CRH PUBLIC LTD CO 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Introduction Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and six months ended June 30, 2025. 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 2024 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 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 connected 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. Operating in 28 countries, the Company has market leadership positions in North America, Europe and Australia. 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 International businesses, which benefit from strong economic and construction growth prospects as well as recurring repair and remodel demand, are an important strategic part of the Company. CRH intends to continue to expand its North American and International operations given significant government support for infrastructure and increasing demand for customer-connected solutions in major infrastructure and commercial projects. CRH has a proven track record in value creation through acquisition which over the last decade has accounted for approximately 60% of the Company’s profit 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, summer and autumn which may reduce significantly in winter due to inclement conditions or generally as a result of extreme weather events. In addition to impacting demand for our products and services, adverse weather can negatively impact the production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures and heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year. Financial performance highlights Three months ended June 30, 2025 CRH delivered a strong second quarter performance compared to the second quarter of 2024, resulting in the following performance highlights for the three months ended June 30, 2025 (comparisons are versus the prior year's second quarter): • Total revenues increased 6% to $10.2 billion; • Net income increased by $23 million to $1.3 billion. Adjusted EBITDA* 1 was $2.5 billion, an increase of $208 million, or 9%; • Net income margin was 13.1% compared with 13.6%, a decrease of 50 basis points (bps). Adjusted EBITDA margin* was 24.1%, an increase of 70bps on the prior year's second quarter Adjusted EBITDA margin* of 23.4%; and • Diluted Earnings Per Share (EPS) was $1.94 compared to $1.88. Six months ended June 30, 2025 CRH delivered a good performance in the six months ended June 30, 2025 compared to the prior year, resulting in the following performance highlights (comparisons are versus the prior year's first six months): • Total revenues increased 5% to $17.0 billion; • Net income was $1.2 billion compared with $1.4 billion, a decrease of $189 million. Adjusted EBITDA* 2 was $3.0 billion, an increase of $258 million, or 10%; • Net income margin was 7.3% compared with 8.8%, a decrease of 150bps. Adjusted EBITDA margin* was 17.4%, an increase of 70bps on the prior year's first half Adjusted EBITDA margin* of 16.7%; and • Diluted EPS was $1.78 compared to $2.03. *Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 33 to 34. 1 2 CRH Form 10-Q 26 Capital allocation highlights Six months ended June 30, 2025 • Cash returned to shareholders through share buybacks was $0.6 billion, a decrease of $0.1 billion versus the first six months of the prior year. On August 5, 2025, the latest tranche of the share buyback program was completed, bringing the year-to-date repurchases to $0.8 billion. A further tranche has been announced, extending the ongoing share buyback program by an additional $0.3 billion to be completed no later than November 5, 2025; • Cash paid to shareholders through dividends was $0.5 billion, compared with $1.2 billion in the first half of the prior year. The decrease primarily reflects the payment of a second interim 2023 dividend in Q1 2024, which was not repeated in Q1 2025. The first 2025 quarterly dividend of $0.37 per share was declared in February 2025, a second quarterly dividend of $0.37 per share was announced in May 2025, and a third quarterly dividend of $0.37 per share announced on August 6, 2025, representing an annualized increase of 6% on the prior year; and • A total of 13 acquisitions were completed for consideration of $0.7 billion, compared with $2.6 billion in the first half of the prior year. A further $1.3 billion was invested in development and replacement capital expenditure projects, compared with $1.1 billion for the comparable 2024 period. Development Review In the three months ended June 30, 2025, CRH completed five acquisitions for a total consideration of $0.1 billion, compared with $0.4 billion in the same period of 2024. Americas Materials Solutions completed two acquisitions, while International Solutions completed three acquisitions. For the six months ended June 30, 2025, CRH completed 13 acquisitions for a total consideration of $0.7 billion, compared with $2.6 billion in the first half of the prior