CRH PUBLIC LTD CO 10-K

Item 7. 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 fiscal years 2024, 2023 and 2022. This MD&A should be read in conjunction with the Consolidated Financial Statements in Item 8. “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. The following discussion contains trend information and forward-looking statements. Actual results could differ materially from those discussed in these forward-looking statements, as well as from our historical performance, due to various factors, including, but not limited to, those discussed in Item 1A “Risk Factors” and “Forward-Looking Statements – Safe Harbor Provisions Under The Private Securities Litigation Reform Act Of 1995” and elsewhere in this Annual Report on Form 10-K. 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 year presented, or year‐to‐year comparisons of reported results, may not be indicative of future operating results. Overview CRH is a leading provider of building materials that build, connect and improve our world. Since formation in 1970, CRH has evolved from being a supplier of base materials to solving complex construction challenges for our customers. CRH’s differentiated solutions strategy uniquely integrates materials, products and services across the construction value chain, better serving our customers’ needs and driving repeat business. This customer-connected approach is making construction simpler, safer and more sustainable. CRH integrates essential materials (aggregates and cement), value-added building products as well as construction services, to provide our customers with complete solutions. CRH’s capabilities, innovation and technical expertise enable it to be a valuable partner for transportation and critical infrastructure projects, complex non-residential construction and outdoor living solutions. Financial performance highlights: CRH delivered another record performance in 2024 resulting in the following performance highlights (compared to 2023 and 2022): • Total revenues increased to $35.6 billion, compared with $34.9 billion in 2023 and $32.7 billion in 2022; • Net inc ome increased to $3.5 billi on compared with $3.1 billion in 2023, primarily due to higher gross profit along with higher gains on disposal of long-lived assets and divestitures. Net income was $3.9 billion in 2022. Adjusted EBITDA* increased to $6.9 billion in 2024 from $6.2 billion in 2023. In 2022 Adjusted EBITDA* was $5.4 billion; • Net income margin was 9.9% in 2024, 8.8% in 2023 and 11.9% in 2022. Adjusted EBITDA margin* was 19.5% in 2024, an increase of 180 basis points (bps) compared with an Adjusted EBITDA margin* o f 17.7% in 2 023. In 2022, the Adjusted EBITDA margin* was 16.5%; • Operating cash flow 5 of $5.0 billion was in line with 2023 operating cash flow of $5.0 billion and ahead of 2022 operating cash flow of $3.8 billion; 6 • Return on Net Segment Assets was 15.3% in 2024, 14.4% in 2023 and 13.1% in 2022. Return on Net Assets (RONA)* increased by 20bps to 15.5% in 2024, from 15.3% in 2023. RONA* was 13.3% in 2022; and • Basic Earnings Per Share (EPS) from continuing operations in 2024 was $5.06 compared with $4.36 in 2023 and $3.58 in 2022. Basic EPS pre-impairment* from continuing operations was $5.48 in 2024, $4.65 in 2023 and $3.58 in 2022. Capital allocation highlights: • Cash paid to shareholders in 2024 through dividends was $1.7 billion and through share buybacks was $1.3 billion, compared with $0.9 billion and $3.0 billion, respectively, in 2023, and $0.9 billion and $1.2 billion, respectively, in 2022; • Full year dividend per share increase of 5% resulting in a dividend per share of $1.40 in 2024, from $1.33 in 2023 and $1.27 in 2022; • Ongoing share buyback program in 2024 repurchased approximately 15.9 million ordinary shares for a total consideration of $1.3 billion, compared with $3.0 billion in 2023 and $1.2 billion in 2022; and • 40 acquisitions completed for a total consideration of $5.0 billion in 2024, compared with $0.7 billion in 2023 and $3.3 billion in 2022. A further $2.6 billion was inve sted in development and replacement c apital expenditure projects in 2024, compared with $1.8 billion and $1.5 billion in 2023 and 2022, respectively. Delivering On Our Vision CRH continues to evolve its business to improve performance, deliver for its stakeholders and respond to the ever-changing needs of its customers. Our strategy enables CRH to realize our vision to develop sustainable solutions that build, connect and improve our world. CRH has a specific set of capabilities in the markets in which it operates along with decades of experience and deep customer relationships. CRH leverages its scale and best practices across the Company to provide value-added materials, products and services as construction solutions that solve complex problems for its customers. These solutions allow us to create further value for our customers by combining our products, materials and services which drive commercial and operational benefits. This connected portfolio allows us to leverage production and logistics efficiencies to drive increased profitability and asset utilization. We can reduce waste and advance the sustainability of construction. We believe it also makes our business less capital intensive and drives a higher rate of return delivering superior long-term value and higher growth for shareholders. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. 5 Operating cash flow refers to net cash provided by operating activities as reported in the Consolidated Statements of Cash Flows on pages 56 to 57. 6 CRH Form 10-K 31 A business optimized for industry-leading performance Through the successful execution of its strategy, CRH has shaped its business to capitalize on the attractive fundamentals driving demand in higher-growth construction markets in North America, Europe and Australia. Customer-connected solutions strategy: Our differentiated strategy is focused on uniquely integrating materials, products and services across the construction value chain. We leverage our scale, expertise and best practices to provide sustainable solutions that solve complex problems for our customers. We utilize specific expertise in areas such as materials science, design and engineering to innovate and create new products. This allows us to do more for our customers and help deliver a higher performing and more sustainable built environment. Performance-focused operator: CRH has the ability to leverage its connected portfolio of assets in the most attractive markets and this has resulted in our record 2024 results with 12% increase in Adjusted EBITDA*, 180 bps increase in Adjusted EBITDA margin* and 16% higher basic EPS from continuing operations, with basic EPS from continuing operations on a pre-impairment* 7 basis 18% higher. These results are underpinned by a differentiated strategy delivered by an experienced management team with deep industry knowledge and a proven track record of consistent financial and operational delivery. Strong and flexible balance sheet: At D ecember 31, 2024, total short-term and long-term debt was $14.0 billion, cash and cash equivalents and restricted cash were $3.8 billion and Net Debt* was $10.5 b illion. We believe our strong and flexible balance sheet provides CRH with significant financial capacity for long-term value creation through accretive acquisitions, expansionary capital expenditure and cash returns to shareholders through dividends and share buybacks. Focused growth Our customers have an increasing need for more holistic solutions and CRH maximizes its overall growth potential by focusing on its ability to deliver solutions that meet this growing need. We are focused on delivering our customer-connected solutions strategy and to do so we are working to better connect our people, capabilities, assets and customers across businesses, markets, and geographies. We acquire businesses at attractive valuations and create value by integrating them with our existing operations and realizing synergies in areas including procurement, operational excellence, human resources, technology and sales. Development review In 2024, CRH completed 40 acquisitions for a total consideration of $5.0 billion. The largest acquisition in 2024 was in Americas Materials Solutions where CRH acquired an attractive portfolio of cement and readymixed concrete operations and assets in Texas, for a total consideration of $2.1 billion. In addition, Americas Materials Solutions completed a further 20 acquisitions and Americas Building Solutions completed 10 acquisitions for a total 2024 spend in the Americas of $3.8 billion. International Solutions completed nine acquisitions for a total 2024 spend of $1.2 billion, including the acquisition of a majority stake in Adbri, a market leader in cement and aggregates in Australia. CRH completed 10 divestitures and realized proceeds from divestitures and disposal of long-lived assets (including deferred divestiture consideration received) of $1.4 billion, primarily related to the divestiture of the European Lime operations. In 2023, CRH