CRH

CRH is a scaled, largely North America–focused aggregates/cement/asphalt and building products supplier, where local logistics advantages and dense quarry networks create durable regional moats. Q1 2026 showed volumes holding up in core materials (aggregates up 8%, cement flat) despite weather and softer new-build residential, underscoring the benefit of infrastructure-leaning end markets. Ongoing bolt-on M&A and product innovation at Oldcastle support share gains, while the group continues to rationalize the portfolio toward higher-return markets.

Financially, momentum remains solid: Q1 2026 revenue was $7.4B (+9% YoY), and FY 2025 revenue was about $37.5B (+5% YoY), alongside an FY 2025 adjusted EBITDA margin of 20.5% (up from 19.5% in 2024). Management’s 2026 outlook implies continued earnings power (adjusted EBITDA $8.1–$8.5B; diluted EPS $5.60–$6.05), and capital returns are active with another $0.3B buyback tranche completed. At about 20x trailing P/E and a ~$1.56 annual dividend (~1.4–1.5% yield), valuation looks reasonable but not cheap for a cyclical materials name.

Over the next 12 months, the bull case is continued infrastructure-led demand and operating leverage as pricing discipline and acquisitions flow through to EBITDA. Key catalysts include progress against 2026 EBITDA/EPS guidance and further accretive M&A, while risks center on a sharper construction slowdown (especially residential), input-cost volatility, and any margin giveback in competitive local markets.

Recommendation: BUY. The setup offers an attractive mix of resilient infrastructure exposure with improving margins and shareholder returns, and the current valuation is not demanding relative to the 2026 earnings guide and cash-return pace.