year. On July 29, 2025, the Company announced that it had entered into a binding agreement to acquire Eco Material, a leading supplier of Supplementary Cementitious Materials in North America, headquartered in Utah, for a total consideration of $2.1 billion. The Eco Material transaction uniquely positions CRH to meet growing demand for cementitious products to modernize North America's infrastructure. The acquisition is expected to close in 2025, subject to regulatory approval and customary closing conditions. With respect to divestitures, in the three months ended June 30, 2025, cash proceeds from divestitures and disposals of long-lived assets were $31 million, compared with $0.4 billion in the same period in 2024. For the six months ended June 30, 2025, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $0.1 billion, compared with $1.1 billion in the same period of the prior year. Outlook The outlook for our business remains positive and we raise our financial guidance for 2025. We continue to expect favorable underlying demand across our key end-use markets in 2025, underpinned by significant public investment in critical infrastructure and continued re-industrialization activity in key non-residential segments. Within the residential sector, the new-build segment is expected to remain subdued, while repair and remodel activity remains resilient. Assuming normal seasonal weather patterns and absent any major dislocations in the political or macroeconomic environment, CRH’s proven strategy and 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. CRH Form 10-Q 27 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, products 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 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 Six months ended June 30 June 30 2025 2024 2025 2024 Total revenues 10,206 9,654 16,962 16,187 Total cost of revenues (6,180) (5,979) (11,099) (10,705) Gross profit 4,026 3,675 5,863 5,482 Selling, general and administrative expenses (2,120) (1,948) (3,953) (3,735) Gain on disposal of long-lived assets 29 102 43 110 Operating income 1,935 1,829 1,953 1,857 Interest income 30 36 67 79 Interest expense (200) (155) (381) (288) Other nonoperating (expense) income, net (9) 23 (29) 184 Income from operations before income tax expense and income from equity method investments 1,756 1,733 1,610 1,832 Income tax expense (425) (430) (367) (411) Income (loss) from equity method investments 1 6 (9) 2 Net income 1,332 1,309 1,234 1,423 Net (income) attributable to redeemable noncontrolling interests (8) (10) (8) (12) Net (income) loss attributable to noncontrolling interests (5) (2) (1) 2 Net income attributable to CRH 1,319 1,297 1,225 1,413 Diluted earnings per share attributable to CRH $1.94 $1.88 $1.78 $2.03 Adjusted EBITDA* 2,463 2,255 2,958 2,700 Total revenues Total revenues were $10.2 billion for the three months ended June 30, 2025, an increase of $0.6 billion, or 6%, from the same period in 2024, driven by the positive impact of acquisitions and disciplined commercial execution, which offset lower activity levels in weather-impacted regions. For the six months ended June 30, 2025, total revenues were $17.0 billion, an increase of 5% from the first six months of 2024, reflecting continued pricing progress and contributions from acquisitions which offset lower weather-impacted volumes and the divestiture of the European Lime operations. For additional discussion on segment revenues, see “Segments” section on pages 30 to 32. Gross profit Gross profit for the three months ended June 30, 2025, was $4.0 billion, an increase of $0.4 billion, or 10% from the same period in 2024, reflecting total revenues increase of 6%, while total cost of revenues increased by 3%. The gross profit margin of 39.4% increased 130bps from 38.1% in the second quarter of the prior year. Total cost of revenues increased primarily as a result of higher labor costs of 5%, driven by increased headcount from acquisitions and inflationary pressures, as well as a 26% increase in depreciation and amortization expenses, reflecting the impact of acquisitions and higher capital expenditures . For the six months ended June 30, 2025, gross profit was $5.9 billion, an increase of $0.4 billion, or 7%, from the same period in 2024, with total revenues 5% ahead of the same period in 2024, while total cost of revenues increased by 4%. The gross profit margin of 34.6% increased 70bps from 33.9% for the first half of the prior year. The increase in cost of revenues was primarily driven by a 6% increase in labor costs, attributable to higher headcount from acquisitions and inflationary pressures, as well as a 24% higher depreciation and amortization expense, reflecting the impact of acquisitions and increased capital expenditures . *Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 33 to 34. 