CRH chief executive Jim Mintern said the building materials and solutions giant has not seen any sign of customers scrapping or delaying investment even as the global economic outlook has become more uncertain in recent months.
“We‘re not seeing, at this point in time, any cancellations or delays. And our backlogs are positive,” Mr Mintern told analysts on a call on Tuesday afternoon after CRH reported better-than-expected first-quarter earnings and reiterated its full-year targets.
Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 11 per cent to $495 million (€437 million) in the first quarter. The result was 3 per cent head of consensus expectations of analysts.
The Dublin-based group said that it still sees its Ebitda rising as much as 11.6 per cent to come in between $7.3 billion and $7.7 billion, even though the US dollar has fallen against other major currencies in recent months.
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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.
“While the first quarter is the least significant quarter in the year, we are encouraged by underlying momentum as well as positive backlogs and bidding momentum,” said Ross Harvey, an analyst with Davy.
Mr Mintern said: “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.”
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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.
Executives said on the analysts call that they expect the mergers and acquisition deals to add $320 million to earnings this year, some $40 million more than had been estimated in February.
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.”
Group chief operating officer Randy Lake highlighted 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.
Mr Mintern said that momentum across North American data centre construction and high-spec manufacturing was “positive”, in particular.
Within the residential sector, the new-build segment is expected to remain subdued, while repair and remodel activity remains resilient, CRH said.
Mr Mintern said that the group “is beginning to see some green shoots” in residential construction in Europe, helped by European Central Bank (ECB) rate cuts in over the past 11 months.
Shares in CRH were down about 3.6 per cent at $94.60 in early trading on Wall Street, as some investors locked in profits following the stock’s 20 per cent rally from its early April lows.
