The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.
CRH Form 10-Q 3
Condensed Consolidated Balance Sheets (Unaudited)
(in $ millions, except share data)
September 30
December 31
September 30
2024
2023
2023
Assets
Current assets:
Cash and cash equivalents
2,978
6,341
5,722
Restricted cash
102
–
–
Accounts receivable, net
6,422
4,507
5,972
Inventories
4,644
4,291
4,191
Assets held for sale
–
1,268
–
Other current assets
694
478
430
Total current assets
14,840
16,885
16,315
Property, plant and equipment, net
21,289
17,841
18,103
Equity method investments
929
620
665
Goodwill
10,906
9,158
9,545
Intangible assets, net
1,105
1,041
1,074
Operating lease right-of-use assets, net
1,322
1,292
1,237
Other noncurrent assets
830
632
692
Total assets
51,221
47,469
47,631
Liabilities, redeemable noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable
2,963
3,149
2,954
Accrued expenses
2,513
2,296
2,457
Current portion of long-term debt
3,218
1,866
1,860
Operating lease liabilities
271
255
245
Liabilities held for sale
–
375
–
Other current liabilities
1,703
2,072
1,675
Total current liabilities
10,668
10,013
9,191
Long-term debt
10,672
9,776
9,535
Deferred income tax liabilities
3,168
2,738
3,050
Noncurrent operating lease liabilities
1,117
1,125
1,065
Other noncurrent liabilities
2,430
2,196
2,142
Total liabilities
28,055
25,848
24,983
Commitments and contingencies (Note 18)
Redeemable noncontrolling interests
361
333
320
Shareholders’ equity
Preferred stock, €1.27 par value, 150,000 shares authorized and 50,000 shares issued and outstanding for 5% preferred stock and 872,000 shares authorized, issued and outstanding for 7% 'A' preferred stock, as of September 30, 2024, December 31, 2023, and September 30, 2023
1
1
1
Common stock, €0.32 par value, 1,250,000,000 shares authorized; 721,319,880, 734,519,598 and 750,725,468 issued and outstanding, as of September 30, 2024, December 31, 2023, and September 30, 2023 respectively
291
296
302
Treasury stock, at cost (41,493,074, 42,419,281 and 41,554,960 shares as of September 30, 2024, December 31, 2023 and September 30, 2023 respectively)
(2,141)
(2,199)
(2,132)
Additional paid-in capital
392
454
423
Accumulated other comprehensive loss
(499)
(616)
(763)
Retained earnings
23,831
22,918
23,936
Total shareholders’ equity attributable to CRH plc shareholders
21,875
20,854
21,767
Noncontrolling interests
930
434
561
Total equity
22,805
21,288
22,328
Total liabilities, redeemable noncontrolling interests and equity
51,221
47,469
47,631
The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.
CRH Form 10-Q 4
Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions)
Nine months ended
September 30
2024
2023
Cash Flows from Operating Activities:
Net income
2,812
2,499
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization
1,288
1,187
Share-based compensation
96
92
Gains on disposals from businesses and long-lived assets, net
(389)
(38)
Deferred tax expense
195
108
Income from equity method investments
(27)
(21)
Pension and other postretirement benefits net periodic benefit cost
27
22
Non-cash operating lease costs
188
212
Other items, net
(17)
33
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable, net
(1,527)
(1,643)
Inventories
(45)
62
Accounts payable
(276)
(30)
Operating lease liabilities
(218)
(204)
Other assets
(311)
(5)
Other liabilities
498
354
Pension and other postretirement benefits contributions
(35)
(34)
Net cash provided by operating activities
2,259
2,594
Cash Flows from Investing Activities:
Purchases of property, plant and equipment
(1,635)
(1,175)
Acquisitions, net of cash acquired
(3,853)
(561)
Proceeds from divestitures and disposals of long-lived assets
1,180
64
Dividends received from equity method investments
22
23
Settlements of derivatives
(21)
3
Deferred divestiture consideration received
82
5
Other investing activities, net
(180)
(88)
Net cash used in investing activities
(4,405)
(1,729)
CRH Form 10-Q 5
Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions)
Nine months ended
September 30
2024
2023
Cash Flows from Financing Activities:
Proceeds from debt issuances
3,452
2,687
Payments on debt
(1,854)
(940)
Settlements of derivatives
34
5
Payments of finance lease obligations
(37)
(18)
Deferred and contingent acquisition consideration paid
(16)
(8)
Dividends paid
(1,469)
(761)
Distributions to noncontrolling and redeemable noncontrolling interests
(33)
(35)
Repurchases of common stock
(1,224)
(2,031)
Proceeds from exercise of stock options
3
4
Net cash used in financing activities
(1,144)
(1,097)
Effect of exchange rate changes on cash and cash equivalents, including restricted cash
(20)
18
Decrease in cash and cash equivalents, including restricted cash
(3,310)
(214)
Cash and cash equivalents and restricted cash at the beginning of period
6,390
5,936
Cash and cash equivalents and restricted cash at the end of period
3,080
5,722
Supplemental cash flow information:
Cash paid for interest (including finance leases)
372
244
Cash paid for income taxes
654
620
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets
2,978
5,722
Restricted cash presented in the Condensed Consolidated Balance Sheets
102
–
Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows
3,080
5,722
The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.
CRH Form 10-Q 6
Condensed Consolidated Statements of Changes in Equity (Unaudited)
(in $ millions, except share and per share data)
Preferred Stock
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Total Shareholders' Equity Attributable to CRH plc Shareholders
Noncontrolling Interests
Total Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance at June 30, 2024
0.9
$1
725.1
$292
(41.5)
($2,143)
$359
($813)
$23,030
$20,726
$390
$21,116
Net income
–
–
–
–
–
–
–
–
1,376
1,376
4
1,380
Other comprehensive income
–
–
–
–
–
–
–
314
–
314
34
348
Share-based compensation
–
–
–
–
–
–
33
–
–
33
–
33
Repurchases and retirement of common stock
–
–
(3.8)
(1)
–
–
–
–
(316)
(317)
–
(317)
Shares issued under employee share plans
–
–
–
–
–
2
–
–
2
4
–
4
Dividends declared on common stock
–
–
–
–
–
–
–
–
(238)
(238)
–
(238)
Distributions to noncontrolling interests
–
–
–
–
–
–
–
–
–
–
(5)
(5)
Noncontrolling interests arising on acquisition
–
–
–
–
–
–
–
–
–
–
507
507
Adjustment of redeemable noncontrolling interests to redemption value
–
–
–
–
–
–
–
–
(23)
(23)
–
(23)
Balance at September 30, 2024
0.9
$1
721.3
$291
(41.5)
($2,141)
$392
($499)
$23,831
$21,875
$930
$22,805
For the three months ended September 30, 2024, dividends declared on common stock were $0.35 per common share.
Preferred Stock
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Total Shareholders' Equity Attributable to CRH plc Shareholders
Noncontrolling Interests
Total Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance at December 31, 2023
0.9
$1
734.5
$296
(42.4)
($2,199)
$454
($616)
$22,918
$20,854
$434
$21,288
Net income
–
–
–
–
–
–
–
–
2,789
2,789
2
2,791
Other comprehensive income
–
–
–
–
–
–
–
117
–
117
15
132
Share-based compensation
–
–
–
–
–
–
96
–
–
96
–
96
Repurchases of common stock
–
–
–
–
(2.6)
(179)
–
–
–
(179)
–
(179)
Repurchases and retirement of common stock
–
–
(13.2)
(5)
–
–
–
–
(1,040)
(1,045)
–
(1,045)
Shares issued under employee share plans
–
–
–
–
3.5
237
(158)
–
(87)
(8)
–
(8)
Dividends declared on common stock
–
–
–
–
–
–
–
–
(719)
(719)
–
(719)
Distributions to noncontrolling interests
–
–
–
–
–
–
–
–
–
–
(10)
(10)
Divestiture of noncontrolling interests
–
–
–
–
–
–
–
–
–
–
(18)
(18)
Noncontrolling interests arising on acquisition
–
–
–
–
–
–
–
–
–
–
507
507
Adjustment of redeemable noncontrolling interests to redemption value
–
–
–
–
–
–
–
–
(30)
(30)
–
(30)
Balance at September 30, 2024
0.9
$1
721.3
$291
(41.5)
($2,141)
$392
($499)
$23,831
$21,875
$930
$22,805
For the nine months ended September 30, 2024, dividends declared on common stock were $1.05 per common share.
CRH Form 10-Q 7
Condensed Consolidated Statements of Changes in Equity (Unaudited) (in $ millions, except share and per share data)
Preferred Stock
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Total Shareholders' Equity Attributable to CRH plc Shareholders
Noncontrolling Interests
Total Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance at June 30, 2023
0.9
$1
752.1
$302
(24.2)
($1,140)
$391
($625)
$22,892
$21,821
$575
$22,396
Net income
–
–
–
–
–
–
–
–
1,306
1,306
3
1,309
Other comprehensive loss
–
–
–
–
–
–
–
(138)
–
(138)
(13)
(151)
Share-based compensation
–
–
–
–
–
–
32
–
–
32
–
32
Repurchases of common stock
–
–
–
–
(17.5)
(993)
–
–
–
(993)
–
(993)
Repurchases and retirement of common stock
–
–
(1.4)
–
–
–
–
–
(79)
(79)
–
(79)
Shares issued under employee share plans
–
–
–
–
0.1
1
–
–
–
1
–
1
Dividends declared on common stock
–
–
–
–
–
–
–
–
(177)
(177)
–
(177)
Distributions to noncontrolling interests
–
–
–
–
–
–
–
–
–
–
(4)
(4)
Adjustment of redeemable noncontrolling interests to redemption value
–
–
–
–
–
–
–
–
(6)
(6)
–
(6)
Balance at September 30, 2023
0.9
$1
750.7
$302
(41.6)
($2,132)
$423
($763)
$23,936
$21,767
$561
$22,328
For the three months ended September 30, 2023, dividends declared on common stock were $0.25 per common share.
Preferred Stock
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Total Shareholders' Equity Attributable to CRH plc Shareholders
Noncontrolling Interests
Total Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance at December 31, 2022
0.9
$1
752.1
$302
(7.7)
($297)
$443
($787)
$22,495
$22,157
$575
$22,732
Net income
–
–
–
–
–
–
–
–
2,477
2,477
1
2,478
Other comprehensive income
–
–
–
–
–
–
–
24
–
24
(7)
17
Share-based compensation
–
–
–
–
–
–
92
–
–
92
–
92
Repurchases of common stock
–
–
–
–
(37.4)
(1,952)
–
–
–
(1,952)
–
(1,952)
Repurchases and retirement of common stock
–
–
(1.4)
–
–
–
–
–
(79)
(79)
–
(79)
Shares issued under employee share plans
–
–
–
–
3.5
117
(112)
–
(1)
4
–
4
Dividends declared on common stock
–
–
–
–
–
–
–
–
(938)
(938)
–
(938)
Distributions to noncontrolling interests
–
–
–
–
–
–
–
–
–
–
(8)
(8)
Adjustment of redeemable noncontrolling interests to redemption value
–
–
–
–
–
–
–
–
(18)
(18)
–
(18)
Balance at September 30, 2023
0.9
$1
750.7
$302
(41.6)
($2,132)
$423
($763)
$23,936
$21,767
$561
$22,328
For the nine months ended September 30, 2023, dividends declared on common stock were $1.28 per common share.
The accompanying notes form an integral part of the Condensed Consolidated Financial Statements.
CRH Form 10-Q 8
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Summary of significant accounting policies
1.1. Description of business
CRH plc (the 'Company') is a multinational company that operates in the building materials industry, providing essential products and services for construction projects primarily in North America and Europe. The Company is one of the largest suppliers of building materials globally, and is a major producer of aggregates, cement, readymixed concrete, asphalt, paving and construction services, and value-added building products. The Company provides solutions to a wide range of customers, including contractors, builders, engineers, infrastructure developers, and the residential market.
1.2. Basis of presentation and use of estimates
The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited Consolidated Financial Statements and related notes thereto included in the Company’s 2023 Annual Report on Form 10-K. In the opinion of our management, these statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods and at the dates presented. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Condensed Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K.
The preparation of the Company's Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses. Such estimates include impairment of long-lived assets, impairment of goodwill, pension and other postretirement benefits, tax matters and litigation, including insurance and environmental compliance costs. These estimates and assumptions are based on management’s judgment.
Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances or experiences on which the estimate was based or as a result of new information.
Changes in estimates, including those resulting from changes in the economic environment, are reflected in the period in which the change in estimate occurs.
1.3. Restricted cash
Restricted cash consists of amounts held in escrow designated for the purchase of like-kind exchange replacement assets under Section 1031 of the U.S. Internal Revenue Code.
1.4. New accounting standards
Refer to Note 1.25 in the 2023 Annual Report on Form 10-K for impacts of new accounting standards. There were no material impacts from the adoption of new accounting standards for the nine months ended September 30, 2024.
CRH Form 10-Q 9
2. Revenue
The Company disaggregates revenue based on its operating and reportable segments. The Company’s operating and reportable segments are: (1) Americas Materials Solutions, (2) Americas Building Solutions, (3) Europe Materials Solutions, and (4) Europe Building Solutions.
Revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions.
The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications.
Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure.
Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects.
Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces.
Three months ended September 30, 2024
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Principal activities and products
Essential Materials
1,390
–
1,363
–
2,753
Road Solutions (i)
3,909
–
1,432
–
5,341
Building & Infrastructure Solutions (ii)
–
705
–
488
1,193
Outdoor Living Solutions
–
1,052
–
176
1,228
Total revenues
5,299
1,757
2,795
664
10,515
Three months ended September 30, 2023
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Principal activities and products
Essential Materials
1,326
–
1,286
–
2,612
Road Solutions (i)
3,754
–
1,331
–
5,085
Building & Infrastructure Solutions (ii)
–
687
–
520
1,207
Outdoor Living Solutions
–
1,051
–
173
1,224
Total revenues
5,080
1,738
2,617
693
10,128
Nine months ended September 30, 2024
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Principal activities and products
Essential Materials
3,605
–
3,560
–
7,165
Road Solutions (i)
8,302
–
3,652
–
11,954
Building & Infrastructure Solutions (ii)
–
1,933
–
1,509
3,442
Outdoor Living Solutions
–
3,633
–
508
4,141
Total revenues
11,907
5,566
7,212
2,017
26,702
Nine months ended September 30, 2023
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Principal activities and products
Essential Materials
3,388
–
3,764
–
7,152
Road Solutions (i)
7,751
–
3,645
–
11,396
Building & Infrastructure Solutions (ii)
–
1,935
–
1,679
3,614
Outdoor Living Solutions
–
3,612
–
490
4,102
Total revenues
11,139
5,547
7,409
2,169
26,264
CRH Form 10-Q 10
(i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time was:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Americas Materials Solutions
2,333
2,259
4,665
4,360
Europe Materials Solutions
572
570
1,439
1,501
Total revenue from contracts with customers
2,905
2,829
6,104
5,861
(ii) Revenue from contracts with customers in the Building & Infrastructure Solutions principal activities and products category that is recognized over time was:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Americas Building Solutions
17
19
66
53
Europe Building Solutions
111
123
374
424
Total revenue from contracts with customers
128
142
440
477
Contract assets were $1,004 million, $716 million and $1,005 million and contract liabilities were $495 million, $439 million and $404 million, at September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The Company recognized revenue of $382 million and $328 million for the nine months ended September 30, 2024, and September 30, 2023, respectively, which was previously included in the contract liability balance at December 31, 2023 and December 31, 2022, respectively.
Contract assets include unbilled revenue and retentions held by customers in respect of construction contracts at September 30, 2024, December 31, 2023 and September 30, 2023 amounting to $752 million and $252 million, $471 million and $245 million, and $790 million and $215 million, respectively. Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time. Retentions represent amounts that have been billed to customers but payment is withheld until final acceptance of the performance obligation by the customer. Retentions that have been billed, but are not due until completion of performance and acceptance by customers, are generally expected to be collected within one year. The Company applies the practical expedient and does not adjust any of its transaction prices for the time value of money.
On September 30, 2024, the Company had $4,069 million of transaction price allocated to remaining performance obligations. The majority of open contracts at September 30, 2024 are expected to close and revenue to be recognized within 12 months of the balance sheet date.
3. Assets held for sale and divestitures
In November 2023, the Company entered into a sales agreement with SigmaRoc plc to divest of its Lime operations in Europe for consideration of $1.1 billion. The transaction was structured in three phases. The first phase of the transaction, comprising the Company’s Lime operations in Germany, Czech Republic and Ireland, closed on January 1, 2024 and the second phase comprising the operations in the United Kingdom, closed on March 27, 2024. The third phase, comprising the operations in Poland previously classified as held for sale, closed on August 30, 2024. In total, the divestiture resulted in a pretax gain of $163 million which is included in Other nonoperating income, net in the Condensed Consolidated Statements of Income. The results of the divested operations and the gain on divestiture are reported in the Europe Materials Solutions segment.
CRH Form 10-Q 11
4. Acquisitions
The Company strategically acquires companies in order to increase its footprint and offer products and services that enhance its existing offerings. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values at the date of the acquisition with the remaining amount recorded in Goodwill.
On February 9, 2024, the Company acquired a portfolio of cement and readymixed concrete assets and operations in Texas, United States (the 'Hunter' acquisition) for a total consideration of $2,106 million. The Hunter acquisition is reported in the Americas Materials Solutions segment.
On July 1, 2024, the Company acquired approximately 57% of the issued share capital of Adbri (the 'Adbri' acquisition), a materials business in Australia, for a total consideration of $802 million. The Adbri acquisition is reported in the Europe Materials Solutions segment.
During the nine months ended September 30, 2024, the Company completed the acquisition of 28 companies. The total cash consideration for these acquisitions net of cash acquired, was $3,853 million. The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates. The Company expects to finalize the valuation and complete the purchase price allocations as soon as practical but no later than one year from the acquisition dates.
The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions at September 30, 2024 were:
in $ millions
Adbri
Hunter
Other acquisitions (i)
Total
Identifiable assets acquired and liabilities assumed
Cash and cash equivalents
15
–
8
23
Accounts receivable, net
158
–
80
238
Inventories
136
70
42
248
Other current assets
4
2
2
8
Property, plant and equipment, net
1,361
1,070
431
2,862
Equity method investments
366
–
–
366
Intangible assets, net
4
2
75
81
Operating lease right-of-use assets, net
18
12
28
58
Accounts payable
17
-
24
41
Accrued expenses
63
6
8
77
Operating lease liabilities
18
12
28
58
Long-term debt
519
–
9
528
Deferred income tax liabilities
208
–
21
229
Other liabilities
172
7
35
214
Total identifiable net assets at fair value
1,065
1,131
541
2,737
Goodwill
244
975
489
1,708
Noncontrolling interests
(507)
–
–
(507)
Total consideration
802
2,106
1,030
3,938
Consideration satisfied by:
Cash payments
802
2,106
968
3,876
Asset exchange
–
–
41
41
Deferred consideration (stated at net present cost)
–
–
10
10
Contingent consideration
–
–
11
11
Total consideration
802
2,106
1,030
3,938
Acquisitions of businesses, net of cash acquired
Cash consideration
802
2,106
968
3,876
Less: cash and cash equivalents acquired
(15)
–
(8)
(23)
Total outflow in the Condensed Consolidated Statements of Cash Flows
787
2,106
960
3,853
(i) Other acquisitions are aggregated on the basis of individual immateriality.
As a result of the acquisitions completed through September 30, 2024, the Company recognized $81 million of amortizable intangible assets and $1,708 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the goodwill recognized in respect of the acquisitions completed in the nine months endedSeptember 30, 2024, $1,379 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of seven years.
CRH Form 10-Q 12
Acquisition-related costs
Acquisition-related costs have been included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. These costs include legal and consulting expenses incurred in connection with completed acquisitions. The Company incurred the following acquisition-related costs:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Adbri
22
–
22
–
Hunter
1
–
23
–
Other acquisitions
5
4
7
6
Total acquisition-related costs
28
4
52
6
The post-acquisition impact of acquisitions completed during the financial period on the Company’s results for the period ended September 30 was:
in $ millions
2024
2023
Revenue
733
114
Net loss attributable to CRH plc (i)
(3)
(7)
(i) Net loss amount excludes acquisition-related costs that arose during the nine months ended September 30, 2024, and September 30, 2023.
Pro forma results of operations for the current year acquisitions, as if they were combined as of January 1, 2023, have not been presented because they are not material to the Condensed Consolidated Financial Statements.
5. Accounts receivable, net
Accounts receivable, net, were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Trade receivables
5,106
3,574
4,766
Construction contract assets
1,004
716
1,005
Total accounts receivable
6,110
4,290
5,771
Less: allowance for credit losses
(151)
(149)
(139)
Other current receivables
463
366
340
Total accounts receivable, net
6,422
4,507
5,972
Of the total Accounts receivable, net balances $58 million, $27 million and $33 million at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, were due from equity method investments.
The changes in the allowance for credit losses were:
in $ millions
2024
2023
At January 1
149
125
Charge-offs
(8)
(9)
Provision for credit losses
5
23
Foreign currency translation and other
5
–
At September 30
151
139
6. Inventories
Inventories were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Raw materials
2,182
1,865
2,007
Work-in-process
246
186
175
Finished goods
2,216
2,240
2,009
Total inventories
4,644
4,291
4,191
CRH Form 10-Q 13
7. Goodwill
The changes in the carrying amount of goodwill were:
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Carrying value, December 31, 2023
4,417
2,752
1,362
627
9,158
Acquisitions
1,270
160
281
(3)
1,708
Foreign currency translation adjustment
(11)
1
38
12
40
Divestitures
–
–
(201)
–
(201)
Reclassified from held for sale
–
–
201
–
201
Carrying value, September 30, 2024
5,676
2,913
1,681
636
10,906
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Carrying value, December 31, 2022
4,407
2,517
1,763
512
9,199
Acquisitions
34
240
38
86
398
Foreign currency translation adjustment
8
(5)
57
29
89
Impairment charge for the year
(32)
–
(295)
–
(327)
Reclassified as held for sale
–
–
(201)
–
(201)
Carrying value, December 31, 2023
4,417
2,752
1,362
627
9,158
in $ millions
Americas Materials Solutions
Americas Building Solutions
Europe Materials Solutions
Europe Building Solutions
Total
Carrying value, December 31, 2022
4,407
2,517
1,763
512
9,199
Acquisitions
15
237
28
74
354
Foreign currency translation adjustment
1
1
(6)
(4)
(8)
Carrying value, September 30, 2023
4,423
2,755
1,785
582
9,545
There were no charges for goodwill impairment in the nine months ended September 30, 2024 and September 30, 2023.
CRH Form 10-Q 14
8. Additional financial information
Other current assets were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Prepayments
323
285
290
Other financial assets
163
–
–
Other
208
193
140
Total other current assets
694
478
430
Other noncurrent assets were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Pension assets
296
271
358
Other
534
361
334
Total other noncurrent assets
830
632
692
Accrued expenses were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Accrued payroll and employee benefits
1,048
1,066
984
Other accruals
1,465
1,230
1,473
Total accrued expenses
2,513
2,296
2,457
Other current liabilities were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Dividends payable
–
750
177
Construction contract liabilities
495
439
404
Insurance liability
178
171
168
Income tax payable
148
129
196
Asset retirement obligations
74
50
65
Finance lease liability
60
31
25
Other
748
502
640
Total other current liabilities
1,703
2,072
1,675
Other noncurrent liabilities were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Income tax payable
816
712
635
Asset retirement obligations
325
310
352
Finance lease liability
168
86
71
Pension liability
257
254
276
Insurance liability
266
260
266
Other
598
574
542
Total other noncurrent liabilities
2,430
2,196
2,142
CRH Form 10-Q 15
9. Debt
Long-term debt was:
September 30
December 31
September 30
in $ millions
Effective interest rate
2024
2023
2023
Long-term debt
(U.S. Dollar denominated unless otherwise noted)
0.875% euro Senior Notes due 2023
0.92
%
–
–
530
1.875% euro Senior Notes due 2024
2.02
%
–
663
636
3.875% Senior Notes due 2025
3.93
%
1,250
1,250
1,250
1.250% euro Senior Notes due 2026
1.25
%
840
829
795
3.400% Senior Notes due 2027
3.49
%
600
600
600
4.000% euro Senior Notes due 2027
4.13
%
560
553
530
3.950% Senior Notes due 2028
4.07
%
900
900
900
1.375% euro Senior Notes due 2028
1.42
%
672
663
636
5.200% Senior Notes due 2029
5.30
%
750
-
-
4.125% Sterling Senior Notes due 2029
4.22
%
536
509
490
1.625% euro Senior Notes due 2030
1.72
%
840
829
795
4.000% euro Senior Notes due 2031
4.10
%
840
829
795
6.400% Senior Notes due 2033 (i)
6.43
%
213
213
213
5.400% Senior Notes due 2034
5.52
%
750
–
–
4.250% euro Senior Notes due 2035
4.38
%
840
829
795
5.125% Senior Notes due 2045
5.25
%
500
500
500
4.400% Senior Notes due 2047
4.44
%
400
400
400
4.500% Senior Notes due 2048
4.63
%
600
600
600
PHP interest bearing loan due 2027
6.05
%
407
396
400
AUD interest bearing loan due 2029
5.10
%
565
–
–
U.S. Dollar Commercial Paper
5.47
%
1,295
1,002
260
Euro Commercial Paper
3.69
%
383
–
159
Other
66
37
6
Unamortized discounts and debt issuance costs
(70)
(67)
(68)
Total long-term debt (ii)
13,737
11,535
11,222
Less: current portion of long-term debt (iii)
(3,065)
(1,759)
(1,687)
Long-term debt
10,672
9,776
9,535
(i) The $300 million 6.400% Senior Notes were issued in September 2003, and at the time of issuance the Senior Notes were partially swapped to floating interest rates. In August 2009 and December 2010, $87 million of the issued Senior Notes were acquired by the Company as part of liability management exercises undertaken and the interest rate hedge was closed out. The remaining fair value hedge adjustment on the hedged item in the Condensed Consolidated Balance Sheets was $27 million, $30 million, and $30 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.