completed 22 acquisitions for a total consideration of $0.7 billion. On the divestitures front, CRH realized proceeds from divestitures and disposal of long-lived assets (including deferred divestiture consideration received) of $0.1 billion. The largest acquisition in 2023 was in Americas Building Solutions where the Company completed the acquisition of Hydro International, a leading provider of stormwater products, wastewater treatment products, wastewater services, and data solutions in North America and Europe. In addition, Americas Building Solutions completed a further four acquisitions and Americas Materials Solutions completed eight acquisitions in the United States, for a total 2023 spend in the Americas of $0.4 billion. International Solutions completed nine acquisitions for a total 2023 spend of $0.3 billion. In 2022, CRH completed 29 acquisitions for a total consideration of $3.3 billion. The largest acquisition in 2022 was in Americas Building Solutions where the Company completed its acquisition of Barrette Outdoor Living, Inc. (Barrette) for $1.9 billion. In addition, Americas Building Solutions completed a further seven acquisitions and Americas Materials Solutions completed 10 acquisitions for a total 2022 spend in the Americas of $3.1 billion. International Solutions completed 11 acquisitions for a total 2022 spend of $0.2 billion. The largest divestiture in 2022 was the Building Envelope business for cash proceeds of $3.5 billion (enterprise value of $3.8 billion including lease liabilities transferred of $0.3 billion). A further eight divestitures were completed across CRH, realizing total proceeds of $0.2 billion and $0.2 billion was realized from the disposal of long-lived assets and deferred divestiture consideration. Outlook We expect positive underlying demand across our key end-use markets in 2025, underpinned by significant public investment in critical infrastructure, combined with increased re-industrialization activity in key non-residential segments. This backdrop is expected to support overall demand levels and further positive pricing across our business. Our North American businesses expect continued positive momentum in infrastructure activity, supported by robust state and federal funding. Non-residential activity continues to benefit from secular tailwinds in key growth areas. Although the residential sector continues to be supported by strong long-term demand fundamentals, the new-build segment is expected to remain subdued while repair and remodel activity remains resilient. In our International operations, we expect infrastructure activity to be underpinned by government and EU funding. Non-residential construction continues to be aided by onshoring of supply chains and industrial manufacturing activity. Residential markets are expected to stabilize with structural demand fundamentals supporting a gradual recovery. Assuming normal seasonal weather patterns and absent any major dislocations in the political or macroeconomic environment, CRH’s leading positions of scale in attractive higher-growth markets, together with our strong and flexible balance sheet, are expected to underpin another year of growth and value creation in 2025. 7 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. CRH Form 10-K 32 Market Backdrop CRH’s results can be impacted by trends and factors in the wider construction markets it is exposed to. The principal construction markets, for all segments, are infrastructure, including highways, streets, roads and bridges; non-residential, including construction and maintenance of critical infrastructure, manufacturing, commercial, warehouse and data center facilities; and residential, including new-build construction, and repair and remodel activity, of single and multi-family housing. See ‘Business Segment Information’ in Item 1. “Business” for details by segment. Infrastructure In 2024, approximately 35% of revenues were derived from infrastructure. Americas Our North American businesses expect positive momentum in infrastructure activity, underpinned by robust state and federal funding, and supported by the IIJA which was signed into law in November 2021. This provides expected federal highway funding of approximately $350 billion over five years, including $110 billion in new funding for roads, bridges, and other infrastructure projects. Aided by the IIJA, U.S. highway contract awards remained at elevated levels in 2024, underpinning a positive outlook for 2025 as state budgets reflect the need for increased public infrastructure funding for highways and bridges. International After a resilient 2024, the outlook for 2025 in our International markets remains underpinned by government and EU funding for the infrastructure sector, which typically fluctuates less than residential and non-residential sectors. In this sector the impact of the business cycle is mitigated by long-term projects and a high share of activities financed by the public sector, with multinational EU funds a stabilizing factor in some of our larger markets. Non-Residential In 2024, approximately 30% of revenues were derived from non-residential construction. Americas In Americas, a key driver of demand in the non-residential sector is the onshoring of critical manufacturing. Large, multi-year construction projects (data centers, semiconductor chips, liquefied natural gas facilities) are underpinned by initiatives such as the U.S. CHIPS and Science Act, a $280 billion bill with the aim to bolster the United States’ semiconductor capacity. In addition, critical infrastructure is expecting to receive significant funding from the IIJA – water (approximately $48 billion), energy (approximately $79 billion) and technology (approximately $65 billion). International The non-residential sector outlook remains mixed in our International markets in 2025. Having declined in 2024, construction activity is expected to grow in Eastern Europe, underpinned by improving economic fundamentals. In the United Kingdom, construction confidence improved steadily through 2024 although sentiment remains subdued in other markets. Non-residential activity in the Division remains supported by increased efforts to onshore manufacturing activity via government stimulus measures. Residential In 2024, approximately 35% of revenues were derived from residential construction. Americas The residential sector’s recent performance has been influenced by affordability constraints with inflation challenges, rising home prices and high mortgage rates. While residential construction activity continues to be supported by long-term demand fundamentals, the new-build segment is expected to remain subdued. As a result of the aging U.S. housing stock, repair and remodel activity is expected to be less subdued than new-build activity in the near-term. International Our International businesses are more heavily exposed to the new-build residential sector, which is expected to gradually recover as a lower interest rate environment unfolds. CRH Form 10-K 33 Results Of Operations Revenues are derived from a range of products and services across three segments. The Americas Materials Solutions segment utilizes 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 Building Solutions segment manufactures, supplies and delivers high-quality building products and solutions. The International Solutions segment integrates building materials, product and services for the construction and renovation of public infrastructure, critical networks, commercial and residential buildings, and outdoor living spaces. The table below summarizes CRH’s Consolidated Statements of Income for the periods indicated. Consolidated Statements of Income 8 (in $ millions, except per share data) For the years ended December 31 2024 2023 2022 Total revenues 35,572 34,949 32,723 Total cost of revenues (22,871) (22,986) (21,908) Gross profit 12,701 11,963 10,815 Selling, general and administrative expenses (7,852) (7,486) (7,056) Gain on disposal of long-lived assets 237 66 50 Loss on impairments (161) (357) – Operating income 4,925 4,186 3,809 Interest income 143 206 65 Interest expense (612) (376) (344) Other nonoperating income (expense), net 258 (2) (69) Income from continuing operations before income tax expense and income from equity method investments 4,714 4,014 3,461 Income tax expense (1,085) (925) (762) Loss from equity method investments (108) (17) – Income from continuing operations 3,521 3,072 2,699 Income from discontinued operations, net of income tax expense – – 1,190 Net income 3,521 3,072 3,889 Net (income) attributable to redeemable noncontrolling interests (28) (28) (27) Net (income) loss attributable to noncontrolling interests (1) 134 – Net income attributable to CRH 3,492 3,178 3,862 Basic earning per share attributable to CRH from continuing operations $5.06 $4.36 $3.58 Basic earning per share attributable to CRH from continuing operations - pre-impairment* $5.48 $4.65 $3.58 Adjusted EBITDA* 6,930 6,176 5,388 Total revenues 2024 versus 2023 Total revenues were $35.6 billion in 2024, an increase of $0.6 billion, or 2%, comp ared with 2023, with resilient underlying demand in key end-use markets, continued commercial progress and contributions from acquisitions partly offset by lower activity levels in certain regions due to adverse weather and divestitures. For additional discussion on segment revenues, see “Segments” section on pages 37 to 39. 