Latest news with #JimMintern
Irish Times
08-05-2025
- Business
- Irish Times
CRH chair says Irish AGMs still ‘appropriate' even as holding of meetings overseas is approved
CRH chairman Richie Boucher has insisted that holding its annual general meetings (AGM) in Ireland remains 'appropriate', even as investors approved a resolution allowing it to hold such meetings oversees in future. Some 99 per cent of voting shareholders backed a resolution at the building materials and services giant's AGM in Dublin on Thursday that would allow it to amend its articles of association to enable general meetings to be held outside of the Republic. Mr Boucher told investors at the meeting that the resolution was put forward to give CRH, which moved its main listing to New York in late 2023, but remains based in Dublin, the 'flexibility for potentially unforeseen circumstances'. The chairman, who served as chief executive of Bank of Ireland post the 2008 financial crash, said CRH 'has no current intention' to move its AGMs overseas and that, as chairman, he feels 'it is appropriate' to continue to hold them in Ireland. READ MORE Still, he added that he did not want 'tie any future chairman' to that position. Earlier this week, CRH stuck to its forecast that earnings before interest, tax, depreciation and amortisation will rise as much as 11.6 per cent to between $7.3 billion (€6.5 billion) and $7.7 billion this year and that it has not seen any sign of customers scrapping or delaying investment even as the global economic outlook has become more uncertain in recent months. Speaking to reporters after the meeting, group chief executive Jim Mintern said a 'much needed' recovery of the US home construction market was likely to be pushed out to next year, amid ongoing economic uncertainty and high prevailing interest rates. 'It's not a demand issue in the US. There's a shortfall of somewhere between four and six million homes in the US. It's affordability. The typical mortgage in the US is structured as a 30-year fixed [product]. The rate today is 6.8 per cent and that needs to come back to something beginning with a five before you get that moving again,' he said. The residential construction market makes up about 30 per cent of the group's sales in its Americas units. The Americas accountsfor 75 per cent of group earnings, which are mainly geared towards infrastructure and non-residential building. Group chief operating officer Randy Lake highlighted on Tuesday that only a third of what was earmarked for motorways in the Biden administration's 2021 Infrastructure Investment and Jobs Act has been spent to date. CRH is the biggest road builder in the US. Momentum across North American data centre construction and high-spec manufacturing was 'positive', in particular, according to the group. The CEO said CRH is beginning to see what it described as 'some green shoots' in construction in Europe. 'I don't think it's fully appreciated how tough a time western Europe has had with Brexit, the pandemic, the war [in Ukraine], the energy crisis, and a lot of elections last year,' Mr Mintern told reporters. Meanwhile, Mr Mintern said that it remains a matter of 'when, not if' CRH joins the S&P 500, the most widely followed stock market index in the world, as the group feels that it has ticked all the boxes necessary for the committee presiding over the index to include the group. He said that CRH moving in January to become a 'US domestic' shares issuer, after the group crossed the threshold of more than 50 per cent of its shares being held by US residents, was 'not unhelpful' to its S&P 500 inclusion case.
Reuters
08-05-2025
- Business
- Reuters
Higher interest rates to delay U.S. residential market recovery, CRH CEO says
DUBLIN, May 8 (Reuters) - A recovery in the currently subdued U.S. residential construction market will inevitably take longer due to interest rates and inflation potentially staying higher for longer, the head of the largest building materials producer in the United States, CRH (CRH.N), opens new tab, said on Thursday. "The much needed recovery in U.S. residential is going to I think inevitably get pushed out," Jim Mintern told reporters after the company's annual general meeting, saying a fall in U.S. mortgage interest rates was required to spur activity. "We did not factor in a recovery in '25, we always thought it would be into '26 before it would come but I think now potentially with inflation and interest rates higher for longer on the dollar side, that's going to push that out."