(ii) Of the Company’s nominal fixed rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, $1,375 million was hedged to daily compounded Secured Overnight Financing Rate (SOFR) using interest rate swaps. Of the Company’s nominal floating rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, AUD300 million, AUDnil million, and AUDnil million, respectively, was hedged to fixed rates using interest rate swaps.
(iii) Excludes borrowings from bank overdrafts of $153 million, $107 million and $173 million, which are recorded within Current portion of long-term debt in the Condensed Consolidated Balance Sheets at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.
Senior Notes:
The Senior Notes are issued by wholly owned subsidiaries of the Company and carry full and unconditional guarantees from the Company, as defined in the indentures that govern them. These Senior Notes represent senior unsecured obligations of the Company and hold an equal standing in payment priority with the Company's existing and future senior unsubordinated indebtedness.
With the exception of the 6.400% Senior Notes due 2033, all other Senior Notes can be redeemed before their respective par call dates, at a make-whole redemption price. Post par call dates and before the respective maturity dates, the Senior Notes can be redeemed at a price equal to 100% of the principal amount.
In the event of a change-of-control repurchase event, the Company is obligated to offer repurchase options for the 3.875% Senior Notes due 2025, 3.400% Senior Notes due 2027, 3.950% Senior Notes due 2028, 5.200% Senior Notes due 2029, 5.400% Senior Notes due 2034, 5.125% Senior Notes due 2045, 4.400% Senior Notes due 2047, and 4.500% Senior Notes due 2048. This repurchase involves a cash payment equal to 101% of the principal amount, along with any accrued and unpaid interest.
If the Company's credit rating falls below investment-grade, the Company would be required to make an additional coupon step-up payment on the 3.875% Senior Notes due 2025 and 5.125% Senior Notes due 2045. The increase is 25 basis points per rating notch per agency, capped at 100 basis points per agency. However, this coupon step-up would reverse if the Company returns to an investment-grade rating.
CRH Form 10-Q 16
Australian (AUD) Debt:
In July 2024, the Company acquired Adbri Ltd who have committed credit agreements with a range of banks and credit institutions totaling AUD940 million. The Company does not provide a guarantee for these facilities. The funds drawn from these facilities carry a combination of fixed and floating interest rates.
Philippines (PHP) Debt:
In March 2017, the Company's subsidiary, Republic Cement & Building Materials, Inc., entered into a credit arrangement with the Bank of the Philippine Islands. The Company does not provide a guarantee for this facility. The initial credit agreement provided for total commitments of PHP12.5 billion for a ten-year term, which was later expanded to PHP22.5 billion. The funds drawn from this facility carry a combination of fixed and floating interest rates.
Bank Credit:
The Company maintains a multi-currency Revolving Credit Facility (the 'RCF') with a syndicate of lenders. The RCF offers a senior unsecured revolving credit facility of €3,500 million over five years, maturing May 11, 2029. The terms of the facility allow for one further plus one year extension option which, if successfully exercised with the agreement of the Lenders, would extend the maturity to May 11, 2030. Borrowings under the RCF bear interest at rates based upon an underlying base rate, plus a margin determined in accordance with a ratings-based pricing grid. Base rates include SOFR for U.S. Dollar, Euro Interbank Offer Rate (EURIBOR) for euros, Sterling Overnight Index Average (SONIA) for Sterling, and Swiss Average Rate Overnight (SARON) for Swiss Francs, respectively. A commitment fee is payable on a quarterly basis based on a percentage of the applicable margin and calculated on the daily undrawn amount of the facility.
The deferred financing costs associated with the RCF were $6 million at September 30, 2024. The total potential credit available through this arrangement is €3,500 million, inclusive of the ability to issue letters of credit.
At September 30, 2024, December 31, 2023, and September 30, 2023, there were no outstanding borrowings or letters of credit issued under this facility and the undrawn committed facilities available to be drawn by the Company at September 30, 2024 were $3,919 million (€3,500 million equivalent).
The RCF includes customary terms and conditions for investment-grade borrowers. There are no financial covenants.
At September 30, 2024, the Company had a $4,000 million U.S. Dollar Commercial Paper Program and a €1,500 million Euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity as required. The Company’s RCF supports the commercial paper programs with a separate €750 million swingline sublimit which allows for same-day drawing in either euro or U.S. Dollar. The amount of commercial paper outstanding does not reduce available capacity under the RCF. Commercial paper borrowings may vary during the period, largely as a result of fluctuations in funding requirements.
The long-term debt maturities, net of the unamortized discounts and debt issuance costs, for the periods subsequent to September 30, 2024 are as follows:
in $ millions
Remainder of 2024
2025
2026
2027
2028
2029 and thereafter
Total
Long-term debt maturities
1,757
1,334
1,612
1,159
1,559
6,316
13,737
10. Fair value measurement
Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured using inputs in one of the following three categories:
Level 1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.
Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities.
Level 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
Considerable judgment may be required in interpreting market data used to develop the estimates of fair value.
The carrying values of the Company’s Long-term debt were $13,737 million, $11,535 million, and $11,222 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The fair values of the Company’s Long-term debt were $13,599 million, $11,337 million, and $10,471 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The Company’s Long-term debt obligations are Level 2 instruments whose fair value is derived from quoted market prices.
The Redeemable noncontrolling interests included in the Condensed Consolidated Balance Sheets are marked to fair value on a recurring basis using Level 3 inputs. The redemption value of Redeemable noncontrolling interests approximates the fair value and is based on a range of estimated potential outcomes of the expected payment amounts primarily dependent on underlying performance metrics. The unobservable inputs in the valuation include a discount rate determined using a Capital Asset Pricing Model methodology with ranges of between 6.23% and 7.16%.
See Note 17 for the changes in the fair value of redeemable noncontrolling interests.
The carrying values of the Company’s Cash and cash equivalents, Restricted cash, Accounts receivable, net, Current portion of long-term debt, Accounts payable, Accrued expenses, and Other current liabilities approximate their fair values because of the short-term nature of these instruments.
CRH Form 10-Q 17
11. Income taxes
The Company’s tax provision for the interim period is calculated using an estimated annual effective tax rate based on the expected full-year results which is applied to ordinary year-to-date income or loss. The tax provision is adjusted for discrete items that occur in the applicable interim period to arrive at the effective income tax rate.
The summary of the income tax expense from operations was:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Total tax expense
531
416
942
781
Effective income tax rate
28%
24%
25%
24%
The increase in the effective tax rate for this quarter in comparison to the three months ended September 30, 2023 is mainly driven by the timing of discrete items occurring throughout the year, including non-deductible acquisition-related costs in the third quarter. The increase in the year-to-date compared to the nine months ended September 30, 2023 is mainly driven by a change in the mix of income earned in jurisdictions with a higher rate of tax and non-deductible acquisition-related costs which is partially offset by items arising in the first quarter (being the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations).
12. Earnings per share (EPS)
The calculation of basic and diluted earnings per share was:
Three months ended
Nine months ended
September 30
September 30
in $ millions, except share and per share data
2024
2023
2024
2023
Numerator
Net income
1,389
1,318
2,812
2,499
Net (income) attributable to redeemable noncontrolling interests
(9)
(9)
(21)
(21)
Net (income) attributable to noncontrolling interests
(4)
(3)
(2)
(1)
Adjustment of redeemable noncontrolling interests to redemption value
(23)
(6)
(30)
(18)
Net income attributable to CRH plc for EPS - basic and diluted
1,353
1,300
2,759
2,459
Denominator
Weighted average common shares outstanding - basic (i)
681.6
718.2
685.0
731.8
Effect of dilutive employee share awards (ii)
3.9
3.9
5.0
4.8
Weighted average common shares outstanding - diluted
685.5
722.1
690.0
736.6
Earnings per share attributable to CRH plc
Basic
$1.99
$1.81
$4.03
$3.36
Diluted
$1.97
$1.80
$4.00
$3.34
(i) The weighted average number of common shares included in the computation of basic and diluted earnings per share has been adjusted to exclude shares repurchased and held by the Company as Treasury Stock given that these shares do not rank for dividend.
(ii) Common shares that would only be issued contingent on certain conditions totaling 3,919,037 at September 30, 2024 and 5,336,581 at September 30, 2023 are excluded from the computation of diluted earnings per share where the conditions governing exercisability have not been satisfied as of the end of the reporting period or they are antidilutive for the period presented.
CRH Form 10-Q 18
13. Accumulated other comprehensive loss
The changes in the balances for each component of Accumulated other comprehensive loss, net of tax, were:
in $ millions
Currency Translation
Cash Flow Hedges
Pension and Other Postretirement Plans
Total
Balance at June 30, 2024
(617)
(65)
(131)
(813)
Other comprehensive income (loss) before reclassifications
363
(9)
–
354
Amounts reclassified from Accumulated other comprehensive loss
–
1
(7)
(6)
Net current-period other comprehensive income (loss)
363
(8)
(7)
348
Other comprehensive (income) attributable to noncontrolling interests
(34)
–
–
(34)
Balance at September 30, 2024
(288)
(73)
(138)
(499)
Balance at December 31, 2023
(439)
(47)
(130)
(616)
Other comprehensive income (loss) before reclassifications
205
(46)
–
159
Amounts reclassified from Accumulated other comprehensive loss
(39)
20
(8)
(27)
Net current-period other comprehensive income (loss)
166
(26)
(8)
132
Other comprehensive (income) attributable to noncontrolling interests
(15)
–
–
(15)
Balance at September 30, 2024
(288)
(73)
(138)
(499)
Balance at June 30, 2023
(605)
5
(25)
(625)
Other comprehensive (loss) before reclassifications
(130)
(23)
–
(153)
Amounts reclassified from Accumulated other comprehensive loss
–
3
(1)
2
Net current-period other comprehensive (loss)
(130)
(20)
(1)
(151)
Other comprehensive loss attributable to noncontrolling interests
13
–
–
13
Balance at September 30, 2023
(722)
(15)
(26)
(763)
Balance at December 31, 2022
(746)
(19)
(22)
(787)
Other comprehensive income (loss) before reclassifications
17
(12)
-
5
Amounts reclassified from Accumulated other comprehensive loss
–
16
(4)
12
Net current-period other comprehensive income (loss)
17
4
(4)
17
Other comprehensive loss attributable to noncontrolling interests
7
–
–
7
Balance at September 30, 2023
(722)
(15)
(26)
(763)
The amounts reclassified from Accumulated other comprehensive loss to income were:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Cash flow hedges
Cost of product revenues
1
4
23
21
Income tax benefit
–
(1)
(3)
(5)
Total
1
3
20
16
Pension and other postretirement plans
Other nonoperating income, net
(6)
(1)
(8)
(4)
Income tax benefit
(1)
–
–
–
Total
(7)
(1)
(8)
(4)
Reclassifications from Accumulated other comprehensive loss to income
(6)
2
12
12
CRH Form 10-Q 19
14. Segment information
The Company has the following four operating and reportable segments:
Americas Materials Solutions;
Americas Building Solutions;
Europe Materials Solutions; and
Europe Building Solutions.
The Americas Materials Solutions segment provides solutions for the construction and maintenance of public infrastructure, commercial and residential buildings in North America. The primary materials produced by this segment include aggregates, cement, readymixed concrete and asphalt. This segment also provides paving and construction services for customers.
The Americas Building Solutions segment manufactures, supplies and delivers solutions for the built environment in communities across North America. Our subsidiaries within this segment offer building and infrastructure solutions serving complex critical utility infrastructure (such as water, energy, transportation and telecommunications projects) and outdoor living solutions for enhancing private and public spaces.
The Europe Materials Solutions segment provides solutions for the construction of public infrastructure, commercial and residential buildings to customers in construction markets primarily in Europe. The primary materials produced in this segment include aggregates, cement, readymixed concrete, asphalt and concrete products.
The Europe Building Solutions segment combines materials, products and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces. This business serves the growing demand across the construction value chain for innovative and value-added products and services.
The Company’s reportable segments are the same as the Company’s operating segments and correspond with how the Chief Operating Decision Maker (CODM) regularly reviews financial information to allocate resources and assess performance under the Company’s organizational structure.
The CODM monitors the operating results of segments separately in order to allocate resources between segments and to assess performance. Segment performance is evaluated using Adjusted EBITDA. Given that Interest expense and Income tax expense are managed on a centralized basis, these items are not allocated between operating segments for the purposes of the information presented to the CODM and are accordingly omitted from the detailed segmental analysis below. There are no asymmetrical allocations to reporting segments which would require disclosure.
Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component.
