Building materials supplier CRH reported solid profits growth during a typically quiet period for the firm, leading to a 3.9% increase in its share price on the London Stock Exchange. Revenues for the Dublin-based company rose by 2% to $6.5 billion in the March quarter, with adjusted EBITDA increasing by 15% to $445 million. CRH attributed this growth to early-season project activity and favorable weather in certain North American regions, as well as positive pricing momentum and contributions from acquisitions.
The firm’s adjusted EBITDA margin improved by 60 basis points year-on-year, reaching 6.8%. Despite lower volumes in Europe, CRH announced plans to pay a dividend of 35 US cents per share for the January to March period, representing a 5% annualised increase. Additionally, the company plans to repurchase $300 million worth of shares by August 7, adding to the $600 million already bought back this year. Since starting its share buyback program six years ago, CRH has repurchased a total of $7.6 billion worth of shares.
CRH confirmed its guidance to deliver adjusted EBITDA between $6.55 billion and $6.85 billion in 2024, citing a favorable market backdrop and continued positive pricing momentum. The company expects its North American operations to benefit from significant infrastructure activity and increased investment in key non-residential segments, while also anticipating good underlying demand in European infrastructure and non-residential markets. However, CRH predicts that near-term residential construction will remain subdued across its markets.
CRH CEO Albert Manifold expressed satisfaction with the company’s performance in the seasonally least significant period, attributing it to a strong balance sheet and efficient capital allocation. Analyst Adam Vettese of eToro highlighted the positive news for CRH investors as revenues increase during what is usually a slower quarter for the company. Increased share buybacks and a higher dividend are expected to further boost investor confidence, with shares already enjoying a nearly 20% increase this year. Royston Wild, a shareholder in CRH, may also benefit from the company’s positive outlook and strong performance expectations moving forward.
