CRH said it has entered a $700 million (€599 million) deal to buy a US water treatment solutions company as the building materials and services giant reported better-than-expected first quarter sales and earnings on Thursday.
The Dublin-based group said the planned purchase of Axius Water, which was co-established seven years ago by an arm of US private equity group KKR, will strengthen its position as a “leading water infrastructure player” in the world’s largest economy. The deal is expected to close by the end of June.
CRH has also agreed to sell three noncore businesses – in construction accessories, lawn and garden solutions, and composite decking – for a combined $1.9 billion, as chief executive, Jim Mintern, continues a practice established by his predecessor, Albert Manifold, of recycling capital to boost its investment returns.
Total revenues rose 9 per cent in the first quarter to $7.4 billion, to come in 4 per cent ahead of the consensus forecast of analysts that cover the group. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) advanced 18 per cent to $586 million. That was almost 8 per cent ahead of market expectations.
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The group’s key Americas materials solution division, which supplies aggregates, cement and concrete as well as services for critical infrastructure projects, including roads, highways and water projects, saw its sales rise 21 per cent during the quarter.
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However, sales in its Americas building materials unit, which makes and supplies engineered products, declined 1 per cent amid “subdued new-build residential demand and adverse weather conditions”.
The international solutions unit, which covers its activities outside of North America, delivered 5 per cent sales growth, as acquisitions, positive pricing momentum and currency tailwinds more than offset weather-impacted volumes and the impact of noncore business disposals.
“We delivered a strong start to 2026, reflecting good momentum from early-season project activity, disciplined commercial execution and positive contributions from acquisitions,” said Mintern, who took charge of the group early last year.
“Notwithstanding the current geopolitical and macroeconomic uncertainty, we are encouraged by the continued strength of underlying demand across our key markets.”
CRH reiterated its full-year guidance, including a target for adjusted Ebitda to come to between $8.1 billion and $8.5 billion.
CRH ditched its Irish stock market quotation in 2023 as it moved its main listing to New York. Mintern unveiled his medium-term strategy in September, with a plan to spend $40 billion on investment and cash returns to shareholders over five years as it continues to grow revenues and earnings apace.
