CRH Fourth-Quarter Earnings Report

CRH Reports Weaker-Than-Expected Fourth-Quarter Numbers

Construction-materials and services company CRH recently reported fourth-quarter earnings that fell short of Wall Street's expectations. Despite this, shares of CRH are on the rise due to anticipated infrastructure building in the U.S. continuing into 2024.

Financial Highlights

In the fourth quarter, CRH reported earnings before interest, taxes, depreciation, and amortization (Ebitda) of $1.4 billion on sales of $8.6 billion. This was slightly below the expected Ebitda of $1.5 billion and sales of $8.8 billion, according to FactSet. However, for the full year, CRH reported strong Ebitda of about $6.2 billion, marking an increase from $5.6 billion in 2022.

CEO Statement

Albert Manifold, CEO of CRH, highlighted the company's financial success in 2023, mentioning the growth in profits, cash generation, and returns despite inflationary cost pressures. The Ebitda profit margins for the full year improved to almost 18% from approximately 17% in 2022.

Investor Response

Despite the fourth-quarter numbers missing analyst projections, investors remain optimistic. CRH shares saw a 6.3% increase in premarket trading, sitting at $84.28 per share. This positive trend contrasts with the slight decreases in both S&P 500 and Dow Jones Industrial Average futures.

Outlook for 2024

Looking ahead to 2024, CRH anticipates Ebitda of approximately $6.7 billion and earnings per share of about $5.30. These projections slightly surpass Wall Street's current expectations. The company's optimism is supported by expected growth in infrastructure investment and re-industrialization activity across key markets in North America and Europe.

Share Buyback Plan

In addition to financial performance, CRH announced plans to repurchase $300 million worth of stock by May 9.

Conference Call

Management will be hosting a conference call at 8 a.m. Eastern time to further discuss these results.

Closing Note

CRH shares have seen a substantial increase of about 67% over the past 12 months.

Write to Al Root