3 CRH Form 10-Q 28 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 administrative expenses, were $2.1 billion for the three months ended June 30, 2025, an increase of $0.2 billion, or 9%, from the comparable 2024 period. The increase was primarily driven by a 7% increase in haulage expenses resulting from acquisition activity and a 9% increase in labor costs reflecting higher headcount and wage inflation. For the six months ended June 30, 2025, SG&A expenses were $4.0 billion, an increase of $0.2 billion, or 6%, from the comparable 2024 period. SG&A expenses increased primarily due to a 9% increase in labor costs impacted by higher headcount from acquisitions and wage inflation and a 5% increase in haulage expenses mainly due to acquisition activity. Gain on disposal of long-lived assets Gain on disposal of long-lived assets was $29 million for the three months ended June 30, 2025, a decrease of $73 million compared with 2024, and $43 million for the six months ended June 30, 2025, a decrease of $67 million. The decrease was primarily due to the non-recurrence of certain land asset disposals in North America. Interest income Interest income was $30 million for the three months ended June 30, 2025, a decrease of $6 million from the comparable period in 2024, and $67 million for the six months ended June 30, 2025, a decrease of $12 million from the comparable period. The decrease was primarily due to lower cash deposits. Interest expense Interest expense was $200 million for the three months ended June 30, 2025, an increase of $45 million from the comparable period in 2024 and $381 million for the six months ended June 30, 2025, an increase of $93 million from the prior period. The increase was primarily due to higher gross debt balances. Other nonoperating (expense) income, net Other nonoperating (expense) income, net, was an expense of ($9) million for the three months ended June 30, 2025, compared with an income of $23 million in the comparable period for 2024. Other nonoperating (expense) income, net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The reduction versus prior year was reflective of the non-recurrence of prior year gains on divestitures. Other nonoperating (expense) income, net, was an expense of ($29) million for the six months ended June 30, 2025, compared with an income of $184 million in the comparable period for 2024. The reduction versus prior year primarily related to the non-recurrence of the gain on the divestiture of the European Lime operations and unrealized gains on certain investments . Income tax expense For the three months ended June 30, 2025, the Company had an income tax expense of $425 million, compared to $430 million for the comparable period in 2024. The effective tax rate was 24% for the second quarter in 2025 compared with an effective tax rate of 25% for the second quarter in 2024. The decrease in the effective tax rate for the three months ended June 30, 2024 was mainly driven by movements in valuation allowances. For the six months ended June 30, 2025, the Company had an income tax expense of $367 million compared to $411 million for the comparable period in 2024. The effective tax rate was 23% for the first half of 2025 compared with an effective tax rate of 22% for the same period in 2024. The increase was primarily driven by the inclusion of the largely tax-exempt divestiture of the European Lime operations in the six months ended June 30, 2024. Income (loss) from equity method investments For the three months ended June 30, 2025, income of $1 million was recorded in equity method investments, a decrease of $5 million from the comparable period in 2024 and a loss of $9 million was recorded for the six months ended June 30, 2025, a decrease of $11 million from the comparable period in 2024. Net income Net income was $1.3 billion for the three months ended June 30, 2025, an increase of $23 million from the comparable period in 2024. A strong underlying operating performance in the period more than offset higher depreciation and interest expenses, as well as reduced gains from divestitures and disposals of long-lived assets during the period. Net income was $1.2 billion for the six months ended June 30, 2025, a decrease of $189 million from the comparable period in 2024, with a positive underlying operating performance offset by the non-recurrence of gains on prior year divestitures. Net income attributable to CRH and earnings per share Net income attributable to CRH was $1.3 billion for the three months ended June 30, 2025, an increase of $22 million from the comparable period in 2024. Diluted EPS for the three months ended June 30, 2025, was $1.94, compared with diluted EPS of $1.88 for the three months ended June 30, 2024. Net income attributable to CRH was $1.2 billion for the six months ended June 30, 2025, a decrease of $188 million from the comparable period in 2024. The decrease in net income attributable to CRH was driven by a positive underlying operating performance offset by the non-recurrence of