CRH revenue up 2% YoY in 1Q24

CRH has reported total revenue of US$6.5bn in the opening quarter of 2024, ended 31 March. This marks a two per cent expansion compared to the same period a year earlier. Adjusted EBITDA over the 1Q24 came in at US$445m, up 15 per cent YoY, while the adjusted EBITDA margin advanced 80bps to 6.8 per cent. The gain in adjusted EBITDA was attributed to the continued delivery of the company’s integrated solutions strategy, strong commercial progress, ongoing costs control and further operational efficiencies. 

Its Americas Materials Solutions' business posted total revenue 16 per cent ahead of the 1Q23, supported by early-season project activity and favourable weather in key markets, along with price increases across all lines of business and good contributions from acquisitions. Adjusted EBITDA was well ahead in this seasonally small quarter, as pricing progress and operational efficiencies offset the impact of higher input costs. 

Americas Building Solutions delivered a positive performance with total revenues two per cent ahead of the 1Q23, led by price improvements as well as contributions from acquisitions. Adjusted EBITDA also saw a two per cent expansion, driven by pricing progress and operational efficiencies along with good performances from recent acquisitions. 

Europe Materials Solutions total revenues were down eight per cent YoY in the 1Q24 as positive price momentum was offset by lower activity levels due to poor winter weather and the divestiture of the lime operations. Adjusted EBITDA was up 32 per cent YoY, thanks to good commercial management and lower energy costs along with a continued focus on cost management and operational efficiencies.

Meanwhile, Europe Building Solutions total revenues were 10 per cent lower than in the 1Q23 as favourable pricing was offset by subdued demand in new-build residential markets as well as adverse winter weather conditions. Adjusted EBITDA fell 38 per cent YoY. 

The 1Q24 also saw CRH complete its US$2.1bn acquisition of a portfolio of cement and ready-mixed concrete assets and operations in Texas, along with seven other strategic bolt-on acquisitions for US$0.1bn. In February 2024 the company entered into a US$0.7bn agreement to acquire a majority stake in Australia’s Adbri Ltd, which is expected to completed in 2024. 

Commenting on the 1Q24 results, Albert Manifold,  CEO, CRH, said, “We believe the strength of our balance sheet together with our relentless focus on the efficient allocation of our capital enables us to capitalise on the opportunities we see for further growth and value creation in 2024 and beyond. Given this backdrop, we are pleased to reaffirm our previous guidance for 2024.” 

For 2024 the company has forecast net income of US$3.55-3.80bn and adjusted EBITDA of US$6.55-6.85bn.