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CRH PUBLIC LTD CO 8-K Report, Financial Results (Feb 29, 2024)

Reports
Earnings & Results
Filing Date
Filed February 29, 2024
Period End
February 29, 2024
Security
CRH
In the record · 2016–202610-K810-Q08-K592

CRH filed 8 annual reports (10-K), 0 quarterly reports (10-Q) and 592 current reports (8-K) between 2016 and 2026.

  1. FY2020 annual report10-K · Mar ’21Mar ’21

01—Abstract

Summary

Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.

CRH plc's full-year 2023 results, the first reported under U.S. GAAP and filed alongside its inaugural Form 10-K-era NYSE listing, show a strong year of growth in revenue, profitability and cash generation.

Total revenues rose 7% to $34.9 billiona (organic +3%), income from continuing operations rose 14% to $3.1 billion, and Adjusted EBITDA rose 15% to $6.2 billion, lifting the Adjusted EBITDA margin 120bps to 17.7%. Diluted-basis EPS from continuing operations was $4.36 (up 22%), or $4.65 before a non-cash impairment charge of roughly $0.3 billion, largely tied to the Philippines business. Operating cash flow increased 32% to $5.0 billion.

Growth was driven mainly by price increases across segments, with Americas Materials Solutions and Americas Building Solutions the strongest contributors, while Europe Building Solutions declined on weak residential new-build demand. Capital allocation remained shareholder-friendly. CRH repurchased $3.0 billionb of stock in 2023, completed a $0.3 billion tranche in February 2024, and announced an additional $0.3 billion tranche through May 9, 2024.

The full-year dividend was $1.33c (up 5%), and the company is moving to quarterly payments of $0.35 per share, a 5% annualized increase. Net debt rose to $5.4 billion from $3.9 billion, reflecting the $2.1 billion Texas materials acquisition completed in February 2024 and ongoing buybacks, dividends and capex, while the company says it intends to maintain a BBB+-equivalent investment-grade rating. For 2024, management guided to net income of $3.55–3.80 billion, Adjusted EBITDA of $6.55–6.85 billion, EPS of $5.15–5.45 and capital expenditure of $2.2–2.4 billion.

The outlook assumes continued infrastructure and reindustrialization demand and pricing momentum in North America and Europe, offset by subdued new-build residential activity. Pending items include the Adbri majority acquisition in Australia (about $0.7 billiond) and the phased sale of European lime operations ($1.1 billion total, with the first phase completed in January 2024). Investors should note that the 2024 guidance implies a meaningful step-up in EBITDA and EPS, that the results are the first presented under U.S. GAAP so year-over-year comparisons carry reconciliation nuances, and that reported figures are subject to the risks listed in the forward-looking statements disclaimer.

02—Key points

Key Highlights

  1. Total revenues up 7% to $34.9bn (organic +3%); Adjusted EBITDA up 15% to $6.2bn with margin expanding 120bps to 17.7%.
  2. Diluted-basis EPS from continuing operations of $4.36 (+22%), or $4.65 pre-impairment (+30%), after roughly $0.36bn of impairment charges, mainly in the Philippines and Europe Materials Solutions.
  3. Operating cash flow rose 32% to $5.0bn, while net debt increased to $5.4bn from $3.9bn after the Texas acquisition and shareholder returns.
  4. Returned about $4.0bn in 2023 via $3.0bn of buybacks and $0.9bn of dividends; a further $0.3bn buyback tranche runs through May 9, 2024.
  5. Quarterly dividend set at $0.35 per share (5% annualized increase), with the first payment on April 17, 2024 and ex-dividend date March 14, 2024.
  6. 2024 guidance: net income $3.55–3.80bn, Adjusted EBITDA $6.55–6.85bn, EPS $5.15–5.45, capex $2.2–2.4bn.
  7. Strategic moves include the $2.1bn Texas materials acquisition (completed February 2024), the pending ~$0.7bn Adbri majority stake in Australia, and the $1.1bn European lime divestiture, with phased completion.

03—Questions

Frequently Asked Questions

  1. How did CRH perform in 2023 compared with 2022?

    CRH grew total revenues 7% to $34.9 billion and Adjusted EBITDA 15% to $6.2 billion, with income from continuing operations up 14% to $3.1 billion. Growth was driven largely by pricing, with organic revenue up 3% overall. Americas segments led results, while Europe Building Solutions declined due to weak residential new-build activity.

  2. Why did EPS differ between reported and pre-impairment figures?

    Reported EPS from continuing operations was $4.36. Excluding a non-cash impairment loss of about $224 million on property, plant and equipment and intangible assets (net of a $9 million tax effect), EPS was $4.65. The company also recorded total impairment losses of $357 million, including $0.1 billion tied to assets held for sale.

  3. What is CRH's capital return policy and outlook?

    CRH repurchased $3.0 billion of shares in 2023 and extended its buyback with an additional $0.3 billion tranche through May 9, 2024. It is moving to quarterly dividends of $0.35 per share and says it remains committed to long-term dividend growth while maintaining an investment-grade credit rating.

  4. What does the 2024 outlook imply for investors?

    Management expects net income of $3.55–3.80 billion, Adjusted EBITDA of $6.55–6.85 billion and EPS of $5.15–5.45, assuming normal weather and no major macroeconomic dislocations. Guidance is supported by infrastructure funding in North America and Europe and continued pricing, while new-build residential demand is expected to stay subdued.

  5. How is CRH's balance sheet positioned after its acquisitions and buybacks?

    Total debt rose to $11.6 billion and net debt to $5.4 billion. Cash was $6.4 billion and undrawn committed facilities were $3.9 billion. Management said cash covers maturing debt for 4.7 years, weighted average term debt maturity is 12.1 years, and it targets a BBB+ or equivalent rating.

04—Continue

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