gains on prior year divestitures. Diluted EPS for the six months ended June 30, 2025, was $1.78, compared with $2.03 for the six months ended June 30, 2024. CRH Form 10-Q 29 Segments CRH is organized through three reportable segments across two Divisions. CRH’s Americas Division comprises two segments: Americas Materials Solutions and Americas Building Solutions; and CRH’s International Division comprises the other segment. Within CRH’s segments, revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. The Company’s measure of segment profit is Adjusted EBITDA, which is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and investments, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component. Americas Materials Solutions Three months ended June 30, 2025 Analysis of Change in $ millions Three months ended June 30, 2024 Currency Acquisitions Divestitures Organic Three months ended June 30, 2025 % change Total revenues 4,406 (3) +214 – (108) 4,509 +2% Adjusted EBITDA 1,193 (1) +47 – +2 1,241 +4% Adjusted EBITDA margin 27.1% 27.5% Americas Materials Solutions’ total revenues were 2% ahead of the second quarter of 2024, primarily driven by contributions from acquisitions and further pricing improvements. In Essential Materials, total revenues increased by 4% due to positive pricing and favorable underlying demand in most regions. Aggregates pricing increased 4% year-on-year, reflecting a shift in product mix due to weather-related delays in the period. Cement pricing was up 2% reflecting regional variances across the footprint. Aggregates and cement volumes increased by 5% and 1%, respectively, with contributions from acquisitions offsetting the impact of adverse weather. In Road Solutions, total revenues increased by 2%. Asphalt volumes decreased by 2% over the prior year due to adverse weather conditions, while pricing was stable. Readymixed concrete volumes increased by 6% over the prior year supported by acquisitions while pricing increased by 2%. Paving and construction revenues decreased by 2% due to weather-impacted activity levels. Second quarter Adjusted EBITDA for Americas Materials Solutions was 4% ahead of the prior year, driven by acquisitions, improved pricing, and disciplined cost management while the prior year benefited from higher gains on disposal of long-lived assets. Adjusted EBITDA margin was 40bps ahead of the second quarter of 2024. Americas Materials Solutions Six months ended June 30, 2025 Analysis of Change in $ millions Six months ended June 30, 2024 Currency Acquisitions Divestitures Organic Six months ended June 30, 2025 % change Total revenues 6,608 (13) +358 (16) (185) 6,752 +2% Adjusted EBITDA 1,208 (1) +57 +6 +30 1,300 +8% Adjusted EBITDA margin 18.3% 19.3% Americas Materials Solutions’ total revenues were 2% ahead of the first six months of 2024, as pricing progress and contributions from acquisitions more than offset weather-impacted volumes. In Essential Materials, total revenues increased by 1% supported by positive pricing and good contributions from acquisitions. Prices in aggregates and cement were ahead by 5% and 2%, respectively. Aggregates volumes increased by 1% while cement volumes were in line with the same period in 2024. In Road Solutions, total revenues increased by 3% due to increased paving activity and growth in readymixed concrete. Readymixed concrete volumes were up 6% over the prior year, driven by acquisitions, while pricing increased by 2%. Paving and construction revenues increased by 1% while weather impacted asphalt volumes decreased 1% over the prior year and pricing increased by 1%. Adjusted EBITDA for Americas Materials Solutions was 8% ahead of the comparable period in 2024, supported by positive acquisition performance, ongoing price improvements and operational efficiencies. Adjusted EBITDA margin increased by 100bps on the same period in 2024. CRH Form 10-Q 30 Americas Building Solutions Three months ended June 30, 2025 Analysis of Change in $ millions Three months ended June 30, 2024 Currency Acquisitions Divestitures Organic Three months ended June 30, 2025 % change Total revenues 2,116 (1) +83 (11) (28) 2,159 +2% Adjusted EBITDA 476 – +22 (2) +5 501 +5% Adjusted EBITDA margin 22.5% 23.2% Americas Building Solutions' total revenues were 2% ahead of the second quarter of 2024, as good commercial management and contributions from acquisitions offset adverse weather impacts in some markets. In Building & Infrastructure Solutions, total revenues were 3% ahead of Q2 2024, driven by positive contributions from acquisitions and strong demand in water infrastructure and data center activity. In Outdoor Living Solutions, total revenues were 2% ahead of the prior year period, with acquisitions mitigating the effects of subdued residential activity. Adjusted EBITDA for Americas Building Solutions was 5% ahead of the second quarter of 2024 driven by acquisitions and cost savings initiatives. Adjusted EBITDA