2023 versus 2022 Total revenues were $34.9 billion, an increase of $2.2 billion, or 7%, compared with 2022, reflecting good underlying demand across key end-use markets, positive pricing and contributions from acquisitions which offset lower volumes compared with the prior year. Gross profit 2024 versus 2023 Gross profit was $12.7 billion in 2024, an increase of $0.7 billion, or 6%, compared with 2023, reflecting total revenues growth of 2%, with total cost of revenues 1% lower. The gross profit margin of 35.7% increased 150bps from 34.2% in the prior year, driven by commercial progress, ongoing cost control and operational efficiencies. Total cost of revenues decreased primarily as a result of an 18% decrease in energy costs due to a decline in energy prices, lower activity levels and divestitures. These were partly offset by an increase in labor costs of 6% driven by wage inflation and increased headcount due to acquisitions. 8 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. CRH Form 10-K 34 2023 versus 2022 Gross profit was $12.0 billion in 2023, an increase of $1.2 billion, or 11%, compared with 2022. This reflected total revenues growth of 7%, with total cost of revenues increasing by 5%. The gross profit margin of 34.2%, increased 110bps from 33.1% in the prior year, due to revenue growth exceeding increases in total cost of revenues. Total cost of revenues increased primarily as a result of subcontractor costs and repairs and maintenance increasing 11% and 9%, respectively, due to the impact of cost inflation. Labor costs increased by 8% due to the impact of acquisitions, wage inflation impacted by continued labor shortages and increased headcount. Energy costs were in line with 2022 and raw materials costs decreased by 1% primarily as a result of lower volumes. Selling, general and administrative expenses 2024 versus 2023 Selling, general and administrative (SG&A) expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administration expenses, were $7.9 billion in 2024, an increase of $0.4 billion, or 5%, compared with 2023. The increase in SG&A expenses was primarily due to labor cost increases of 9%, as a result of increased headcount from acquisitions and wage inflation; partially offset by divestitures. 2023 versus 2022 SG&A expenses were $7.5 billion in 2023, an increase of $0.4 billion, or 6%, compared with 2022. The increase in SG&A expenses primarily reflects labor cost increases of 14%, as a result of increased headcount, impacted by acquisitions and wage inflation; partially offset by lower haulage costs which decreased 4% compared with 2022 as a result of lower volumes and lower fuel costs. Gain on disposal of long-lived assets 2024 versus 2023 Gain on disposal of long-lived assets was $237 million in 2024, an increase of $171 million compared with 2023. The increase mainly related to the disposal of certain land assets. 2023 versus 2022 Gain on disposal of long-lived assets was $66 million in 2023, an increase of $16 million compared with 2022, primarily due to gains on disposal of plant and equipment. Loss on impairments 2024 versus 2023 Loss on impairments in 2 024 was $161 million, compared with $357 million in 2023, and principally related to the International Solutions segment where an impairment was recognized related to the Architectural Products reporting unit, driven by challenging market conditions. 2023 versus 2022 Loss on impairments in 2023 was $357 million, compared with $nil million in 2022, and was principally in the International Solutions segment where an impairment was recognized related to our business in the Philippines which has been impacted by challenging market conditions. Interest income 2024 versus 2023 Interest income was $143 million in 2024, a decrease of $63 million compared with 2023, primarily due to lower levels of cash deposits. 2023 versus 2022 Interest income was $206 million in 2023, an increase of $141 million compared with 2022, as a result of higher interest rates on deposits. Interest expense 2024 versus 2023 Interest expense was $612 million in 2024, an increase of $236 million, or 63%, compared with 2023. The increase was primarily due to higher gross debt balances and increased interest rates. For additional information on new fixed rate debt issuance, see Note 11 “Debt” in Item 8. “Financial Statements and Supplementary Data”. 2023 versus 2022 Interest expense was $376 million in 2023, an increase of $32 million, or 9%, compared with 2022. The increase was primarily due to higher interest rates on floating rate debt, interest rate swaps and new fixed rate debt issued, partially offset by interest on maturing debt. Other nonoperating income (expense), net 2024 versus 2023 Other nonoperating income (expense), net, was income of $258 million in 2024, an increase of $260 million compared with 2023. Other nonoperating income (expense) net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The increase was primarily related to gain s on divestitures. 2023 versus 2022 Other nonoperating income (expense), net, was an expense of $2 million in 2023, a decrease of $67 million compared with 2022. The decrease was primarily related to a reduction of loss on divestitures to $nil million in 2023 which was $99 million in 2022, partly offset by pension-related movements of $27 million. CRH Form 10-K 35 Income tax expense The Company’s tax rate is driven by the tax rates in jurisdictions in which the Company operates and the relative amount of income earned in each jurisdiction. Income tax expense for the three-year period from 2022 to 2024 is shown below: in $ millions, except effective tax rate 2024 2023 2022 Income from continuing operations before income tax expense and income from equity method investments 4,714 4,014 3,461 Income tax expense (1,085) (925) (762) Effective tax rate 23% 23% 22% 2024 versus 2023 In 2024, the Company’s income tax expense was $1.1 billion, an increase of $0.2 billion compared with 2023. The effective tax rate attributable to continuing operations was 23% for 2024, in line with 23% for 2023. 2023 versus 2022 In 2023, the Company’s income tax expense was $0.9 billion, an increase of $0.2 billion compared with 2022. The effective tax rate attributable to continuing operations was 23% for 2023 compared with 22% for 2022. The increase in the effective tax rate compared with the prior year was primarily driven by the impact of impairments not deductible for tax purposes in the year. Loss from equity method investments 2024 versus 2023 In 2024, a loss of $108 million was recorded in equity method investments, primarily driven by an impairment in the Company’s equity method investment in Yatai Building Materials (YBM) in China, where market conditions remained challenging. 2023 versus 2022 In 2023, a loss of $17 million was recorded in equity method investments, primarily driven by the performance of the Company’s equity method investment in YBM in China, where market conditions remained challenging. Income from continuing operations 2024 versus 2023 Income from continuing operations in 2024 amounted to $3.5 billion, an increase of $0.4 billion on 2023. This result was primarily driven by higher gross profit along with higher gains on divestitures and disposal of long-lived assets, which offset higher interest and SG&A expenses. 2023 versus 2022 Income from continuing operations in 2023 amounted to $3.1 billion, an increase of $0.4 billion on 2022. This result was primarily driven by an improved operating performance and higher interest income, partially offset by loss on impairments and a higher income tax expense. Income from discontinued operations, net of income tax expense 2024 versus 2023 Income from discontinued operations, net of income tax expense was $nil million in both 2024 and 2023. 2023 versus 2022 Income from discontinued operations, net of income tax expense was $nil million in 2023, compared with income of $1.2 billion related to the divestiture of the Building Envelope business in 2022. Net income attributable to CRH and earnings per share 2024 versus 2023 Net income attributable to CRH was $3.5 billion in 2024, an increase of $0.3 billion from 2023. Basic EPS from continuing operations for 2024 was $5.06, an increase of 16% on 2023. Basic EPS pre-impairment* from continuing operations for 2024 was $5.48, an increase of 18% on 2023. 9 2023 versus 2022 Net income attributable to CRH was $3.2 billion in 2023, a decrease of $0.7 billion from 2022. Basic EPS from continuing operations for 2023 was $4.36, an increase of 22% on 2022. Basic EPS pre-impairment* from continuing operations for 2023 was $4.65. 10 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. 