CRH 2025 Q1 Earnings Misses Targets with 193.8% Net Income Decline

CRH reported its fiscal 2025 Q1 earnings on May 5, 2025. The company swung to a net loss, with earnings per share dropping by 193.8% from a profit of $0.16 in 2024 Q1 to a loss of $0.15 in 2025 Q1. The company's guidance for FY25 remains unchanged, with expected net income between $3.7 billion and $4.1 billion. Despite unfavorable weather and macroeconomic uncertainties, the CEO reaffirmed a positive outlook for the rest of the year.

Revenue
CRH's total revenue increased by 3.4% to $6.76 billion in Q1 2025, compared to $6.53 billion in Q1 2024.

Earnings/Net Income
CRH posted a net loss of $98 million in Q1 2025, a stark contrast to the $114 million net income in Q1 2024. The EPS results indicate challenging performance.

Post-Earnings Price Action Review
Following the earnings report, CRH's stock price exhibited mixed reactions. The short-term performance was positive, with a 3-Day win rate of 60%. However, this momentum waned over time, as reflected in the 10-Day and 30-Day win rates, which dropped to 40% and 30%, respectively. The maximum observed return post-earnings was 6.69% over 30 days, occurring on day 63. While revenue showed potential for gains, the overall performance remained lackluster, signaling that the market adjusts quickly to earnings news, and any positive impact is short-lived. Investors should consider these trends and market conditions when evaluating CRH's stock.

CEO Commentary
Jim Mintern, CEO, highlighted CRH's robust strategy and commercial management as pivotal to their Q1 performance, despite it being the least significant quarter. He emphasized strong demand in key markets and a focus on financial discipline, which supports the company's positive outlook and guidance reaffirmation for 2025.

Guidance
CRH anticipates FY25 net income of $3.7 billion to $4.1 billion and adjusted EBITDA of $7.3 billion to $7.7 billion. The guidance is backed by strong demand across key markets, despite existing macroeconomic uncertainties.

Additional News
CRH has announced a new share buyback program, set to begin on May 6, 2025, with a target of repurchasing up to $300 million worth of shares by August 5, 2025. This follows the completion of a previous $0.3 billion buyback phase, bringing total shareholder returns to $8.8 billion since 2018. The buyback aims to reduce share capital and is conducted via BNP Paribas Securities Corp. under pre-set parameters, adhering to U.S. and EU regulations. This move reflects CRH’s ongoing commitment to enhancing shareholder value through strategic capital management.