CRH (CRH) H1 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with adjusted EBITDA up 12% year-over-year to $2.3bn, margin expansion, and EPS growth of 16%, despite adverse weather and inflationary pressures.

• Net income rose 8% year-over-year to $1.3bn on revenues of $9.7bn, reflecting robust operational performance and portfolio management.

• Raised full-year guidance for adjusted EBITDA to $6.82–$7.02bn and net income to $3.7–$3.85bn, reflecting robust demand and positive momentum.

• $3.7bn invested in M&A YTD, including a majority stake in Adbri (Australia) and key U.S. and European deals.

• Ongoing share buybacks ($0.9bn YTD, $1.2bn annualized) and a 5% increase in quarterly dividend to $0.35 per share, demonstrating strong capital returns.

Financial highlights

• Q2 2024 revenues were $9.7bn, down 1% year-over-year; H1 2024 revenues reached $16.2bn (flat YoY).

• Q2 adjusted EBITDA reached $2.3bn, 12% ahead of prior year, with margin up 270bps to 23.4%; EPS up 16% to $1.89.

• Organic EBITDA growth of $222m (11% like-for-like); acquisitions net of divestitures added $15m.

• Net debt at end of June was $10.3bn, with net debt/adjusted EBITDA at 1.6x trailing twelve months.

• Cash conversion rate consistently over 80% of profits; Q2 2024 cash conversion was 81.2%.

Outlook and guidance

• Full-year 2024 adjusted EBITDA guidance raised to $6.82–$7.02bn; net income $3.7–$3.85bn; EPS $5.40–$5.60.

• Organic EBITDA growth expected at ~10% at midpoint; acquisitions (notably Adbri) to contribute $150m to EBITDA.

• Infrastructure and non-residential demand remain robust; residential new build subdued but long-term fundamentals positive.

• Capital expenditure for FY24 guided at $2.2bn–$2.4bn.

• Positive pricing momentum expected to continue across markets.