CRH: Growing the empire – initial thoughts on Arcosa

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CRH: Growing the empire – initial thoughts on Arcosa

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CRH

Growing the empire – initial thoughts on

Arcosa

Reiterate Rating: BUY | PO: 143.00 USD | Price: 111.24 USD

Press reports cite CRH could acquire Arcosa 22 June 2026

CRH is reportedly in advanced discussions to acquire Arcosa (source: Bloomberg). Per

press articles, a deal could be reached as soon as next week though talks are continuing Equity

and could shift. CRH is a highly acquisitive firm and if reports are correct, this would Michael Feniger

mark its largest acquisition. BofA does not cover Arcosa (ACA). If this acquisition were to Research Analyst

BofAS

go ahead, we see merits (higher aggs mix) and view CRH’s M&A strategy in recent michael.feniger@bofa.com

months as positive (i.e., divesting some Outdoor Living, acquiring Water) yet key Arnaud Lehmann >>

questions remain (transaction multiple, synergies, retaining ACA’s entire portfolio). Research Analyst

MLI (UK)

Neither party have commented on any potential transaction. arnaud.lehmann@bofa.com

Who is Arcosa? SherifResearchEl-SabbahyAnalyst

ACA comprises of 2 segments: Construction Products (~60% of sales) & Engineered BofAS

Structures (~40%). ACA streamlined its portfolio to focus on construction materials & sherif.el-sabbahy@bofa.com

engineered structures (completed sale of its Barge unit April 1st 2026). Construction NanditaResearch NayarAnalyst

Products is aggregates-driven (incl. natural and recycled aggregates, specialty materials, BofAS

nandita.nayar@bofa.com

and site support), while Engineered Structures is centred on utility transmission

infrastructure (steel poles, structures). In 2025, ACA delivered EBITDA margin of 20.2%

(+90bps YoY) & guiding to further margin improvement of 21-21.7% in 2026 (ex Barge).