Q3 FY2026
Filed Oct 29, 2026CRH Reports Third Quarter 2026 Results
Total revenues rose 3% and Adjusted EBITDA was in line with the prior year, but net income declined 22%, Adjusted EBITDA margin declined 80bps, and CRH reduced its full-year 2026 guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Total revenuesGAAP | $11.4B | – | +3% |
| 9M 2026 Total revenuesGAAP | $29.5B | – | +5% |
| Q3 2026 Product revenuesGAAP | $8.46B | – | – |
| Q3 2026 Service revenuesGAAP | $2.94B | – | – |
| Q3 2026 Total cost of revenuesGAAP | −$6.97B | – | – |
| Q3 2026 Gross profitGAAP | $4.42B | – | – |
| Q3 2026 Selling, general and administrative expensesGAAP | −$2.37B | – | – |
| Q3 2026 Gain on disposal of long-lived assetsGAAP | $19M | – | – |
| Q3 2026 Loss on impairmentsGAAP | −$178M | – | – |
| Q3 2026 Operating incomeGAAP | $1.90B | – | – |
| Q3 2026 Interest incomeGAAP | $22M | – | – |
| Q3 2026 Interest expenseGAAP | −$209M | – | – |
| Q3 2026 Income tax expenseGAAP | −$494M | – | – |
| Q3 2026 Net incomeGAAP | $1.2B | – | (22%) |
| 9M 2026 Net incomeGAAP | $2.5B | – | (9%) |
| Q3 2026 Net income attributable to CRHGAAP | $1.25B | – | – |
| Q3 2026 Net income marginGAAP | 10.4% | – | (330bps) |
| 9M 2026 Net income marginGAAP | 8.5% | – | (130bps) |
| Q3 2026 Diluted Earnings Per ShareGAAP | $1.86 | – | (16%) |
| 9M 2026 Diluted Earnings Per ShareGAAP | $3.79 | – | (5%) |
| Q3 2026 Diluted Earnings Per Share pre-impairmentnon-GAAP | $2.09 | – | (8%) |
| 9M 2026 Diluted Earnings Per Share pre-impairmentnon-GAAP | $4.09 | – | +1% |
| Q3 2026 Adjusted EBITDAnon-GAAP | $2.7B | – | – |
| 9M 2026 Adjusted EBITDAnon-GAAP | $5.9B | – | +4% |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 23.5% | – | (80bps) |
| 9M 2026 Adjusted EBITDA marginnon-GAAP | 20.0% | – | (20bps) |
| Q3 2026 Depreciation, depletion and amortizationGAAP | $555M | – | $6 million lower |
| 9M 2026 Net cash provided by operating activitiesGAAP | $2.27B | – | – |
| 9M 2026 Purchases of property, plant and equipment, and intangiblesGAAP | −$1.82B | – | – |
| 9M 2026 Acquisitions, net of cash acquiredGAAP | −$1.66B | – | – |
| 9M 2026 Proceeds from divestituresGAAP | $1.68B | – | – |
| 9M 2026 Repurchases of common stockGAAP | −$693M | – | – |
| 9M 2026 Dividends paidGAAP | −$781M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas Materials SolutionsHigher pricing across aggregates and asphalt, strong demand from major projects and contributions from acquisitions. | $5.99B | – | +6% |
| Americas Building SolutionsStrong utility infrastructure, data center activity and acquisitions were offset by divestitures and subdued residential demand. | $1.75B | – | (3%) |
| International SolutionsPositive pricing momentum, increased activity in certain markets and acquisitions offset divestitures. | $3.66B | – | +1% |
2026 Full Year Updated Guidance outlook
- Tax rateapproximately 27%
- NoteNet income: $3.1 billion-$3.3 billion
- NoteAdjusted EBITDA: $7.8 billion-$8.0 billion
- NoteDiluted EPS: $4.63-$4.85
- NoteAdjusted Diluted EPS: $5.37-$5.59
- NoteCapital expenditure: $2.6 billion-$2.8 billion
- NoteInterest expense, net: approximately $0.8 billion
- NoteYear-to-date average diluted Common Shares outstanding: approximately 670.5 million
- NoteVelocity annual run-rate benefits by end of 2028: approximately $400 million
- NoteVelocity total non-routine costs: approximately $400 million
Capital returns
- Quarterly dividend of $0.39 per share, representing a 5% increase on the prior year, payable on December 9, 2026 to shareholders registered at the close of business on November 13, 2026.
- Repurchased approximately 0.8 million Ordinary Shares for $0.1 billion during Q3 2026.
- Repurchases totaled $0.7 billion through Q3 2026, compared with $0.9 billion in the first nine months of the prior year.
- Board authorized a new share buyback program of up to $6 billion, expiring at the end of 2030.
What drove it
- Positive pricing momentum and resilient underlying demand supported Q3 total-revenue growth.
- Major projects supported Americas Materials Solutions, while utility infrastructure and data center activity supported Americas Building Solutions.
- Acquisitions contributed to all three segments; CRH completed nine acquisitions for total consideration of $0.5 billion during Q3 2026.
- CRH completed the Arcosa acquisition on October 23, 2026 for a total enterprise value of approximately $8.5 billion.
- Velocity targets annual run-rate benefits of approximately $400 million by the end of 2028.
