CRH Q2 2024 Results

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Key Highlights

Summary Financials	Q2 2024	Change	H1 2024	Change
Total revenues	$9.7bn	-1%	$16.2bn	—
Net income	$1.3bn	+8%	$1.4bn	+20%
Net income margin	13.6%	+110bps	8.8%	+150bps
Adjusted EBITDA*	$2.3bn	+12%	$2.7bn	+13%
Adjusted EBITDA margin*	23.4%	+270bps	16.7%	+180bps
EPS	$1.89	+16%	$2.05	+31%

Differentiated strategy continuing to deliver robust financial performance Carefully constructed portfolio & operating footprint mitigated impact of adverse weather Further profit growth & strong margin expansion driven by positive pricing & cost management Significant portfolio activity YTD; $3.7bn invested in value-accretive M&A Integration of materials acquisition in Texas progressing well; increasing run-rate synergy target to $65m Acquisition of majority stake in Adbri completed on July 1 Ongoing share buyback; $0.9bn YTD; commencing new $0.3bn quarterly tranche Declaring quarterly dividend $0.35 (+5% annualized) Outlook positive with favorable underlying demand across key markets Raising FY24 guidance; Net Income $3.70bn - $3.85bn; Adjusted EBITDA* $6.82bn - $7.02bn

2024 Guidance	Updated Guidance (i)		Previous Guidance (ii)
*(in $ billions, except per share data)*	Low	High	Low	High
Net income	3.70	3.85	3.55	3.80
Adjusted EBITDA*	6.82	7.02	6.55	6.85
EPS	$5.40	$5.60	$5.15	$5.45
Capital expenditure	2.2	2.4	2.2	2.4

^{(i) 2024 Net income and EPS under our Updated Guidance are based on approximately $0.5 billion interest expense, net, effective tax rate of approximately 23% and a year-to-date average of approximately 688 million common shares outstanding.}
^{(ii) 2024 Net income and EPS under our Previous Guidance were based on approximately $0.4 billion interest expense, net, effective tax rate of approximately 23% and a year-to-date average of approximately 690 million common shares outstanding.}

Analysis of Change
*in $ millions*	Q2 2023	Currency	Acquisitions	Divestitures	Organic	Q2 2024	% change
Total revenues	4,164	(5)	+125	(34)	+156	4,406	+6%
Adjusted EBITDA	935	(1)	+38	(8)	+229	1,193	+28%
Adjusted EBITDA margin	22.5%					27.1%

Analysis of Change
*in $ millions*	Q2 2023	Currency	Acquisitions	Divestitures	Organic	Q2 2024	% change
Total revenues	2,148	(2)	+61	—	(91)	2,116	(1)%
Adjusted EBITDA	474	(1)	+15	—	(12)	476	—
Adjusted EBITDA margin	22.1%					22.5%

Analysis of Change
*in $ millions*	Q2 2023	Currency	Acquisitions	Divestitures	Organic	Q2 2024	% change
Total revenues	2,614	+24	+40	(130)	(144)	2,404	(8)%
Adjusted EBITDA	515	+5	+7	(38)	+10	499	(3)%
Adjusted EBITDA margin	19.7%					20.8%

Companies

UK 100

Latest directors dealings

______________________________
^*	^{Represents non-GAAP measure. See 'Non-GAAP Reconciliation and Supplementary Information' on pages 12 to 13.}

Ex-dividend Date:	August 23, 2024
Record Date:	August 23, 2024
Payment Date:	September 25, 2024

	Three months ended		Six months ended
	June 30		June 30
	2024	2023	2024	2023
Product revenues	7,308	7,431	12,676	12,769
Service revenues	2,346	2,278	3,511	3,367
Total revenues	9,654	9,709	16,187	16,136
Cost of product revenues	(3,759)	(3,932)	(7,336)	(7,676)
Cost of service revenues	(2,220)	(2,147)	(3,369)	(3,211)
Total cost of revenues	(5,979)	(6,079)	(10,705)	(10,887)
Gross profit	3,675	3,630	5,482	5,249
Selling, general and administrative expenses	(1,948)	(2,035)	(3,735)	(3,657)
Gain on disposal of long-lived assets	102	18	110	23
Operating income	1,829	1,613	1,857	1,615
Interest income	36	36	79	76
Interest expense	(155)	(73)	(288)	(154)
Other nonoperating income, net	23	2	184	2
Income from operations before income tax expense and income from equity method investments	1,733	1,578	1,832	1,539
Income tax expense	(430)	(379)	(411)	(365)
Income from equity method investments	6	13	2	7
Net income	1,309	1,212	1,423	1,181

