Crh Public Ltd Co (CRH) Stock Analysis and Metrics

Crh Public

NYSE: CRH

$99.84 ▲ +1.82 (+1.86%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap68.97 Bn

P/E17.78

P/S1.81

Div. Yield0.00

ROIC (Qtr)0.01

Total Debt (Qtr)18.55 Bn

Revenue Growth (1y) (Qtr)9.09

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About

CRH is a leading provider of building materials essential to modern infrastructure, operating across North America, Europe, and Australia. The company extracts and processes raw materials such as aggregates and cement, manufactures ready mixed concrete, asphalt and value added building products, and offers paving and construction services. Its operations span quarries, plants and distribution networks that supply materials for a wide range of construction projects. CRH’s scale and connected portfolio enable it to serve customers throughout the construction value chain.

CRH generates revenue primarily from the sale of aggregates, cement, ready mixed concrete, asphalt and related building products, as well as from paving and construction services. In 2025, total revenues reached $37.4 billion, with 40% derived from infrastructure projects, 32% from residential construction, and 28% from non residential construction. Revenue from new build activity accounted for 60% of the total, while repair and remodel work contributed the remaining 40%. The company also reports adjusted EBITDA of $7.7 billion, and net income of $3.8 billion for the same year. These figures reflect the broad demand for CRH’s materials across both public and private sector construction.

For the year ended December 31, 2025, CRH was organized through three reportable segments. The Americas Division comprises two segments: Americas Materials Solutions, and Americas Building Solutions. The International Division consists of a single segment: International Solutions.

• Americas Materials Solutions: This segment manufactures and supplies aggregates, cementitious materials, ready mixed concrete, and asphalt, and provides paving and construction services for public and private infrastructure, commercial and industrial applications, and residential buildings in North America.

• Americas Building Solutions: This segment manufactures and supplies high value building products that connect and protect critical infrastructure, serving transportation, water, energy, and telecommunications projects, reindustrialization activity, and outdoor living solutions in North America.

• International Solutions: This segment provides building materials, products, and services for transportation infrastructure, critical utility networks, commercial and residential buildings, and outdoor living spaces across Europe and Australia.

CRH holds market leadership positions in many of the construction markets it serves across North America, Europe, and Australia. The company benefits from its unmatched scale, extensive network of quarries and plants, and a connected portfolio that integrates essential materials with value added products. Its competitive advantages include deep local relationships, a strong entrepreneurial culture, and a focus on innovation and sustainability. CRH’s ability to replicate successful operating models across geographies allows it to capture synergies from acquisitions and drive consistent performance. While the construction industry remains fragmented, CRH’s size and diversified end market exposure provide a resilient platform for growth.

CRH serves a diverse customer base that includes national, regional, and local governments, contractors, and other construction product and service providers. In the infrastructure sector, its customers are primarily departments of transportation, municipal agencies, and public works authorities. For residential and non residential construction, the company supplies builders, developers, and trade contractors. CRH also serves residential homeowners, and do it yourselfers through its outdoor living, and building products lines. Across all markets, the company’s value added services, and technical support help strengthen long term partnerships.

