10-QPeriod: Q2 FY2024

CRH PUBLIC LTD CO Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 8, 2024For Securities:CRH

Summary

CRH plc reported mixed results for the second quarter and first half of 2024. While total revenues saw a slight decrease of 1% to $9.7 billion for the quarter and remained flat at $16.2 billion for the first six months compared to the prior year, the company demonstrated improved profitability. Net income rose by 8% to $1.3 billion for the quarter and by 20% to $1.4 billion for the first six months. This profitability improvement was driven by strong Adjusted EBITDA growth, up 12% to $2.3 billion for the quarter and 13% to $2.7 billion for the first six months, alongside margin expansion. The company raised its full-year 2024 guidance, reflecting confidence in its operational momentum and the positive impact of recent acquisitions and divestitures. Strategic acquisitions, particularly a significant cement and readymixed concrete portfolio in Texas, contributed $2.6 billion in consideration for the first half of the year, a substantial increase from $0.2 billion in the prior year. Divestitures, notably the European Lime operations, generated $1.1 billion in cash proceeds. CRH also continued to return capital to shareholders through dividends, totaling $1.2 billion for the first six months, and share buybacks amounting to $0.7 billion. The company's financial position remains solid, with $3.9 billion in cash and cash equivalents at quarter-end and an undrawn committed facility of $3.7 billion.

Financial Highlights

56 data points
Beta

Revenue

$9.65B

38.1% Gross Margin

Net Income

$1.30B

13.4% Net Margin

EPS (Diluted)

$1.88

Total Assets

$48.10B

Cash & Equivalents

$3.07B

Free Cash Flow

$861.00M

Financial Statements
Beta
Revenue$9.65B
Cost of Revenue$5.98B
Gross Profit$3.67B
SG&A Expenses$1.95B
Operating Income$1.83B
Interest Expense$155.00M
Net Income$1.30B
EPS (Basic)$1.89
EPS (Diluted)$1.88
Shares Outstanding (Basic)685.50M
Shares Outstanding (Diluted)688.80M

Key Highlights

  • 1Net income increased by 8% to $1.3 billion for the three months ended June 30, 2024, and by 20% to $1.4 billion for the six months ended June 30, 2024, compared to the prior year periods.
  • 2Adjusted EBITDA grew by 12% to $2.3 billion for the quarter and by 13% to $2.7 billion for the six months, indicating strong operational performance and margin expansion.
  • 3The company completed 16 acquisitions for a total consideration of $2.6 billion in the first half of 2024, a significant increase from $0.2 billion in the same period last year, including a large Texas-based cement and concrete business.
  • 4Divestitures, primarily the European Lime operations, generated $1.1 billion in cash proceeds for the first six months of 2024.
  • 5CRH raised its full-year 2024 guidance, demonstrating confidence in continued growth driven by infrastructure activity in North America and market demand in Europe.
  • 6Capital returned to shareholders through dividends totaled $1.2 billion and share buybacks amounted to $0.7 billion in the first six months of 2024.
  • 7Total revenues decreased slightly by 1% to $9.7 billion for the quarter and were flat at $16.2 billion for the six months, impacted by lower volumes due to weather and divestitures, partially offset by pricing and acquisitions.

Frequently Asked Questions

For the second quarter of 2024, CRH reported total revenues of $9.7 billion, a 1% decrease year-over-year. However, net income increased by 8% to $1.3 billion, driven by a 12% rise in Adjusted EBITDA to $2.3 billion. For the first six months of 2024, total revenues were flat at $16.2 billion, while net income grew by 20% to $1.4 billion and Adjusted EBITDA increased by 13% to $2.7 billion.

CRH significantly ramped up its acquisition activity, completing 16 acquisitions for $2.6 billion in the first half of 2024, including a major acquisition in Texas. These acquisitions contributed to revenue and EBITDA growth. Divestitures, such as the European Lime operations, generated $1.1 billion in cash proceeds, impacting revenue but streamlining the portfolio. The company raised its full-year guidance, indicating a positive outlook partly due to these strategic portfolio actions.

CRH returned $1.2 billion to shareholders through dividends and $0.7 billion through share repurchases in the first six months of 2024. The company transitioned to quarterly dividends in the first quarter of 2024 and has announced a further tranche to its share buyback program.

CRH raised its 2024 guidance due to strong financial performance and positive underlying momentum. The company expects continued infrastructure activity in North America and good demand in infrastructure and non-residential markets in Europe. While residential construction is expected to remain subdued, CRH anticipates delivering another record year, assuming normal seasonal weather patterns and a stable macroeconomic environment.