Irish Independent
08-05-2025
- Business
- Irish Independent
CRH holds its AGM in Dublin today – and it could be its last one ever held in Ireland
Ireland's biggest company, with a market cap of €55.3bn, CRH was formed in 1970 via a merger between two firms, Cement and Roadstone. For almost the past 20 years, its AGM has been held at the Marine Hotel in Dún Laoghaire, Co Dublin, and before that, at other city centre venues. But shareholders hoping to pop along for a cup of tea and a sandwich while they rub shoulders with CRH's executives, including chief executive Jim Mintern, may soon have to jump on a flight to do so. And they'd likely have to head to New York. Among the proposals tucked away within resolution number 12 is a plan to make 'certain administrative updates' to the company's articles of association 'in connection with the company's transition of its primary listing to the New York Stock Exchange'. CRH shifted its primary stock market listing to the NYSE in September 2023. Its shares ceased trading in Dublin at the time. It's certain to annoy some small shareholders North America accounts for about 75pc of CRH's earnings before interest, tax, depreciation and amortisation. CRH noted at the time of the transition that the region would be a key driver for the group's likely growth in future years. The primary listing in the US also gave the group a higher investor profile. Since it made the move, shares in the company have almost doubled. But the corporate shindig this morning could potentially be the last CRH outing in Ireland for ordinary shareholders, most of them with small nest-eggs invested in the business. The company plans to amend article 56 to allow its meetings to be held outside Ireland, and that they can be held online if necessary. ADVERTISEMENT 'The board of directors proposes to amend article 56 and article 57 to provide the company with greater flexibility in respect of the location of its general meetings,' notes the proposal. 'The suggested amendment would allow for general meetings to be held outside of Ireland and by technological means, if preferred or required, subject to the provisions of the Companies Act.' With CRH's biggest shareholders based in the US, it makes sense that the company, despite being headquartered in Ireland, hold its annual general meetings there rather than in Dublin. Still, it's certain to annoy some small shareholders who have for years made the annual pilgrimage to hear from the board, and even pose the occasional question. Among the retail shareholders who have flagged concerns is Charles Lysaght. Small investors can do little to influence the outcome of resolutions proposed at AGMs, with the outcomes determined by large institutional investors. However, a tiny cohort still wants to be heard – whether that's to praise or tackle the board. CRH annual general meetings have occasionally been colourful affairs. Protests were previously held outside the meetings by the Ireland Palestine Solidarity Campaign. It was among the groups that for years put pressure on CRH to divest its stake in Israeli firm Mashav.
Irish Times
05-05-2025
- Business
- Irish Times
CRH sticks to full-year forecast as earnings rise 11% in first quarter
CRH reaffirmed its full-year profit forecasts on Monday evening, after the building materials and services giant reported that its earnings rose 11 per cent to $495 million (€437 million) in the first quarter. The Dublin-based group reiterated that it sees its earnings before interest, tax, depreciation and amortisation (Ebitda) rising as much as 11.6 per cent to come in between $7.3 billion and $7.7 billion. First quarter sales rose by 3 per cent to $6.8 billion, according to the group, which moved its main listing to New York in 2023 and dropped its Irish quotation in the process. '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,' said chief executive Jim Mintern. READ MORE 'Our relentless focus on financial control and discipline enabled us to maintain our strong balance sheet in the first quarter. Notwithstanding the current macroeconomic uncertainty, the outlook for our business remains positive and we are pleased to reaffirm our financial guidance for 2025, leaving us well positioned for another year of growth and value creation ahead.' In the three months ended March 31st, CRH completed eight acquisitions for a total consideration of $600 million, compared with $2.2 billion in the first quarter of 2024. Americas Materials Solutions completed five acquisitions, the largest of which being Talley Construction, a vertically integrated asphalt and paving company with operations in Tennessee, Georgia, Alabama and North Carolina, while Americas Building Solutions completed three acquisitions. CRH realised proceeds from divestitures and disposals of long-lived assets of $100 million, compared with $700 million in the first quarter of the prior year. 'Due to the localised nature of our operations, we do not expect a material direct impact from recent changes in global trade policies on our business,' CRH said. 'While it is still early in the construction season, we continue to expect positive underlying demand across our key end-use markets in 2025, underpinned by significant public investment in critical infrastructure and continued re-industrialisation activity in key non-residential segments.' Within the residential sector, the new-build segment is expected to remain subdued, while repair and remodel activity remains resilient, it said.