Net (income) attributable to redeemable noncontrolling interests	(10)	(10)	(12)	(12)
Net (income) loss attributable to noncontrolling interests	(2)	(3)	2	2
Net income attributable to CRH plc	1,297	1,199	1,413	1,171

Earnings per share attributable to CRH plc
Basic	$1.89	$1.63	$2.05	$1.57
Diluted	$1.88	$1.62	$2.03	$1.56

Weighted average common shares outstanding
Basic	685.5	734.7	686.6	738.8
Diluted	688.8	738.2	691.1	743.4

	June 30	December 31	June 30
	2024	2023	2023
Assets
Current assets:
Cash and cash equivalents	3,066	6,341	4,275
Restricted cash	869	–	–
Accounts receivable, net	5,893	4,507	6,119
Inventories	4,514	4,291	4,276
Assets held for sale	67	1,268	–
Other current assets	704	478	404
Total current assets	15,113	16,885	15,074
Property, plant and equipment, net	19,235	17,841	18,155
Equity method investments	484	620	672
Goodwill	10,251	9,158	9,338
Intangible assets, net	1,086	1,041	1,061
Operating lease right-of-use assets, net	1,279	1,292	1,187
Other noncurrent assets	657	632	655
Total assets	48,105	47,469	46,142

Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable	3,363	3,149	3,553
Accrued expenses	2,272	2,296	2,335
Current portion of long-term debt	3,218	1,866	2,185
Operating lease liabilities	259	255	240
Liabilities held for sale	14	375	–
Other current liabilities	1,422	2,072	1,358
Total current liabilities	10,548	10,013	9,671
Long-term debt	9,900	9,776	7,563
Deferred income tax liabilities	2,914	2,738	3,010
Noncurrent operating lease liabilities	1,114	1,125	1,016
Other noncurrent liabilities	2,178	2,196	2,173
Total liabilities	26,654	25,848	23,433
Commitments and contingencies
Redeemable noncontrolling interests	335	333	313
Shareholders’ equity
Preferred stock, €1.27 par value, 150,000 shares authorized and 50,000 shares issued and outstanding for 5% preferred stock and 872,000 shares authorized, issued and outstanding for 7% 'A' preferred stock, as of June 30, 2024, December 31, 2023, and June 30, 2023	1	1	1
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 725,113,896, 734,519,598 and 752,140,338 issued and outstanding, as of June 30, 2024, December 31, 2023, and June 30, 2023 respectively	292	296	302
Treasury stock, at cost (41,540,247, 42,419,281 and 24,158,408 shares as of June 30, 2024, December 31, 2023 and June 30, 2023 respectively)	(2,143)	(2,199)	(1,140)
Additional paid-in capital	359	454	391
Accumulated other comprehensive loss	(813)	(616)	(625)
Retained earnings	23,030	22,918	22,892
Total shareholders’ equity attributable to CRH plc shareholders	20,726	20,854	21,821
Noncontrolling interests	390	434	575
Total equity	21,116	21,288	22,396
Total liabilities, redeemable noncontrolling interests and equity	48,105	47,469	46,142

	Updated Guidance	Previous Guidance
*in $ billions*	2024 Mid-Point	2024 Mid-Point
Net income	3.8	3.7
Income tax expense	1.1	1.1
Interest expense, net	0.5	0.4
Depreciation, depletion, amortization and impairment	1.7	1.7
Other (i)	(0.2)	(0.2)
Adjusted EBITDA	6.9	6.7
^{(i) Other primarily relates to loss (income) from equity method investments, loss (gain) on divestitures and unrealized loss (gain) on investments and substantial acquisition-related costs.}

	Six months ended
	June 30
	2024	2023
Cash Flows from Financing Activities:
Proceeds from debt issuances	3,370	855
Payments on debt	(1,691)	(849)
Settlements of derivatives	(3)	4
Payments of finance lease obligations	(21)	(12)
Deferred and contingent acquisition consideration paid	(10)	(4)
Dividends paid	(1,231)	(761)
Distributions to noncontrolling and redeemable noncontrolling interests	(22)	(23)
Repurchases of common stock	(907)	(959)
Proceeds from exercise of stock options	–	3
Net cash used in financing activities	(515)	(1,746)

Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(85)	92
Decrease in cash and cash equivalents, including restricted cash	(2,444)	(1,661)
Cash and cash equivalents and restricted cash at the beginning of period	6,390	5,936
Cash and cash equivalents and restricted cash at the end of period	3,946	4,275

Supplemental cash flow information:
Cash paid for interest (including finance leases)	216	201
Cash paid for income taxes	304	277

Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets	3,066	4,275
Restricted cash presented in the Condensed Consolidated Balance Sheets	869	–
Cash and cash equivalents included in assets held for sale	11	–
Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows	3,946	4,275