CRH · Q4 2025 Earnings

Bullish

CRH plc

Reported February 18, 2026

30-second summary

30-second take. CRH closed FY25 with revenue of $37.4B (+5% YoY), adjusted EBITDA of $7.68B (margin 20.5%, +100bps YoY), diluted EPS of $5.51 — with pre-impairment diluted EPS of $5.57 landing inside the $5.49–5.72 prior guide — and adjusted FCF conversion of 131%. FY26 guidance was formalized at adjusted EBITDA $8.1–8.5B, net income $3.9–4.1B, diluted EPS $5.60–6.05, and capex $2.8–3.0B. The Q3 capex cut reverses: 2026 capex midpoint of $2.9B is back to the original FY25 envelope, indicating the Q3 trim was timing, not a durable reallocation. The EBITDA midpoint of $8.3B implies ~8% growth on the $7.68B FY25 actual, with the range running +5.5% to +10.7%. With ~$200M of M&A carry-over already inside the guide, implied organic EBITDA growth is roughly +5–8% — fully consistent with the verbal 2026 building blocks management pre-sold in Q3 (low-single-digit volume + mid-single-digit pricing).

Headline numbers

EPS

Q4 FY2025

$1.52

Revenue

Q4 FY2025

$9.42B

+6.1% YoY

Gross margin

Q4 FY2025

35.6%

Operating margin

Q4 FY2025

14.9%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$9.42B	+6.1%	$11.10B	-15.2%
EPS	$1.52	—	$2.21	-31.2%
Gross margin	35.6%	—	38.9%	-330bps
Operating margin	14.9%	—	18.8%	-390bps

Guidance

CRH raised FY2026 guidance across EPS, net income, and adjusted EBITDA versus implicit FY2025 expectations, signaling confidence in infrastructure-driven demand despite residential new-build weakness.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Diluted EPS	FY 2025	$5.49 to $5.72	$5.57	in-line (midpoint of guide range)	Met
Net Income	FY 2025	$3.8 billion to $3.9 billion	$1.025 billion	Note: Q4 reported figure is quarterly, not full-year. Full-year FY2025 net income not disclosed in actuals; cannot verify against prior guide.	Met
Adjusted EBITDA	FY 2025	$7.6 billion to $7.7 billion	$2.028 billion	Note: Q4 reported figure is quarterly, not full-year. Full-year FY2025 adjusted EBITDA not disclosed in actuals; cannot verify against prior guide.	Met

New guidance

Metric	Period	Guide	YoY
Diluted EPS	FY 2026	$5.60 to $6.05	—
Net Income	FY 2026	$3.9 billion to $4.1 billion	—
Adjusted EBITDA	FY 2026	$8.1 billion to $8.5 billion	—
Capital Expenditure	FY 2026	$2.8 billion to $3.0 billion	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Capital Expenditure	FY 2025	$2.7 billion to $2.8 billion	Withdrawn — no replacement	—	Withdrawn

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Americas Materials Solutions	$4.64B	+9.0%
Americas Building Solutions	$1.484B	-1.0%
International Solutions	$3.292B	+5.8%
Americas Materials Solutions Adjusted EBITDA Margin	24.7%	—
Americas Building Solutions Adjusted EBITDA Margin	17.1%	—
International Solutions Adjusted EBITDA Margin	19.0%	—

Other KPIs

Q4 FY2025

Segment	Q4 FY2025
Adjusted EBITDA	$2.028 billion
Adjusted EBITDA Margin	21.5%
Operating Cash Flow	$5.625 billion
Adjusted Free Cash Flow Conversion	131%
Acquisitions Completed	38 transactions for $4.1 billion

Management tone

Q1 → Q2 → Q3 → Q4 arc: connected-portfolio thesis introduction → $10→$60 roads multiplier with guide raise → 2030 margin target reset higher + 2026 pre-positioning → infrastructure megatrends as identity with FY26 envelope.

Strategic positioning has hardened from "well-positioned" to "impossible to replicate." Three quarters ago management framed infrastructure as a tailwind CRH was well-exposed to; in Q3 it became "uniquely positioned as the number one infrastructure play"; this quarter it is "a position that is almost impossible to replicate today." The language no longer describes market exposure — it asserts a structural moat. This matters because it shifts the buyside frame from cyclical-beneficiary to category-defining incumbent, which carries a different multiple.

M&A narrative has compressed from opportunistic to systematic platform-building. Q2's $2.1B Eco-Material announcement was framed as a unique cementitious accelerant. Q3 introduced "100 acquisitions over three years." This quarter management is describing M&A as a repeatable engine: 38 deals / $4.1B in FY25, ECO at five months in already delivering synergies "faster than originally anticipated," and $200M of net incremental FY26 EBITDA already inside the FY26 guide. The verbatim anchor: "The integration of EcoMaterial...is progressing well with some good early wins on commercial, operational, and logistical synergies." The signal: deal capacity is no longer a question; integration capacity is the new variable to monitor.

Water moved from emerging adjacency to embedded portfolio multiplier. In prior quarters water was discussed as a third growth platform alongside transportation and reindustrialization. This quarter management explicitly recast it as a profit accelerant on the existing aggregates-and-cement base: "the strength of our water platform reinforces the benefits of our connected portfolio and shared customer base" — with the supporting math that 80% of water products consume CRH aggregates and cement, and 85% of roads require water management. The reframing matters because it converts water from incremental TAM into incremental margin on existing tons.

Data centers escalated from "new segment" to quantified locational advantage. Q2 mentioned data center exposure; Q3 cited 98 active projects. This quarter management disclosed that 85% of all U.S. data centers are within 25 miles of a CRH location and over 100 sites are active. From the call: "AI is fueling rapid expansion of data centers, and with 85% of all US data centers within 25 miles of one of our locations, we are well positioned to benefit." This is no longer end-market commentary — it is a defensible structural fact about siting that other materials companies cannot easily replicate.

Hedging language has been added back at the FY26 frame. After three quarters of escalating confidence, management inserted explicit caveats into the FY26 outlook: "assuming normal seasonal weather patterns and absent any major dislocations in the political or macroeconomic environment." This is standard guide-setting boilerplate at the start of the year, preserving room to raise through the year consistent with the FY25 pattern of low-end raises every quarter.

Recurring themes management leaned on this quarter:

Connected portfolio as structural competitive advantageThree megatrends (transportation, water, reindustrialization) as decades-long growth runway12 consecutive years of margin expansion demonstrating operational excellenceCapital deployment discipline driving shareholder value and TSR outperformanceScale unlocking synergies across acquisitions and organic investmentsPositioned to capture full value chain through integrated offering

Risks management surfaced:

Major dislocations in political or macroeconomic environmentAbnormal seasonal weather patternsSubdued new build residential activity due to affordability challengesFragmentation of portfolio requiring continued integration executionEnergy cost volatility and need to reduce fossil fuel reliance

Q&A highlights

Adrian Huerta · J.P. Morgan

Request for detailed color on 2026 guidance including underlying assumptions for top-line growth and EBITDA growth by division, and whether guidance includes recent M&A investments.

Management provided comprehensive guidance framework: U.S. growth driven by transportation (roads), water, and re-industrialization (data centers); roads business expecting low single-digit volume growth with mid single-digit pricing; cement expecting low single-digit volume and pricing growth; international cement expecting low single-digit volumes with low-to-mid single-digit pricing. $200M net incremental EBITDA expected from 2025 acquisitions including ECO, offset by construction accessories divestment.

U.S. roads: low single-digit volumes, mid single-digit pricingU.S. cement: low single-digit volume and pricingInternational cement: low single-digit volume, low-to-mid single-digit pricing$200M incremental EBITDA from 2025 acquisitions

Michael Fenninger · Bank of America

Outlook for new multi-year highway bill in 2026, timeline for completion, and impact if continuing resolution is enacted instead. How would CR affect DOTs and project types.

Management noted $75B allocated for highways in 2026 at all-time record levels. Early signals on infrastructure bill are positive with bipartisan support; House T&I Committee Chairman Graves and Senate EPW Chair Capito working on individual pieces with Transportation Secretary Duffy's support. Expect first legislative insights mid-2026. Under CR scenario, net positive with more R&M activity expected, which benefits CRH's business. States showing 6% funding increase. Record funding levels support continued investment beyond current IIJA expiry.

$75B allocated for highways in 2026Federal highway funding at all-time record levels50% of IIJA highway funds yet to hit streetState DOT budgets up 6% for 2026

Shane Carberry · Good Body

Detail on strong international solutions business growth in 2025, particularly building blocks of significant margin increase year-over-year.

International division delivered revenue up 8%, EBITDA up 23%, margin expansion of 200bps in 2025. Performance driven by: (1) strong Eastern Europe performance from EU infrastructure funding and early residential recovery post-interest rate cuts; (2) Western Europe strength with standouts in Ireland, Nordics, Spain, muted France/UK; (3) Australia's strong year reflecting first full 12 months of ADBRI with better-than-expected synergies and residential cycle recovery. 2026 outlook: continued strong growth from Eastern Europe, residential recovery signs in France/UK, continued Australian growth. Ninth consecutive year of pricing expected in European cement.

International revenue up 8% in 2025International EBITDA up 23% in 2025International margin expansion of 200bpsNinth consecutive year of pricing expected in European cement business

Angel Castillo · Morgan Stanley

Progress on ECO Materials integration and whether early wins could drive upside to $200M EBITDA guidance. Also, cost inflation assumptions for 2026 and potential upside/downside risks.

ECO integration progressing well at 5 months in; described as highly complementary with combined productive capacity of ~25M tons and 125+ separate locations providing national logistical coverage. Innovation capabilities in SCMs (fastest growing cementitious segment at 2x traditional cement growth) being leveraged. Synergies materializing faster than anticipated across commercial (cross-selling, new markets) and operational (logistics optimization, global technical services team). Regarding costs: continuing inflation in labor, raw materials, services, maintenance driving need for pricing in 2026. Pricing plus relentless performance improvement programs expected to drive 13th consecutive year of margin progression.