Business Wire
05-05-2025
- Business
- Business Wire
CRH Q1 2025 Results
NEW YORK--(BUSINESS WIRE)--CRH (NYSE: CRH), a leading provider of building materials solutions, today reported first quarter 2025 financial results. Jim Mintern, Chief Executive Officer, said: "The strength of our first quarter performance reflects the benefits of our differentiated strategy, good commercial management and contributions from 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. Our relentless focus on financial control and discipline enabled us to maintain our strong balance sheet in the first quarter. Notwithstanding the current macroeconomic uncertainty, the outlook for our business remains positive and we are pleased to reaffirm our financial guidance for 2025, leaving us well positioned for another year of growth and value creation ahead." * Represents non-GAAP measure. See 'Non-GAAP Reconciliation and Supplementary Information' on pages 12 to 13. 1 n/m - not meaningful. Expand Q1 2025 Results Performance Overview Total revenues of $6.8 billion (Q1 2024: $6.5 billion) were 3% ahead as contributions from acquisitions and strong commercial management more than offset the impact of divestitures and lower activity levels due to adverse weather in many regions. Net loss of ($98) million (Q1 2024 net income: $114 million) was behind the prior year, with a solid underlying operating performance offset by the non-recurrence of gains on prior year divestitures. Adjusted EBITDA* of $495 million (Q1 2024: $445 million) was 11% ahead as a result of the continued delivery of CRH's differentiated strategy, positive pricing, ongoing cost control and further operational efficiencies. CRH's net loss margin of (1.5%) was behind Q1 2024 (Q1 2024 net income margin: 1.7%), while Adjusted EBITDA margin* of 7.3% (Q1 2024: 6.8%) was ahead of the comparable prior year period. Diluted (loss) earnings per share for Q1 2025 was ($0.15) (Q1 2024: $0.16). Americas Materials Solutions' total revenues were 2% ahead of Q1 2024, driven by continued pricing progress across all lines of business along with positive contributions from acquisitions, which offset the effects of lower activity due to weather disruption in many regions. Adjusted EBITDA was well ahead of the prior year period, driven by commercial progress, ongoing cost management and operational efficiencies. Americas Building Solutions' total revenues were 1% behind Q1 2024 as contributions from acquisitions and strong performances in the water and energy markets were offset by weather-impacted demand. Adjusted EBITDA declined by 7% due to adverse weather and subdued residential activity. International Solutions' total revenues were 7% ahead of Q1 2024, driven by good contributions from acquisitions and continued pricing progress, more than offsetting the impact of lower activity levels due to challenging weather in certain markets. Adjusted EBITDA was 22% ahead of the prior year, driven by good commercial management, operational efficiencies and contributions from acquisitions. Acquisitions and Divestitures In the three months ended March 31, 2025, CRH completed eight acquisitions for a total consideration of $0.6 billion, compared with $2.2 billion in the first quarter of 2024. Americas Materials Solutions completed five acquisitions, the largest of which being Talley Construction, a vertically integrated asphalt and paving company with operations in Tennessee, Georgia, Alabama and North Carolina, while Americas Building Solutions completed three acquisitions. With respect to divestitures, CRH realized proceeds from divestitures and disposals of long-lived assets of $0.1 billion, compared with $0.7 billion in the first quarter of the prior year. Dividends and Share Buybacks In line with the Company's policy of consistent long-term dividend growth, the Board has declared a quarterly dividend of $0.37 per share. This represents an increase of 6% on the prior year. The dividend will be paid wholly in cash on June 25, 2025, to shareholders registered at the close of business on May 23, 2025. The ex-dividend date will be May 23, 2025. As part of its ongoing share buyback program, CRH repurchased approximately 3.2 million Ordinary Shares in Q1 2025 for a total consideration of $0.3 billion. On May 2, 2025, the latest tranche of the share buyback program was completed, bringing the year-to-date repurchases to $0.5 billion. The Company is pleased to announce that it is commencing an additional $0.3 billion tranche to be completed no later than August 5, 2025. Innovation and Sustainability CRH is committed to driving profitable growth by providing its customers with innovative solutions that support the transition to a more sustainable built environment. The Company's customer-centric approach to innovation gives CRH the ability to leverage the benefits of existing and emerging technologies to drive efficiency and margin expansion. CRH's ability to transform essential materials into value-added and innovative solutions enables the Company to better serve its customers' needs, address the global challenges of water, circularity and decarbonization and make construction simpler, safer and more sustainable. 2025 Full Year Outlook Due to the localized nature of our operations, we do not expect a material direct impact from recent changes in global trade policies on our business. Notwithstanding the current macroeconomic uncertainty, the outlook for our business remains positive and we reaffirm our financial guidance for 2025. While it is still early in the construction season, we continue to expect positive underlying demand across our key end-use markets in 2025, underpinned by significant public investment in critical infrastructure and continued re-industrialization activity in key non-residential segments. Within the residential sector, the new-build segment is expected to remain subdued, while repair and remodel activity remains resilient. Assuming normal seasonal weather patterns and absent any major dislocations in the political or macroeconomic environment, CRH's differentiated strategy and leading positions of scale in attractive higher-growth markets, together with our strong and flexible balance sheet, are expected to underpin another year of growth and value creation in 2025. Americas Materials Solutions Americas Materials Solutions' total revenues were 2% ahead of the first quarter of 2024, as pricing progress and contributions from acquisitions more than offset weather-impacted volumes in many regions. In Essential Materials, total revenues decreased by 3% due to lower volumes in most regions. Prices in aggregates and cement were ahead by 8% and 4%, respectively. Aggregates volumes declined by 5% while cement volumes declined by 2%, due to adverse weather in certain markets, partly offset by contributions from acquisitions. In Road Solutions, total revenues increased by 5% led by increased paving activity along with growth in both asphalt and readymixed concrete. Asphalt volumes increased 4% over the prior year while pricing increased by 3%. Readymixed concrete volumes were up 4% over the prior year and pricing increased by 1%. Construction backlogs increased on the prior year, supported by positive momentum in bidding activity. First quarter Adjusted EBITDA for Americas Materials Solutions was well ahead of the prior year, driven by pricing improvements, disciplined cost management and operational efficiencies. Adjusted EBITDA margin increased by 190bps. Americas Building Solutions Americas Building Solutions' total revenues were 1% behind the first quarter of 2024, as solid underlying demand in key markets as well as contributions from acquisitions were offset by adverse weather impacts. In Building & Infrastructure Solutions, total revenues were 4% ahead of Q1 2024, supported by increased volumes in the water and energy markets, along with the positive impact from acquisitions. In Outdoor Living Solutions, total revenues were 3% behind the prior year period as demand was impacted by adverse weather across certain key markets. Adjusted EBITDA for Americas Building Solutions was 7% behind the first quarter of 2024 as adverse weather and subdued residential activity impacted results. Adjusted EBITDA margin was 110bps behind the prior year period. International Solutions International Solutions' total revenues were 7% ahead of the first quarter of 2024 supported by continued pricing progress and good contributions from acquisitions which offset the impact of adverse weather and lower activity in certain geographies. In Essential Materials, total revenues were 7% ahead of the comparable period in 2024 as positive pricing and contributions from acquisitions offset lower weather-impacted activity in some regions and the divestiture of the European Lime operations. Overall aggregates and cement volumes were 9% and 11% ahead of the comparable period in 2024, with pricing 5% and 