The key performance measures for the Company’s reportable segments were:
Revenues
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Americas Materials Solutions
5,299
5,080
11,907
11,139
Americas Building Solutions
1,757
1,738
5,566
5,547
Europe Materials Solutions
2,795
2,617
7,212
7,409
Europe Building Solutions
664
693
2,017
2,169
Total revenues
10,515
10,128
26,702
26,264
Adjusted EBITDA
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Americas Materials Solutions
1,484
1,284
2,692
2,184
Americas Building Solutions
355
391
1,139
1,166
Europe Materials Solutions
553
446
1,142
1,029
Europe Building Solutions
62
69
181
211
Total Adjusted EBITDA
2,454
2,190
5,154
4,590
CRH Form 10-Q 20
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Adjusted EBITDA
2,454
2,190
5,154
4,590
Depreciation, depletion and amortization
(467)
(402)
(1,288)
(1,187)
Interest income
33
62
112
138
Interest expense
(164)
(131)
(452)
(285)
Gain on divestitures and unrealized gains on investments (i)
59
–
242
–
Pension income excluding current service cost component (i)
1
1
3
3
Other interest, net (i)
2
–
1
–
Substantial acquisition-related costs
(23)
–
(45)
–
Income from operations before income tax expense and income from equity method investments
1,895
1,720
3,727
3,259
(i) Gain on divestitures and unrealized gains on investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating income, net in the Condensed Consolidated Statements of Income.
Depreciation, depletion and amortization for each of the segments were:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Americas Materials Solutions
213
195
611
576
Americas Building Solutions
85
73
249
221
Europe Materials Solutions
145
112
357
324
Europe Building Solutions
24
22
71
66
Total depreciation, depletion and amortization
467
402
1,288
1,187
15. Pension and other postretirement benefits
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost (income) recognized in the Condensed Consolidated Statements of Income for the Pension and Other Postretirement Benefit (OPEB) Plans were:
U.S.
Non-U.S.
Three months ended
Nine months ended
Three months ended
Nine months ended
September 30
September 30
September 30
September 30
in $ millions
2024
2023
2024
2023
2024
2023
2024
2023
Service cost
–
–
–
–
10
9
30
25
Interest cost
6
6
18
18
22
23
64
69
Expected return on assets
(5)
(5)
(15)
(15)
(23)
(23)
(67)
(69)
Amortization of:
Past service credit
–
–
–
–
(3)
(3)
(9)
(9)
Actuarial loss
1
1
3
3
1
–
3
–
Settlement gain (i)
–
–
–
–
–
–
(3)
–
Net periodic benefit cost (ii) (iii)
2
2
6
6
7
6
18
16
(i) Settlement gain of $3 million relates to pension plans divested as part of the sale of the Company's Lime operations in Europe and is included in gain on divestitures and unrealized gains on investments, within Other nonoperating income, net.
(ii) Includes net periodic benefit cost of $1 million and $1 million related to OPEB plans for the three months endedSeptember 30, 2024 andSeptember 30, 2023,and $3 million and $3 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
(iii) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating income, net.
CRH Form 10-Q 21
16. Variable interest entities
The Company’s operations in the Philippines are conducted through a Variable Interest Entity (VIE), wherein the Company holds 40% of the equity share capital and a 55% share of earnings and distributions. The remaining noncontrolling interest of 60% equity share capital and 45% share of earnings and distributions is held by an unrelated party. The Company’s voting rights are not proportional to its share of earnings and distributions, and substantially all of the activities of the Philippines business are conducted on behalf of the Company and controlled by the Company through contractual relationships. The Philippines business meets the definition of a VIE for which the Company is the primary beneficiary and, therefore, is consolidated.
Further, the Company has provided subordinated debt to the intermediate parent of the Philippines business which exposes the Company to the profits and losses of the Philippines business. The debt is repayable only where the shareholder agreement of the intermediate parent of the Philippines business is terminated or where the Company transfers its shares in the intermediate parent to an unrelated entity (i.e., the debt exposure of the Company becomes in substance a residual interest in the intermediate parent).
The carrying amounts of assets and liabilities of the consolidated VIE, reported within the Condensed Consolidated Balance Sheets before intragroup eliminations with other CRH plc companies were:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Assets
Current assets:
Cash and cash equivalents
20
19
32
Accounts receivable, net
39
31
33
Inventories
101
99
97
Other current assets
56
51
48
Total current assets
216
200
210
Property, plant and equipment, net
882
923
913
Goodwill
197
200
488
Operating lease right-of-use assets, net
5
5
5
Other noncurrent assets
13
11
9
Total assets
1,313
1,339
1,625
Liabilities
Current liabilities:
Accounts payable
80
92
83
Accrued expenses
52
36
46
Current portion of long-term debt
77
98
108
Operating lease liabilities
1
1
1
Other current liabilities
23
25
23
Total current liabilities
233
252
261
Long-term debt
329
297
290
Deferred income tax liabilities
98
106
104
Noncurrent operating lease liabilities
4
5
5
Other noncurrent liabilities
20
17
15
Total liabilities
684
677
675
The operating results of the consolidated VIE, reported within the Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows before intragroup eliminations with other CRH plc companies were:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Total revenues
88
116
282
353
Total cost of revenues
(86)
(105)
(262)
(332)
Gross profit
2
11
20
21
Net loss
(10)
(5)
(22)
(23)
Net cash (used in) provided by operating activities
(11)
21
CRH Form 10-Q 22
17. Redeemable noncontrolling interests
The redeemable noncontrolling interests comprise the noncontrolling interests in two of the Company’s North American subsidiaries, that are currently redeemable. The Company has the ability to exercise the call option for the noncontrolling interests on or after December 31, 2031. In addition to the call options, the noncontrolling interest holder has the right to sell the noncontrolling interests to the Company, which are currently exercisable. These noncontrolling interests have put and call options and both are redeemable based on multiples of EBITDA. The noncontrolling interests are considered redeemable noncontrolling equity interests, classified as temporary or mezzanine equity, as their redemption is not solely within the Company’s control. The noncontrolling interests were recorded at their respective fair values as of the acquisition dates and are adjusted to their expected redemption values, with an offsetting entry to retained earnings, as of the reporting date as if that date was the redemption date, if those amounts exceed their respective carrying values.
The following table summarizes the redeemable noncontrolling interest for the following periods:
in $ millions
Balance at June 30, 2024
335
Net income attributable to redeemable noncontrolling interests
9
Adjustment to the redemption value
23
Dividends paid
(6)
Balance at September 30, 2024
361
Balance at December 31, 2023
333
Net income attributable to redeemable noncontrolling interests
21
Adjustment to the redemption value
30
Dividends paid
(23)
Balance at September 30, 2024
361
in $ millions
Balance at June 30, 2023
313
Net income attributable to redeemable noncontrolling interests
9
Adjustment to the redemption value
6
Dividends paid
(8)
Balance at September 30, 2023
320
Balance at December 31, 2022
308
Net income attributable to redeemable noncontrolling interests
21
Adjustment to the redemption value
18
Dividends paid
(27)
Balance at September 30, 2023
320
18. Commitments and contingencies
Guarantees
The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $12.9 billion, $11.3 billion, and $11.1 billion in respect of loans and borrowings, bank advances and derivative obligations at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, and $0.5 billion, $0.4 billion, and $0.4 billion at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, in respect of letters of credit due within one year.
Legal Proceedings
The Company is not involved in any proceedings that it believes could reasonably be expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity.
19. Subsequent events
The Company has evaluated subsequent events occurring through to the date the Condensed Consolidated Financial Statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the Condensed Consolidated Financial Statements except as noted below.
Change in Operating and Reportable Segments
During the fourth quarter of 2024, there was a change to how the CODM reviews financial information to manage the business, assess performance and allocate resources. This resulted in a realignment of the Company's operating and reportable segments to the following three segments: Americas Materials Solutions, Americas Building Solutions and International Solutions. Beginning with the Form 10-K for the year ending December 31, 2024, any historical segment financial information presented will be recast to conform to the new reportable segment structure.
CRH Form 10-Q 23
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Introduction
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and nine months ended September 30, 2024. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report.
The following discussion contains trend information and forward-looking statements. Actual results could differ materially from those discussed in or implied by these forward-looking statements, as well as from our historical performance, due to various factors, including those discussed elsewhere in this Quarterly Report, particularly "Forward-Looking Statements," and Item 1A. "Risk Factors" in our 2023 Form 10-K and in our other filings with the SEC. Our operating results depend upon economic cycles, seasonal and other weather‐related conditions, and trends in government expenditures, among other factors. Accordingly, financial results for any financial period presented, or period-to-period comparisons of reported results, may not be indicative of future operating results.
Overview
CRH is a leading provider of building materials solutions that build, connect and improve our world. Since its formation in 1970, CRH has evolved from being a supplier of base materials to providing end-to-end value-added solutions that solve complex construction challenges for our customers. CRH works closely with customers across the entire project lifecycle from planning, design, manufacture, installation and maintenance through to end-of-life recycling, using our engineering and innovation expertise to provide superior materials, products and services.
The Company integrates essential materials (aggregates and cement), value-added building products and construction services to provide our customers with complete end-to-end solutions. CRH’s capabilities, innovation and technical expertise enable it to be a valuable partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions.
Operating in 28 countries, the Company has market leadership positions in North America and Europe. The United States is expected to be a key driver of future growth for CRH due to continued economic expansion, a growing population and significant public investment in construction. Our European business benefits from strong economic and construction growth prospects across Central and Eastern Europe as well as recurring repair and remodel demand in Western Europe. In both geographies there is significant government support for infrastructure and increasing demand for integrated solutions in major infrastructure and commercial projects.
CRH has a proven track record in value creation through acquisitions which over the last decade has accounted for approximately two-thirds of the Company’s growth. We achieve this by acquiring businesses at attractive valuations and creating value by integrating them with our existing operations and generating synergies. The Company takes an active approach to portfolio management and continuously reviews the competitive landscape for attractive investment and divestiture opportunities to deliver further growth and value creation for shareholders.
Seasonality
Activity in the construction industry is dependent to a considerable extent on the seasonal impact of weather on the Company’s operating locations, with periods of higher activity in some markets during spring and summer which may reduce significantly in winter due to inclement weather. In addition to impacting demand for our products and services, adverse weather can negatively impact production processes for a variety of reasons. For example, workers may not be able to work outdoors in sustained high temperatures, heavy rainfall and/or other unfavorable weather conditions. Therefore, financial results for any particular quarter do not necessarily indicate the results expected for the full year.
Financial performance highlights
Three months ended September 30, 2024
CRH delivered a strong third quarter performance compared to the third quarter of 2023, resulting in the following performance highlights for the three months ended September 30, 2024 (comparisons are versus the prior year's third quarter unless otherwise noted):
•Total revenues increased 4% to $10.5 billion;
•Net income was $1.4 billion compared with $1.3 billion, an increase of $71 million, or 5%. Adjusted EBITDA*1was $2.5 billion, an increase of $264 million, or 12%;
•Net income margin was 13.2% compared with 13.0%, an increase of 20 basis points (bps). Adjusted EBITDA margin* was 23.3%, an increase of 170bps on the prior year's third quarter Adjusted EBITDA margin* of 21.6%; and
•Basic Earnings Per Share (EPS) was $1.99 compared to $1.81.
Nine months ended September 30, 2024
CRH also delivered a strong performance in the nine months ended September 30, 2024 compared to the prior year, resulting in the following performance highlights (comparisons are versus the prior year's first nine months unless otherwise noted):
•Total revenues of $26.7 billion were 2% higher;
•Net income was $2.8 billion compared with $2.5 billion, an increase of $313 million, or 13%. Adjusted EBITDA* was $5.2 billion, an increase of $564 million, or 12%;
•Net income margin was 10.5% compared with 9.5%, an increase of 100bps. Adjusted EBITDA margin* was 19.3%, an increase of 180bps ahead of prior year Adjusted EBITDA margin* of 17.5%; and
•Basic EPS was $4.03 compared to $3.36.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.1
CRH Form 10-Q 24
Capital allocation highlights
Nine months ended September 30, 2024
•Cash paid to shareholders through dividends was $1.5 billion, compared with $0.8 billion in the first nine months of the prior year. CRH transitioned to quarterly dividends during the first quarter of 2024, with a quarterly dividend of $0.35 per share declared in February 2024, May 2024 and August 2024 and a fourth quarterly dividend of $0.35 per share announced on November 7, 2024, representing an annualized increase of 5% on the prior year;
•Cash returned to shareholders through share buybacks was $1.0 billion, a decrease of $1.0 billion versus the first nine months of the prior year. On November 6, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date cash returned to $1.2 billion. A further tranche has been announced, extending the ongoing share buyback program by an additional $0.3 billion to be completed no later than February 26, 2025; and
•28 acquisitions were completed for total consideration of $3.9 billion, compared with $0.6 billion in the first nine months of the prior year. A further $1.6 billion was invested in development and replacement capital expenditure projects, compared with $1.2 billion for the comparable 2023 period.
Development Review
During the three months ended September 30, 2024, CRH completed 12 acquisitions for a total consideration of $1.4 billion, compared with $0.4 billion in the same period of 2023. Americas Materials Solutions completed seven acquisitions, Americas Building Solutions completed three acquisitions and Europe Materials Solutions completed two acquisitions.