9 10 CRH Form 10-K 36 Segments During the fourth quarter of 2024, the Company's reportable segments changed to the following three segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions; across two Divisions: CRH Americas and CRH International. Within CRH’s segments, revenue is disaggregated by principal activities and products and by primary geographic market. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure projects. 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 2024 Analysis of Change in $ millions 2023 Currency Acquisitions Divestitures Organic 2024 % change Total revenues 15,435 (22) +641 (112) +231 16,173 +5% Adjusted EBITDA 3,059 (6) +180 (36) +548 3,745 +22% Adjusted EBITDA margin 19.8% 23.2% Americas Materials Solutions’ total revenues were 5% ahead of the prior year as price increases and contributions from acquisitions offset lower activity levels which were impacted by adverse weather. Organic total revenues* were 1% ahead. In Essential Materials, total revenues were 5% ahead of the prior year, supported by aggregates and cement pricing, which were ahead by 10% and 8%, respectively. Aggregates volumes declined by 3% while cement volumes increased by 1% compared to 2023. In Road Solutions, total revenues increased by 5% driven by pricing progression and sustained activity levels through continued state and federal funding support. Asphalt prices increased by 3% while volumes, impacted by weather, declined 2% against 2023. Paving and construction revenues increased 5% versus the prior year. Readymixed concrete pricing was 6% higher than the prior year, while volumes were 1% ahead. Adjusted EBITDA for Americas Materials Solutions of $3.7 billion was 22% ahead of the prior year with growth across all regions. Positive pricing, disciplined cost management and operational efficiencies along with gains on land asset sales offset lower volumes in certain markets. Organic Adjusted EBITDA* was 18% ahead of 2023. Adjusted EBITDA margin increased by 340bps. 2023 Analysis of Change in $ millions 2022 Currency Acquisitions Divestitures Organic 2023 % change Total revenues 14,324 (44) +242 – +913 15,435 +8% Adjusted EBITDA 2,638 (6) +42 – +385 3,059 +16% Adjusted EBITDA margin 18.4% 19.8% Americas Materials Solutions’ total revenues were 8% ahead of 2022, 6% ahead on an organic* basis, driven primarily by price progression across all business lines and partly offset by lower activity levels in certain regions. In Essential Materials total revenues increased by 10%, supported by double-digit pricing growth in both aggregates and cement, which were ahead by 14% and 15%, respectively. Aggregates volumes declined by 1% and cement volumes declined by 3%, impacted by unfavorable weather in certain regions. In Road Solutions, total revenues increased by 7% driven by increased pricing and positive infrastructure activity underpinned by IIJA funding. Asphalt prices increased by 7% while asphalt volumes were in line with the prior year as improved demand in the South and West during the second half of the year was offset by lower volumes in the Great Lakes and Northeast regions. Paving and construction revenues increased by 6%. Readymixed concrete pricing was 12% higher compared with 2022, however volumes were 2% behind due to lower activity levels in the South. Adjusted EBITDA in Americas Materials Solutions of $3.1 billion was 16% ahead of 2022 as increased pricing across all lines of business and operational efficiencies mitigated the impact of higher labor and subcontractor costs. Organic Adjusted EBITDA* was 15% ahead of 2022. Adjusted EBITDA margin increased by 140bps. 11 11 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. CRH Form 10-K 37 Americas Building Solutions 2024 Analysis of Change in $ millions 2023 Currency Acquisitions Divestitures Organic 2024 % change Total revenues 7,017 (4) +193 – (147) 7,059 +1% Adjusted EBITDA 1,442 (2) +34 – (85) 1,389 (4%) Adjusted EBITDA margin 20.6% 19.7% In 2024, Americas Building Solutions' total revenues were 1% ahead of the prior year as positive contributions from acquisitions were partially offset by subdued new-build residential demand and adverse weather. Organic total revenues* were 2% behind the prior year. In Building & Infrastructure Solutions, total revenues were 2% ahead of the prior year as contributions from acquisitions offset lower activity levels due to adverse weather conditions and subdued new-build residential demand. In Outdoor Living Solutions, total revenues were flat compared with 2023 as unfavorable weather conditions offset increased sales into the retail channel. Adjusted EBITDA for Americas Building Solutions was 4% behind 2023 and 6% behind on an organic* basis as adverse weather and subdued new-build residential demand impacted performance. Adjusted EBITDA margin was 90bps behind the prior year. 12 2023 Analysis of Change in $ millions 2022 Currency Acquisitions Divestitures Organic 2023 % change Total revenues 6,188 (14) +751 – +92 7,017 +13% Adjusted EBITDA 1,219 (4) +153 – +74 1,442 +18% Adjusted EBITDA margin 19.7% 20.6% Americas Building Solutions recorded total revenues growth of 13%, driven by the continued execution of our integrated solutions strategy, good commercial progress through price increases and contributions from prior year acquisitions, primarily Barrette. Organic total revenues* were 1% ahead of 2022. In Building & Infrastructure Solutions, total revenues growth was 6% due to increased demand in the water and energy sectors as well as contributions from recent acquisitions. In Outdoor Living Solutions, total revenues growth was 18%, driven by positive pricing, resilient retail demand and the incremental impact of the Barrette acquisition in July 2022. Adjusted EBITDA in Americas Building Solutions was 18% ahead of the prior year, 6% ahead on an organic* basis, driven by positive pricing and contributions from recent acquisitions which offset the impact of increased labor and raw materials costs. As a result, the Adjusted EBITDA margin was 90bps ahead of the prior year. 13 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. 12 13 CRH Form 10-K 38 International Solutions 2024 Analysis of Change in $ millions 2023 Currency Acquisitions Divestitures Organic 2024 % change Total revenues 12,497 +141 +808 (542) (564) 12,340 (1%) Adjusted EBITDA 1,675 +17 +100 (136) +140 1,796 +7% Adjusted EBITDA margin 13.4% 14.6% International Solutions’ total revenues were 1% behind the prior year. Organic total revenues* were 4% behind as positive pricing momentum and good volume growth in Central and Eastern Europe were offset by lower volumes in Western Europe as well as lower trading activities in the Building & Infrastructure Solutions and Outdoor Living Solutions businesses. In Essential Materials, total revenues were 2% behind as continued pricing progress and contributions from acquisitions were offset by the divestiture of the European Lime operations. Aggregates volumes were 3% ahead of 2023 with cement volumes 5% ahead, supported by good growth in Central and Eastern Europe as well as recent acquisitions. Aggregates pricing was 4% ahead and overall cement pricing was 3% ahead of 2023. In Road Solutions, total revenues were 2% ahead of 2023. Volumes and prices were ahead in the readymixed concrete business by 8% and 3%, respectively, benefiting from volume growth in Central and Eastern Europe as well as acquisitions in the period. Asphalt volumes and pricing declined 2% and 1%, respectively. Paving and construction revenues were behind 2023 due to lower activity levels in Western Europe. Total revenues in Building & Infrastructure Solutions and Outdoor Living Solutions declined by 6% compared with the prior year, amid continued subdued new-build residential activity. Adjusted EBITDA in International Solutions was $1.8 billion, 7% ahead of 2023, and 8% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies. Adjusted EBITDA margin increased by 120bps compared with 2023. 2023 14 Analysis of Change in $ millions 2022 Currency Acquisitions Divestitures Organic 2023 % change Total revenues 12,211 +255 +156 (157) +32 12,497 +2% Adjusted EBITDA 1,531 +34 +18 (12) +104 1,675 +9% Adjusted EBITDA margin 12.5% 13.4% International Solutions’ performance in 2023 was driven by continued pricing progress which more than offset lower activity levels, resulting in total revenues growth of 2%. Organic* revenues were in line with the prior year. In Essential Materials, total revenues were 5% ahead of 2022 driven by positive pricing for aggregates and cement which were ahead by 9% and 18%, respectively. Aggregates volumes declined by 7% while cement volumes were 13% behind (10% behind excluding the impact of 2022 divestitures) as activity levels were impacted by lower new-build residential activity and unfavorable weather in several key markets. In Road Solutions, notwithstanding the impact of adverse weather in the first half of the year, pricing progress across all key markets resulted in total revenues for the year 2% ahead of 2022. Asphalt pricing increased by 10%, while volumes declined by 6%. Paving and construction revenues increased by 10%. Readymixed concrete pricing improved by 17%, while volumes decreased by 14%. Total revenues in Building & Infrastructure Solutions and Outdoor Living Solutions declined by 2% compared with 2022 as increased infrastructure demand was more than offset by subdued new-build residential activity. Positive pricing and commercial progress was offset by lower activity experienced in several markets of the Precast and Construction Accessories businesses in particular. In 2023 Adjusted EBITDA in International Solutions was $1.7 billion, 9% ahead of 2022 and 7% ahead on an organic* basis. Adjusted EBITDA growth was primarily driven by positive pricing and lower haulage and raw materials costs, which offset lower volume levels. Adjusted EBITDA margin increased by 90bps compared with 2022. 