2% ahead, respectively, benefiting from contributions from the Adbri acquisition. In Road Solutions, total revenues were 11% ahead of the comparable period in 2024, with volumes and prices in readymixed concrete ahead of 2024 by 22% and 9%, respectively, benefiting from higher activity levels in a number of European countries, and contributions from the Adbri acquisition. Asphalt volumes declined by 4% as a result of lower activity in the United Kingdom and Ireland, while asphalt pricing declined 1% compared to the prior year. Within Building & Infrastructure Solutions and Outdoor Living Solutions, total revenues were 1% ahead of the comparable period in 2024 supported by contributions from acquisitions. Adjusted EBITDA in International Solutions was 22% ahead of the first quarter of 2024, primarily driven by increased pricing, operational efficiencies and contributions from acquisitions. Adjusted EBITDA margin increased by 70bps compared to the prior year. Other Financial Items Depreciation, depletion and amortization charges of $477 million were $80 million higher than the first quarter of the prior year (Q1 2024: $397 million), primarily due to the impact of acquisitions. Interest income of $37 million was lower than the first quarter of the prior year (Q1 2024: $43 million), primarily due to lower cash deposits. Interest expense of $181 million was higher than the comparable period in 2024 (Q1 2024: $133 million), primarily due to an increase in gross debt balances. Other nonoperating (expense) income, net was ($20) million (Q1 2024: $161 million) with the decrease versus prior year primarily related to the non-recurrence of the gain on the divestiture of the European Lime operations and unrealized gains on certain investments. Diluted (loss) earnings per share of ($0.15) was lower than Q1 2024 (Q1 2024: $0.16) primarily due to non-recurrence of gains on prior year divestitures. Balance Sheet and Liquidity Total short and long-term debt was $15.7 billion at March 31, 2025, compared with $14.0 billion at December 31, 2024, and $12.7 billion at March 31, 2024. In January 2025, the Company completed the issuance of $1.25 billion 5.125% Senior Notes due 2030, $1.25 billion 5.50% Senior Notes due 2035, and $0.5 billion 5.875% Senior Notes due 2055. In the three months ended March 31, 2025, a net $1.5 billion of commercial paper was repaid across the U.S. Dollar and Euro Commercial Paper Programs. Net Debt* at March 31, 2025, was $12.7 billion, compared to $10.5 billion at December 31, 2024, and $9.6 billion at March 31, 2024. The increase in Net Debt* compared to December 31, 2024, reflects the seasonal net cash outflow from operating activities, acquisitions, cash returns to shareholders through continued share buybacks, as well as the purchase of property, plant and equipment. CRH ended Q1 2025 with $3.4 billion of cash and cash equivalents (Q1 2024: $3.3 billion) and $3.9 billion of undrawn committed facilities. At March 31, 2025, the weighted average maturity of the term debt (net of cash and cash equivalents) was 8.6 years. As at March 31, 2025, the Company had a $4.0 billion U.S. Dollar Commercial Paper Program and a €1.5 billion Euro Commercial Paper Program available. As at March 31, 2025, there was $0.1 billion of outstanding issued notes under the U.S. Dollar Commercial Paper Program and no outstanding issued notes under the Euro Commercial Paper Program. CRH remains committed to maintaining its robust balance sheet and expects to maintain a strong investment-grade credit rating with a BBB+ or equivalent rating with each of the three main rating agencies. Q1 2025 Conference Call CRH will host a conference call and webcast presentation at 8:00 a.m. (EDT) on Tuesday, May 6, 2025 to discuss the Q1 2025 results and 2025 outlook. Registration details are available on Upon registration, a link to join the call and dial-in details will be made available. The accompanying investor presentation will be available on the investor section of the CRH website in advance of the conference call, while a recording of the conference call will be made available afterwards. Dividend Timetable The timetable for payment of the quarterly dividend of $0.37 per share is as follows: Ex-dividend Date: May 23, 2025 Record Date: May 23, 2025 Payment Date: June 25, 2025 Expand The default payment currency is U.S. Dollar for shareholders who hold their Ordinary Shares through a Depository Trust Company (DTC) participant. It is also U.S. Dollar