- Price
- $83.63
- Fair value
- $96.00
- Discount
- 12.9%
- Uncertainty
- Medium
- LSEG rating
- 1.73
- Moat
- Narrow
- Next earnings
- 2026-10-30
- Next earnings is estimate
- Yes
- Company name
- CRH
- Sector
- Building materials
- About
- CRH makes and sells building materials and products, mainly in North America. Americas Materials Solutions produces aggregates, cementitious materials, asphalt and concrete and builds roads. Americas Building Solutions makes products for infrastructure, such as energy, water and data center projects, and for homes. International Solutions has materials and products businesses outside North America. Total revenues were $10.8 billion in Q2 2026. CRH is listed on the New York Stock Exchange and reports in U.S. dollars. In June 2026, it agreed to buy Arcosa, a U.S. aggregates and infrastructure products company, for an enterprise value of about $8.5 billion. Jim Mintern is CEO.
- Thesis
- The market prices CRH for the risk of a slower U.S. construction market and for the cost of its acquisitions. CRH spent $1.4 billion on 17 acquisitions in the first half of 2026 and agreed to buy Arcosa for about $8.5 billion in cash, with a bridge facility and a term loan. Net debt rose to $15.4 billion at June 30, 2026, from $14.2 billion at December 31, 2025, and residential demand in Americas Building Solutions was subdued. For the gap to close, three things must be true. CRH must deliver its 2026 guidance of $8.1 billion to $8.5 billion of adjusted EBITDA and net income of $3.9 billion to $4.1 billion. The Arcosa purchase must close in Q1 2027 and deliver the planned $175 million of yearly cost synergies by year three. Leverage must stay near the pro forma 2.4 times net debt to adjusted EBITDA that CRH expects, so that it keeps a strong investment grade rating. The Q3 2026 report, estimated for about October 30, 2026, and the Arcosa close are the next tests. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a fall in U.S. construction spending, which CRH cannot control.
- Risks
- Demand for building materials depends on U.S. construction and public infrastructure spending. Residential demand was subdued in Q2 2026. A fall in construction activity lowers volumes and prices.
The Arcosa purchase adds about $8.5 billion of enterprise value and needs approvals. If integration is slow or the $175 million of synergies does not come, CRH has more debt for less return.
CRH buys many businesses each year. Paying too much or poor integration can lower returns on capital.
Energy and labor costs are rising. If CRH cannot raise prices enough, margins fall.
- Balance sheet
- Cash: $3.0B
Debt: $17.9B
Net debt: $14.9B
Interest cover: 4.8×
Debt due within 12 months: $2.5B
Last debt due: 2056
CRH funds itself mostly with long-dated senior notes and keeps an investment grade rating. Total short and long-term debt was $17.9 billion at June 30, 2026, and cash was $3.03 billion. Net debt, which also includes finance leases and derivatives, was $15.4 billion. Debt of $2.52 billion was due within 12 months. For the Arcosa purchase, CRH signed a $5.75 billion bridge facility in June 2026, which fell to $3.25 billion after a $2.5 billion three-year term loan in July 2026. CRH expects pro forma net debt to adjusted EBITDA of 2.4 times for 2026 after the purchase. Interest cover is operating income divided by interest expense for the first half of 2026, which includes the seasonally weak first quarter.
As of 2026-06-30.
- Checkpoints
- Oct 30, 2026 (estimate): Q3 2026 earnings: guidance. Pending. Watch: 2026 guidance for adjusted EBITDA of $8.1 billion to $8.5 billion kept or raised pass; a guidance cut fails.
Q1 2027 (estimate): Arcosa purchase closes. Pending. Watch: The deal closes in Q1 2027 on the agreed terms and leverage stays near 2.4 times pass; a delay, new conditions or a rating downgrade fail.
- Recent events
- 2026-07-30: CRH reported Q2 2026 results. Total revenues rose 6% to $10.8 billion, net income rose 13% to $1.5 billion, and adjusted EBITDA rose 7% to $2.6 billion. CRH sold three non-core businesses for about $1.9 billion in total and bought Axius Water for $0.7 billion. It reaffirmed its 2026 guidance and raised the quarterly dividend 5% to $0.39.
2026-07-17: CRH signed a three-year $2.5 billion term loan facility for the Arcosa purchase, which reduced the commitments under its bridge facility to $3.25 billion.
2026-06-22: CRH agreed to buy Arcosa for $150 per share in cash, an enterprise value of about $8.5 billion, or 11.5 times 2026 estimated adjusted EBITDA including $175 million of expected cost synergies. CRH expects the deal to close in Q1 2027, subject to Arcosa stockholder and regulatory approvals, and expects pro forma net debt to adjusted EBITDA of 2.4 times for 2026.
2026-05-11: CRH appointed Aylwyn Bryan as Chief Financial Officer, effective May 12, 2026. He replaced Nancy Buese, who stepped down by mutual agreement.