Overall, during the nine months ended September 30, 2024, CRH completed 28 acquisitions for a total consideration of $3.9 billion, compared with $0.6 billion in the first nine months of the prior year. On July 1, 2024, CRH completed the acquisition of a majority stake in Adbri Ltd (Adbri) for a total consideration of $0.8 billion. Adbri is an integrated materials business with high-quality assets and leading market positions in Australia that complements our core competencies in cement, concrete and aggregates and creates additional growth and development opportunities for our existing Australian business.
During the three months ended September 30, 2024, cash proceeds from divestitures and disposals of long-lived assets were $0.1 billion, including the third and final phase of the divestiture of the European Lime operations, which was completed on August 30, 2024.
For the nine months ended September 30, 2024, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.2 billion, primarily related to the divestiture of the European Lime operations. No divestitures occurred in the first nine months of the prior year.
Outlook
We are pleased to reaffirm our guidance¹ midpoint for 2024, reflecting the continued strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from portfolio activity.2
Looking ahead to 2025 and notwithstanding some macroeconomic uncertainties, we expect positive underlying demand across our key end-use markets, underpinned by significant public investment in infrastructure and re-industrialization activity. A lower interest rate environment is expected to aid a gradual recovery in new-build residential construction activity. Through a combination of continued positive price momentum, favorable underlying demand and the benefits of our integrated, value-based solutions strategy we expect another year of progress in 2025.
2¹ The above guidance does not reflect the potential Q4 impairment in the range of $0.3-$0.4 billion. See the discussion within 'Critical Accounting Policies and Estimates' on page 36.
CRH Form 10-Q 25
Results of Operations
Revenues are derived from a range of products and services across four segments. The Materials Solutions segments in Americas and Europe utilize an extensive network of reserve-backed quarry locations to produce and supply a range of materials including aggregates, cement, readymixed concrete and asphalt, as well as providing paving and construction services. The Americas and Europe Building Solutions segments manufacture, supply and deliver high quality building products and solutions.
The table below summarizes the Company’s unaudited Condensed Consolidated Statements of Income for the periods indicated.3
Condensed Consolidated Statements of Income (Unaudited)
(in $ millions, except per share data)
Three months ended
Nine months ended
September 30
September 30
2024
2023
2024
2023
Total revenues
10,515
10,128
26,702
26,264
Total cost of revenues
(6,456)
(6,365)
(17,161)
(17,252)
Gross profit
4,059
3,763
9,541
9,012
Selling, general and administrative expenses
(2,184)
(1,990)
(5,919)
(5,647)
Gain on disposal of long-lived assets
89
15
199
38
Operating income
1,964
1,788
3,821
3,403
Interest income
33
62
112
138
Interest expense
(164)
(131)
(452)
(285)
Other nonoperating income, net
62
1
246
3
Income from operations before income tax expense and income from equity method investments
1,895
1,720
3,727
3,259
Income tax expense
(531)
(416)
(942)
(781)
Income from equity method investments
25
14
27
21
Net income
1,389
1,318
2,812
2,499
Net (income) attributable to redeemable noncontrolling interests
(9)
(9)
(21)
(21)
Net (income) attributable to noncontrolling interests
(4)
(3)
(2)
(1)
Net income attributable to CRH plc
1,376
1,306
2,789
2,477
Basic earnings per share attributable to CRH plc
$1.99
$1.81
$4.03
$3.36
Adjusted EBITDA*
2,454
2,190
5,154
4,590
Total revenues
Total revenues were $10.5 billion for the three months ended September 30, 2024, an increase of $0.4 billion, or 4%, compared with the third quarter of 2023, driven by continued pricing progress and contributions from acquisitions partly offset by lower activity levels in certain regions due to adverse weather and divestitures.
Similar trends were experienced for the nine months ended September 30, 2024 resulting in total revenues of $26.7 billion, an increase of $0.4 billion or 2% from the first nine months of 2023.
For additional discussion on segment revenues, see “Segments” section on pages 28 to 31.
Gross profit
Gross profit for the three months ended September 30, 2024, was $4.1 billion, an increase of $0.3 billion, or 8%, from the same period in 2023, reflecting total revenues increase of 4%, while total cost of revenues increased by 1%. The gross profit margin of 38.6% increased 140bps from 37.2% for the third quarter of the prior year. Total cost of revenues increased primarily as a result of an increase in labor costs of 9% and 18% higher depreciation charges mainly due to acquisitions. These were partly offset by lower energy costs of 13%.
For the nine months ended September 30, 2024, gross profit was $9.5 billion, an increase of $0.5 billion, or 6%, from the same period in 2023, with total revenues 2% ahead of the same period in 2023, while total cost of revenues decreased by 1%. The gross profit margin of 35.7% increased 140bps from 34.3% for the first nine months of the prior year. Total cost of revenues decreased from the first nine months of the prior year, with a 19% reduction in energy costs due to divestitures, a decline in energy prices and lower activity levels. These were partly offset by labor cost increases of 7%.
Selling, general and administrative expenses
Selling, general and administrative (SG&A) expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administration expenses, were $2.2 billion for the three months ended September 30, 2024, an increase of $0.2 billion, or 10%, from the comparable 2023 period. This increase was primarily due to labor cost increases of 13% as a result of increased headcount from acquisitions, and wage inflation along with a 6% increase in haulage costs, mainly driven by acquisitions.
For the nine months ended September 30, 2024, SG&A expenses were $5.9 billion, an increase of $0.3 billion, or 5%, from the comparable 2023 period. SG&A expenses increased primarily due to labor cost increases of 10% as a result of higher headcount from acquisitions, and wage inflation.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.3
CRH Form 10-Q 26
Gain on disposal of long-lived assets
Gain on disposal of long-lived assets was $89 million for the three months ended September 30, 2024, an increase of $74 million compared with 2023, and $199 million for the nine months ended September 30, 2024, an increase of $161 million. The increase mainly related to the disposal of certain land assets.
Interest income
Interest income was $33 million for the three months ended September 30, 2024, a decrease of $29 million from the comparable period in 2023, and $112 million for the nine months ended September 30, 2024, a decrease of $26 million from the comparable period in 2023, in both instances, primarily due to lower levels of cash deposits.
Interest expense
Interest expense was $164 million for the three months ended September 30, 2024, an increase of $33 million from the comparable period in 2023, and $452 million for the nine months ended September 30, 2024, an increase of $167 million from the prior period. The increases were primarily due to higher gross debt balances.
Other nonoperating income, net
Other nonoperating income, net, was $62 million for the three months ended September 30, 2024, compared with $1 million in the comparable period for 2023. Other nonoperating income, net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses. The increase in other nonoperating income, net, was primarily related to gains on divestitures.
Other nonoperating income, net, was $246 million for the nine months ended September 30, 2024, compared with $3 million in the comparable period for 2023. The increase in other nonoperating income, net, was primarily related to gains on the completed divestiture of the Company's European Lime operations and unrealized gains on certain investments.
Income tax
For the three months ended September 30, 2024, the Company had an income tax expense of $531 million, compared to $416 million for the comparable period in 2023. The effective tax rate was 28% for the third quarter in 2024 compared with an effective tax rate of 24% for the third quarter in 2023. The movement in the effective tax rate was mainly driven by the timing of discrete items occurring throughout the year, including non-deductible acquisition-related costs in the third quarter.
For the nine months ended September 30, 2024, the Company had an income tax expense of $942 million compared to $781 million for the comparable period in 2023. The effective tax rate was 25% for the first nine months of 2024 compared with an effective tax rate of 24% for the same period in 2023. The movement in the effective tax rate was primarily due to a change in the mix of income earned in jurisdictions with a higher rate of tax and non-deductible acquisition-related costs which is partially offset by items arising in the first quarter (being the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations).
Income from equity method investments
For the three months ended September 30, 2024, a gain of $25 million was recorded in equity method investments, an increase of $11 million from the comparable period in 2023 and a gain of $27 million was recorded for the nine months ended September 30, 2024, an increase of $6 million from the comparable period in 2023.
Net income
Net income was $1.4 billion for the three months ended September 30, 2024, an increase of $0.1 billion from the comparable period in 2023. For the nine months ended September 30, 2024 net income increased by $0.3 billion to $2.8 billion. The results with respect to prior year comparative periods were primarily driven by higher gross profit along with higher gains on disposal of long-lived assets and divestitures, which offset higher interest expenses and higher SG&A expenses.
Net income attributable to CRH plc and earnings per share
Net income attributable to CRH plc was $1.4 billion for the three months ended September 30, 2024, an increase of $0.1 billion from the comparable period in 2023. Basic EPS for the three months ended September 30, 2024, was $1.99, compared with $1.81 for the three months ended September 30, 2023.
Net income attributable to CRH plc was $2.8 billion for the nine months ended September 30, 2024, an increase of $0.3 billion from the comparable period in 2023. Basic EPS for the nine months ended September 30, 2024, was $4.03, compared with $3.36 for the nine months ended September 30, 2023.
CRH Form 10-Q 27
Segments
CRH is organized through four reportable segments across two divisions. CRH’s Americas Division comprises two segments: Americas Materials Solutions and Americas Building Solutions; and CRH’s Europe Division comprises the other two segments: Europe Materials Solutions and Europe Building Solutions.
Within CRH’s segments, revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces.
The Company’s measure of segment profit is Adjusted EBITDA, which is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component.
Americas Materials Solutions4
Three months ended September 30, 2024
Analysis of Change
in $ millions
Three months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Three months ended September 30, 2024
% change
Total revenues
5,080
(7)
+232
(44)
+38
5,299
+4%
Adjusted EBITDA
1,284
(2)
+65
(14)
+151
1,484
+16%
Adjusted EBITDA margin
25.3%
28.0%
Americas Materials Solutions’ total revenues were 4% ahead of the third quarter of 2023. Continued positive pricing across all lines of business was partly offset by adverse weather impacting volumes, resulting in organic total revenues* 1% ahead of the prior year.
In Essential Materials, total revenues increased by 5% driven by pricing growth in both aggregates and cement, ahead by 10% and 9%, respectively. Cement volumes increased by 1%, as acquisition activity offset the adverse impact of major hurricanes. Aggregates volumes declined by 4%, negatively impacted by adverse weather.
In Road Solutions, total revenues increased by 4% driven by improved pricing across all lines of business and continued funding support relating to the Infrastructure Investment and Jobs Act (IIJA) more than offsetting challenging weather in certain regions. Paving and construction revenue increased by 3% with growth in the Northeast and West regions. Construction backlogs were ahead of the prior year supported by positive momentum in bidding activity. Asphalt volumes decreased by 2% and pricing increased by 3%, while readymixed concrete volumes and prices increased by 2% and 7%, respectively.
Third quarter Adjusted EBITDA for Americas Materials Solutions of $1.5 billion was 16% ahead of the prior year as pricing initiatives, cost management and operational efficiencies along with gains on certain land asset sales mitigated the impact of higher labor and raw materials costs. Organic Adjusted EBITDA* was 12% ahead of the third quarter of 2023. Adjusted EBITDA margin increased by 270bps.
Americas Materials Solutions
Nine months ended September 30, 2024
Analysis of Change
in $ millions
Nine months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Nine months ended September 30, 2024
% change
Total revenues
11,139
(12)
+426
(78)
+432
11,907
+7%
Adjusted EBITDA
2,184
(3)
+128
(22)
+405
2,692
+23%
Adjusted EBITDA margin
19.6%
22.6%
Americas Materials Solutions’ total revenues were 7% ahead in the first nine months of the year as price increases and the positive contribution from acquisitions more than offset lower activity levels due to adverse weather. Organic total revenues* were 4% ahead.
In Essential Materials, total revenues increased by 6%, supported by aggregates and cement pricing which were ahead by 11% and 9%, respectively. Aggregates volumes declined 1% and cement volumes increased 1% compared to the same period in 2023. Weather negatively impacted revenues throughout the year, especially toward the end of the third quarter.
In Road Solutions, total revenues increased by 7% driven by higher pricing and sustained activity levels through continued funding support relating to the IIJA. Asphalt prices increased by 4% while volumes were in line with the comparable period in 2023. Paving and construction revenues increased 7% on the same period in the prior year. Readymixed concrete pricing was 8% higher, while volumes were 1% ahead. Construction backlogs were ahead of the comparable period of the prior year supported by continued momentum in bidding activity.
Adjusted EBITDA for Americas Materials Solutions of $2.7 billion was ahead of the prior year by 23% with good growth across key markets. Increased pricing and operational efficiencies along with gains on certain land asset sales helped offset the impact of higher raw material, labor and subcontractor costs. Organic Adjusted EBITDA* was 19% ahead of the first nine months of 2023. Adjusted EBITDA margin increased by 300bps.
4* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.
CRH Form 10-Q 28
Americas Building Solutions
Three months ended September 30, 2024
Analysis of Change
in $ millions
Three months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Three months ended September 30, 2024
% change
Total revenues
1,738
(2)
+45
–
(24)
1,757
+1%
Adjusted EBITDA
391
–
+8
–
(44)
355
(9
%)
Adjusted EBITDA margin
22.5%
20.2%
Americas Building Solutions' total revenues were 1% ahead of the prior year period as contributions from acquisitions more than offset the impact of lower activity levels due to challenging weather and subdued new-build residential demand. Organic total revenues* were 1% behind the third quarter of 2023.
