CRH 2025-26: Record EBITDA, $4.1B M&A, FY26 EBITDA $8.1-8.5B
FY25 revenue $31.87B (-7%); Op income $4.53B (-5%); NI $3.17B (-5%); EPS $4.69. Adj EBITDA double-digit growth (12th consecutive year of margin expansion). $4.1B invested in 38 M&A deals + $1.7B growth capex. Quarterly dividend +5% to $0.39. FY26 guide: adj EBITDA $8.1-$8.5B, NI $3.9-$4.1B, EPS $5.60-$6.05.
Key takeaways
- 12th consecutive year of margin expansion. Adj EBITDA margin compounding higher year-over-year despite flat-to-down reported revenue. The structural read: pricing + operational efficiency + acquisition-driven mix improvement compounds vs commodity volume cycles.
- M&A engine running at scale. $4.1B invested in 38 deals during FY25. CRH continues its strategy of disciplined, value-accretive bolt-on M&A — typically aggregates + asphalt + concrete + cement + adjacent specialties.
- Reported revenue down -7% due to FX + asset divestitures + portfolio rebalancing. Underlying organic growth was positive across most segments. Americas Materials Solutions revenue +5% / EBITDA +7% with margin expansion 30bp.
- FY26 guide: adj EBITDA $8.1-$8.5B vs FY25 implied ~$7.5-7.8B → +5-12% growth. Driven by strong demand across transportation (IIJA + state budgets), water (federal + state funding), and reindustrialization (data center + manufacturing reshoring).
- EPS guide $5.60-$6.05 vs FY25 $4.69 → +20-30% potential growth. Operating leverage + buybacks + tax efficiency contributing.
Business
CRH plc is the largest building materials company in North America (post-merger with Oldcastle, US-listed via 2022 NYSE primary listing). Operates in 28 countries; ~85% of EBITDA from US/Canada. Three reporting segments:
- Americas Materials Solutions (~50% of revenue, ~50% of EBITDA): Aggregates (sand, gravel, crushed stone) + cement + asphalt + concrete + roads (paving) + ready-mix. The infrastructure demand-driven core. Pricing 4% in FY25 (6% mix-adjusted).
- Americas Building Solutions (~25% of revenue, ~25% of EBITDA): Building structures + outdoor living + utility infrastructure (poles, pads, vaults, manholes). Margin expansion + further profit growth.
- International Solutions (~25% of revenue, ~25% of EBITDA): Europe + emerging markets — aggregates, cement, asphalt, concrete in EU, UK, Switzerland, Eastern Europe, Australia, Asia.
End-market exposure:
- Transportation infrastructure (~30% of revenue): IIJA + state budgets driving sustained demand.
- Reindustrialization (~20%): Data center construction + reshoring of manufacturing + chip fab build-outs.
- Water infrastructure (~15%): Federal + state funding for water + wastewater.
- Residential / commercial (~25%): Cyclical; housing-dependent.
- Other / specialty (~10%).
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 31.76 | 34.35 | 31.87 |
| Gross profit ($B) | 10.87 | 12.27 | 11.51 |
| Op income ($B) | 4.07 | 4.75 | 4.53 |
| Op margin | 12.8% | 13.8% | 14.2% |
| EBITDA ($B) | 5.47 | 6.88 | 6.37 |
| Adj EBITDA ($B) | ~6.6 | ~7.5 | ~7.5-7.8 |
| Net income ($B) | 2.87 | 3.34 | 3.17 |
| Diluted EPS ($) | 4.33 | 5.02 | 4.69 |
| FCF ($B) | 2.95 | 2.37 | 2.52 |
| Capex ($B) | -1.65 | -2.49 | -2.31 |
| Total debt ($B) | 11.83 | 14.78 | 19.71 |
| Dividends ($M) | -851 | -1,647 | -848 |
| Buyback ($M) | -2,778 | -1,482 | -1,181 |
Operating margin expanded to 14.2% (12th consecutive year of expansion). FCF +6% YoY despite revenue decline — pricing + cost discipline + working capital release.
Total debt jumped to $19.71B (+$4.93B YoY) reflecting M&A activity ($4.1B invested in deals + bridge financing) — net leverage profile to be reviewed as integrated EBITDA contributes.
Capital allocation
- Capex: $-2.31B FY25 (7.2% of revenue), down from $-2.49B FY24 peak. $1.7B of growth capex on FY25 projects.
- Dividends: $-848M FY25, but quarterly dividend +5% to $0.39/share. (FY24 included multiple special dividends causing the larger denominator.)
- Buybacks: $-1.18B FY25. Continuing share repurchase program.
- M&A: $4.1B invested in 38 deals — value-accretive bolt-ons across aggregates + asphalt + cement + adjacent specialties.
- Debt: $19.7B, up from $14.8B FY24 — M&A-funded.
FY26 outlook (per Q4 2025 call, 2026-02-19)
| FY26 guide | Range |
|---|---|
| Adjusted EBITDA | $8.1B-$8.5B |
| Net income | $3.9B-$4.1B |
| Diluted EPS | $5.60-$6.05 |
| Quarterly dividend | $0.39 (+5% YoY) |
| End-market backdrop | Transportation strong (IIJA + state) / Water strong / Reindustrialization strong / Resi mixed |
The +5-12% adj EBITDA guide reflects: pricing power compounding (4-6% mix-adjusted in Americas Materials), volume +modest organic on infrastructure tailwinds, M&A annualization (38 deals from FY25 contributing full-year), Building Solutions margin expansion.
Key risks
- US construction cycle: Despite IIJA + state-budget tailwinds, residential housing slowdown could clip ~25% of revenue.
- Pricing power: Aggregate + cement pricing dependent on industry discipline. New entrants or capacity additions could pressure pricing.
- M&A integration: 38 deals in FY25 carries cumulative integration cost / margin dilution risk.
- Energy + diesel costs: Asphalt + concrete + transportation logistics all exposed to fuel costs. Pass-through generally works but with lag.
- FX: International segment ~25% of revenue; EUR + GBP + AUD movements affect USD reporting.
- Tariff regime: Cement/aggregate trade policy + steel rebar tariffs affect input costs.
Bottom line
CRH FY25 is the M&A + margin expansion year masked by reported revenue decline. 12th consecutive year of margin expansion + 38 deals integrated + $4.1B deployed + dividend hike + FY26 EBITDA guide $8.1-8.5B + EPS $5.60-6.05 (+20-30%). The strategic position — #1 building materials in NA + Europe + Australia — combined with multi-cycle infrastructure tailwinds (IIJA, water, reindustrialization) provides clean visibility. Risk profile is housing cycle + M&A integration; both manageable at current scale.
Citations
- CRH plc FY25 Annual Report (filed February 2026, SEC EDGAR; primary listing NYSE 2022).
- CRH Q4 2025 earnings call, 2026-02-19 — record financial performance, 12th consecutive year margin expansion, $4.1B in 38 M&A deals, $1.7B growth capex, $0.39 quarterly dividend (+5%), FY26 guide ($8.1-$8.5B adj EBITDA, $3.9-$4.1B NI, $5.60-$6.05 diluted EPS).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).