Investment Thesis

▲ Bull case

The agreement to acquire Axios Water for approximately $700,000,000 provides a strategic entry into the fast growing water quality and nutrient removal market which is supported by strong public funding and a fragmented competitive landscape. This acquisition aligns with CRH’s existing water platform where over eighty% of produced volumes consume aggregates and cementitious materials creating natural cross selling opportunities. Management highlighted that integration will generate commercial operational and self supply synergies that could exceed the historical two to two and half times reduction in entry multiple seen with prior deals. Given the company’s proven track record of delivering synergies ahead of expectations with Hunter Cement Plant and EcoMaterial the Axios deal may unlock additional earnings upside that is not fully reflected in the current guidance range.
Management estimates approximately $40,000,000,000 of financial capacity over the next five years to fund growth investments and deliver further shareholder returns which indicates substantial dry powder for accretive acquisitions and increased buybacks. This capacity is supported by a strong balance sheet and consistent cash generation that has allowed the company to return $400,000,000 via buybacks year to date and launch a new $300,000,000 tranche targeting completion by July twenty eight two thousand twenty six. The ability to deploy capital across four connected platforms aggregates cementitious roads and water provides multiple avenues to capture growth from infrastructure megatrends while maintaining a variable cost base. Such financial flexibility positions CRH to continue outperforming peers even if organic growth moderates.
The winter fill program stores off season approximately half of annual liquid requirements giving the company a procurement advantage by securing volumes and locking in costs before the peak construction season begins. This off season storage also ensures supply certainty for roads operations where the paving window runs roughly from early spring to late autumn. Management noted that the program has been well executed this year positioning the roads business for another strong year of growth in two thousand twenty six. By insulating the business from spot market volatility in liquid asphalt and related inputs the program supports margin expansion even amid mid single digit cost inflation in labor raw materials maintenance and subcontractors.
Approximately 50% of the Infrastructure Investment and Jobs Act highway funds remain undistributed providing a substantial pipeline of future projects that will support demand for aggregates cementitious and asphalt products. In addition 2,026 U.S. DOT budgets are up 6% versus the prior year indicating continued fiscal commitment at the state level. Management highlighted that weekly bidding quantum continues to grow and backlogs are improving year over year which reflects increasing confidence in project awards. This combination of federal and state funding creates a multi year visibility for revenue streams that is less dependent on residential new build cycles.
Recent integration results show that the Hunter Cement Plant in Texas delivered synergies well ahead of original expectations driven by operational improvements increased self supply and logistics optimization. Similarly the 2,025 acquisition of EcoMaterial is performing strongly with early wins on synergy delivery despite being earlier in the integration process. These examples demonstrate CRH’s proven growth capabilities to achieve a two to two and half times reduction in entry multiple on typical deals. The company intends to apply the same disciplined integration playbook to the Axios Water transaction and the broader pipeline of nine acquisitions announced year to date. Successful replication of past synergy performance would enhance earnings beyond the modeled $200,000,000 incremental EBITDA from net M&A activity.

The agreement to acquire Axios Water for approximately $700,000,000 provides a strategic entry into the fast growing water quality and nutrient removal market which is supported by strong public funding and a fragmented competitive landscape. This acquisition aligns with CRH’s existing water platform where over eighty% of produced volumes consume aggregates and cementitious materials creating natural cross selling opportunities. Management highlighted that integration will generate commercial operational and self supply synergies that could exceed the historical two to two and half times reduction in entry multiple seen with prior deals. Given the company’s proven track record of delivering synergies ahead of expectations with Hunter Cement Plant and EcoMaterial the Axios deal may unlock additional earnings upside that is not fully reflected in the current guidance range.
Management estimates approximately $40,000,000,000 of financial capacity over the next five years to fund growth investments and deliver further shareholder returns which indicates substantial dry powder for accretive acquisitions and increased buybacks. This capacity is supported by a strong balance sheet and consistent cash generation that has allowed the company to return $400,000,000 via buybacks year to date and launch a new $300,000,000 tranche targeting completion by July twenty eight two thousand twenty six. The ability to deploy capital across four connected platforms aggregates cementitious roads and water provides multiple avenues to capture growth from infrastructure megatrends while maintaining a variable cost base. Such financial flexibility positions CRH to continue outperforming peers even if organic growth moderates.
The winter fill program stores off season approximately half of annual liquid requirements giving the company a procurement advantage by securing volumes and locking in costs before the peak construction season begins. This off season storage also ensures supply certainty for roads operations where the paving window runs roughly from early spring to late autumn. Management noted that the program has been well executed this year positioning the roads business for another strong year of growth in two thousand twenty six. By insulating the business from spot market volatility in liquid asphalt and related inputs the program supports margin expansion even amid mid single digit cost inflation in labor raw materials maintenance and subcontractors.
Approximately 50% of the Infrastructure Investment and Jobs Act highway funds remain undistributed providing a substantial pipeline of future projects that will support demand for aggregates cementitious and asphalt products. In addition 2,026 U.S. DOT budgets are up 6% versus the prior year indicating continued fiscal commitment at the state level. Management highlighted that weekly bidding quantum continues to grow and backlogs are improving year over year which reflects increasing confidence in project awards. This combination of federal and state funding creates a multi year visibility for revenue streams that is less dependent on residential new build cycles.
Recent integration results show that the Hunter Cement Plant in Texas delivered synergies well ahead of original expectations driven by operational improvements increased self supply and logistics optimization. Similarly the 2,025 acquisition of EcoMaterial is performing strongly with early wins on synergy delivery despite being earlier in the integration process. These examples demonstrate CRH’s proven growth capabilities to achieve a two to two and half times reduction in entry multiple on typical deals. The company intends to apply the same disciplined integration playbook to the Axios Water transaction and the broader pipeline of nine acquisitions announced year to date. Successful replication of past synergy performance would enhance earnings beyond the modeled $200,000,000 incremental EBITDA from net M&A activity.