margin was 70bps ahead of the prior year period. Americas Building Solutions Six months ended June 30, 2025 Analysis of Change in $ millions Six months ended June 30, 2024 Currency Acquisitions Divestitures Organic Six months ended June 30, 2025 % change Total revenues 3,809 (5) +143 (19) (87) 3,841 +1% Adjusted EBITDA 784 – +37 (3) (30) 788 +1% Adjusted EBITDA margin 20.6% 20.5% Americas Building Solutions' total revenues were 1% ahead of the prior year, as contributions from acquisitions more than offset adverse weather impacts. In Building & Infrastructure Solutions, total revenues were 3% ahead of the same period in 2024, supported by good underlying activity in our water businesses and positive impacts from acquisitions. In Outdoor Living Solutions, total revenues were in line with the prior year, as incremental growth from acquisitions was offset by the impact of adverse weather across certain key markets. Adjusted EBITDA for Americas Building Solutions was 1% ahead of prior year driven by contributions from acquisitions and offsetting the impact of challenging weather and subdued residential activity. Adjusted EBITDA margin was 10bps behind the prior year period. CRH Form 10-Q 31 International Solutions Three months ended June 30, 2025 Analysis of Change in $ millions Three months ended June 30, 2024 Currency Acquisitions Divestitures Organic Three months ended June 30, 2025 % change Total revenues 3,132 +163 +430 (91) (96) 3,538 +13% Adjusted EBITDA 586 +27 +74 +5 +29 721 +23% Adjusted EBITDA margin 18.7% 20.4% International Solutions' total revenues were 13% ahead of the second quarter of 2024 primarily driven by contributions from acquisitions and favorable pricing, which were partially offset by reduced activity in some markets. In Essential Materials, total revenues were 14% ahead of the comparable period in 2024 supported by positive pricing and strong contributions from acquisitions. Aggregates and cement volumes were 5% and 12% ahead of the comparable period in 2024, with pricing 3% and 2% ahead, respectively. In Road Solutions, total revenues were 16% ahead of the comparable period in 2024, with volumes and prices in readymixed concrete ahead of 2024 by 21% and 9%, respectively, benefiting from higher activity levels and contributions from the Adbri acquisition. Asphalt volumes declined by 3%, as a result of lower activity levels while asphalt pricing declined 4% compared to the prior year. Within Building & Infrastructure Solutions and Outdoor Living Solutions, total revenues were 6% ahead of the comparable period in 2024 supported by contributions from acquisitions. Adjusted EBITDA in International Solutions was 23% ahead of the second quarter of 2024, driven by the successful integration of acquisitions, increased pricing and operational efficiencies. Adjusted EBITDA margin increased by 170bps compared to the prior year. International Solutions Six months ended June 30, 2025 Analysis of Change in $ millions Six months ended June 30, 2024 Currency Acquisitions Divestitures Organic Six months ended June 30, 2025 % change Total revenues 5,770 +106 +800 (158) (149) 6,369 +10% Adjusted EBITDA 708 +26 +103 (11) +44 870 +23% Adjusted EBITDA margin 12.3% 13.7% In the first six months of the year, total revenues in International Solutions increased by 10%, driven by contributions from acquisitions and favorable pricing partially offsetting the impact of first quarter adverse weather and reduced activity in certain geographies. In Essential Materials, total revenues were 11% above the comparable period in 2024 due to continued pricing progress and contributions from acquisitions which more than offset the divestiture of the European Lime operations. Aggregates pricing was 4% ahead with cement pricing 2% ahead of the comparable period in 2024, while aggregates and cement volumes were 7% and 12% ahead of the prior year, respectively. In Road Solutions, total revenues were 14% above the comparable period in 2024, with volumes and prices in readymixed concrete ahead by 21% and 9%, respectively, benefiting from volume growth in the majority of countries as well as contributions from acquisitions in the period. Asphalt volumes and pricing declined 4% and 3%, respectively. Total revenues in Building & Infrastructure Solutions and Outdoor Living Solutions increased by 4% compared to the prior year, with good contributions from acquisitions in the period. Adjusted EBITDA in International Solutions was 23% ahead of the comparable period in 2024, with contributions from acquisitions, pricing progress and operational efficiencies driving improvements. Adjusted EBITDA margin increased by 140bps compared to the prior year. CRH Form 10-Q 32 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 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: Three months ended Six months ended June 30 June 30 in $ millions 2025 2024 2025 2024 Net income 1,332 1,309 1,234 1,423 (Income) loss