14 * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. CRH Form 10-K 39 Non-GAAP Reconciliation and Supplementary Information CRH uses a number of non-GAAP performance measures to monitor financial performance. These measures are referred to throughout the discussion of our reported financial position and operating performance on a continuing operations basis unless otherwise defined and are measures which are regularly reviewed by CRH management. These performance measures may not be uniformly defined by all companies and accordingly may not be directly comparable with similarly titled measures and disclosures by other companies. Certain information presented is derived from amounts calculated in accordance with U.S. GAAP but is not itself an expressly permitted GAAP measure. The non-GAAP performance measures as summarized below should not be viewed in isolation or as an alternative to the equivalent GAAP measure. Adjusted EBITDA: Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments, income/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: in $ millions 2024 2023 2022 Net income 3,521 3,072 3,889 Income from discontinued operations, net of income tax expense – – (1,190) Loss from equity method investments (i) 108 17 – Income tax expense 1,085 925 762 (Gain) loss on divestitures and unrealized gains on investments (ii) (250) – 99 Pension income excluding current service cost component (ii) (7) (3) (30) Other interest, net (ii) (1) 5 – Interest expense 612 376 344 Interest income (143) (206) (65) Depreciation, depletion and amortization 1,798 1,633 1,552 Loss on impairments (i) 161 357 – Substantial acquisition-related costs (iii) 46 – 27 Adjusted EBITDA 6,930 6,176 5,388 Total revenues 35,572 34,949 32,723 Net income margin 9.9 % 8.8 % 11.9 % Adjusted EBITDA margin 19.5% 17.7% 16.5% (i) For the year ended December 31, 2024, the total impairment loss comprised $0.35 billion, principally related to the Architectural Products reporting unit within International Solutions and the equity method investment in China. For the year ended December 31, 2023, the total impairment loss comprised $62 million within Americas Materials Solutions and $295 million within International Solutions. (ii) (Gain) loss 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 (expense), net in the Consolidated Statements of Income. (iii) Represents expenses associated with non-routine substantial acquisitions, which meet the criteria for being separately reported in Note 4 “Acquisitions” of the audited financial statements. Expenses in 2024 and in 2022 primarily include legal and consulting expenses related to these non-routine substantial acquisitions. Return on Net Assets (RONA): Return on Net Assets is a key internal pre-tax and pre-impairment (which is non-cash) measure of operating performance throughout the Company and can be used by management and investors to measure the relative use of assets between CRH’s segments. The metric measures management’s ability to generate income from the net assets required to support that business, focusing on both profit maximization and the maintenance of an efficient asset base; it encourages effective fixed asset maintenance programs, good decisions regarding expenditure on property, plant and equipment and the timely disposal of surplus assets. It also supports the effective management of the Company’s working capital base. RONA is calculated by expressing operating income from continuing operations and operating income from discontinued operations excluding loss on impairments (which is non-cash) as a percentage of average net assets. Net assets comprise total assets by segment (including assets held for sale) less total liabilities by segment (excluding finance lease liabilities and including liabilities associated with assets classified as held for sale) as shown below and detailed in Note 3 “Assets held for sale and discontinued operations” in Item 8. “Financial Statements and Supplementary Data” and excludes equity method investments and other financial assets, Net Debt (as defined on page 42) and tax assets and liabilities. The average net assets for the year is the simple average of the opening and closing balance sheet figures. CRH Form 10-K 40 Reconciliation to its nearest GAAP measure is presented below: in $ millions 2024 2023 2022 Operating income A 4,925 4,186 3,809 Operating income from discontinued operations – – 89 4,925 4,186 3,898 Adjusted for loss on impairments (i) 161 357 – Numerator for RONA computation 5,086 4,543 3,898 Current year Segment assets (ii) 45,534 38,868 38,504 Segment liabilities (ii) (9,771) (10,169) (8,883) B 35,763 28,699 29,621 Finance lease liabilities 257 117 81 36,020 28,816 29,702 Assets held for sale (iii) – 1,268 – Liabilities associated with assets classified as held for sale (iii) – (375) – 36,020 29,709 29,702 Prior year Segment assets (ii) 38,868 38,504 37,951 Segment liabilities (ii) (10,169) (8,883) (9,246) C 28,699 29,621 28,705 Finance lease liabilities 117 81 83 28,816 29,702 28,788 Assets held for sale (iii) 1,268 – – Liabilities associated with assets classified as held for sale (iii) (375) – – 29,709 29,702 28,788 Denominator for RONA computation - average net assets 32,865 29,706 29,245 Return on net segment assets (A divided by average of B and C) 15.3% 14.4% 13.1% RONA 15.5% 15.3% 13.3% Total assets as reported in the Consolidated Balance Sheets 50,613 47,469 45,319 Total liabilities as reported in the Consolidated Balance Sheets 27,763 25,848 22,279 (i) Operating income is adjusted for loss on impairments. For the year ended December 31, 2024, the total impairment loss comprised $161 million within International Solutions. For the year ended December 31, 2023, the total impairment loss comprised $62 million within Americas Materials Solutions and $295 million within International Solutions. (ii) Segment assets and liabilities as disclosed in Note 20 “Segment information” in Item 8. “Financial Statements and Supplementary Data”. (iii) Assets held for sale and liabilities associated with assets classified as held for sale as disclosed in Note 3 “Assets held for sale and discontinued operations” in Item 8. “Financial Statements and Supplementary Data”. CRH Form 10-K 41 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 : in $ millions 2024 2023 2022 Short and long-term debt (13,968) (11,642) (9,636) Cash and cash equivalents (i) 3,720 6,390 5,936 Finance lease liabilities (257) (117) (81) Derivative financial instruments (net) (27) (37) (86) Net Debt (10,532) (5,406) (3,867) (i) 2023 includes $49 million cash and cash equivalents reclassified as held for sale. Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total consideration spent on acquisitions and investments of $5.0 billion in 2024, compared with $0.7 billion in 2023. Acquisitions completed in 2024 and 2023 contributed incremental total revenues of $1.6 billion and Adjusted EBITDA of $0.3 billion in 2024. Cash proceeds from divestitures and disposal of long-lived assets (including deferred divestiture consideration received) amounted to $1.4 billion in 2024, compared with $0.1 billion in 2023. The total revenues impact of divestitures in 2024 was a negative $0.7 billion and the impact at an Adjusted EBITDA level was a negative $0.2 billion. The U.S. Dollar weakened against most major currencies during 2024 resulting in an overall positive currency exchange impact in 2024. Because of the impact of acquisitions, divestitures, currency exchange translation and other non-recurring items on reported results each year, 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 year. 