CRH Reports Record Q3 Performance and Positive Outlook

CRH (CRH) ((CRH)) has held its Q3 earnings call. Read on for the main highlights of the call.

CRH’s recent earnings call reflected a strong and positive sentiment, underscored by record financial performance in the third quarter of 2025. The company reported significant revenue and EBITDA growth, alongside margin expansion, highlighting the successful execution of its growth strategy. Despite facing some challenges in the residential sector and anticipated EPS dilution from recent acquisitions, the overall outlook for CRH remains optimistic.

Record Third Quarter Performance

CRH achieved a record third quarter with revenues reaching $11.1 billion, marking a 5% increase over the previous year. The company reported an adjusted EBITDA of $2.7 billion, a 10% rise from the prior year, and a 100 basis point margin expansion. Additionally, diluted EPS increased by 12% year-on-year, showcasing the company’s robust financial health.

Strong M&A Activity

The company demonstrated strong M&A activity by investing $3.5 billion in 27 value-accretive acquisitions. This strategic move includes the acquisition of Eco Material, which bolsters CRH’s position in the North American cementitious materials market, and indicates a strong pipeline of growth opportunities.

Positive Outlook for Infrastructure Megatrends

CRH is strategically positioned to capitalize on infrastructure megatrends in North America. The company anticipates continued investment in key sectors such as transportation, water, and reindustrialization, which are expected to drive future growth.

Margin Expansion and Guidance Increase

The company achieved a 100 basis point margin expansion in the third quarter and subsequently raised the midpoint of its adjusted EBITDA guidance for 2025 to between $7.6 billion and $7.7 billion. This reflects a 10% growth at the midpoint, demonstrating confidence in sustained financial performance.

Americas Building Solutions Growth

Americas Building Solutions reported a 22% increase in adjusted EBITDA and a 380 basis point margin expansion. This growth was driven by strong demand in data centers and resilient demand in residential repair and remodel activities.

Subdued Residential Sector

CRH anticipates that the residential new build activity in the U.S. will remain subdued due to ongoing affordability challenges. The company does not expect interest rate cuts to have a significant impact until late 2026.

EPS Dilution from Eco Material Acquisition

The acquisition of Eco Material, due to its size and timing, along with associated transaction and financing costs, is expected to result in EPS dilution in the fourth quarter of 2025.

Year-to-Date Land Sales Decline

Despite some land sales benefiting the third quarter results, CRH reported a decline in year-to-date land sales compared to the previous year, indicating a challenging environment in this segment.

Forward-Looking Guidance

CRH has raised its adjusted EBITDA guidance for 2025, expecting it to be between $7.6 billion and $7.7 billion, representing a 10% growth at the midpoint. This optimistic outlook is based on stable market conditions and continued demand across key sectors. The company remains confident in its strategic direction, particularly in infrastructure, water, and reindustrialization markets.

In conclusion, CRH’s third-quarter earnings call painted a picture of strong financial health and strategic growth. The company’s record performance, robust M&A activity, and positive outlook for infrastructure trends underscore its potential for sustained success. While challenges in the residential sector and EPS dilution from acquisitions present hurdles, CRH’s forward-looking guidance reflects a confident and optimistic future.