for shareholders holding their Ordinary Shares in registered form, unless a currency election has been registered with CRH's Transfer Agent, Computershare Trust Company N.A. by 5:00 p.m. (EDT)/10:00 p.m. (BST) on May 23, 2025. The default payment currency for shareholders holding their Ordinary Shares in the form of Depository Interests is Euro. Such shareholders can elect to receive the dividend in U.S. Dollar or Pounds Sterling by providing their instructions to the Company's Depositary Interest provider, Computershare Investor Services plc, by 12:00 p.m. (EDT)/5:00 p.m. (BST) on May 27, 2025. Appendices Appendix 1 - Primary Statements The following financial statements are an extract of the Company's Condensed Consolidated Financial Statements prepared in accordance with U.S. GAAP for the three months ended March 31, 2025, and do not present all necessary information for a complete understanding of the Company's financial condition as of March 31, 2025. The full Condensed Consolidated Financial Statements prepared in accordance with U.S. GAAP for the three months ended March 31, 2025, including notes thereto, will be included as a part of the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC). Condensed Consolidated Statements of Income (Unaudited) (in $ millions, except share and per share data) Condensed Consolidated Balance Sheets (Unaudited) (in $ millions, except share data) March 31 December 31 March 31 2025 2024 2024 Assets Current assets: Cash and cash equivalents 3,352 3,720 3,308 Restricted cash – 39 – Accounts receivable, net 5,141 4,820 4,798 Inventories 4,960 4,755 4,619 Assets held for sale – – 236 Other current assets 789 749 748 Total current assets 14,242 14,083 13,709 Property, plant and equipment, net 22,179 21,452 18,878 Equity method investments 732 737 609 Goodwill 11,475 11,061 10,125 Intangible assets, net 1,208 1,211 1,093 Operating lease right-of-use assets, net 1,272 1,274 1,285 Other noncurrent assets 813 795 634 Total assets 51,921 50,613 46,333 Liabilities, redeemable noncontrolling interests and shareholders' equity Current liabilities: Accounts payable 2,777 3,207 2,730 Accrued expenses 2,270 2,248 2,241 Current portion of long-term debt 1,458 2,999 2,992 Operating lease liabilities 247 265 255 Liabilities held for sale – – 44 Other current liabilities 1,960 1,577 1,735 Total current liabilities 8,712 10,296 9,997 Long-term debt 14,213 10,969 9,680 Deferred income tax liabilities 3,141 3,105 2,684 Noncurrent operating lease liabilities 1,075 1,074 1,120 Other noncurrent liabilities 2,423 2,319 2,110 Total liabilities 29,564 27,763 25,591 Commitments and contingencies Redeemable noncontrolling interests 379 384 326 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 March 31, 2025, December 31, 2024, and March 31, 2024 1 1 1 Common stock, €0.32 par value, 1,250,000,000 shares authorized; 715,487,343, 718,647,277 and 729,477,337 issued and outstanding, as of March 31, 2025, December 31, 2024, and March 31, 2024 respectively 289 290 294 Treasury stock, at cost (38,850,691, 41,355,384 and 41,897,429 shares as of March 31, 2025, December 31, 2024 and March 31, 2024 respectively) (2,038) (2,137) (2,166) Additional paid-in capital 298 422 337 Accumulated other comprehensive loss (806) (1,005) (797) Retained earnings 23,375 24,036 22,346 Total shareholders' equity attributable to CRH shareholders 21,119 21,607 20,015 Noncontrolling interests 859 859 401 Total equity 21,978 22,466 20,416 Total liabilities, redeemable noncontrolling interests and equity 51,921 50,613 46,333 Expand Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions) Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions) Three months ended March 31 2025 2024 Cash Flows from Financing Activities: Proceeds from debt issuances 3,017 1,818 Payments on debt (1,533) (651) Settlements of derivatives 15 (1) Payments of finance lease obligations (21) (9) Deferred and contingent acquisition consideration paid (11) (7) Dividends paid – (750) Distributions to noncontrolling and redeemable noncontrolling interests (17) (17) Repurchases of common stock (310) (559) Proceeds from exercise of stock options 1 – Net cash provided by (used in) financing activities 1,141 (176) Effect of exchange rate changes on cash and cash equivalents, including restricted cash 75 (97) Decrease in cash and cash equivalents, including restricted cash (407) (3,081) Cash and cash equivalents and restricted cash at the beginning of period 