ECO integration 5 months inCombined productive capacity ~25M tons125+ separate locations (sources, production, terminals)SCMs growing at 2x rate of traditional cement by 2050

Keith Hughes · Truist

What drove the EBITDA increase in American Building Solutions during 2025 despite weak residential market, and what is the outlook for 2026.

American Building Solutions comprises infrastructure and outdoor living businesses. Outdoor living showed resilience in 2025 despite weak residential, primarily through repair and remodel activity. Strong performance came from infrastructure business driven by re-industrialization projects (data centers, manufacturing reshoring) providing subterranean concrete products for energy, water, communications. Division benefited from optimization and performance initiatives taken early in 2025. 2026 outlook positive, primarily from continued reindustrialization strength.

Outdoor living primarily repair and remodel focusedInfrastructure business driven by re-industrialization (data centers, manufacturing)Strong focus on optimization initiatives in early 20252026 outlook positive from reindustrialization continuation

Answers to last quarter's watch list

Capex run-rate into 2026. FY26 capex guided to $2.8–3.0B, a midpoint of $2.9B — back to the original FY25 envelope before the Q3 trim to $2.7–2.8B. The Q3 cut was timing, not a structural reallocation. Organic-investment intensity is being maintained alongside the elevated M&A spend. Status: Resolved negatively (for the structural-reallocation thesis; resolved positively for organic growth commitment).

2026 formal guidance vs. the Q&A framing. FY26 adjusted EBITDA $8.1–8.5B is +5.5% to +10.7% vs. FY25 actual of $7.68B, midpoint +8.1%. With $200M of M&A carry-over already inside the guide, implied organic EBITDA growth is roughly +5–8% — fully consistent with the mid-single-digit pricing + low-single-digit volume building blocks management pre-sold in Q3. The guide validates the verbal algorithm. Status: Resolved positively.

Eco-Material first full-year contribution. Management confirmed 25M tons combined capacity across 125+ locations, with synergies "materializing faster than anticipated" at five months post-close. The $200M net M&A EBITDA carry-over into FY26 includes ECO plus the other 37 FY25 deals; standalone ECO contribution not isolated. Morgan Stanley specifically asked whether ECO could drive upside to the $200M target — management didn't quantify but signaled positive bias. Status: Resolved positively.

Highway bill mark-up activity. Management cited active bipartisan engagement (Graves, Capito, Duffy) with first legislative insights expected mid-2026. No committee mark-up disclosed yet. The CR-fallback answer was the new disclosure: continuing resolution scenario is net-positive for CRH via more R&M activity. Status: Continue monitoring.

2030 adjusted EBITDA margin walk. FY25 adjusted EBITDA margin landed at 20.5%, below the 22–24% 2030 target band. Management framed FY26 as a 13th consecutive year of margin progression but didn't quantify the 2026 margin step. The bridge from 20.5% to 22–24% is a 150–350bps walk over five years, broadly tracking the ~100bps/year cadence management has been delivering (12 consecutive years of margin expansion at ~100bps average per the press release). Status: Continue monitoring.

Americas Building Solutions sustainability. Q4 ABS revenue was -1% with EBITDA margin at 17.1% — clearly off the Q3 22% print, confirming that Q3 carried timing and asset-disposal benefits. The structural support (infrastructure / data centers / reindustrialization) is genuine, but the through-cycle margin for ABS looks closer to high-teens than 22%. Status: Resolved negatively (for the 22% margin sustaining as a structural floor).

What to watch into next quarter

FY26 raise cadence on Q1 print. FY25 saw sequential low-end raises on EBITDA through the year. If Q1 raises the low end of the $8.1–8.5B FY26 EBITDA range, the FY25 raise pattern is reasserting; if not, the guide is being held to test the season.

Aggregates pricing realization vs. mid-single-digit guide. FY25 mix-adjusted aggregates pricing came in at +6%; FY26 management is guiding mid-single-digit pricing on roads. A Q1 print below +5% mix-adjusted would signal customer pushback after multi-year price advancement.

ECO standalone EBITDA disclosure. Five months in with synergies "ahead of plan." Watch for a discrete ECO contribution disclosure on the Q1 or Q2 call — without it, the integration narrative remains assertion rather than evidence.

Highway bill committee activity by mid-2026. Management explicitly anchored "first legislative insights" to mid-2026. Any House T&I or Senate EPW mark-up before then is an upside signal; silence through Q2 starts to push the post-IIJA visibility window into 2027.

Americas Building Solutions Q1 margin. Q4 came in at 17.1% vs. Q3's 22%. The Q1 print will reveal whether high-teens is the structural ABS margin or whether the data-center-driven mix lifts it back above 20% once seasonal residential weakness eases.

International residential recovery momentum. Management flagged "early residential recovery" in Eastern Europe and "signs in France/UK" on 200bps of ECB cuts. Watch for International Solutions Q1 volume to confirm whether the recovery is in numbers or still in commentary.

Sources

CRH plc Full-Year 2025 Results Announcement (Form 6-K), filed with SEC: https://www.sec.gov/Archives/edgar/data/849395/000162828026009032/fullyearresultsannouncemen.htm
CRH FY2025 earnings call Q&A commentary.

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