Concerns
- Cost inflation offset disciplined commercial execution, performance improvement initiatives and acquisition contributions in Adjusted EBITDA.
- Residential activity remained subdued, and CRH expects the residential end-market to remain weak in the near term.
- Q3 Loss on impairments was $178 million, compared with $40 million in Q3 2025, related to the Philippines reporting unit within International Solutions.
- Americas Building Solutions Adjusted EBITDA declined 18%, primarily due to the non-recurrence of the prior-year gain on disposal of certain land assets and cost inflation.
- Updated full-year net income, Adjusted EBITDA, Diluted EPS and capital-expenditure guidance were all reduced from prior ranges.
What to watch
- Fourth-quarter contribution from the Arcosa acquisition and associated financing.
- Delivery of Velocity, including approximately $400 million of expected total non-routine costs and approximately $400 million of annual run-rate benefits by the end of 2028.
- Pricing versus inflationary costs across aggregates, asphalt, cement, ready mix concrete and other businesses.
- Residential construction trends, which management expects to remain weak in the near term.
- Execution of the new share buyback program of up to $6 billion through the end of 2030.
Balance sheet and cash flow
- Cash and cash equivalents and restricted cash: $5.1 billion at September 30, 2026, compared with $4.3 billion at September 30, 2025.
- Total short and long-term debt: $19.6 billion at September 30, 2026, compared with $17.7 billion at December 31, 2025.
- Net Debt: $15.0 billion at September 30, 2026, compared with $14.2 billion at December 31, 2025.
- Undrawn committed facilities: $4.5 billion as of September 30, 2026, available until May 2030.
- Net cash provided by operating activities was $2,271 million for the nine months ended September 30, 2026, compared with $2,710 million in 2025.
- Net cash used in investing activities was $(1,603) million for the nine months ended September 30, 2026, compared with $(4,705) million in 2025.
- Net cash provided by financing activities was $319 million for the nine months ended September 30, 2026, compared with $2,319 million in 2025.
- Arcosa was financed with borrowings under a $2.5 billion term loan facility, a $3.3 billion bridge facility and cash on hand.
Analysis
CRH delivered 3% Q3 revenue growth to $11.4bn, supported by pricing, underlying demand and acquisitions. The growth profile varied materially by segment. Americas Materials Solutions grew 6%, aided by aggregates and asphalt pricing, major-project demand and acquisitions. International Solutions grew 1% as pricing and activity in certain markets offset divestitures. Americas Building Solutions declined 3% as utility infrastructure, data-center activity and acquisitions did not fully offset divestitures and subdued residential demand.
Profitability weakened despite stable Adjusted EBITDA. Q3 Adjusted EBITDA was $2.7bn, in line with the prior-year period, while its margin declined to 23.5% from 24.3%. Net income fell to $1.2bn from $1.5 billion, and diluted EPS fell to $1.86 from $2.21. The release attributes the lower earnings principally to Loss on impairments, with the Q3 charge rising to $178 million from $40 million and relating to the Philippines reporting unit. Higher income tax expense, loss from equity method investments and transformation-related costs also affected EPS.
Cost inflation and residential weakness remained the main operational constraints. Americas Building Solutions was the clearest pressure point, with Adjusted EBITDA down 18% and margin at 20.1% versus 24.0%, reflecting cost inflation and the non-recurrence of a prior-year land-disposal gain. In contrast, Americas Materials Solutions generated 1% Adjusted EBITDA growth despite divestitures and inflation, while International Solutions delivered 6% growth through pricing, operational excellence and acquisitions.
Capital deployment accelerated around Arcosa. CRH completed the acquisition on October 23, 2026 for a total enterprise value of approximately $8.5 billion, financed through a $2.5 billion term loan, a $3.3 billion bridge facility and cash on hand. At September 30, 2026, total short and long-term debt was $19.6 billion and Net Debt was $15.0 billion. The company also announced a new share buyback authorization of up to $6 billion expiring at the end of 2030, following $0.7 billion of repurchases through Q3.
CRH reduced full-year 2026 outlook to $3.1 billion-$3.3 billion of net income, $7.8 billion-$8.0 billion of Adjusted EBITDA and $4.63-$4.85 of diluted EPS. Management cited the earlier-than-anticipated Arcosa close, inflationary costs and a more challenging residential construction market. The company expects favorable underlying demand from public infrastructure investment and reindustrialization, while Velocity is intended to raise structural margins through approximately $400 million of annual run-rate benefits by the end of 2028, against approximately $400 million of total non-routine costs.
Management, verbatim
Against a challenging and volatile inflationary cost backdrop our teams delivered a resilient Q3 performance reflecting disciplined commercial execution, performance improvement initiatives and positive underlying demand in key end-markets.
Jim Mintern, CEO
We completed the acquisition of Arcosa, reinforcing our position as the leading aggregates and critical infrastructure player in North America.
Jim Mintern, CEO
By simplifying our operating model, leveraging technology and data more effectively, and increasing agility across the organization, CRH will execute with greater speed and efficiency, raising our ambitions and accelerating the delivery of our expanded margins.
Jim Mintern, CEO
Not in the filing
stated, not guessed- Free cash flow was not reported.
- Q3 operating cash flow was not reported.
- Gross margin was not reported.
- Q3 segment operating income was not reported.
- Revenue guidance was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- A previous release outlook section was not provided for reported-results versus prior-guidance comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.