▼ Bear case

The company’s full year guidance for two thousand twenty six is predicated on the assumption of normal seasonal weather patterns for the remainder of the year with no allowance for abnormal precipitation temperature extremes or prolonged drought conditions. Historically adverse weather has suppressed volumes in the Outdoor Living business and can delay paving activity in the Road Solutions segment which together represent a notable portion of revenue. If weather deviates from the norm the company could experience lower than expected volumes in aggregates cementitious and ready mixed concrete which would directly pressure the top line. Given that the Outdoor Living segment already showed a 3% decline in the first quarter due to a delayed season start a repeat or worsening of weather related disruptions could undermine the projected margin expansion.
The planned acquisition of Axios Water for approximately $700,000,000 introduces integration risk that could erode the anticipated synergies if the combined operations fail to align culturally or operationally. Management highlighted potential commercial operational and self supply synergies but did not detail specific milestones or timelines for achieving those benefits. Large acquisitions in the water quality niche have historically faced challenges related to technology integration regulatory compliance and customer retention which could delay or diminish earnings contributions. Should the integration process encounter setbacks the expected $200,000,000 incremental EBITDA from net M&A activity may not be realized affecting the credibility of the guidance range.
Management expects mid single digit inflation across labor raw materials maintenance and subcontractors for two thousand twenty six but acknowledges that energy costs represent about 5% of total annual revenues and are hedged on a nine month rolling basis. If energy prices experience a sustained spike that extends beyond the hedge horizon or if non energy input costs rise faster than the assumed mid single digit rate the company’s ability to pass through increases may be constrained by competitive pressures. In such a scenario gross margins could compress despite the winter fill program and disciplined commercial execution which rely on the ability to recover higher input costs through price adjustments. The company did not quantify the potential impact of a higher inflation environment on earnings leaving investors exposed to an unquantified downside risk.
The Outdoor Living segment recorded a 3% decline in the first quarter of two thousand twenty six primarily because of a delayed season start linked to adverse weather conditions which also points to underlying sensitivity to seasonal timing. Management noted that residential repair and remodel demand remains resilient but new build activity continues to be subdued due to ongoing affordability challenges in the housing market. A prolonged weakness in new home construction would limit growth opportunities for the Building and Infrastructure solutions business which relies on both repair remodel and new build volumes. Since the company’s guidance does not explicitly factor in a persistent downturn in residential new build the risk of slower than anticipated growth in these segments is not fully priced into the current outlook.
While approximately 50% of Infrastructure Investment and Jobs Act highway funds remain undistributed providing a future project pipeline the actual timing of disbursement is contingent on congressional approval and could be delayed by a continuing resolution or partisan gridlock. Management expressed optimism about a meaningful step up in investment later in the year but did not provide concrete contingency plans should federal funding stall beyond the current expectations. A delay in the release of IIJA dollars would slow the conversion of backlog into revenue especially for the Road Solutions and Americas Material Solutions businesses which depend heavily on public infrastructure spending. Such a delay could translate into lower than anticipated volume growth and earnings pressure that is not captured in the reaffirmed guidance for 2,026.