In Building & Infrastructure Solutions, total revenues were 3% ahead of Q3 2023 driven by a strong performance from acquisitions which offset weaker new-build residential demand and challenging weather conditions in certain markets.
In Outdoor Living Solutions, total revenues were in line with the prior year period as lower activity levels, impacted by adverse weather in the period, were offset by positive contributions from acquisitions.
Third quarter Adjusted EBITDA for Americas Building Solutions was 9% behind a strong prior year comparative, 11% behind on an organic* basis as adverse weather and subdued residential demand impacted profitability. Adjusted EBITDA margin was 230bps behind the third quarter of 2023.
Americas Building Solutions5
Nine months ended September 30, 2024
Analysis of Change
in $ millions
Nine months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Nine months ended September 30, 2024
% change
Total revenues
5,547
(4)
+144
–
(121)
5,566
–
Adjusted EBITDA
1,166
(1)
+28
–
(54)
1,139
(2%)
Adjusted EBITDA margin
21.0%
20.5%
In the first nine months of the year, Americas Building Solutions' total revenues were in line with the prior year as positive contributions from acquisitions were offset by subdued residential demand and adverse weather. Organic total revenues* were 2% behind the prior year period.
In Building & Infrastructure Solutions, total revenues were in line as contributions from acquisitions were offset by adverse weather.
In Outdoor Living Solutions, total revenues increased by 1% despite adverse weather, with growth driven by strong sales into the retail channel, particularly in lawn and garden and decking and railing.
Adjusted EBITDA for Americas Building Solutions was 2% behind the comparable period in 2023, 5% behind on an organic* basis, impacted by adverse weather and subdued residential demand. Adjusted EBITDA margin was 50bps behind prior year.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.5
CRH Form 10-Q 29
Europe Materials Solutions6
Three months ended September 30, 2024
Analysis of Change
in $ millions
Three months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Three months ended September 30, 2024
% change
Total revenues
2,617
+42
+354
(131)
(87)
2,795
+7%
Adjusted EBITDA
446
+6
+51
(32)
+82
553
+24%
Adjusted EBITDA margin
17.0%
19.8%
Europe Materials Solutions' total revenues, including the acquisition of a majority stake in Adbri which closed in July 2024, were 7% ahead of the third quarter of 2023. Organic total revenues* were 3% behind as continued pricing progress and growth in Central and Eastern Europe were more than offset by subdued residential activity in Western Europe.
In Essential Materials, total revenues increased by 6% compared with the third quarter of 2023, supported by contributions from acquisitions and positive pricing in both aggregates and cement, ahead by 4% and 5%, respectively. Aggregates and cement volumes were both ahead by 6%.
In Road Solutions, revenues increased by 8% with volumes and prices ahead in the readymixed concrete business, benefiting from acquisition activity in the quarter. Asphalt volumes and pricing declined 5% and 1%, respectively, while paving and construction revenues were impacted by lower activity levels in Western Europe.
Adjusted EBITDA in Europe Materials Solutions was $0.6 billion, 24% ahead of the comparable period in 2023, and 18% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs, operational efficiencies and contributions from acquisitions. Adjusted EBITDA margin increased by 280bps compared with the third quarter of 2023.
Europe Materials Solutions
Nine months ended September 30, 2024
Analysis of Change
in $ millions
Nine months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Nine months ended September 30, 2024
% change
Total revenues
7,409
+106
+420
(378)
(345)
7,212
(3%)
Adjusted EBITDA
1,029
+12
+62
(94)
+133
1,142
+11%
Adjusted EBITDA margin
13.9%
15.8%
In the first nine months of the year, total revenues in Europe Materials Solutions declined by 3%, or 5% on an organic* basis. Positive pricing momentum and good volume growth supported by a number of larger infrastructure projects across Central and Eastern Europe were offset by lower volumes across Western Europe and the Philippines.
In Essential Materials, total revenues were 5% behind the comparable period in 2023 primarily due to the completed divestiture of the European Lime operations, partly offset by the acquisition of Adbri in July 2024. Aggregates pricing was 3% ahead with cement pricing 2% ahead of the prior year.
In Road Solutions, revenues were in line with the comparable period in 2023 with the benefit of acquisitions in the period offset by lower volumes. Asphalt volumes were 5% behind with pricing in line with the comparable period in 2023. Paving and construction revenues decreased by 4% mainly due to lower activity levels in Western Europe. Readymixed concrete volumes were 2% ahead of the prior year driven by growth in Central and Eastern Europe and contributions from acquisitions offsetting declines in Western Europe.
Adjusted EBITDA in Europe Materials Solutions was $1.1 billion, 11% ahead of the comparable period in 2023, and 13% ahead on an organic* basis, primarily driven by increased pricing, lower energy costs and operational efficiencies more than offsetting the impact of lower activity levels. Adjusted EBITDA margin expanded by 190bps compared with the first nine months of 2023.
*Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.6
CRH Form 10-Q 30
Europe Building Solutions
Three months ended September 30, 2024
Analysis of Change
in $ millions
Three months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Three months ended September 30, 2024
% change
Total revenues
693
+11
+4
(4)
(40)
664
(4%)
Adjusted EBITDA
69
+1
+1
–
(9)
62
(10%)
Adjusted EBITDA margin
10.0%
9.3%
Total revenues in Europe Building Solutions declined by 4% compared with the third quarter of 2023, amid continued subdued new-build residential activity.
Within Building & Infrastructure Solutions, total revenues were 6% behind the comparable period in 2023. Infrastructure Products was ahead of the prior year, with contributions from acquisitions more than offsetting lower activity levels. Revenues in Precast and Construction Accessories were behind the comparable period in 2023 amid continued lower demand in certain key markets.
Revenues in Outdoor Living Solutions increased by 2% compared with the third quarter of 2023 despite lower activity levels which were impacted by adverse weather and continued subdued new-build residential demand.
Adjusted EBITDA in Europe Building Solutions declined by 10% compared with the third quarter of 2023.
Europe Building Solutions
Nine months ended September 30, 2024
Analysis of Change
in $ millions
Nine months ended September 30, 2023
Currency
Acquisitions
Divestitures
Organic
Nine months ended September 30, 2024
% change
Total revenues
2,169
+19
+17
(4)
(184)
2,017
(7%)
Adjusted EBITDA
211
+2
+3
–
(35)
181
(14%)
Adjusted EBITDA margin
9.7%
9.0%
Total revenues in Europe Building Solutions declined by 7% for the first nine months of the year, with subdued new-build residential market activity continuing throughout 2024.
Within Building & Infrastructure Solutions, total revenues were 10% behind the comparable period in 2023. Infrastructure Products' revenues increased, benefiting from acquisitions offsetting lower activity levels. Revenues in Precast and Construction Accessories were negatively impacted by subdued new-build residential activity continuing across several markets.
Revenues in Outdoor Living Solutions were 4% ahead of the comparable period in 2023, driven by commercial progress in certain markets despite subdued residential demand.
Adjusted EBITDA for the first nine months of the year in Europe Building Solutions was 14% behind the comparable period of 2023. Adjusted EBITDA margin decreased by 70bps compared with the first nine months of 2023, with lower activity levels partially offset by disciplined commercial management and cost saving initiatives.
CRH Form 10-Q 31
Non-GAAP Reconciliation and Supplementary Information
CRH uses a number of non-GAAP performance measures to monitor financial performance. These measures are referred to throughout the discussion of our reported financial position and operating performance on a continuing operations basis unless otherwise defined and are measures which are regularly reviewed by CRH management. These performance measures may not be uniformly defined by all companies and accordingly may not be directly comparable with similarly titled measures and disclosures by other companies.
Certain information presented is derived from amounts calculated in accordance with U.S. GAAP but is not itself an expressly permitted GAAP measure. The non-GAAP performance measures as summarized below should not be viewed in isolation or as an alternative to the equivalent GAAP measure.
Adjusted EBITDA: Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures and unrealized gain/loss on investments, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component. It is quoted by management in conjunction with other GAAP and non-GAAP financial measures to aid investors in their analysis of the performance of the Company. Adjusted EBITDA by segment is monitored by management in order to allocate resources between segments and to assess performance. Adjusted EBITDA margin is calculated by expressing Adjusted EBITDA as a percentage of total revenues.
Reconciliation to its nearest GAAP measure is presented below:
Three months ended
Nine months ended
September 30
September 30
in $ millions
2024
2023
2024
2023
Net income
1,389
1,318
2,812
2,499
Income from equity method investments
(25)
(14)
(27)
(21)
Income tax expense
531
416
942
781
Gain on divestitures and unrealized gains on investments (i)
(59)
—
(242)
–
Pension income excluding current service cost component (i)
(1)
(1)
(3)
(3)
Other interest, net (i)
(2)
—
(1)
–
Interest expense
164
131
452
285
Interest income
(33)
(62)
(112)
(138)
Depreciation, depletion and amortization
467
402
1,288
1,187
Substantial acquisition-related costs (ii)
23
–
45
–
Adjusted EBITDA
2,454
2,190
5,154
4,590
Total revenues
10,515
10,128
26,702
26,264
Net income margin
13.2%
13.0%
10.5%
9.5%
Adjusted EBITDA margin
23.3%
21.6%
19.3%
17.5%
(i) Gain on divestitures and unrealized gains on investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating income, net in the Condensed Consolidated Statements of Income.
(ii) Represents expenses associated with non-routine substantial acquisitions, which meet the criteria for being separately reported in Note 4 “Acquisitions” of the unaudited financial statements. Expenses in the third quarter of 2024 primarily include legal and consulting expenses related to these non-routine substantial acquisitions.
Net Debt: Net Debt is used by management as it gives additional insight into the Company’s current debt position less available cash. Net Debt is provided to enable investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. Net Debt comprises short and long-term debt, finance lease liabilities, cash and cash equivalents and current and noncurrent derivative financial instruments (net).
Reconciliation to its nearest GAAP measure is presented below:
September 30
December 31
September 30
in $ millions
2024
2023
2023
Short and long-term debt
(13,890)
(11,642)
(11,395)
Cash and cash equivalents (i)
2,978
6,390
5,722
Finance lease liabilities
(228)
(117)
(96)
Derivative financial instruments (net)
(35)
(37)
(118)
Net Debt
(11,175)
(5,406)
(5,887)
(i) Cash and cash equivalents includes cash and cash equivalents reclassified as held for sale of $nil million, $49 million, and $nil million at September 30, 2024, December 31, 2023 and September 30, 2023, respectively.
CRH Form 10-Q 32
Organic Revenue and Organic Adjusted EBITDA: CRH pursues a strategy of growth through acquisitions and investments, with total spend on acquisitions and investments of $3.9 billion in the nine months ended September 30, 2024, compared with $0.6 billion for the same period in 2023. Acquisitions completed in 2023 and the first nine months of 2024 contributed incremental total revenues of $0.6 billion and Adjusted EBITDA of $0.1 billion for the three months ended September 30, 2024 and total revenues of $1.0 billion and Adjusted EBITDA of $0.2 billion for the nine months ended September 30, 2024. Cash proceeds from divestitures and disposals of long-lived assets amounted to $1.2 billion for the nine months ended September 30, 2024, compared with $0.1 billion for the nine months ended September 30, 2023. The total revenues impact of divestitures was a negative $0.2 billion and the impact at an Adjusted EBITDA level was a negative $46 million for the three months ended September 30, 2024. For the nine months ended September 30, 2024, the total revenues impact of divestitures was a negative $0.5 billion and the impact at an Adjusted EBITDA level was a negative $0.1 billion.
The U.S. Dollar weakened against most major currencies during the three months ended September 30, 2024, from the comparable period in 2023, resulting in an overall positive currency exchange impact.
Because of the impact of acquisitions, divestitures, currency exchange translation and other non-recurring items on reported results each reporting period, CRH uses organic revenue and organic Adjusted EBITDA as additional performance indicators to assess performance of pre-existing (also referred to as underlying, like-for-like or ongoing) operations each reporting period.
Organic revenue and organic Adjusted EBITDA are arrived at by excluding the incremental revenue and Adjusted EBITDA contributions from current and prior year acquisitions and divestitures, the impact of exchange translation, and the impact of any one-off items. In Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section on pages 28 to 31, changes in organic revenue and organic Adjusted EBITDA are presented as additional measures of revenue and Adjusted EBITDA to provide a greater understanding of the performance of the Company. Organic change % is calculated by expressing the organic movement as a percentage of the prior year reporting period (adjusted for currency exchange effects). A reconciliation of the changes in organic revenue and organic Adjusted EBITDA to the changes in total revenues and Adjusted EBITDA by segment is presented with the discussion within each segment’s performance in tables contained in the segment discussion in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” commencing on page 26.
Liquidity and Capital Resources
The Company’s primary source of incremental liquidity is cash flows from operating activities, which combined with the cash and cash equivalents balance, the U.S. Dollar and Euro Commercial Paper Programs, and committed credit lines, is expected to be sufficient to meet the Company’s working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities, and other liquidity requirements associated with our operations for the foreseeable future. In addition, the Company believes that it will have the ability to fund additional acquisitions via cash flows from internally available cash, cash flows from operating activities and, subject to market conditions, via obtaining additional borrowings and/or issuing additional debt or equity securities.
