CRH — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for Q3 2026 were $11.4 billion, a 3% increase year-over-year (YoY) from $11.1 billion in Q3 2025, driven by positive pricing momentum, resilient demand, and acquisitions.
• Net income for Q3 2026 was $1.2 billion, a 22% decrease YoY from $1.5 billion in Q3 2025, primarily impacted by a $178 million loss on impairments.
• Adjusted EBITDA for Q3 2026 was $2.7 billion, flat YoY compared to $2.7 billion in Q3 2025.
• Net income margin was 10.4% in Q3 2026, down from 13.7% in Q3 2025.
• Adjusted EBITDA margin was 23.5% in Q3 2026, down from 24.3% in Q3 2025.
• Diluted EPS was $1.86 in Q3 2026, a 16% decrease YoY from $2.21; Diluted EPS pre-impairment was $2.09, an 8% decrease YoY.
• For the nine months ended September 30, 2026, total revenues were $29.5 billion (+5% YoY) and net income was $2.5 billion (-9% YoY).
• Adjusted EBITDA for the nine months ended September 30, 2026, was $5.9 billion (+4% YoY).
• Depreciation, depletion, and amortization charges were $555 million in Q3 2026, $6 million lower than the prior year.
• Interest expense was $209 million in Q3 2026, in line with Q3 2025.
• Income tax expense was $494 million in Q3 2026, higher than the prior year due to a higher effective tax rate.
• Total short and long-term debt was $19.6 billion as of September 30, 2026, compared to $17.7 billion at December 31, 2025.
• Net Debt was $15.0 billion as of September 30, 2026, compared to $14.2 billion at December 31, 2025.
• Cash and cash equivalents were $5.1 billion as of September 30, 2026.

Guidance and Future Outlook:

• Revised full-year 2026 Net Income guidance to $3.1 billion–$3.3 billion (previously $3.9 billion–$4.1 billion).
• Revised full-year 2026 Adjusted EBITDA guidance to $7.8 billion–$8.0 billion (previously $8.1 billion–$8.5 billion).
• Revised full-year 2026 Diluted EPS guidance to $4.63–$4.85 (previously $5.60–$6.05).
• Revised full-year 2026 Capital Expenditure guidance to $2.6 billion–$2.8 billion (previously $2.7 billion–$2.9 billion).
• 2027 outlook is positive across key end-markets, underpinned by superior strategy, connected portfolio, and strong balance sheet.
• Expect favorable underlying demand across key end-markets due to significant public investment in infrastructure and continued reindustrialization activity.
• Expect the residential end-market to remain weak in the near-term.
• Velocity transformation initiative expected to deliver $400 million in annual run-rate benefits by the end of 2028.
• Velocity program expected to result in total non-routine costs of approximately $400 million.

Business Segments and Product Lines:

• Americas Materials Solutions: Total revenues increased 6% YoY, driven by positive pricing in aggregates and asphalt, strong project demand, and acquisitions. Adjusted EBITDA increased 1% YoY.
• Americas Building Solutions: Total revenues decreased 3% YoY, as strong utility infrastructure and data center activity were offset by subdued residential demand and divestitures. Adjusted EBITDA declined 18% YoY due to the non-recurrence of a prior year land asset gain and cost inflation.
• International Solutions: Total revenues increased 1% YoY, driven by positive pricing, increased activity in certain markets, and acquisitions. Adjusted EBITDA increased 6% YoY.
• Velocity: Launched in Q3 2026 to simplify operating models, leverage technology and data, and increase agility. $49 million in non-routine transformation-related costs recognized YTD 2026.
• Acquisitions: Completed nine acquisitions in Q3 2026 for $0.5 billion. Completed the $8.5 billion acquisition of Arcosa on October 23, 2026.
• Divestitures: Realized $0.1 billion in proceeds from divestitures and disposals in Q3 2026, in line with the prior year period.

Market and Competitive Landscape:

• CRH reinforced its position as the leading aggregates and critical infrastructure player in North America following the Arcosa acquisition.
• Engineered Structures business holds a strong market position supported by infrastructure megatrends, grid modernization, electrification, and data center construction.
• The company operates in a challenging and volatile inflationary cost backdrop.
• Positive pricing momentum was observed across aggregates, asphalt, and cement in various segments.

Risks and Challenges:

• Residential activity remains subdued and is expected to remain weak in the near-term.
• Inflationary cost pressures and cost inflation impacted margins.
• A $178 million loss on impairments was recorded in Q3 2026, related to the Philippines reporting unit within International Solutions.
• Risks include economic conditions, interest rates, labor/material shortages, adverse weather, geopolitical conflicts, and potential failure to integrate Arcosa or realize Velocity benefits.
• Indebtedness incurred to finance the Arcosa Acquisition and its effect on financial condition.

Management Commentary and Tone:

• CEO Jim Mintern stated the team delivered a resilient Q3 performance reflecting disciplined commercial execution and positive underlying demand despite a challenging cost environment.
• Management highlighted the completion of the Arcosa acquisition as reinforcing their position as the leader in U.S. aggregates.
• Management expressed confidence in the company's significant cash generation capabilities and robust balance sheet.
• The tone regarding the Velocity initiative is forward-looking, aiming to accelerate the delivery of expanded margins.

Other Key Points:

• Announced a new share buyback program of up to $6 billion, expiring at the end of 2030.
• Announced a quarterly dividend of $0.39 per share, a 5% increase year-over-year, payable December 9, 2026.
• Repurchased approximately 0.8 million ordinary shares for $0.1 billion in Q3 2026; total repurchases YTD 2026 were $0.7 billion.
• The Arcosa acquisition was financed with proceeds from a $2.5 billion term loan facility, a $3.3 billion bridge facility, and cash on hand.
• $4.5 billion of undrawn committed facilities were available as of September 30, 2026.
• CRH remains committed to maintaining a strong investment-grade credit rating.