The company’s full year guidance for two thousand twenty six is predicated on the assumption of normal seasonal weather patterns for the remainder of the year with no allowance for abnormal precipitation temperature extremes or prolonged drought conditions. Historically adverse weather has suppressed volumes in the Outdoor Living business and can delay paving activity in the Road Solutions segment which together represent a notable portion of revenue. If weather deviates from the norm the company could experience lower than expected volumes in aggregates cementitious and ready mixed concrete which would directly pressure the top line. Given that the Outdoor Living segment already showed a 3% decline in the first quarter due to a delayed season start a repeat or worsening of weather related disruptions could undermine the projected margin expansion.
The planned acquisition of Axios Water for approximately $700,000,000 introduces integration risk that could erode the anticipated synergies if the combined operations fail to align culturally or operationally. Management highlighted potential commercial operational and self supply synergies but did not detail specific milestones or timelines for achieving those benefits. Large acquisitions in the water quality niche have historically faced challenges related to technology integration regulatory compliance and customer retention which could delay or diminish earnings contributions. Should the integration process encounter setbacks the expected $200,000,000 incremental EBITDA from net M&A activity may not be realized affecting the credibility of the guidance range.
Management expects mid single digit inflation across labor raw materials maintenance and subcontractors for two thousand twenty six but acknowledges that energy costs represent about 5% of total annual revenues and are hedged on a nine month rolling basis. If energy prices experience a sustained spike that extends beyond the hedge horizon or if non energy input costs rise faster than the assumed mid single digit rate the company’s ability to pass through increases may be constrained by competitive pressures. In such a scenario gross margins could compress despite the winter fill program and disciplined commercial execution which rely on the ability to recover higher input costs through price adjustments. The company did not quantify the potential impact of a higher inflation environment on earnings leaving investors exposed to an unquantified downside risk.
The Outdoor Living segment recorded a 3% decline in the first quarter of two thousand twenty six primarily because of a delayed season start linked to adverse weather conditions which also points to underlying sensitivity to seasonal timing. Management noted that residential repair and remodel demand remains resilient but new build activity continues to be subdued due to ongoing affordability challenges in the housing market. A prolonged weakness in new home construction would limit growth opportunities for the Building and Infrastructure solutions business which relies on both repair remodel and new build volumes. Since the company’s guidance does not explicitly factor in a persistent downturn in residential new build the risk of slower than anticipated growth in these segments is not fully priced into the current outlook.
While approximately 50% of Infrastructure Investment and Jobs Act highway funds remain undistributed providing a future project pipeline the actual timing of disbursement is contingent on congressional approval and could be delayed by a continuing resolution or partisan gridlock. Management expressed optimism about a meaningful step up in investment later in the year but did not provide concrete contingency plans should federal funding stall beyond the current expectations. A delay in the release of IIJA dollars would slow the conversion of backlog into revenue especially for the Road Solutions and Americas Material Solutions businesses which depend heavily on public infrastructure spending. Such a delay could translate into lower than anticipated volume growth and earnings pressure that is not captured in the reaffirmed guidance for 2,026.

Peer Comparison

Companies in the Building Materials

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	CRH	Crh Public Ltd Co	68.97 Bn	17.78	1.81	18.55 Bn
2	VMC	Vulcan Materials CO	35.82 Bn	-7,811.03	4.44	4.36 Bn
3	MLM	Martin Marietta Materials Inc	32.98 Bn	17.72	5.19	5.29 Bn
4	AMRZ	Amrize Ltd	26.73 Bn	23.45	2.24	5.71 Bn
5	CX	Cemex Sab De Cv	17.67 Bn	1,167.37	1.07	-
6	JHX	James Hardie Industries plc	14.97 Bn	134.62	3.10	4.58 Bn
7	EXP	Eagle Materials Inc	6.47 Bn	15.49	2.80	1.76 Bn
8	KNF	Knife River Corp	4.40 Bn	30.02	1.37	1.43 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

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Investment Thesis

Segments Breakdown of Revenue (2025)

Peer Comparison

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