In This Article:
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Total Revenue: $35.6 billion, 2% increase from the prior year.
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Adjusted EBITDA: $6.9 billion, 12% increase from the prior year.
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Margin Expansion: 180 basis points improvement.
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Earnings Per Share (EPS): Increased by 18% from the prior year.
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Net Debt: $10.5 billion at year-end, with a net debt to adjusted EBITDA ratio of 1.5 times.
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Capital Expenditure: $2.6 billion invested for growth.
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Acquisitions: $5 billion spent on 40 acquisitions.
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Dividends and Share Buybacks: $3 billion returned to shareholders.
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Quarterly Dividend: $0.37 per share, a 6% increase from the prior year.
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2025 Financial Guidance: Expected adjusted EBITDA between $7.3 billion and $7.7 billion.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CRH PLC (NYSE:CRH) reported an industry-leading performance for 2024, with total full-year revenues of $35.6 billion, a 2% increase from the previous year.
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The company achieved an adjusted EBITDA of $6.9 billion, which is 12% higher than the prior year, along with a 180 basis points margin expansion.
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CRH PLC (NYSE:CRH) completed 40 value-accretive acquisitions in 2024, investing $5 billion, which contributed to their growth and market leadership.
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The company maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 1.5 times, allowing for continued investment and shareholder returns.
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CRH PLC (NYSE:CRH) declared a new quarterly dividend of $0.37 per share, representing an annualized increase of 6%, continuing their track record of over 40 consecutive years of dividend growth.
Negative Points
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The company faced challenging weather conditions in the United States, which impacted activity levels and operations in several regions.
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There was subdued demand in the new build residential segment, affecting the performance of CRH PLC (NYSE:CRH)'s Americas Building Solutions business.
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The company anticipates mid-single-digit cost increases in 2025 due to inflationary pressures in labor, raw materials, and subcontractor costs.
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Currency exchange posed a headwind of $50 million due to a stronger US dollar relative to other currencies.
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CRH PLC (NYSE:CRH) expects a more normal year for land or long-lived asset sales in 2025, which may not match the higher-than-normal sales seen in 2024.
Q & A Highlights
Q: Can you provide additional color on the 2025 outlook in terms of end markets and segments? A: Jim Mintern, CEO, explained that CRH is stepping off a strong 2024 performance with double-digit growth. The positive market backdrop in both the Americas and International markets supports confidence for 2025. In the US, infrastructure is underpinned by state and federal funding, with only one-third of the IIJA funding spent so far. Non-residential construction is supported by onshoring and reindustrialization, while new build residential remains subdued but is expected to improve in the medium to long term. Internationally, infrastructure and non-residential demand remain robust, with signs of improvement in residential activity in Central and Eastern Europe.