Item 2. Management’s Discussion and Analysis
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 nine months ended September 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 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 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.
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 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 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%. Adjusted EBITDA* 1 was $2.5 billion, an increase of $264 million, or 12%;
• Net income margin was 13.2% compared with 13.0%, an increase of 20 basis points (bps). Adjusted EBITDA margin* was 23.3%, an increase of 170bps on the prior year's third quarter Adjusted EBITDA margin* of 21.6%; and
• 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%. Adjusted EBITDA* was $5.2 billion, an increase of $564 million, or 12%;
• Net income margin was 10.5% compared with 9.5%, an increase of 100bps. Adjusted EBITDA margin* was 19.3%, an increase of 180bps ahead of prior year Adjusted EBITDA margin* of 17.5%; and
• Basic EPS was $4.03 compared to $3.36.
* 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
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; and
• 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
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.
Outlook
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. 2
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
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. 3
Condensed Consolidated Statements of Income (Unaudited)
(in $ millions, except per share data)
Three months ended Nine months ended
September 30 September 30
2024 2023 2024 2023
Total revenues 10,515 10,128 26,702 26,264
Total cost of revenues (6,456) (6,365) (17,161) (17,252)
Gross profit 4,059 3,763 9,541 9,012
Selling, general and administrative expenses (2,184) (1,990) (5,919) (5,647)
Gain on disposal of long-lived assets 89 15 199 38
Operating income 1,964 1,788 3,821 3,403
Interest income 33 62 112 138
Interest expense (164) (131) (452) (285)
Other nonoperating income, net 62 1 246 3
Income from operations before income tax expense and income from equity method investments 1,895 1,720 3,727 3,259
Income tax expense (531) (416) (942) (781)
Income from equity method investments 25 14 27 21
Net income 1,389 1,318 2,812 2,499
Net (income) attributable to redeemable noncontrolling interests (9) (9) (21) (21)
Net (income) attributable to noncontrolling interests (4) (3) (2) (1)
Net income attributable to CRH plc 1,376 1,306 2,789 2,477
Basic earnings per share attributable to CRH plc $1.99 $1.81 $4.03 $3.36
Adjusted EBITDA* 2,454 2,190 5,154 4,590
Total revenues
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
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. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 3
CRH Form 10-Q 26
Gain on disposal of long-lived assets
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 $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 $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 $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 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.
Income tax
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 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
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 $1.4 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
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 revi ewed 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 4
Three months ended September 30, 2024
Analysis of 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%
Adjusted EBITDA 1,284 (2) +65 (14) +151 1,484 +16%
Adjusted EBITDA margin 25.3% 28.0%
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. 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
Nine months ended September 30, 2024
Analysis of 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%
Adjusted EBITDA 2,184 (3) +128 (22) +405 2,692 +23%
Adjusted EBITDA margin 19.6% 22.6%
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 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 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 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.
4 * 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 September 30, 2024
Analysis of 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%
Adjusted EBITDA 391 – +8 – (44) 355 (9 %)
Adjusted EBITDA margin 22.5% 20.2%
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
Nine months ended September 30, 2024
Analysis of 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 –
Adjusted EBITDA 1,166 (1) +28 – (54) 1,139 (2%)
Adjusted EBITDA margin 21.0% 20.5%
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. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 5
CRH Form 10-Q 29
Europe Materials Solutions 6
Three months ended September 30, 2024
Analysis of 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%
Adjusted EBITDA 446 +6 +51 (32) +82 553 +24%
Adjusted EBITDA margin 17.0% 19.8%
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
Nine months ended September 30, 2024
Analysis of 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%)
Adjusted EBITDA 1,029 +12 +62 (94) +133 1,142 +11%
Adjusted EBITDA margin 13.9% 15.8%
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. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 6
CRH Form 10-Q 30
Europe Building Solutions
Three months ended September 30, 2024
Analysis of 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%)
Adjusted EBITDA 69 +1 +1 – (9) 62 (10%)
Adjusted EBITDA margin 10.0% 9.3%
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
Nine months ended September 30, 2024
Analysis of 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%)
Adjusted EBITDA 211 +2 +3 – (35) 181 (14%)
Adjusted EBITDA margin 9.7% 9.0%
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.
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
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 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. 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 Nine months ended
September 30 September 30
in $ millions 2024 2023 2024 2023
Net income 1,389 1,318 2,812 2,499
Income from equity method investments (25) (14) (27) (21)
Income tax expense 531 416 942 781
Gain on divestitures and unrealized gains on investments (i) (59) — (242) –
Pension income excluding current service cost component (i) (1) (1) (3) (3)
Other interest, net (i) (2) — (1) –
Interest expense 164 131 452 285
Interest income (33) (62) (112) (138)
Depreciation, depletion and amortization 467 402 1,288 1,187
Substantial acquisition-related costs (ii) 23 – 45 –
Adjusted EBITDA 2,454 2,190 5,154 4,590
Total revenues 10,515 10,128 26,702 26,264
Net income margin 13.2% 13.0% 10.5% 9.5%
Adjusted EBITDA margin 23.3% 21.6% 19.3% 17.5%
(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 third 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 :
September 30 December 31 September 30
in $ millions 2024 2023 2023
Short and long-term debt (13,890) (11,642) (11,395)
Cash and cash equivalents (i) 2,978 6,390 5,722
Finance lease liabilities (228) (117) (96)
Derivative financial instruments (net) (35) (37) (118)
Net Debt (11,175) (5,406) (5,887)
(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 $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.
The U.S. 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. 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 26.
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, 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 $13.9 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 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.
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.
Cash flows
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
Nine months ended
September 30
in $ millions 2024 2023
Net cash provided by operating activities 2,259 2,594
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.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33. 7
CRH Form 10-Q 33
Cash flows from investing activities
Nine months ended
September 30
in $ millions 2024 2023
Net cash used in investing activities (4,405) (1,729)
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
Nine months ended
September 30
in $ millions 2024 2023
Net cash used in financing activities (1,144) (1,097)
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 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
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 September 30, 2024, we expect maturitie s for the next quarter as follows:
2024 Debt Maturities
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
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 September 30, 2024, the RCF was undrawn.
Guarantees
The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $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 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. 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.
CRH Form 10-Q 34
Debt Ratings
Our debt ratings and outlooks at September 30, 2024, were:
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 September 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) 13,958 3,240 2,818 2,333 5,567
Lease liabilities (ii) 2,117 363 511 406 837
Estimated interest payments on contractually committed debt (iii) 3,744 505 797 614 1,828
Deferred and contingent acquisition consideration 39 19 16 3 1
Purchase obligations (iv) 2,059 1,113 515 219 212
Retirement benefit obligation commitments (v) 22 3 6 5 8
Total (vi) 21,939 5,243 4,663 3,580 8,453
(i) Of the $14.0 billion short and long-term debt, $0.6 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 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. (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 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’. 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 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
- of which relates to transactions with non-obligor subsidiaries 134 4,044
Net income – all of which is attributable to equity holders of the Company 108 4,014
- of which relates to transactions with non-obligor subsidiaries 134 4,044
(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:
September 30, 2024 December 31, 2023
Current assets 827 1,314
Current assets – of which is due from non-obligor subsidiaries 460 332
Noncurrent assets 3,457 3,655
Noncurrent assets – of which is due from non-obligor subsidiaries 3,457 3,655
Current liabilities 4,799 1,728
Current liabilities – of which is due to non-obligor subsidiaries 3,525 1,706
Noncurrent liabilities 756 2,006
Critical Accounting Policies and Estimates
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
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 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 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.
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 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.
CRH Form 10-Q 37
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.