CRH, a leading building materials producer in the U.S. and Europe, anticipates core profit growth of 6% to 12% by 2025. This projection follows a strong 2024 performance, with 12% growth fueled by robust infrastructure and non-residential construction activity. The company expects this momentum to continue, particularly in North America.
CRH, headquartered in Ireland and listed in the U.S., derives approximately 75% of its profits from North America. The company anticipates sustained growth in its key infrastructure and non-residential segments in this region. Furthermore, CRH observes similar positive trends in Europe, coupled with encouraging signs of recovery in the residential sector.
The company has significantly benefited from increased U.S. public capital spending in recent years, leading to a surge in construction projects. CEO Jim Mintern expressed confidence in the continuation of this trend under the current administration, citing the Transport Secretary’s commitment to large-scale infrastructure development and streamlining bureaucratic processes.
Mintern, who recently transitioned from CFO to CEO, clarified that the 2025 guidance does not factor in potential tariff impacts. He explained that CRH’s heavy products rarely cross borders, minimizing vulnerability to trade disputes. He also suggested that rising global protectionist policies could further accelerate the “reshoring” of manufacturing facilities, benefiting CRH’s involvement in projects for companies like Intel, Samsung Electronics, Ford, and Micron Technology. These projects often involve constructing data centers, pharmaceutical plants, and chip factories.
CRH projects 2025 full-year adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) between $7.3 billion and $7.7 billion, a notable increase from the $6.9 billion achieved in 2024. This positive outlook underscores the company’s strong financial performance. The 2024 earnings, a record high for CRH, aligned with the previously forecasted range of $6.87 billion to $6.97 billion announced in November.
The industrial giant reported a 2% rise in full-year revenues to $35.6 billion. The EBITDA margin expanded by 180 basis points to 19.5%, marking the eleventh consecutive year of annual margin growth. This consistent improvement reflects CRH’s operational efficiency and strategic focus.
In conclusion, CRH’s positive profit growth projections for 2025 reflect the company’s strong position in the building materials market, driven by continued investments in infrastructure and non-residential construction. The company’s strategic focus on key growth sectors and operational efficiency positions it well for continued success. CRH’s consistent financial performance and optimistic outlook reinforce its leadership in the industry.
