchasing approximately 13.2 million ordinary shares for a total consideration of $1.0 billion and the Company is commencing an additional $0.3 billion tranche to be completed no later t han February 26, 20 25.

The Company also made cash dividend payment s of $1.5 b illion in the first nine 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.

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.

At September 30, 2024, CRH had cash and cash equivalents and restricted cash of $3.1 billion compared with $5.7 billion at September 30, 2023.

At September 30, 2024, CRH had outstanding total short and long-term debt of $13.9 billion compared with $11.4 billion at September 30, 2023.

Total lease liabilities were $1.6 billion compared with $1.4 billion at September 30, 2023.

At September 30, 2024, CRH had $4.0 billion of undrawn committed facilities, almost all of which, are available until May 2029.

At September 30, 2024, the weighted average maturity of the term debt (net of cash and cash equivalents) was 7.5 years.

Cash flows from operating activities

Six months ended

Nine months ended

in $ millions 2024 2023

Net cash provided by operating activities 2,259 2,594

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.

Net cash provided by operating activities was $2.3 billion for the nine months ended September 30, 2024, a decrease of $0.3 billion, 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.

3 unchanged sentences

Cash flows from investing activities

Six months ended

Nine months ended

in $ millions 2024 2023

Net cash used in investing activities (4,405) (1,729)

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.

Net cash used in investing activities was $4.4 billion for the nine months ended September 30, 2024, compared to $1.7 billion in the same period for 2023, an increase of $2.7 billion.

During the nine months ended September 30, 2024, the Company invested $3.9 billion on acquisitions, an increase of $3.3 billion on the same period in 2023.

Capital expenditure totaled $1.6 billion in the first nine months of 2024, resulting in an increased outflow of $0.5 billion versus the comparable prior year period.

These outflows were partially offset by $1.1 billion of increased proceeds from divestitures and disposals of long-lived assets, primarily related to the completed divestiture of the European Lime operations and the divestiture of certain operations in Canada.

Cash flows from financing activities

Six months ended

Nine months ended

in $ millions 2024 2023

Net cash used in financing activities (1,144) (1,097)

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.

Net cash used in financing activities was $1.1 billion for the nine months ended September 30, 2024, in line with the comparable period in the prior year.

Proceeds from debt issuances were $3.5 billion compared to $2.7 billion for the first nine months of 2023, an increase of $0.8 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 nine months of 2024.

Payments on debt in the first nine months of 2024 were $1.9 billion, primarily the repayment of the €600 million 1.875% euro Senior Notes on maturity in January 2024 as well as the repayment of $1.2 billion issued under the Company’s commercial paper programs.

This is compared with $0.9 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.

Dividends paid for the first nine months of 2024 were $1.5 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 the first, second and third quarter dividends in the first nine months 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 $1.2 billion in the first nine months of 2024 compared to $2.0 billion for the same period in 2023.

Debt Facilities

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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:

At September 30, 2024, we expect maturitie s for the next quarter 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.

Fourth Quarter (i) $1.8 billion

(i) Of which $1.7 billion is related to the U.S.

Dollar and Euro Commercial Paper Programs.

Unsecured Senior Notes

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“Financial Statements” for further details regarding the RCF.

At June 30, 2024, the RCF was undrawn.

At September 30, 2024, the RCF was undrawn.

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

$12.9 billion in respect of loans and borrowings, bank advances and derivative obligations, and $0.5 billion in respect of letters of credit due within one year at September 30, 2024.

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.

As of September 30, 2024, the Company had a $4.0 billion U.S.

Dollar Commercial Paper Program and a €1.5 bil lion Euro Commercial Paper Program.

As of September 30, 2024, there was $1.3 billion of outstanding issued notes on the U.S.

Dollar Commercial Paper Program and $0.4 billion of outstanding issued notes on the Euro Commercial Paper Program.

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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.

Our debt ratings and outlooks at June 30, 2024, were as follows:

CRH Form 10-Q 34

Our debt ratings and outlooks at September 30, 2024, were:

Short-Term Long-Term Outlook

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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

Payments due by period Total Less than 1

years More than 5

in $ millions

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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.

As of September 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.

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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;

The following summarized financial information reflects, on a combined basis, the Balance Sheet as of September 30, 2024 and as of December 31, 2023 and the Income Statement for the nine months ended September 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’.

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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

in $ millions For the nine months ended September 30, 2024 For the year ended December 31, 2023

Income from operations before income tax expense and income from equity method investments (i) 109 4,016

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- of which relates to transactions with non-obligor subsidiaries 134 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.

(i) Revenues and gross profit for the Obligor Group for the nine months ended September 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

September 30, 2024 December 31, 2023

Current assets 827 1,314

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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.

There have been no material changes during the three months ended September 30, 2024, to our critical accounting policies and/or estimates disclosed in our 2023 Form 10-K.

The results of the Company’s third quarter impairment assessment indicated increased risk of impairment as a result of certain recent challenging market conditions which may impact future growth prospects, resulting in reduced headroom.

Arising from the Company’s ongoing sensitivity analysis, potential non-cash impairment charges of $0.3-$0.4 billion, representing the range of possible outcomes and based on reasonably possible changes in key assumptions, may be recognized in its results for the quarter and year ending December 31, 2024.

These potential impairment charges relate to the Company’s equity method investment in China and the Architectural Products reporting unit in the Europe Building Solutions segment.

The Company’s equity method investment in China and the Company's Architectural Products reporting unit have observed challenging market conditions which may adversely impact their longer-term forecast projections.

If current projections for the Company's equity method investment in China and the Architectural Products reporting unit decrease, this may result in their carrying value exceeding their fair value.

CRH Form 10-Q 36

The Company’s annual goodwill impairment assessment is ongoing in parallel with its annual five-year strategic planning process.

The Company’s assessment is expected to conclude in December 2024, when the five-year strategic plan document, which will incorporate our estimate of the potential impact of the recent market challenges noted above, is approved by the Board of Directors.

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, as set out in the Critical Accounting Estimates in the Company’s 2023 Form 10-K.

Available Information

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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 drivers of CRH’s performance in 2024 and 2025, demand outlook, macroeconomic trends in CRH’s markets, government funding initiatives and manufacturing trends (including re-industrialization activity), 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;

plans and expectations regarding the timing and benefits of our acquisitions and divestitures;

CRH’s status as a foreign private issuer and transition to U.S.

domestic issuer status;

CRH's expected changes to its operating and reportable segments;

the existence of a potential impairment, including amount and timing;

and plans and expectations regarding the strategic risks and uncertainties facing CRH.

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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.

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 divestitures; 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.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis