CRH cuts 2026 earnings guidance to $3.1 billion despite EPS topping estimates

Key Facts

CRH cut its 2026 financial guidance after reporting third-quarter results on October 29, even as diluted EPS before impairment exceeded analysts’ estimates. The company said expected full-year net income was now $3.1 billion to $3.3 billion, while adjusted EBITDA would range from $7.8 billion to $8.0 billion. It had previously forecast net income of $3.9 billion to $4.1 billion and adjusted EBITDA of $8.1 billion to $8.5 billion. Third-quarter revenue was $11.4 billion, up 3% year over year, but below the analysts’ average estimate of $11.56 billion. Diluted EPS before impairment was $2.09, compared with an estimate of $2.03, according to Investing.com.

Revenue growth did not translate into higher net earnings: reported diluted EPS fell 16% to $1.86, while EPS before impairment declined 8% to $2.09. Impairment charges rose to $178 million from $40 million in the year-earlier period. CRH linked the charges to the reporting unit in the Philippines within its International Solutions division.

For the first nine months of the year, CRH revenue rose 5% to $29.5 billion, but net income fell 9% to $2.5 billion. Adjusted EBITDA increased 4% to $5.9 billion over the same period. The company said positive pricing, resilient underlying demand and acquisition contributions supported third-quarter revenue growth. It also said disciplined commercial execution and performance-improvement initiatives helped support operating performance. These factors were offset by cost inflation, weak residential activity and the impact of divestitures, according to the company’s statement.

Performance varied across the company’s divisions in the quarter: revenue at the Americas Building Solutions division fell 3%, and adjusted EBITDA declined 18% compared with the third quarter of 2025. CRH attributed the pressure to weak residential activity and divestitures, despite strong demand in utility infrastructure and data centers. By contrast, revenue at the International Solutions division rose 1%, and adjusted EBITDA increased 6% year over year. The company said pricing, activity in some markets and acquisition contributions supported the division’s performance. These divisional results came as the company lowered its full-year net income and adjusted EBITDA forecasts.

The revision also covered 2026 diluted EPS guidance, which the company cut to $4.63–$4.85 from $5.60–$6.05 previously. On capital allocation, CRH announced a new share repurchase program of up to $6 billion, running through the end of 2030. It confirmed completion of the $8.5 billion acquisition of Arcosa and said it had invested $1.9 billion in 27 additional acquisitions since the start of 2026 through the results announcement. It also declared a quarterly dividend of $0.39 per share, up 5% from the prior year, payable on December 9 to shareholders of record on November 13.

On operations, CRH unveiled its Velocity initiative to develop its operating model and said it aims to structurally increase margins. The company expects the initiative to deliver annual run-rate benefits of $400 million by the end of 2028. Its statement described the outlook for 2027 as positive across key end markets. The forecast followed the cut to 2026 targets, making the full-year adjusted earnings range a key focus in assessing the company’s performance for the rest of the year. The company had scheduled the results announcement before the U.S. market opened on October 29, with the results call beginning at 8:00 a.m. Eastern time.

CRH shares fell in premarket trading on the day results were announced, dropping 2.94% to $84 from the previous close of $86.54. EL7 data recorded the stock’s close at $86.54 on October 28. The move came before the market opened, following results that combined revenue growth and an EPS beat with a cut to annual guidance and declines in net income and margins. Actual revenue was $11.4 billion against an estimate of $11.56 billion, according to Investing.com. EPS before impairment was $2.09 against an estimate of $2.03. The available data here did not include a later share price after trading began on the announcement day.