6th May 2025 10:15
(Alliance News) - CRH PLC on Monday reported a net loss in the first quarter, but remains optimistic on its full-year guidance.
CRH is a Dublin-based building materials supplier, focused on lime and limestone.
The company had a net loss of USD98 million for the first quarter, ended March 31, swinging from USD114 million in profit a year prior.
While the company's regular business performance was strong, the loss was attributed to the firm not having the same one-time gains from selling parts of the business, which they had last year.
In the first quarter, CRH completed eight acquisitions valued at USD600 million, a 73% decrease from USD2.2 billion in 2024. Americas Materials Solutions accounted for five of these acquisitions, including the notable purchase of Talley Construction, an asphalt and paving company with operations across multiple US states. Additionally, Americas Building Solutions made three acquisitions. On the divestiture side, CRH generated USD100 million in proceeds from asset sales, down 86% from USD700 million the previous year.
The company saw a 3.5% increase in revenue, which rose to USD6.76 billion from USD6.53 billion the prior year.
The rise in revenue was driven by the growth from new acquisitions and strong business management, helping to outweigh the effects of selling off parts of the business and lower activity caused by bad weather in many areas.
Total cost of revenues grew by 4.0%, climbing to USD4.92 billion from USD4.73 billion the previous year. Additionally, CRH's selling, general, and administrative expenses also rose by 2.2%, reaching USD1.83 billion, compared to USD1.79 billion the previous year.
Adjusted earnings before interest, tax, depreciation and amortisation rose 11% to USD495 million.
CRH continued its share repurchases, buying back a total of USD300 million in shares during the first quarter. Last week, the latest tranche of its buyback was completed, bringing the total year-to-date repurchases to USD500 million. The company also announced an additional USD300 million tranche of share buybacks will be completed no later than August 5.
Chief Executive Officer Jim Mintern attributed the company's first-quarter performance to its "differentiated strategy," effective commercial management, and positive contributions from recent acquisitions.
"Although the first quarter is typically the seasonally least significant period for our business, we are encouraged by the continued strength of underlying demand across our key markets," Mintern added.
Looking ahead, CRH reaffirmed its full-year guidance, expecting net income to between USD3.7 billion and USD4.1 billion, with adjusted earnings before interest, taxes, depreciation, and amortisation projected between USD7.3 billion and USD7.7 billion. In comparison, CRH reported a net income of USD3.52 billion and an adjusted Ebitda of USD6.9 billion for 2024.
CRH remains optimistic about its long-term prospects, with continued strength expected in key markets and a focus on growth through strategic acquisitions and effective cost management.
CRH shares were down 4.0% to 7,084.00 pence in London on Tuesday morning.
By Olivia Mason-Myhill, Alliance News reporter
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