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 the Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section on pages 37 to 39, 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 (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 Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” commencing on page 31. Basic EPS pre‑impairment: Basic EPS pre‑impairment is a measure of the Company's profitability per share from continuing operations excluding any loss on impairments (which is non-cash) and the related tax impact of such impairments. It is used by management to evaluate the Company's underlying profit performance and its own past performance. Basic EPS information presented on a pre‑impairment basis is useful to investors as it provides an insight into the Company's underlying performance and profitability. Basic EPS pre‑impairment is calculated as income from continuing operations adjusted for (i) net (income) attributable to redeemable noncontrolling interests (ii) net loss (income) attributable to noncontrolling interests (iii) adjustment of redeemable noncontrolling interests to redemption value and excluding any loss on impairments (and the related tax impact of such impairments) divided by the weighted average number of common shares outstanding for the year. Reconciliation to its nearest GAAP measure is presented below: in $ millions, except share and per share data 2024 Per Share - basic 2023 Per Share - basic 2022 Per Share - basic Weighted average common shares outstanding – basic 683.3 723.9 758.3 Income from continuing operations 3,521 $5.15 3,072 $4.24 2,699 $3.56 Net (income) attributable to redeemable noncontrolling interests (28) ($0.04) (28) ($0.04) (27) ($0.03) Net (income) loss attributable to noncontrolling interests (1) – 134 $0.19 – – Adjustment of redeemable noncontrolling interests to redemption value (34) ($0.05) (24) ($0.03) 40 $0.05 Income from continuing operations for EPS 3,458 $5.06 3,154 $4.36 2,712 $3.58 Impairment of property, plant and equipment and intangible assets 161 $0.24 224 $0.30 – – Impairment of equity method investments (net of tax) 151 $0.22 – – – – Tax related to impairment charges (26) ($0.04) (9) ($0.01) – – Income from continuing operations for EPS – pre-impairment (i) 3,744 $5.48 3,369 $4.65 2,712 $3.58 (i) Reflective of CRH’s share of impairment of property, plant and equipment and intangible assets (2024: $161 million; 2023: $224 million), an impairment of equity method investments (2024: $190 million; 2023: $nil million) and related tax effect. CRH Form 10-K 42 Liquidity and Capital Resources 15 The Company’s primary source of incremental liquidity is cash flows from operating activities, which combined with the year-end cash and cash equivalents balance, the U.S. Dollar and Euro Commercial Paper Programs, and committed credit lines, is expected to be sufficient to meet the Company’s working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities, and other liquidity requirements associated with our operations for the foreseeable future. In addition, the Company believes that it will have sufficient 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 $14.0 billion at December 31, 2024, compared with $11.6 billion in 2023 and $9.6 billion in 2022. I n January 2024, €600 million 1.875% euro Senior Notes were repaid on maturity. In May 2024, wholly-owned subsidiaries of the Company issued $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 December 2024, the Company entered into and drew down a $750 million two-year term loan at a fixed rate of 4.91%. For additional information on new fixed rate debt issuance, see Note 11 “Debt” in Item 8. “Financial Statements and Supplementary Data”. Net Debt* at December 31, 2024, was $10.5 billion, compared with $5.4 bill ion in 2023. The increase in Net Debt* between 2024 and 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 2024 repurchasing 15.9 million ordinary shares for a total consideration of $1.3 billion, and in 2023 54.9 million ordinary shares were repurchased for total consideration of $3.0 billion. The Company also made cash dividend payments of $1.7 billion in 2024 and $0.9 billion in 2023. At December 31, 2024, CRH had cash and cash equivalents and restricted cash of $3.8 billion compa red with $6.4 billion in 2023 and $5.9 billion in 2022. Total lease liabilities were $1.6 billion compared with $1.5 billion in 2023 and $1.3 billion in 2022. At December 31, 2024, CRH had $3.8 billion of undrawn committed facilities, $3.6 billion of which is available until May 2029. At December 31, 2024, the weighted average maturity of the term debt (net of cash and cash equivalents) was 7.5 years. Cash flows Cash flows from operating activities For the years ended December 31 in $ millions 2024 2023 2022 Net cash provided by operating activities 4,989 5,017 3,800 2024 versus 2023 Net cash provided by operating activities was $5.0 billion in 2024, in line with $5.0 billion in 2023. Net cash provided by operating activities in 2024 was primarily from net income of $3.5 billion, adjusted for depreciation, depletion, and amortization of $1.8 billion and loss on impairments of $0.35 billion, partly offset by higher non-operating cash adjustments and working capital outflows. 2023 versus 2022 Net cash provided by operating activities was $5.0 billion in 2023 and $3.8 billion in 2022. Net cash provided by operating activities in 2023 was primarily from net income of $3.1 billion, adjusted for depreciation, depletion, and amortizatio n of $1.6 billion and loss on impairments of $ 0.4 billion . The primary drivers of the $1.2 billion increase in net cash provided by operating activities in 2023 compared with 2022 were lower non-cash adjustments and positive working capital movements. Cash flows from investing activities For the years ended December 31 in $ millions 2024 2023 2022 Net cash used in investing activities (6,291) (2,391) (917) 2024 versus 2023 Net cash used in investing activities increased to $6.3 billion in 2024 from $2.4 billion in 2023, an increase of $3.9 billion. Capital expenditure totaled $2.6 billion, resulting in an increased outflow of $0.8 billion versus prior year. During 2024, net cash used on acquisitions and divestitures was $3.5 billion as acquisition spend exceeded proceeds from divestitures and disposal of long-lived assets, primarily related to the completed divestiture of the European Lime operations and the divestiture of certain operations in Canada. 2023 versus 2022 Net cash used in investing activities increased to $2.4 billion in 2023 from $0.9 billion in 2022, an increase of $1.5 billion. This increase was primarily driven by a reduction in proceeds from divestitures and increased capital expenditure. In 2022, net cash provided by acquisition and divestiture activity was $0.6 billion as divestiture proceeds more than offset acquisition spend. In 2023, net cash used on acquisitions and divestitures was $0.5 billion as acquisition spend exceeded proceeds from divestitures and disposal of long-lived assets. Net cash used in investing activities also increased as a result of purchases of property, plant and equipment increasing to $1.8 billion in 2023, an increase of $0.3 billion compared with 2022. *Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. 15 CRH Form 10-K 43 Cash flows from financing activities For the years ended December 31 in $ millions 2024 2023 2022 Net cash used in financing activities (1,186) (2,380) (2,499) 2024 versus 2023 Net cash used in financing activities was $1.2 billion for the year ended December 31, 2024, a decrease of $1.2 billion. Proceeds from debt issuances were $4.0 billion, 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, the drawdown of a $750 million fixed rate loan due 2026, as well as the issuance of $1.7 billion under the Company’s commercial paper programs. Payments of debt 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. Dividends paid were $1.7 billion, an increase of 81% compared with 2023. In 2024, the Company moved to payment of quarterly dividends in addition to the payment of the second interim 2023 dividend while the same period in the prior year saw an outflow related to the final 2022 dividend and the first interim 2023 dividend. Outflows related to the repurchases of common stock were $1.5 billion, compared to $3.1 billion in 2023. 2023 versus 2022 The $0.1 billion decrease in cash used in financing activities between 2023 and 2022 was driven by a number of factors. Payments of debt increased to $1.5 billion from $0.4 billion in 2022. CRH repaid a €750 million euro-denominated Senior Notes on maturity in April 2023 and a €500 million euro-denominated Senior Notes on maturity in November 2023. Offsetting these increases in cash outflows was an increase in proceeds from debt issuances when CRH issued €2 billion of euro-denominated Senior Notes in July 2023 as well as net issuance of $1.0 billion under the Company’s U.S. Dollar Commercial Paper Program. Cash outflows related to repurchases of common stock increased to $3.1 billion compared with $1.2 billion in 2022. Dividends paid in 2023 amounted to $0.9 billion, an increase of 3% compared with 2022. 