from equity method investments (1) (6) 9 (2) Income tax expense 425 430 367 411 Loss (gain) on divestitures and investments (i) 16 (23) 42 (183) Pension income excluding current service cost component (i) (5) (1) (9) (2) Other interest, net (i) (2) 1 (4) 1 Interest expense 200 155 381 288 Interest income (30) (36) (67) (79) Depreciation, depletion and amortization 528 424 1,005 821 Substantial acquisition-related costs (ii) – 2 – 22 Adjusted EBITDA 2,463 2,255 2,958 2,700 Total revenues 10,206 9,654 16,962 16,187 Net income margin 13.1% 13.6% 7.3% 8.8% Adjusted EBITDA margin 24.1% 23.4% 17.4% 16.7% (i) Loss (gain) on divestitures and investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating (expense) 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 3 “Acquisitions” of the unaudited financial statements. Expenses in the second quarter of 2024, primarily include legal and consulting expenses related to these non-routine substantial acquisitions. Net Debt: Net Debt is used by management as it gives additional insight into the Company’s current debt position less available cash. Net Debt is provided to enable investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. Net Debt comprises short and long-term debt, finance lease liabilities, cash and cash equivalents and current and noncurrent derivative financial instruments (net). Reconciliation to its nearest GAAP measure is presented below : June 30 December 31 June 30 in $ millions 2025 2024 2024 Short and long-term debt (15,813) (13,968) (13,118) Cash and cash equivalents (i) 2,876 3,720 3,077 Finance lease liabilities (442) (257) (147) Derivative financial instruments (net) (27) (27) (91) Net Debt (13,406) (10,532) (10,279) (i) Cash and cash equivalents include cash and cash equivalents reclassified as held for sale of $11 million at June 30, 2024. CRH Form 10-Q 33 Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total spend on acquisitions and investments of $0.6 billion in the six months ended June 30, 2025, compared with $2.5 billion for the same period in 2024. Acquisitions completed in 2024 and the first six months of 2025 contributed incremental total revenues of $0.7 billion and Adjusted EBITDA of $0.1 billion for the three months ended June 30, 2025 and total revenues of $1.3 billion and Adjusted EBITDA of $0.2 billion for the six months ended June 30, 2025. Cash proceeds from divestitures and disposals of long-lived assets amounted to $0.1 billion for the six months ended June 30, 2025, compared with $1.0 billion for the six months ended June 30, 2024. The total revenues impact of divestitures was a negative $0.1 billion and the impact at an Adjusted EBITDA level was a positive $3 million for the three months ended June 30, 2025. The total revenues impact of divestitures was a negative $0.2 billion and the impact at an Adjusted EBITDA level was a negative $8 million for the six months ended June 30, 2025. The U.S. Dollar weakened against most major currencies during the three months ended June 30, 2025, from the comparable period in 2024, 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 currency 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 26 to 27, 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 uncommitted U.S. Dollar and Euro Commercial Paper Programs, and committed credit lines, is expected to be sufficient to meet the Company’s working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities, and other liquidity requirements associated with our operations for the foreseeable future. In addition, the Company believes that it will have the ability to fund additional acquisitions via cash flows from internally available cash, cash flows from operating activities and, subject to market conditions, via obtaining additional borrowings and/or issuing additional debt or equity securities. Total short and long-term debt was $15.8 billion at June 30, 2025, compared to $14.0 billion at December 31, 2024, and $13.1 billion at June 30, 2024. In January 2025, wholly-owned subsidiaries of the Company completed the issuance of $1.25 billion 5.125% Senior Notes due 2030, $1.25 billion 5.500% Senior Notes due 2035, and $0.5 billion 5.875% Senior Notes due 2055. In the six months ended June 30, 2025, $0.3 billion of Euro Commercial Paper was repaid, and the $1.25 billion Senior Notes due 2025 were repaid on maturity in May. Net Debt* * at June 30, 2025, was $13.4 billion, compared to $10.5 billion at December 31, 2024, and $10.3 billion at June 30, 2024. The increase in Net Debt* compared to December 31, 2024, reflects cash returns to shareholders through continued share buybacks and dividends, acquisitions, as well as the purchase of property, plant and equipment partially offset by inflows from operating activities. CRH continued its ongoing share buyback program in the first six months of 2025 repurchasing approximately 6.9 million Ordinary Shares for a total consideration of $0.6 