CRH (NYSE:CRH), the global building materials firm, reported its earnings release for the second quarter of fiscal 2025 on August 6, 2025. The company delivered GAAP revenue of $10.2 billion and diluted earnings per share (EPS) of $1.94 for Q2 2025. Both metrics were slightly ahead of analyst projections, with revenue beating by $61.2 million and EPS by $0.02. Compared to Q2 2024, revenue was up 6.0% and diluted EPS increased 3.2%. Operating profit margins expanded on an adjusted basis, but Net income margin (GAAP) edged down by 0.5 percentage points to 13.1%. Management raised full-year guidance as steady demand, pricing improvements, and acquisitions drove growth, despite ongoing cost pressures and a higher net debt position.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $1.94 | $1.92 | $1.88 | 3.2% |
| Revenue (GAAP) | $10.2 billion | N/A | $9.7 billion | 5.2% |
| Adjusted EBITDA | $2.5 billion | $2.3 billion | 8.7% | |
| Net Income | $1.3 billion | $1.3 billion | 0.0% | |
| Net Income Margin | 13.1% | 13.6% | (0.5 pp) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business overview and strategic focus
CRH is a global supplier of building materials, with operations spanning North America, Europe, and international markets. The company produces essential materials like cement, aggregates, asphalt, and ready-mixed concrete, along with a wide range of building products and solutions. Its vertically integrated model enables it to source, produce, and distribute core inputs for construction, while also providing value-added products for infrastructure, commercial, and residential building projects.
In recent years, the company's main business focus areas have been growth in the North American market, expansion through acquisitions, fostering innovation in sustainable products, and efficiency through vertical integration. The key to its performance lies in strong positions in its main geographies, its ability to manage costs and pricing, and continued capital allocation toward growth initiatives and shareholder returns.
Quarter highlights and segment performance
The company reported another quarter of modest outperformance versus Wall Street expectations, with Q2 2025 EPS of $1.94 and revenue of $10.2 billion both exceeding analyst estimates. Revenue rose 6.0% in Q2 2025 compared to the same period last year, driven by price increases and contributions from recent acquisitions. Adjusted EBITDA, a measure of operating profitability before interest, taxes, depreciation, and amortization, increased 9%.
The Americas Materials Solutions segment grew revenues by 2% year over year. Acquisitions added $214 million to sales, and the segment benefited from higher prices for aggregates (up 4%) and cement (up 2%). Volumes were mixed -- aggregate volumes rose 5% (helped by newly acquired businesses), but asphalt volumes slipped 2% due to weather impacts. Adjusted EBITDA in this segment improved 4%, with margins rising 0.4 percentage points. Management said, "Americas Materials Solutions’ total revenues were 2% ahead of the second quarter of 2024, primarily driven by contributions from acquisitions and further pricing improvements." Weather continued to pose a challenge for construction activity in this division.
The Americas Building Solutions segment posted a 2% increase in revenue, with acquisitions contributing $83 million to Americas Building Solutions total revenues. This division is built around value-added building solutions for commercial and infrastructure markets and outdoor living products like manufactured pavers. In the Americas Building Solutions segment, acquisition growth and expanded margins helped operating profitability (Adjusted EBITDA) rise 5%. The Adjusted EBITDA margin grew by 0.7 percentage points to 23.2%.
International Solutions produced the strongest growth, with revenues up 13% and adjusted EBITDA up 23%. Acquisitions, including Adbri, were a major factor, adding $430 million in revenue. Aggregates pricing increased 4%, cement pricing increased 2%, and readymixed concrete pricing increased 2% in the division, while concrete volume growth reached 21%. Management highlighted these trends: •International Solutions' total revenues (GAAP) were 13% ahead of Q2 2025 compared to Q2 2024, driven by strong contributions from acquisitions and sustained pricing
Innovation remains a core focus area. The pending $2.1 billion acquisition of Eco Material Technologies—a provider of fly ash, pozzolans, and technologies for green cement—signals the company's push into next-generation, more sustainable cement and concrete products. The transaction was announced on July 29, 2025, and is expected to close in 2025, subject to regulatory approval and customary closing conditions. In FY2024, $14.6 billion of company revenue came from products labeled as sustainable, marking the importance of this business area. While there was no specific sustainability update for the quarter, the Eco Material deal represents a major strategic milestone.
For the six months ended June 30, 2025, CRH completed 13 acquisitions for a total consideration of $0.7 billion, compared with $2.6 billion in the first half of the prior year, with five acquisitions in Q2 2025 amounting to just $0.1 billion, down from $0.4 billion in Q2 2024. The pipeline for further acquisitions remains active, with management reiterating its focus on disciplined capital allocation.
Notably, the company continued to return cash to shareholders. It completed $0.8 billion of share buybacks year-to-date as of August 5, 2025 and announced a new $0.3 billion tranche. At the same time, The quarterly dividend was raised 6% to $0.37 per share for Q2 2025. These returns, alongside capital expenditure and deals, led to a notable rise in net debt, which reached $13.4 billion at June 30, 2025, up $3.1 billion from the prior year.
While most business lines enjoyed improved operating margins, The overall net income margin for the company narrowed to 13.1% from 13.6% last year (GAAP, Q2 2025 vs Q2 2024). This was the result of increased depreciation, higher interest costs, and reduced gains from asset disposals -- all factors disclosed in the release. Leverage crept higher as capital spending and acquisitions outpaced operating cash flow generation, which came in slightly lower than the first half of last year.
Looking ahead: Guidance and investor considerations
Management raised full-year guidance for FY2025 on August 6, 2025. Net income (GAAP) is now expected between $3.8 billion and $3.9 billion for FY2025 (previously $3.7 billion to $4.1 billion). Adjusted EBITDA (non-GAAP) is projected between $7.5 billion and $7.7 billion for FY2025 (previously $7.3 billion to $7.7 billion), and Diluted EPS (GAAP) is expected in a narrowed range of $5.49 to $5.72 for FY2025. The guidance assumes typical weather conditions and continued positive market demand, supported by infrastructure funding and backlog trends. Capital expenditures are expected to remain between $2.8 billion and $3.0 billion for FY2025.
For investors tracking the business, attention will likely remain on the pace of acquisition-driven growth, integration of the pending Eco Material acquisition, and management’s ability to maintain margin discipline as costs increase. The company’s net income margin slipped, and Net debt (non-GAAP) trended up from $10.5 billion at December 31, 2024, to $13.4 billion at June 30, 2025, underscoring the need for continued focus on returns and balance sheet strength as capital investments ramp up. In line with its policy of consistent returns, the quarterly dividend was raised 6% to $0.37 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
