CRH Cuts 2026 Forecasts and Authorizes Share Buybacks of Up to $6 Billion
Key Facts
On October 29, CRH announced it had lowered its financial forecasts for 2026, as its board authorized a share buyback program worth up to $6 billion through the end of 2030. The decision came after third-quarter revenue rose 3% to $11.4 billion, compared with $11.1 billion in the same period of 2025, while adjusted EBITDA held at $2.7 billion. But the margin on that profit fell to 23.5% from 24.3% a year earlier, and net income declined 22%, according to the company's results. CRH revised its adjusted EBITDA forecast for the year to $7.8–8.0 billion from $8.1–8.5 billion, and cut its net income forecast to $3.1–3.3 billion from $3.9–4.1 billion. The results reflect a divergence between revenue growth and pressure on profitability, as the company said inflation and weakness in residential construction affected its outlook.
The company attributed revenue growth to improved pricing, resilient underlying demand and contributions from acquisitions. Chief Executive Jim Mintern said the quarter's performance reflected "disciplined commercial execution, performance improvement initiatives and positive underlying demand in key markets," despite a challenging and volatile inflationary cost environment. Meanwhile, impairment losses rose to $178 million, compared with $40 million in the third quarter of 2025, and were linked to the Philippines reporting unit of its International Solutions division. CRH also reported a 3% decline in revenue at Americas Building Solutions, reflecting weak residential demand and divestitures, despite contributions from utilities, data centers and acquisitions. Revenue at Americas Materials Solutions rose 6%, supported by pricing in aggregates and asphalt, demand for large projects and acquisitions. In the first nine months of 2026, revenue rose 5% to $29.5 billion, and adjusted EBITDA increased 4% to $5.9 billion.
CRH said the lower guidance reflected the earlier-than-expected completion of its Arcosa acquisition, along with inflationary cost pressures and a more challenging residential construction market, and forecast continued weakness in housing in the near term. The company completed its acquisition of Arcosa, a U.S. provider of aggregates and infrastructure products, on October 23, at an enterprise value of about $8.5 billion. The deal forms part of the company's expansion in infrastructure activities, while its statement cited acquisition contributions to revenue. Under the new authorization, directors can determine the timing, method and amount of buybacks in light of market and business conditions; the program therefore sets a ceiling, not a commitment to spend the full amount. CRH had bought back about 0.8 million shares for $0.1 billion in the third quarter. Buybacks totaled $0.7 billion in the first nine months of 2026, compared with $0.9 billion in the same period a year earlier.
On dividends, the company announced on October 29 a quarterly dividend of $0.39 per share, up 5% year over year. It is scheduled to be paid on December 9 to shareholders of record at the close of November 13. Investing.com reported that the stock rose 4.1% in afternoon trading on October 29 to $90.10, reversing an initial decline in premarket trading, and linked the recovery to the buyback announcement. EL7 data recorded the stock's close at $90.62 that day, up from $86.54 on October 28. Against estimates, revenue came in below analysts' forecast of $11.56 billion, while adjusted earnings per share of $2.09 topped the $2.03 estimate, according to Investing.com.
On operating plans, the Velocity initiative aims to simplify the business model and make more effective use of technology and data, with annual run-rate benefits of about $400 million by the end of 2028. CRH expects total exceptional costs of about $400 million for the initiative. The company said its outlook for 2027 is positive across key end markets, supported by its strategy and connected portfolio. The current quarter's dividend is scheduled to be paid on December 9, with shareholders of record at the close of November 13 eligible to receive it. These upcoming milestones place the Arcosa expansion and Velocity initiative in the context of annual guidance lowered amid inflationary pressures and weakness in housing.