Ireland's CRH Q3 revenue slightly misses on cost inflation

Overview

• Ireland building materials provider's Q3 revenue up 3% yr/yr, slight miss versus analyst expectations

• Q3 net income fell 22%, mainly due to higher impairment losses

• Company announced new $6 bln share buyback program expiring end of 2030

Outlook

• CRH now expects 2026 net income of $3.1 bln-$3.3 bln, down from $3.9 bln-$4.1 bln

• Company sees 2026 adjusted EBITDA of $7.8 bln-$8.0 bln, revised from $8.1 bln-$8.5 bln

• CRH expects residential end-market to remain weak in near-term, but sees favorable demand in key markets

Result Drivers

• POSITIVE PRICING - Co said Q3 revenue growth was driven by higher pricing across aggregates and asphalt, as well as positive pricing momentum in international markets

• ACQUISITIONS - Co said contributions from acquisitions, including Arcosa, supported revenue and margin performance

• COST INFLATION - Co said cost inflation and subdued residential activity offset performance improvement initiatives and disciplined cost management

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for CRH PLC is $120.00, about 38.7% above its October 28 closing price of $86.54

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)