billion, and the Company is commencing an additional $0.3 billion tranche to be completed no later t ha n November 5, 2025. The Company also made cash dividend payment s of $ 0.5 billion in the first six months of 2025. At June 30, 2025, CRH had cash and cash equivalents and restricted cash of $2.9 billion, compared to $3.8 billion at December 31, 2024, and $3.9 billion at June 30, 2024. Total lease liabilities were $1.8 billion, compared to $1.6 billion at December 31, 2024, and $1.5 billion at June 30, 2024. At June 30, 2025, CRH had $4.2 billion of undrawn committed facilities, $4.1 billion of which was available until May 2030. During April 2025, the Company exercised a second one-year extension option on $4.1 billion of the undrawn committed facilities extending the maturity date to May 2030. At June 30, 2025, the weighted average maturity of the term debt (net of cash and cash equivalents) was 8.1 years. 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 2024 Form 10-K. Cash flows Cash flows from operating activities Six months ended June 30 in $ millions 2025 2024 Net cash provided by operating activities 719 773 Net cash provided by operating activities was $0.7 billion for the six months ended June 30, 2025, a decrease of $54 million, compared to the same period in 2024. The decrease in net cash provided by operating activities was primarily due to higher outflows related to working capital investments. *Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 33 to 34. * CRH Form 10-Q 34 Cash flows from investing activities Six months ended June 30 in $ millions 2025 2024 Net cash used in investing activities (1,795) (2,617) Net cash used in investing activities was $1.8 billion for the six months ended June 30, 2025, compared to $2.6 billion in the same period for 2024, a decrease of $0.8 billion. During the six months ended June 30, 2025, the Company invested $0.6 billion in acquisitions, a decrease of $1.9 billion on the same period in 2024. Capital expenditure totaled $1.3 billion in the first half of 2025, resulting in an increased outflow of $0.2 billion versus the comparable prior year period. These outflows were partially offset by $0.1 billion proceeds from divestitures and disposals of long-lived assets and other investing activities, compared to $1.1 billion in the prior year. Cash flows from financing activities Six months ended June 30 in $ millions 2025 2024 Net cash used in financing activities (12) (515) Net cash used in financing activities was $12 million for the six months ended June 30, 2025, compared to $515 million in the same period in 2024, a decrease of $503 million. Proceeds from debt issuances were $4.5 billion, which was primarily related to the issuance of $3.0 billion in new senior notes in January 2025 and the issuance of $1.5 billion of commercial paper, an increase of $1.2 billion on the same period in 2024. Payments on debt in the first six months of 2025 were $3.4 billion, being the repayment of $2.1 billion issued under the Company’s commercial paper programs and the repayment of a $1.25 billion bond on maturity in May 2025. This compared with a repayment of $1.7 billion in the prior year comparable period, which related to the repayment of a euro-denominated bond on maturity in January 2024 as well as the repayment of $1.0 billion issued under the Company’s commercial paper programs. Dividends paid for the first six months of 2025 were $0.5 billion compared to $1.2 billion in the same period in the prior year. A second interim dividend for 2023 was paid in Q1 2024 which was not repeated in Q1 2025 as the Company moved to quarterly dividends in 2024. Outflows related to the repurchases of common stock were $0.6 billion in the first six months of 2025 compared to $0.9 billion for the same period in 2024. Debt Facilities The following section summarizes our debt facilities and long-term debt obligations. The following description is only a summary, does not purport to be complete and is qualified in its entirety by reference to the documents governing such indebtedness (available in the Investors section on www.crh.com ). At June 30, 2025, we expect maturities for the next two quarters as follows: 2025 Debt Maturities Third Quarter $1.1 billion Fourth Quarter - Unsecured Senior Notes The main sources of Company debt funding are public bond markets in North America and Europe. See Note 8 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding our debt obligations. In January 2025, wholly-owned subsidiaries of the Company completed the issuance of $1.25 billion 5.125% Senior Notes due 2030, $1.25 billion 5.500% Senior Notes due 2035, and $0.5 billion 5.875% Senior Notes due 2055. In May 2025, $1.25 billion 3.875% Senior Notes due 2025 were repaid on maturity. Bank Credit Facilities The Company manages its borrowing ability by entering into committed borrowing agreements. The Company has a multi-currency RCF, dated May 2023, which is made available from a syndicate of lenders, consisting of a €3.5 billion unsecured, revolving loan facility. During April 2025, the Company completed a one-year extension option on the undrawn committed facilities extending the maturity date to May 2030. See Note 8 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding the RCF. At June 30, 2025, the RCF was undrawn. In December 2024, the Company entered into a new $750 million two-year fixed rate term loan facility which was fully drawn. Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $14.9 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 June 30, 2025. Commercial Paper Programs As at June 30, 2025, the Company had 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 at June 30, 2025, there was $1.0 billion of outstanding notes issued under the U.S. Dollar Commercial Paper Program and - no outstanding notes issued under 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. CRH Form 10-Q 35 Credit Ratings 1 * Our credit ratings and the ratings outlooks at June 30, 2025, 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 June 30, 2025, 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) 15,886 1,185 4,452 4,216 6,033 Lease liabilities (ii) 2,321 350 662 354 955 Estimated interest payments on contractually committed debt (iii) 5,355 633 1,112 839 2,771 Deferred and contingent acquisition consideration 51 31 16 3 1 Purchase obligations (iv) 2,266 1,291 614 114 247 Retirement benefit obligation commitments (v) 18 3 6 4 5 Total (vi) 25,897 3,493 6,862 5,530 10,012 (i) Of the $15.9 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. (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. Supplemental Guarantor Information Guarantor Financial Information As of June 30, 2025, CRH plc (the 'Guarantor') has fully and unconditionally guaranteed: (1) $750 million of 5.200% Senior Notes due 2029 (the '5.200% Notes') and $1,250 million of 5.125% Senior Notes due 2030 (the '5.125% Notes'), each issued by CRH SMW Finance Designated Activity Company (‘SMW Finance’); (2) $300 million of 6.400% Senior Notes due 2033 (i) (the '6.400% Notes') issued by CRH America, Inc. (‘CRH America’); and (3) $750 million of 5.400% Senior Notes due 2034 (the '5.400% Notes'), $1,250 million of 5.500% Senior Notes due 2035 (the '5.500% Notes') and $500 million of 5.875% Senior Notes due 2055 (the '5.875% Notes'), each issued by CRH America Finance, Inc. (‘America Finance’). Together, the 5.200% Notes, the 5.125% Notes, the 6.400% Notes, the 5.400% Notes, the 5.500% Notes and the 5.875% Notes are referred to in this Supplemental Guarantor Information as the 'Notes', and together, SMW Finance, CRH America and CRH America Finance are referred to in this Supplemental Guarantor Information as 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. CRH America is an indirect wholly-owned finance subsidiary of CRH plc incorporated under the laws of the State of Delaware and is a holding company for certain of CRH's U.S. operating companies as well as a financing vehicle for the Company. 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. 1 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. * CRH Form 10-Q 36 Basis of Presentation The following summarized financial information reflects, on a combined basis, the Balance Sheet as of June 30, 2025, and as of December 31, 2024, and the Income Statement for the six months ended June 30, 2025, and 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 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 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 Six months ended June 30, 2025 Year ended December 31, 2024 Income from operations before income tax benefit and income from equity method investments (i) 3,433 1,051 - of which relates to transactions with non-obligor subsidiaries 3,375 1,183 Net income – all of which is attributable to equity holders of the Company 3,432 1,050 - of which relates to transactions with non-obligor subsidiaries 3,375 1,183 (i) Revenues and gross profit for the Obligor Group for the six months ended June 30, 2025 and for the year ended December 31, 2024 amounted to $nil million and $nil million, respectively. The summarized Balance Sheet information is as follows: June 30 December 31 2025 2024 Current assets 767 610 Current assets – of which is due from non-obligor subsidiaries 506 307 Noncurrent assets 2,228 3,446 Noncurrent assets – of which is due from non-obligor subsidiaries 2,228 3,446 Current liabilities 2,090 4,145 Current liabilities – of which is due to non-obligor subsidiaries 2,083 2,890 Noncurrent liabilities 745 758 Critical Accounting Policies and Estimates There have been no material changes during the three months ended June 30, 2025, to our critical accounting policies and/or estimates disclosed in our 2024 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 at 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. CRH Form 10-Q 37