NYSE:CRH
CRH PUBLIC LTD CO
A leading global builder providing essential aggregates and construction chemicals with robust cash flow and consistent revenue growth across Europe and North America.
Key Metrics
Investment Thesis
Bull Case
CRH offers compelling value through its consistent ability to grow free cash flow which supports meaningful dividend payments and aggressive share buybacks. The company's diversified geographic footprint and product mix provide defensive characteristics that protect earnings during economic slowdowns in specific regions. Strategic acquisitions have been well-integrated, expanding market share without significantly eroding profitability margins as evidenced by the steady rise in net profit over the last three years.
Bear Case
Investors should be wary of the company's elevated long-term debt of $16.48B which limits borrowing capacity and increases sensitivity to interest rate hikes. The substantial goodwill of $13.10B represents an intangible asset risk that could be impaired if market conditions deteriorate or integration challenges arise from recent acquisitions. Exposure to volatile raw material costs and foreign exchange rates may compress margins if the company fails to pass on inflationary pressures to customers effectively.
About CRH PUBLIC LTD CO
CRH Public Ltd Co is a global building materials distributor serving residential, commercial, and industrial markets with a diverse portfolio of aggregates, aggregates-based products, and construction chemicals. Operating primarily in Europe and North America, the company leverages its extensive logistics network to deliver high-quality solutions for contractors, developers, and homeowners. With a focus on sustainability and innovation, CRH supports critical infrastructure projects while maintaining a strong presence in the consumer-facing building materials sector.
Analysis
Management Discussion
The company demonstrated solid operational execution with revenue growing from $34.95B in 2023 to $37.45B in 2025, driven by strategic acquisitions totaling $3.86B and organic demand growth. Net income consistently expanded alongside revenue, rising from $3.07B in 2023 to $3.79B in 2025, reflecting improved operating leverage and effective cost management. Strong cash generation capabilities are evident with operating cash flow reaching $5.62B, allowing for significant capital expenditures of $2.71B and share repurchases of $1.18B while maintaining a healthy cash balance of $4.10B.
Industry Overview
The global building materials industry is highly competitive with low barriers to entry for smaller players but high capital requirements for large-scale quarrying and distribution networks. Success in this sector relies heavily on logistics efficiency, supply chain resilience, and the ability to innovate with sustainable construction products. Cyclical demand patterns tied to residential and commercial construction cycles create opportunities for well-capitalized leaders like CRH to capture market share during recovery phases.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $34.95B | $35.57B | $37.45B |
| Cost of Revenue | $22.99B | $22.87B | $23.92B |
| Gross Profit | $11.96B | $12.70B | $13.53B |
| Operating Expenses | $7.78B | $7.78B | $8.09B |
| Operating Income | $4.19B | $4.92B | $5.44B |
| G&A | $7.49B | $7.85B | $8.28B |
| Stock-Based Comp | $123.0M | $125.0M | $143.0M |
| D&A | $1.63B | $1.80B | $2.16B |
| Depreciation | $1.49B | $1.65B | $1.96B |
| Amortization | $139.0M | $152.0M | $192.0M |
| Other OpEx | $291.0M | $-76.0M | $-195.0M |
| Non-Operating Income | $-172.0M | $-211.0M | $-635.0M |
| Interest Expense | $376.0M | — | — |
| Interest Income | $206.0M | $143.0M | $146.0M |
| Pre-Tax Income | $4.01B | $4.71B | $4.80B |
| Income Tax | $925.0M | $1.08B | $1.04B |
| Continuing Ops | $3.07B | $3.52B | $3.79B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $3.07B | $3.52B | $3.79B |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $3.07B | $3.52B | $3.79B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $16.89B | $14.08B | $15.25B |
| Cash & Equivalents | $6.34B | $3.72B | $4.10B |
| Inventory | $4.29B | $4.75B | $5.25B |
| Other Current Assets | $6.25B | $5.61B | $5.91B |
| Long-Term Assets | $30.58B | $36.53B | $43.08B |
| PP&E (Net) | $17.84B | $21.45B | $24.94B |
| Intangibles | $1.04B | $1.21B | $2.05B |
| Goodwill | $9.16B | $11.06B | $13.10B |
| Operating Leases | $1.29B | $1.27B | $1.47B |
| Other LT Assets | $632.0M | $795.0M | $1.02B |
| Total Assets | $47.47B | $50.61B | $58.33B |
| Current Liabilities | $10.01B | $10.30B | $8.75B |
| Accounts Payable | $3.15B | $3.21B | $3.26B |
| Current Debt | $1.76B | $2.88B | $1.05B |
| Current Leases | $255.0M | $265.0M | $286.0M |
| Taxes Payable | $129.0M | $97.0M | $106.0M |
| Other Current Liab | $1.68B | $1.60B | $1.85B |
| Long-Term Liabilities | $15.84B | $17.47B | $24.10B |
| Long-Term Debt | $9.78B | $10.97B | $16.48B |
| LT Operating Leases | $1.12B | $1.07B | $1.23B |
| Other LT Liab | $4.22B | $4.70B | $5.52B |
| Total Liabilities | $25.85B | $27.76B | $32.85B |
| Shareholders' Equity | $21.62B | $22.85B | $25.48B |
| Paid-In Capital | $454.0M | $422.0M | $397.0M |
| Retained Earnings | $22.92B | $24.04B | $25.59B |
| AOCI | $-616.0M | $-1.00B | $-257.0M |
| Treasury Stock | $2.20B | $2.14B | $2.02B |
| Total L&E | $47.47B | $50.61B | $58.33B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $3.07B | $3.52B | $3.79B |
| Non-Cash Adjustments | $1.99B | $1.42B | $2.05B |
| Working Capital Changes | $-49.0M | $47.0M | $-214.0M |
| Cash from Operations | $5.02B | $4.99B | $5.62B |
| Capital Expenditures | $1.82B | $2.58B | $2.71B |
| Cash from Investing | $-2.39B | $-6.29B | $-6.04B |
| Share Buybacks | $3.07B | $1.48B | $1.18B |
| Cash from Financing | $-2.38B | $-1.19B | $596.0M |
| FX Effect | $208.0M | $-143.0M | $212.0M |
| Net Change in Cash | $454.0M | $-2.63B | $388.0M |
| Beginning Cash | $5.94B | $6.39B | $3.76B |
| Ending Cash | $6.39B | $3.76B | $4.15B |
Frequently Asked Questions
How does CRH PUBLIC LTD CO make money?
The company generates revenue primarily through three core divisions: Aggregates, which includes sand, gravel, and crushed stone for foundations and roadworks; Aggregates-Based Products, covering clinker, cement, and concrete blocks for residential and commercial construction; and Construction Chemicals, offering adhesives, sealants, and waterproofing solutions that enhance building durability.
What are the main risks for CRH?
Fluctuations in global commodity prices for raw materials such as iron ore and copper can impact input costs and downstream pricing power. Regulatory changes regarding carbon emissions and environmental standards may increase operational costs in its heavy manufacturing and quarrying activities. Currency exchange rate volatility, particularly between the Euro and Dollar, affects international margins and cash repatriation strategies. High levels of long-term debt relative to equity could constrain financial flexibility during periods of rising interest rates.
What is CRH's competitive advantage?
CRH possesses an unmatched global logistics network enabling rapid delivery to job sites, reducing customer downtime and inventory costs. The company benefits from significant economies of scale in sourcing raw materials like limestone and clay, which protects margins against commodity price fluctuations. Its diversified product portfolio allows it to serve multiple market cycles effectively, insulating revenue from downturns in any single segment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.