CRH Cuts 2026 Profit Outlook After Arcosa Close

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter net income fell to $1.2 billion as impairments rose, and the building-materials provider now sees full-year net income of $3.1 billion to $3.3 billion.

CRH (CRH), the leading provider of building materials, cut its 2026 profit outlook after a third quarter in which net income fell and revenue growth slowed, even as the company closed an $8.5 billion purchase of Arcosa and authorized a new share-repurchase program.

Total revenues were $11.4 billion, 3% ahead of the year-earlier quarter, after 6% year-over-year growth in the second quarter and 9% in the first. The company said the increase reflected positive pricing momentum, resilient underlying demand and contributions from acquisitions.

Net income was $1.2 billion, down from $1.5 billion a year earlier, primarily because of a higher loss on impairments. Adjusted EBITDA was $2.7 billion, in line with the prior-year quarter. Diluted earnings were $1.86 a share, versus $2.21 a year earlier; diluted earnings pre-impairment were $2.09 a share. Net income margin was 10.4% and Adjusted EBITDA margin was 23.5%.

Loss on impairments was $178 million, versus $40 million a year earlier, related to the Philippines reporting unit within International Solutions. Income tax expense was $494 million, reflecting a higher effective tax rate tied in part to the impairment.

Americas Materials Solutions, the largest reportable segment, posted revenue of $5.985 billion, 6% ahead of the year-earlier quarter, after 10% growth in the second quarter. Adjusted EBITDA rose 1% to $1.575 billion. The company attributed the revenue increase to higher pricing in aggregates and asphalt, demand from major projects and acquisitions. In Essential Materials, aggregates volumes rose 2% and pricing 5%.

Americas Building Solutions revenue declined 3% to $1.752 billion. Adjusted EBITDA fell 18% to $353 million, which the company said reflected the non-recurrence of a prior-year gain on the disposal of certain land assets and higher cost inflation. Outdoor Living Solutions revenue was 15% lower, reflecting divestitures and subdued residential demand. Building & Infrastructure Solutions revenue was 16% higher on energy and water infrastructure demand and the Axius Water acquisition.

International Solutions revenue rose 1% to $3.659 billion. Adjusted EBITDA increased 6% to $754 million, which the company said was driven by pricing, operational-excellence initiatives and acquisitions.

On October 23, CRH completed the Arcosa acquisition for $150.00 a share in cash, an enterprise value of about $8.5 billion, financed with a $2.5 billion term loan, a $3.3 billion bridge facility and cash on hand. The company said the deal reinforces its position in U.S. aggregates and adds exposure to fast-growing metropolitan areas and Engineered Structures.

CRH also launched Velocity, a two-year operating-model transformation it said is expected to deliver about $400 million of annual run-rate benefits by the end of 2028, with about $400 million of total non-routine costs. Through the end of the third quarter, the company recognized $49 million of transformation-related costs.

The board authorized a new share buyback of up to $6 billion expiring at the end of 2030. The quarterly dividend was raised 5% to $0.39 a share. Net debt was $15.0 billion at September 30, 2026, versus $14.2 billion at year-end 2025. Cash and cash equivalents and restricted cash were $5.1 billion.

CRH now expects 2026 net income of $3.1 billion to $3.3 billion, Adjusted EBITDA of $7.8 billion to $8.0 billion and diluted EPS of $4.63 to $4.85, down from prior ranges of $3.9 billion to $4.1 billion, $8.1 billion to $8.5 billion and $5.60 to $6.05 a share. The company said the revision reflects the earlier-than-anticipated Arcosa close, the inflationary cost backdrop and a more challenging residential construction market. It said the residential end-market is expected to remain weak in the near term.