CRH (CRH.N): A Few Puts & Takes, but On Track for +HSD% EBITDA Growth in ’26

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31 Jul 2026 08:49:29 ET │ 15 pages

CRH (CRH.N)

A Few Puts & Takes, but On Track for +HSD% EBITDA Growth in ’26

CITI'S TAKE

We leave ’26 est. largely unchanged following an in-line 2Q with reiterated

FY EBITDA guidance ($8.1-8.5B). While CRH is seeing softer NA Cement

pricing (lowered ’26 expectations from +LSD% Y/Y to flattish), Aggs have

been strong (price +5% & vols +2% in 2Q, guided +MSD% & +LSD%,

respectively, for ‘26) and mgmt. remains positive on demand trends in

transportation, water & re-industrialization. CRH further expects to offset

tepid commodity Cement dynamics with strong op performance and an

upgraded Cementitious materials portfolio (prices remain up on a mixadjusted basis). With a few puts & takes (strong Aggs & International,

weaker NA Cement & Building Solutions), CRH remains on track for +HSD%

EBITDA growth in ’26. Applying a 12.0x NTM EBITDA multiple (lowered from

14.0x on macro uncertainty & peer valuations) our TP moves to $122; Buy.

2Q was roughly in-line on EBITDA ($2.63 vs $2.61B FactSet cons) while topline

($10.78B vs $10.68B cons) & EPS ($2.21 vs $2.02) came in above expectations; CRH

reiterated FY ’26 EBITDA guidance of $8.1-8.5B (vs $8.3B cons), echoing VMC &

MLM who reiterated their ’26 guides this week. Stronger results for International

Solutions ($781mm EBITDA vs $758mm cons) and Americas Materials ($1.38B vs

$1.37B cons) offset weaker Y/Y results in Americas Building Solutions ($462mm

EBITDA vs $493mm cons), which saw softer resi demand & cost inflation. 2Q EBITDA

margins expanded +30bp Y/Y to 24.4%, driven by International Solutions (+70bp)

and Americas Materials (+40bp), while Building Solutions (-140bp) saw

compression. CRH has completed $1.4B in acquisitions YTD (17 deals) and continues

to expect the ACA acquisition ($8.5B) to close in 1Q ‘27. FY expectations for net M&A

contribution (~$200mm) remain unchanged. CRH repurchased 2.5mm shares in 2Q

for ~$300mm; CRH has not announced a new tranche of its share buyback program

due to the ACA acquisition.

n

Buy

Price (30 Jul 26 16:00)

US$96.00

Target price

US$122.00↓

from US$138.00

Expected share price return

27.1%

Expected dividend yield

1.6%

Expected total return

…