3,759 6,390 Cash and cash equivalents and restricted cash at the end of period 3,352 3,309 Supplemental cash flow information: Cash paid for interest (including finance leases) 63 45 Cash paid for income taxes 134 159 Reconciliation of cash and cash equivalents and restricted cash Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets 3,352 3,308 Cash and cash equivalents included in Assets held for sale – 1 Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows 3,352 3,309 Expand Appendix 2 - 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 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. Three months ended March 31 in $ millions 2025 2024 Net (loss) income (98) 114 Loss from equity method investments 10 4 Income tax benefit (58) (19) Loss (gain) on divestitures and investments (i) 26 (160) Pension income excluding current service cost component (i) (4) (1) Other interest, net (i) (2) – Interest expense 181 133 Interest income (37) (43) Depreciation, depletion and amortization 477 397 Substantial acquisition-related costs (ii) – 20 Adjusted EBITDA 495 445 Total revenues 6,756 6,533 Net (loss) income margin (1.5%) 1.7% Adjusted EBITDA margin 7.3% 6.8% (i) Loss (gain) on divestitures and investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating (expense) 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 3 'Acquisitions' of the unaudited financial statements in the Quarterly Report on Form 10-Q. Expenses in the first quarter of 2024 primarily include legal and consulting expenses related to these non-routine substantial acquisitions. Expand Adjusted EBITDA is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. Reconciliation to its nearest GAAP measure for the mid-point of the 2025 Adjusted EBITDA guidance is presented below: 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: Organic Revenue and Organic Adjusted EBITDA: 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 currency exchange translation, and the impact of any one-off items. 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 commencing on page 4. Appendix 3 - Disclaimer/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 contains 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 demand outlook for 2025, including stability resulting from CRH's customer-connected portfolio; plans and expectations regarding government funding initiatives and re-industrialization activity, including expected public investment in critical infrastructure; plans and expectations regarding pricing momentum, costs, demand, bidding activity, backlogs and trends in residential and non-residential markets and macroeconomic and other market trends and dynamics in regions where CRH operates; plans and expectations regarding operational efficiencies and cost controls and management; expectations with respect to the impact of existing and further potential global trade and tariff policies; plans and expectations regarding investments in innovation and sustainability and the enhancement of CRH's ability to address global challenges; plans and expectations regarding CRH's ability to leverage the benefits of existing and emerging technologies; plans and expectations regarding acquisitions and divestitures and resulting synergies, benefits and contributions and further growth opportunities; plans and expectations regarding return of cash to shareholders, including the timing, consistency and amount of share buybacks and dividends; expectations regarding CRH's credit rating with each of the three main ratings agencies; and plans and expectations regarding CRH's 2025 full year performance, including net income, Adjusted EBITDA, diluted earnings per share, capital expenditures, assumed interest expense and assumed effective tax rate. 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 the Company's 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. The Company expressly disclaims 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; industry cyclicality and the 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, or reductions or delays to, 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 public policy, economic, social and 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 include the risks and uncertainties described under 'Risk Factors' in Part 1, Item 1A of the Annual Report on Form 10-K 'Risk Factors' in CRH's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed with the SEC and in CRH's other filings with the SEC.