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 - www.crh.com ). At December 31, 2024, maturities for the next four quarters and for the next five years are as follows: 2025 Debt Maturities First Quarter $1.6 billion Second Quarter $1.3 billion Third Quarter – Fourth Quarter – 2025-2029 Debt Maturities 2025 $2.9 billion 2026 $1.9 billion 2027 $1.4 billion 2028 $1.5 billion 2029 $1.3 billion Unsecured senior notes The main sources of Company debt funding are debt capital markets in North America and Europe. See Note 11 “Debt” in Item 8. “Financial Statements and Supplementary Data” 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. Bank credit facilities The Company manages its borrowing ability by entering into committed borrowing agreements. The Company has a multi-currency revolving credit facility (the ‘RCF’), dated May 2023, which 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 11 “Debt” in Item 8. “Financial Statements and Supplementary Data” for further details regarding the RCF. In December 2024, the Company entered into and drew down a $750 million two-year term loan at a fixed rate of 4.91%. At December 31, 2024, the loan was fully drawn. Interest on drawings on the Company's RCF are based upon Euro Interbank Offer Rate (EURIBOR) for euro drawings, the Secured Overnight Financing Rate (SOFR) for U.S. Dollar drawings, Sterling Overnight Index Average (SONIA) for Pound Sterling drawings and the Swiss Average Rate Overnight (SARON) for Swiss Franc drawings, respectively. At December 31, 2024, and December 31, 2023, the RCF wa s undrawn. Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $13.1 billion in respect of loans and borrowings, bank advances and derivative obligations, compared with $11.3 billion in 2023, and $0.4 billion in respect of letters of credit due within one year, compared with $0.4 billion in 2023. CRH Form 10-K 44 Commercial paper programs The Company has a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program. Commercial paper borrowings bear interest at rates determined at the time of borrowing. As of December 31, 2024, there was $1.2 billion of outstanding issued notes on the U.S. Dollar Commercial Paper Program and $0.3 billion of outstanding issued notes on the Euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity. Off-balance sheet arrangements CRH does not have any off-balance sheet arrangements that have, or are reasonably likely to have a current or future effect on CRH’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that may be material to investors. Debt ratings 6 16 Our debt ratings and outlooks at December 31, 2024, are as follows: Short-Term Long-Term Outlook S&P A-2 BBB+ Stable Moody’s P-2 Baa1 Stable Fitch F1 BBB+ Stable Contractual obligations An analysis of the maturity profile of debt, leases capitalized, purchase obligations, deferred and contingent acquisition consideration and pension scheme contribution commitments at December 31, 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) 14,040 3,018 3,372 2,799 4,851 Lease liabilities (ii) 2,083 349 525 321 888 Estimated interest payments on contractually committed debt (iii) 3,501 470 765 535 1,731 Deferred and contingent acquisition consideration 58 44 10 3 1 Purchase obligations (iv) 2,549 1,750 439 150 210 Retirement benefit obligation commitments (v) 18 3 6 4 5 Total (vi) 22,249 5,634 5,117 3,812 7,686 (i) Of the $14.0 billion short and long-term debt, $0.5 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 as detailed in Note 12 “Leases” in Item 8. “Financial Statements and Supplementary Data”. (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. 6 A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating. 16 CRH Form 10-K 45 Critical Accounting Estimates Impairment of goodwill 17 Goodwill represents the excess of the cost of net assets acquired in business combinations over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill impairment exists when the fair value of a reporting unit is less than its carrying amount. Goodwill is tested for impairment on an annual basis or more frequently whenever events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. The impairment evaluation is a critical accounting policy because goodwill is material to our total assets (as of December 31, 2024, goodwill represents 22% of total assets), and the evaluation involves the use of significant estimates, key assumptions and judgment. There has been no change to the impairment of goodwill critical accounting estimate in the current financial year. Goodwill is tested for impairment at the reporting unit level, one level below our reportable segments, with 26 reporting units identified for testing. The Com pany has the option of either assessing qualitative factors to determine whether it is more likely than not that the carrying value of our reporting units exceeds their respective fair value or proceeding directly to a quantitative test. We elected to perform the quantitative impairment test for all years presented. If the fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. However, if the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized by writing down the assets to their fair value. We determine the carrying value of each reporting unit by assigning assets and liabilities, including goodwill, to those reporting units as of the measurement date. We estimate the fair values using a discounted cash flow model which requires management to make significant estimates and judgments regarding the future cash flows expected to be generated by reporting units to which goodwill has been allocated. The cash flow forecasts are primarily based on a five-year strategic plan document formally approved by the Board of Directors. In assessing the fair value, cash flow forecasts are extrapolated using long-term growth rates to determine the basis for an annuity-based terminal value. These net cash flow forecasts reflect volume, price and cost (including the cost of carbon where applicable) assumptions in addition to other cash flow movements. Adjusted EBITDA margin* is deemed an appropriate measure for assessing the estimation uncertainty associated with price and cost assumptions. Future cash flows, including the terminal value, are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The estimates of future cash flows exclude cash inflows or outflows attributable to financing activities and income tax. Management periodically evaluates and updates the estimates based on the conditions which influence these variables. As in prior years, the terminal value is based on a 20-year annuity, with the exception of certain long-lived cement assets, where an assumption of a 30-year annuity has been used. Projected cash flows beyond the initial evaluation period have been extrapolated using real growth rates ranging from 1.7% in the Americas, 0.6% to 3.0% in Europe and 3.0% in Asia. Such real growth rates do not exceed the long-term average growth rates for the countries in which each reporting unit operates. The fair value represents the present value of the future cash flows, including the terminal value, discounted at a rate appropriate to each reporting unit. We also considered the potential impact of a scenario of estimated higher carbon costs past the strategic plan period across our reporting units subject to the European Union and United Kingdom Emissions Trading Systems. These reporting units have sufficient levels of headroom to absorb the estimated higher carbon costs which may not be recovered through pricing. The assumptions and conditions for determining impairments of goodwill reflect management’s best assumptions and estimates, but these items involve inherent uncertainties described above, many of which are not under management’s control. As a result, the accounting for such items as a change to a reporting unit’s prospects, which may result from a change in market conditions, market trends, interest rates or other factors outside our control, or underperformance relative to historical or forecast projections, could result in a different estimate of the fair value of our reporting unit resulting in an impairment charge in the future. The results of our annual impairment testing for 2024 indicated that all of our reporting units exceeded their carrying value except for the Architectural Products reporting unit within International Solutions. Its fair value did not exceed carrying value, driven by challenging market conditions which had an impact on growth prospects and as such an impairment loss of $72 million has been recorded, resulting in a goodwill balance of $nil million. A qualitative and quantitative assessment has been performed which resulted in a sensitivity analysis being prepared for two reporting units where their fair values did not substantially exceed their carrying values. This sensitivity analysis represents management’s assessment of the economic environment in which these reporting units operate. The key assumptions, methodology used and values applied to each of the key assumptions for these reporting units are in line with those outlined above (a 30-year annuity period has been used). The two reporting units have an aggregate goodwill of $254 million at the date of testing. The table below identifies the amounts by which each of the following assumptions may either decline or increase to arrive at a zero excess headroom of the present value of future cash flows over the carrying value of net assets in the two reporting units selected for sensitivity analysis disclosures: Two reporting units Reduction in Adjusted EBITDA margin* 1.2% and 2.1% Reduction in long-term growth rate 1.2% and 1.6% Increase in pre-tax discount rate 1.0% and 1.3% Pension and other postretirement benefits Costs arising in respect of the Company’s defined contribution pension schemes are charged to the Consolidated Statements of Income in the period in which they are incurred. The Company has no legal or constructive obligation to pay further contributions in the event that the fund does not hold sufficient assets to meet its benefit commitments. The liabilities and costs associated with the Company’s defined benefit pension schemes (both funded and unfunded) are assessed on the basis of the projected unit credit method by professionally qualified actuaries and are arrived at using actuarial assumptions based on market expectations at the balance sheet date. * Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 40 to 42. 