Q2 2024 CRH PLC Earnings Call Transcript
Key Points
- CRH PLC (CRH) reported a 12% increase in adjusted EBITDA for Q2 2024, supported by strong organic growth and contributions from acquisitions.
- The company raised its full-year guidance for 2024, expecting adjusted EBITDA between $6.82 billion and $7.02 billion, reflecting positive business momentum.
- CRH PLC (CRH) has been active in acquisitions, investing $3.7 billion in 20 acquisitions year-to-date, enhancing its exposure to high-growth markets.
- The integration of the $2.1 billion acquisition of materials assets in Texas is progressing well, with increased synergy targets of approximately $65 million.
- The company continues to return significant cash to shareholders, with a share buyback program returning approximately $900 million so far this year and a new quarterly dividend increase of 5%.
- CRH PLC (CRH) faced significant weather disruptions in Q2 2024, impacting operations in specific regions, particularly in the South and Midwest of the United States.
- The residential demand remains subdued in both the US and Europe due to affordability challenges caused by the current interest rate environment.
- Despite positive pricing momentum, the company continues to operate in an inflationary environment, with ongoing cost pressures in labor, raw materials, and subcontractor costs.
- The European Building Solutions segment, which is more exposed to residential new build construction, faced a challenging backdrop with subdued activity levels.
- The company's net debt position increased to $10.3 billion at the end of June 2024, reflecting significant cash outflows for acquisitions and capital expenditures.
Good day, and welcome to the CRH PLC second quarter 2024 results presentation. My name is Rob, and I will be your operator today. (Operator Instructions)
At this time, I'd like to turn the conference over to Albert Manifold, CRH Chief Executive, to begin the conference. Please go ahead, sir.
Good morning, everyone. Albert Manifold here, CRH Group Chief Executive, and you're all very welcome to our quarter two, 2024 results presentation and conference call. Joining me on the call is Jim Mintern, our Group CFO; Randy Lake, Chief Operating Officer; and Tom Holmes, Head of Investor Relations.
Now before we get started, I'll hand over to Tom for some brief opening remarks.
Thanks, Albert. Hello, everyone.
Before we begin today's proceedings, I'd like to draw your attention to slide 1 shown here on screen. During today's presentation, we'll be making some forward-looking statements
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