Total short and long-term debt was $13.9 billion at September 30, 2024, compared to $11.6 billion at December 31, 2023, and $11.4 billion at September 30, 2023. In January 2024, €600 million 1.875% euro Senior Notes were repaid on maturity. In May 2024, wholly owned subsidiaries of the Company completed the issuance of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034. In July 2024, as part of the Adbri acquisition $0.5 billion of external debt was acquired. In the nine months ended September 30, 2024, a net $0.6 billion of commercial paper was issued across the U.S. Dollar and Euro Commercial Paper Programs.
Net Debt* at September 30, 2024, was $11.2 billion, compared to $5.4 billion at December 31, 2023, and $5.9 billion at September 30, 2023. The increase in Net Debt*7compared to December 31, 2023, reflects acquisitions, cash returns to shareholders through dividends and continued share buybacks, as well as the purchase of property, plant and equipment, partially offset by inflows from operating activities and proceeds from divestitures.
CRH continued its ongoing share buyback program in the first nine months of 2024 repurchasing approximately 13.2 million ordinary shares for a total consideration of $1.0 billion and the Company is commencing an additional $0.3 billion tranche to be completed no later than February 26, 2025. The Company also made cash dividend payments of $1.5 billion in the first nine months of 2024.
Other than items updated in this Quarterly Report, CRH's financial condition and the nature and composition of the Company’s material cash requirements, which include debt service and related interest payments, operating lease obligations, share repurchase commitments and other purchase obligations arising in the normal course of business, have not materially changed from those disclosed in the 2023 Form 10-K.
Cash flows
At September 30, 2024, CRH had cash and cash equivalents and restricted cash of $3.1 billion compared with $5.7 billion at September 30, 2023.
At September 30, 2024, CRH had outstanding total short and long-term debt of $13.9 billion compared with $11.4 billion at September 30, 2023.
Total lease liabilities were $1.6 billion compared with $1.4 billion at September 30, 2023.
At September 30, 2024, CRH had $4.0 billion of undrawn committed facilities, almost all of which, are available until May 2029. At September 30, 2024, the weighted average maturity of the term debt (net of cash and cash equivalents) was 7.5 years.
Cash flows from operating activities
Nine months ended
September 30
in $ millions
2024
2023
Net cash provided by operating activities
2,259
2,594
Net cash provided by operating activities was $2.3 billion for the nine months ended September 30, 2024, a decrease of $0.3 billion, compared to the same period in 2023. The decrease in net cash provided by operating activities was primarily due to higher outflows related to working capital which offset an increase in net income.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.7
CRH Form 10-Q 33
Cash flows from investing activities
Nine months ended
September 30
in $ millions
2024
2023
Net cash used in investing activities
(4,405)
(1,729)
Net cash used in investing activities was $4.4 billion for the nine months ended September 30, 2024, compared to $1.7 billion in the same period for 2023, an increase of $2.7 billion. During the nine months ended September 30, 2024, the Company invested $3.9 billion on acquisitions, an increase of $3.3 billion on the same period in 2023. Capital expenditure totaled $1.6 billion in the first nine months of 2024, resulting in an increased outflow of $0.5 billion versus the comparable prior year period. These outflows were partially offset by $1.1 billion of increased proceeds from divestitures and disposals of long-lived assets, primarily related to the completed divestiture of the European Lime operations and the divestiture of certain operations in Canada.
Cash flows from financing activities
Nine months ended
September 30
in $ millions
2024
2023
Net cash used in financing activities
(1,144)
(1,097)
Net cash used in financing activities was $1.1 billion for the nine months ended September 30, 2024, in line with the comparable period in the prior year. Proceeds from debt issuances were $3.5 billion compared to $2.7 billion for the first nine months of 2023, an increase of $0.8 billion, which was primarily related to the issuance and sale of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034, as well as the issuance of $1.8 billion under the Company’s commercial paper programs in the first nine months of 2024. Payments on debt in the first nine months of 2024 were $1.9 billion, primarily the repayment of the €600 million 1.875% euro Senior Notes on maturity in January 2024 as well as the repayment of $1.2 billion issued under the Company’s commercial paper programs. This is compared with $0.9 billion in the prior year relating to the repayment of the €750 million 3.125% euro Senior Notes which were repaid on maturity in April 2023. Dividends paid for the first nine months of 2024 were $1.5 billion compared to $0.8 billion in the same period in the prior year. In 2024, the Company moved to quarterly dividends with a payment of the first, second and third quarter dividends in the first nine months of the year in addition to the payment of the 2023 final dividend while the same period in the prior year saw an outflow solely related to the final 2022 dividend. Outflows related to the purchases of common stock were $1.2 billion in the first nine months of 2024 compared to $2.0 billion for the same period in 2023.
Debt Facilities
The following section summarizes certain material provisions of our debt facilities and long-term debt obligations. The following description is only a summary, does not purport to be complete and is qualified in its entirety by reference to the documents governing such indebtedness (available in the Investors section on www.crh.com).
At September 30, 2024, we expect maturities for the next quarter as follows:
2024 Debt Maturities
Fourth Quarter (i)
$1.8 billion
(i) Of which $1.7 billion is related to the U.S. Dollar and Euro Commercial Paper Programs.
Unsecured Senior Notes
The main sources of Company debt funding are public bond markets in North America and Europe. See Note 9 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding our debt obligations. In May 2024, wholly owned subsidiaries of the Company completed the issuance and sale of $750 million 5.20% Senior Notes due 2029 and $750 million 5.40% Senior Notes due 2034.
Revolving Credit Facilities
The Company manages its borrowing ability by entering into committed borrowing agreements. The Company’s multi-currency RCF, dated May 2023, is made available from a syndicate of lenders, consisting of a €3.5 billion unsecured, revolving loan facility with maturity in May 2029. See Note 9 “Debt” in Part I, Item 1. “Financial Statements” for further details regarding the RCF. At September 30, 2024, the RCF was undrawn.
Guarantees
The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $12.9 billion in respect of loans and borrowings, bank advances and derivative obligations, and $0.5 billion in respect of letters of credit due within one year at September 30, 2024.
Commercial Paper Programs
As of September 30, 2024, the Company had a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program. As of September 30, 2024, there was $1.3 billion of outstanding issued notes on the U.S. Dollar Commercial Paper Program and $0.4 billion of outstanding issued notes on the Euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity as required.
Off-Balance Sheet Arrangements
CRH does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on CRH’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that may be material to investors.
CRH Form 10-Q 34
Debt Ratings
Our debt ratings and outlooks at September 30, 2024, were:
Short-Term
Long-Term
Outlook
S&P
A-2
BBB+
Stable
Moody’s
P-2
Baa1
Stable
Fitch
F1
BBB+
Stable
Contractual Obligations
An analysis of the maturity profile of debt, leases capitalized, purchase obligations, deferred and contingent acquisition consideration and pension scheme contribution commitments at September 30, 2024, is as follows:
Payments due by period
Total
Less than 1 year
2-3 years
4-5 years
More than 5 years
in $ millions
Short and long-term debt (i)
13,958
3,240
2,818
2,333
5,567
Lease liabilities (ii)
2,117
363
511
406
837
Estimated interest payments on contractually committed debt (iii)
3,744
505
797
614
1,828
Deferred and contingent acquisition consideration
39
19
16
3
1
Purchase obligations (iv)
2,059
1,113
515
219
212
Retirement benefit obligation commitments (v)
22
3
6
5
8
Total (vi)
21,939
5,243
4,663
3,580
8,453
(i) Of the $14.0 billion short and long-term debt, $0.6 billion is drawn on revolving facilities which may be repaid and redrawn up to the date of maturity.
(ii) Lease liabilities are presented on an undiscounted basis.
(iii) These interest payments have been estimated on the basis of the following assumptions: (a) no change in variable interest rates; (b) no change in exchange rates; (c) that all debt is repaid as if it falls due from future cash generation; and (d) that none is refinanced by future debt issuance.
(iv) Purchase obligations include contracted-for capital expenditure. These expenditures for replacement and new projects are in the ordinary course of business and will be financed from internal resources.
(v) These retirement benefit commitments comprise the contracted payments related to our pension schemes in the United Kingdom.
(vi) Over the long term, CRH believes that our available cash and cash equivalents, cash from operating activities, along with the access to borrowing facilities will be sufficient to fund our long-term contractual obligations, maturing debt obligations and capital expenditures.
CRH Form 10-Q 35
Supplemental Guarantor Information
Guarantor Financial Information
As of September 30, 2024, CRH plc (the 'Guarantor') has fully and unconditionally guaranteed $300 million 6.400% Senior Notes due 2033 (i) (the '6.400% Notes') issued by CRH America, Inc. (CRH America), $750 million 5.200% Senior Notes due 2029 (the '5.200% Notes') issued by CRH SMW Finance Designated Activity Company (SMW Finance) and $750 million 5.400% Senior Notes due 2034 (the '5.400% Notes', and together with the 6.400% Notes and the 5.200% Notes, the 'Notes') issued by CRH America Finance, Inc. (America Finance), and together with CRH America and SMW Finance (the 'Issuers').
The Issuers are each 100% owned by CRH plc, directly and indirectly. SMW Finance is an indirect wholly owned finance subsidiary of CRH plc incorporated under the laws of Ireland and a financing vehicle for CRH’s group companies. America Finance is an indirect wholly owned finance subsidiary of CRH plc incorporated under the laws of the State of Delaware and a financing vehicle for CRH’s U.S. operating companies.
Each series of Notes is unsecured and ranks equally with all other present and future unsecured and unsubordinated obligations of the relevant Issuer and CRH plc, subject to exceptions for obligations required by law. Each series of Notes is fully and unconditionally guaranteed by CRH plc as defined in the respective indenture governing each series of Notes. Each guarantee is a full, irrevocable, and unconditional guarantee of the principal, interest, premium, if any, and any other amounts due in respect of the relevant series of Notes given by CRH plc.
(i) Originally issued in September 2003 as $300 million 6.400% Senior Notes due 2033. CRH subsequently acquired $87 million of the 6.400% Notes in liability management exercises in August 2009 and December 2010.
Basis of Presentation
The following summarized financial information reflects, on a combined basis, the Balance Sheet as of September 30, 2024 and as of December 31, 2023 and the Income Statement for the nine months ended September 30, 2024, and for the year ended December 31, 2023 of CRH America and CRH plc, which guarantees the registered debt; collectively the ‘Obligor Group’. Intercompany balances and transactions within the Obligor Group have been eliminated in the summarized financial information below. Amounts attributable to the Obligor Group’s investment in non-obligor subsidiaries have also been excluded. Intercompany receivables/payables and transactions with non-obligor subsidiaries are separately disclosed as applicable. This summarized financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 13-01 and is not intended to present the financial position and results of operations of the Obligor Group in accordance with U.S. GAAP.
The summarized Income Statement information is as follows:
in $ millions
For the nine months ended September 30, 2024
For the year ended December 31, 2023
Income from operations before income tax expense and income from equity method investments (i)
109
4,016
- of which relates to transactions with non-obligor subsidiaries
134
4,044
Net income – all of which is attributable to equity holders of the Company
108
4,014
- of which relates to transactions with non-obligor subsidiaries
134
4,044
(i) Revenues and gross profit for the Obligor Group for the nine months ended September 30, 2024 and for the year ended December 31, 2023 amounted to $nil million and $nil million, respectively.
The summarized Balance Sheet information is as follows:
September 30, 2024
December 31, 2023
Current assets
827
1,314
Current assets – of which is due from non-obligor subsidiaries
460
332
Noncurrent assets
3,457
3,655
Noncurrent assets – of which is due from non-obligor subsidiaries
3,457
3,655
Current liabilities
4,799
1,728
Current liabilities – of which is due to non-obligor subsidiaries
3,525
1,706
Noncurrent liabilities
756
2,006
Critical Accounting Policies and Estimates
There have been no material changes during the three months ended September 30, 2024, to our critical accounting policies and/or estimates disclosed in our 2023 Form 10-K.
The results of the Company’s third quarter impairment assessment indicated increased risk of impairment as a result of certain recent challenging market conditions which may impact future growth prospects, resulting in reduced headroom. Arising from the Company’s ongoing sensitivity analysis, potential non-cash impairment charges of $0.3-$0.4 billion, representing the range of possible outcomes and based on reasonably possible changes in key assumptions, may be recognized in its results for the quarter and year ending December 31, 2024. These potential impairment charges relate to the Company’s equity method investment in China and the Architectural Products reporting unit in the Europe Building Solutions segment.
The Company’s equity method investment in China and the Company's Architectural Products reporting unit have observed challenging market conditions which may adversely impact their longer-term forecast projections. If current projections for the Company's equity method investment in China and the Architectural Products reporting unit decrease, this may result in their carrying value exceeding their fair value.
CRH Form 10-Q 36
The Company’s annual goodwill impairment assessment is ongoing in parallel with its annual five-year strategic planning process. The Company’s assessment is expected to conclude in December 2024, when the five-year strategic plan document, which will incorporate our estimate of the potential impact of the recent market challenges noted above, is approved by the Board of Directors.
Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors, as set out in the Critical Accounting Estimates in the Company’s 2023 Form 10-K.
Available Information
The Company maintains an internet address at www.crh.com and makes available free of charge through its website its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, if any, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, which are available as soon as reasonably practicable after CRH files or furnishes such information to the SEC. Investors may also access such documents via the SEC’s website www.sec.gov.
References in this document to other documents on the CRH website are included only as an aid to their location and are not incorporated by reference into this Quarterly Report. CRH’s website provides the full text of earnings updates, copies of presentations to analysts and investors and circulars to shareholders.
Further, copies of CRH’s key corporate governance policies and other reports, including its Code of Business Conduct, Sustainability Performance Report, and the charters for Committees of the Board, may be found on the CRH website.
The Company undertakes no obligation to update any statements contained in this Quarterly Report or the documents incorporated by reference herein for revisions or changes after the filing date of this Quarterly Report, other than as required by law.
We post on our website news releases, announcements and other statements about our business performance, results of operations and sustainability matters, some of which may contain information that may be deemed material to investors. Additionally, we use our LinkedIn account (www.linkedin.com/company/crh), as well as our other social media channels from time to time, to post announcements that may contain information that may be deemed material to investors. Our officers may use similar social media channels to disclose public information. We encourage investors, the media and others interested in CRH to review the business and financial information we or our officers post on our website and the social media channels identified above. Information on CRH’s website or such social media channels does not form part of, and is not incorporated into, this Quarterly Report.
Forward-Looking Statements
In order to utilize the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, CRH is providing the following cautionary statement.
This document, and the documents incorporated by reference herein, contain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations, business, viability, and future performance of CRH and certain of the plans and objectives of CRH. These forward-looking statements may generally, but not always, be identified by the use of words such as “will”, “anticipates”, “should”, “could”, “would”, “targets”, “aims”, “may”, “continues”, “expects”, “is expected to”, “estimates”, “believes”, “intends” or similar expressions. These forward-looking statements include all matters that are not historical facts or matters of fact at the date of this document.
In particular, the following, among other statements, are all forward looking in nature: plans and expectations regarding drivers of CRH’s performance in 2024 and 2025, demand outlook, macroeconomic trends in CRH’s markets, government funding initiatives and manufacturing trends (including re-industrialization activity), pricing trends, costs and weather patterns; plans and expectations regarding business strategy and cash returns for shareholders, including expectations regarding dividends and share buybacks; plans and expectations regarding CRH’s financial capacity, including our ability to fund acquisitions and meet working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities and other liquidity requirements; plans and expectations regarding the timing and benefits of our acquisitions and divestitures; CRH’s status as a foreign private issuer and transition to U.S. domestic issuer status; CRH's expected changes to its operating and reportable segments; the existence of a potential impairment, including amount and timing; and plans and expectations regarding the strategic risks and uncertainties facing CRH.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect our current expectations and assumptions as to such future events and circumstances that may not prove accurate. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. We expressly disclaim any obligation or undertaking to publicly update or revise these forward-looking statements other than as required by applicable law.
A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, certain of which are beyond our control, and which include, among other factors: economic and financial conditions, including changes in interest rates, inflation, price volatility and/or labor and materials shortages; demand for infrastructure, residential and non-residential construction and our products in geographic markets in which we operate; increased competition and its impact on prices and market position; increases in energy, labor and/or other raw materials costs; adverse changes to laws and regulations, including in relation to climate change; the impact of unfavorable weather; investor and/or consumer sentiment regarding the importance of sustainable practices and products; availability of public sector funding for infrastructure programs; political uncertainty, including as a result of political and social conditions in the jurisdictions CRH operates in, or adverse political developments, including the ongoing geopolitical conflicts in Ukraine and the Middle East; failure to complete or successfully integrate acquisitions or make timely divestitures; cyberattacks and exposure of associates, contractors, customers, suppliers and other individuals to health and safety risks, including due to product failures. Additional factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those expressed by the forward-looking statements in this report including, but not limited to, the risks and uncertainties described herein and under “Risk Factors” in our 2023 Form 10-K and in our other filings with the SEC.
CRH Form 10-Q 37
Item 3. Quantitative and Qualitative Disclosures About Market Risk
CRH is exposed to market risks relating to fluctuations in foreign exchange risks, interest rates, and commodity prices. Changes in those factors could impact the Company’s results of operations and financial condition. Financial risk management at the Company seeks to minimize the negative impact of foreign exchange, interest rate and commodity price fluctuations on the Company’s earnings, cash flows and equity. Management provides oversight for risk management and derivative activities, determines certain of the Company’s financial risk policies and objectives, and provides guidelines for derivative instrument utilization.
To manage these risks, CRH uses various derivative financial instruments, including interest rate swaps, foreign exchange forwards and swaps, and commodity contracts. CRH only uses commonly traded and non-leveraged instruments. These contracts are entered into primarily with major banking institutions and utility companies, while CRH actively monitors its exposure to counterparty risk through the use of counterparty approvals and credit limits, thereby managing the risk of counterparty loss.
The following discussion presents the sensitivity of the market value, earnings and cash flows of the Company’s financial instruments to hypothetical changes in interest and exchange rates assuming these changes occurred at September 30, 2024.
Interest Rate Risk
CRH may be impacted by interest rate volatility with respect to existing debt and future debt issuances as well as cash balances. For fixed rate debt instruments, interest rate changes affect the fair market value but do not impact earnings or cash flows. Conversely, for floating rate debt instruments, interest rate changes generally do not affect the fair market value of the instrument but impact future earnings and cash flows, assuming that other factors are held constant. Cash balances are held on short-term deposits and changing interest rates will impact deposit interest income earned. The Company uses interest rate swaps to convert a portion of its fixed rate debt to floating rate debt and these may be designated and qualify as fair value hedges. Under these arrangements, the Company agrees to exchange, at specified intervals, the difference between fixed and benchmark floating interest rates calculated by reference to an agreed-upon notional principal amount.
At September 30, 2024, of total debt including overdrafts, finance leases and the impact of derivatives, the Company had fixed rate debt of $10.4 billion and floating rate debt of $3.8 billion, representing 74% and 26% respectively. The equivalent figures as at December 31, 2023, were fixed rate debt of $9.1 billion and floating rate debt of $2.7 billion, representing 77% and 23% respectively, and as at September 30, 2023, fixed rate debt of $9.4 billion and floating rate debt of $2.2 billion, representing 81% and 19% respectively. The Company’s interest rate swaps at September 30, 2024 whereby the Company swaps from fixed interest rates to floating interest rates, were $1.4 billion, compared to $1.4 billion as at December 31, 2023 and $1.4 billion as at September 30, 2023. The Company’s interest rate swaps at September 30, 2024 whereby the Company swaps from floating interest rates to fixed interest rates, were $0.2 billion, compared to $nil billion as at December 31, 2023 and $nil billion as at September 30, 2023. Cash and cash equivalents at September 30, 2024, were $3.0 billion, compared to $6.4 billion at December 31, 2023 and $5.7 billion at September 30, 2023, which was all held on short-term deposits and investments.
Sensitivity to interest rate moves
At September 30, 2024, the before-tax earnings and cash flows impact of a 100bps increase in interest rates, including the offsetting impact of derivatives, on the variable rate cash and debt portfolio would be approximately $8 million unfavorable ($37 million favorable at December 31, 2023 and $35 million favorable at September 30, 2023).
Foreign Exchange Rate Risk
CRH’s exchange rate exposures result primarily from its investments and ongoing operations in countries outside of the United States and other business transactions such as the procurement of products, services and equipment from foreign sources. Fluctuations in foreign currency exchange rates may affect (i) the carrying value of the Company’s net investment in foreign subsidiaries; (ii) the translation of foreign currency earnings; and (iii) the cash flows related to foreign currency denominated transactions.
Where economically feasible, the Company maintains Net Debt*8in the same relative ratio as capital employed to act as an economic hedge of the underlying currency assets. Where it is not feasible to do so, the Company may enter into foreign exchange forward contracts to hedge a portion of the net investment against the effect of exchange rate fluctuations. These transactions are designated as net investment hedges.
The Company also enters into foreign exchange forward contracts to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies. These transactions are designated as cash flow hedges. In addition, the Company may enter into foreign currency contracts that are not designated in hedging relationships to offset, in part, the impacts of changes in value of various non-functional currency denominated items including certain intercompany financing balances. The U.S. Dollar equivalent gross notional amount of the Company’s foreign exchange forward contracts was $4.4 billion at September 30, 2024, compared to $1.6 billion at December 31, 2023 and $1.7 billion at September 30, 2023.
Holding all other variables constant, if there was a 10% weakening in foreign currency exchange rates versus U.S. Dollar for the portfolio, the fair market value of foreign currency contracts outstanding at September 30, 2024, would decrease by approximately $104 million, which would be largely offset by a gain on the foreign currency fluctuation of the underlying exposure being hedged. In comparison, the fair market value of foreign currency contracts outstanding at December 31, 2023 would increase by approximately $2 million and at September 30, 2023, would increase by approximately $18 million, largely offset by a loss on the underlying exposure being hedged.
Commodity Price Risk
Some of the Company’s products use significant amounts of commodity-priced materials, predominantly oil, electricity, coal and carbon credits which are subject to price changes based upon fluctuations in the commodities market. This price volatility could potentially have a material impact on our financial condition and/or our results of operations. Where feasible, the Company manages commodity price risks through negotiated supply contracts and forward contracts to manage operating costs. The Company monitors commodity trends and where possible has alternative sourcing plans in place to mitigate the risk of supplier concentration and passing commodity-related inflation to customers or suppliers.
Where appropriate, the Company also has a number of derivative hedging programs in place to hedge commodity risks, with the aim of the programs being to neutralize variability arising from changes in associated commodity indices. The timeframe for such programs can be up to four years.
* Represents a non-GAAP measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 32 to 33.8
CRH Form 10-Q 38
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Management has evaluated the effectiveness of the design and operation of the disclosure controls and procedures as defined in Securities Exchange Act Rule 13a-15(e) as of September 30, 2024. Based on that evaluation, the Chief Executive and the Chief Financial Officer have concluded that these disclosure controls and procedures were effective as of such date at the level of providing reasonable assurance.
In designing and evaluating our disclosure controls and procedures, management, including the Chief Executive and the Chief Financial Officer, recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
CRH Form 10-Q 39
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
CRH and its subsidiaries are from time to time parties to various legal proceedings that arise in the ordinary course of business, including some in which claims for damages have been asserted against CRH. Having taken appropriate advice, we believe that the aggregate outcome of such proceedings will not have a material effect on our financial condition, results of operations or liquidity.
CRH has elected to use a $1 million threshold for disclosing certain proceedings under environmental laws to which a governmental authority is a party. Applying this threshold, there were no relevant legal proceedings to disclose for this period.
Item 1A. Risk Factors
There have been no material changes with respect to the risk factors disclosed in 'Item 1A. Risk Factors' of our 2023 Form 10-K.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
The following table presents the number and average price of shares purchased in each month of the third quarter of fiscal year 2024:
Period
(a) Total Number of Shares Purchased
(b) Average Price Paid per Share
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (i)
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 – July 31, 2024
1,370,436
$78.82
1,370,436
56,506,263
August 1 – August 31, 2024
1,299,060
$84.04
1,299,060
54,017,400
September 1 – September 30, 2024
1,124,520
$88.66
1,124,520
52,892,880
Total
3,794,016
3,794,016
(i) In May 2018, CRH announced its intention to introduce a share repurchase program to repurchase Ordinary Shares (the ‘Program’). In the third quarter of 2024, the Company returned a further $0.3 billion of cash to shareholders through the repurchase of 3,794,016 Ordinary Shares (equivalent to 0.5% of the Company’s issued share capital). This brought total cash returned to shareholders under the Program to $8.1 billion since its commencement in May 2018. The purchases in the third quarter of 2024 were completed under Tranches 21 and 22.
Date Announced
Max Amount to be Repurchased (in $ millions)
Date Expired
May 10, 2024
(Tranche 21)
300
August 7, 2024
August 8, 2024
(Tranche 22)
300
November 6, 2024
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd‐Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S‐K (17 CFR 229.104) is included in Exhibit 95 to this Quarterly Report.
Item 5. Other Information
During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
CRH Form 10-Q 40
Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.
101 Inline eXtensible Business Reporting Language (XBRL).
104 Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101).
* Management compensation plan or arrangement
^ Certain information in this document has been redacted pursuant to Item 601(a)(6) of Regulation S-K because the disclosure of such information would constitute a clearly unwarranted invasion of personal privacy.
** Furnished herewith.
The total amount of long-term debt of the registrant and its subsidiaries authorized under any one instrument does not exceed 10% of the total assets of CRH plc and its subsidiaries on a consolidated basis. The Company agrees to furnish copies of any such instrument to the SEC upon request.
CRH Form 10-Q 41
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CRH public limited company (Registrant)
/s/ Jim Mintern Jim Mintern Chief Financial Officer and Duly Authorized Officer