17 CRH Form 10-K 46 (Favorable) Unfavorable 0.25 Percentage Point Increase 0.25 Percentage Point Decrease in $ millions Inc (Dec) in Benefit Obligation Inc (Dec) in Annual benefit Cost Inc (Dec) in Benefit Obligation Inc (Dec) in Annual Benefit Cost Actuarial Assumptions Discount Rates Pension (90.3) (1.7) 95.7 4.1 Other postretirement benefits (2.8) (0.2) 2.9 0.3 Expected return on plan assets – (7.1) – 7.1 The assumptions underlying the actuarial valuation of the projected benefit obligation (including discount rates, rates of increase in future compensation levels, mortality rates and healthcare cost trends) from which the amounts recognized in the Consolidated Financial Statements are determined, are updated annually based on current economic conditions and for any relevant changes to the terms and conditions of the pension and postretirement plans. These assumptions can be affected by (i) for the discount rates, changes in the rates of return on high-quality corporate bonds; (ii) for future compensation levels, future labor market conditions; and (iii) for healthcare cost trend rates, the rate of medical cost inflation in the relevant regions. The assumption underlying the performance of plan assets (expected return on plan assets) is a long-term assumption which is reviewed annually and is used to estimate future asset returns. Once set, the expected return on plan assets assumption is used to determine the Company’s net periodic pension (income)/cost. The assumptions that are the most significant to the measurement of retirement benefit obligations are the discount rates. The discount rates employed in determining the present value of the schemes’ liabilities are determined by reference to market yields at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and term of the associated postretirement benefit obligations. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the obligations and expenses recognized in future accounting periods. The assets and liabilities of defined benefit pension schemes may exhibit significant period-on-period volatility attributable primarily to changes in bond yields and longevity. In addition to future service contributions, significant cash contributions may be required to remediate past service deficits. For additional information about pension and other postretirement benefits, see Note 21 “Pension and other postretirement benefits” in Item 8. “Financial Statements and Supplementary Data”. Business Combinations – Allocation of Purchase Price The purchase price of assets acquired and liabilities assumed is determined based on the fair value of consideration transferred to and liabilities assumed from the seller as of the date of acquisition. The Company allocates the purchase price to the fair values of the tangible and intangible assets acquired, and liabilities assumed as valued at the acquisition date. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. The purchase price allocation is a critical accounting estimate because the estimation of fair values of acquired assets and assumed liabilities is judgmental and requires management to utilize various assumptions. Further, the amounts and useful lives assigned to depreciable and amortizable assets versus amounts assigned to goodwill can affect the results of operations in the period of and for periods after a business combination. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as described below: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs that are derived from, or corroborated by, quoted prices or observable market data. • Level 3: Inputs that are unobservable and are significant to the fair value of the assets or liabilities. Level 1 fair values are used to value equity investments and long-term debt. Level 2 fair values are typically used to value acquired receivables, inventory and equity method investments. Additionally, Level 2 fair values are typically used to value contracts acquired at other than market rates. Level 3 fair values are used to value acquired property, plant and equipment, mineral-bearing land and other identifiable intangible assets. An in-use valuation premise is applied for property, plant and equipment, such that the fair value of property, plant and equipment reflects the benefit of permits in place, architect and engineering fees, freight, tax, installation and other direct and indirect costs incurred. This premise assumes that each of the assets will continue to be used as is and as part of the ongoing business in connection with other assets. To determine the value of plant and equipment, a replacement cost methodology is typically applied, which relies upon identifying a direct replacement cost associated with replacing assets with new assets, and incorporates estimates of obsolescence, and depreciation based on economic useful lives. These estimations are based on management’s historical experience, the use of third-party experts and available market and industry data. For the valuation of land, we engage third-party valuation experts. While we believe these assumptions and estimates are reasonable, they are inherently uncertain. We may adjust the amounts recognized in an acquisition during a measurement period after the acquisition date. Any such adjustments are the result of subsequently obtaining additional information that existed at the acquisition date regarding the assets acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or decreases to goodwill, if any, recognized in the transaction. The cumulative impact of measurement period adjustments on depreciation, amortization and other income statement items are recognized in the period the adjustment is determined. The measurement period ends once we have obtained all necessary information that existed as of the acquisition date but does not extend beyond one year from the acquisition date. Any adjustments to assets acquired or liabilities assumed beyond the measurement period, unless as a result of an error, are recorded through earnings. For additional information about business combinations and purchase price allocations, including details of provisional purchase price allocations at the balance sheet date, see Note 4 “Acquisitions” in Item 8. “Financial Statements and Supplementary Data”. CRH Form 10-K 47 Accounting Developments And Changes Refer to Note 1 “Summary of significant accounting policies” in Item 8. “Financial Statements and Supplementary Data” for a discussion of new accounting developments. Supplemental Guarantor Information Guarantor financial information As of December 31, 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') issued by CRH America Finance, Inc. (America Finance), and together with the 6.400% Notes and the 5.200% Notes, (the 'Notes') and together with CRH America and SMW Finance (the 'Issuers'). The Issuers are each 100% owned by CRH plc, directly or indirectly. SMW Finance is an indirect wholly-owned finance subsidiary of CRH plc incorporated under the laws of Ireland and is 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 is 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 December 31, 2024, and the Income Statement for the year ended December 31, 2024, 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 overleaf. 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 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. CRH Form 10-K 48 The summarized Income Statement information is as follows: in $ millions For the year ended December 31, 2024 Income from continuing operations before income tax expense and income from equity method investments (i) 1,051 - of which relates to transactions with non-obligor subsidiaries 1,183 Net income for the financial year – all of which is attributable to equity holders of the Company 1,050 - of which relates to transactions with non-obligor subsidiaries 1,183 (i) Revenue and Gross Profit for the Obligor Group for the year ended December 31, 2024, amounted to $nil. The summarized Balance Sheet information is as follows: As of December 31, 2024 Current assets 610 Current assets – of which is due from non-obligor subsidiaries 307 Noncurrent assets 3,446 Noncurrent assets – of which is due from non-obligor subsidiaries 3,446 Current liabilities 4,145 Current liabilities – of which is due to non-obligor subsidiaries 2,890 Noncurrent liabilities 758 CRH Form 10-K 49