CRH Plc Q4 FY2024 earnings call

• CRH achieved industry-leading performance in 2024, with 11th consecutive year of margin improvement. - $5 billion invested in 40 value accretive acquisitions in 2024. - Full year revenues of $35.6 billion, 2% ahead of prior year; adjusted EBITDA of $6.9 billion, 12% ahead. - Strong cash generation: generated $5 billion of operating cash, returned $3 billion to shareholders via dividends and buybacks. - Focus on capital allocation: investing in higher growth markets, integrating acquisitions, and continuing growth CapEx. - Strategically positioned to benefit from secular growth tailwinds in urbanization, transportation, and critical infrastructure in higher growth regions.

Americas Materials Solutions: Total full year sales and adjusted EBITDA were 5% and 22% ahead of the prior year, driven by price increases and operational efficiencies. Essential Materials revenues up 5% with 10% pricing growth in aggregates and 8% in cement. Road Solutions revenues up 5% due to improved pricing in asphalt and ready-mix concrete. Americas Building Solutions: Resilient fourth quarter and full year performance, slightly behind strong prior year comparative, supported by manufacturing sector demand and acquisitions. Outdoor Living Solutions benefited from residential repair and remodel activity. International Solutions: Delivered 7% increase in full year adjusted EBITDA and 120 basis points of margin expansion, supported by positive pricing momentum and disciplined cost control. Central and Eastern Europe supported by infrastructure and non-residential funding; Western Europe impacted by subdued new-build residential demand but stabilizing.

• Expect full year group adjusted EBITDA between $7.3 billion and $7.7 billion, net income between $3.7 billion and $4.1 billion, and diluted earnings per share between $5.34 and $5.80 for 2025. - Americas to remain a key driver, with ~75% of adjusted EBITDA; international division ~25%. - Infrastructure demand in U.S. underpinned by continued state and federal funding (only one-third of IIJA highway funds deployed); international infrastructure demand supported by government and EU funding. - Non-residential sectors to benefit from secular growth tailwinds and industrial onshoring; residential new-build in U.S. subdued, but repair and remodel resilient; international residential activity stabilizing.

• Weather conditions impacting activity levels in certain markets. - Political and macroeconomic dislocations that could affect funding and demand. - Inflationary cost environment, particularly in labor, raw materials, and subcontractor costs, which could impact margins if not offset by pricing.

Q: Anthony Pettinari asked about 2025 outlook and if it changed from preliminary guidance.

A: Jim Mintern and Alan Connolly responded, highlighting positive market backdrop, net scope contribution from M&A, currency exchange headwind, and normalizing asset sales impact.

Q: Jerry Revich asked about U.S. aggregates volumes and pricing, and M&A synergies.

A: Randy Lake responded, stating aggregates volumes expected to improve low single-digit, pricing mid-to-high single digits; M&A expected to drive margin improvement as acquired assets are integrated.

Q: Trey Grooms asked about strategic direction under new CEO.

A: Jim Mintern responded, stating continuation of successful strategy with focus on innovation, performance, and capital allocation.

Q: Keith Hughes asked about M&A focus and outdoor living segment.

A: Jim Mintern and Randy Lake responded, emphasizing CRH's unique M&A position, connected portfolio, and outdoor living segment's connection to existing footprint.

Q: Ross Harvey asked about cost environment.

A: Alan Connolly responded, stating inflationary cost environment with mid single-digit cost increases expected, but pricing momentum and margin expansion anticipated.

Q: Kathryn Thompson asked about infrastructure funding concerns.

A: Randy Lake responded, stating bipartisan support for infrastructure, strong state funding in key states like Texas and Florida, and ongoing investment as a driver of economic strength.

Q: Gregor Kuglitsch asked about margin trajectory.

A: Alan Connolly responded, stating 11th consecutive year of margin expansion, deep culture of continuous improvement, and ongoing focus on operational and commercial excellence for further margin expansion.