CRH Public Limited Co. - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. CRH is a leading global provider of building materials, operating across the Americas and International markets (Europe and Australia). The company serves infrastructure, commercial, and residential construction sectors through three reportable segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $7,370 million | $6,756 million |
| Gross Profit | $2,045 million | $1,837 million |
| Operating Income (Loss) | ($38) million | $18 million |
| Net Loss | ($180) million | ($98) million |
| Net Loss Attributable to CRH | ($176) million | ($94) million |
| Diluted EPS | ($0.27) | ($0.15) |
| Adjusted EBITDA | $586 million | $495 million |
| Adjusted EBITDA Margin | 8.0% | 7.3% |
| Cash and Cash Equivalents | $3,240 million | $3,352 million |
| Net Debt (Non-GAAP) | $15,828 million | $12,686 million |
| Total Debt | $18,438 million | $15,578 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 9% year-over-year, driven by positive underlying demand, acquisitions, and currency tailwinds in the International segment.
- Profitability: While GAAP Net Loss widened to $180 million (from $98 million), this was primarily due to a $48 million impairment charge in the International Solutions segment related to assets held for sale. Adjusted EBITDA increased 18% to $586 million.
- Cost Structure: Cost of revenues rose 8%, driven by a 22% increase in depreciation/amortization (due to acquisitions and capex) and a 6% increase in labor costs. SG&A expenses increased 12% due to higher haulage and labor costs.
- Divestitures: The company entered agreements to divest construction accessories operations ($0.7 billion) and lawn and garden operations ($1.1 billion), reclassifying these assets as "held for sale."
Guidance, Outlook, and Risks
- Outlook: Management expects favorable underlying demand in 2026, supported by public infrastructure investment and reindustrialization. Residential new-build activity is expected to remain subdued, while repair and remodel activity should be resilient.
- Capital Allocation: The company returned $0.3 billion to shareholders via share buybacks in Q1 and declared a quarterly dividend of $0.39 per share (a 5% increase year-over-year).
- Liquidity: Net Debt increased to $15.8 billion due to seasonal operating cash outflows, acquisitions, and shareholder returns. The company maintains $4.5 billion in undrawn committed credit facilities.
- Risks: Key risks include geopolitical conflicts (Ukraine, Middle East), inflation in labor and materials, adverse weather impacts on construction activity, and execution risks related to the pending divestitures and acquisitions.
Investor Verification Checklist
- Impairment Details: Verify the specific drivers of the $48 million impairment in the International Solutions segment and its impact on future earnings.
- Divestiture Timing: Monitor the closing dates and final consideration for the construction accessories ($0.7B) and lawn/garden ($1.1B) divestitures expected in Q2 2026.
- Debt Maturities: Review the debt maturity schedule, noting $2.1 billion due in the remainder of 2026 and the reliance on commercial paper programs for short-term liquidity.
- Organic Growth: Assess the sustainability of the 9% revenue growth by isolating the impact of acquisitions and currency translation versus organic volume and pricing.
- Seasonality: Consider the seasonal nature of the construction industry when evaluating Q1 cash flow outflows against full-year expectations.