Why Construction Materials Company CRH Shares Are Up Premarket Thursday

CRH plc CRH shares are trading higher after it reported FY23 results and disclosed its share repurchase program.

Revenue rose 7% Y/Y to $34.9 billion, while organic revenues increased 3%, supported by higher underlying demand in key end-use markets, positive pricing, and contributions from acquisitions. 

By segment, revenue from Americas Materials Solutions‘ grew 8% Y/Y, Americas Building Solutions rose 13%, Europe Materials Solutions was up 4%, and Europe Building Solutions declined 2% Y/Y in the year. 

Adjusted EBITDA increased 15% Y/Y to $6.2 billion, reflecting the continued delivery of the integrated solutions strategy, strong commercial management, ongoing cost control, and operational efficiencies.

Adjusted EBITDA margin expanded to 17.7% from 16.5% the prior year. EPS from continuing operations pre-impairment rose 30% Y/Y to $4.65.

CRH ended 2023 with cash and cash equivalents of $6.4 billion and $3.9 billion of undrawn committed facilities available until 2028.

Buyback: The company repurchased 54.9 million shares for $3.0 billion in 2023. CRH announced that it has completed the latest phase of its share buyback program, returning a further $0.3 billion of cash to shareholders.

The company also disclosed that it inked an arrangement with Barclays Capital Inc. to repurchase shares listed on the New York Stock Exchange on CRH’s behalf for a maximum consideration of up to $300 million, which will start February 29, 2024, and end by May 9, 2024.

Related: CRH Flexes Financial Muscle: $300M Share Buyback Arrangement With Citigroup

Dividend: The Board declared a quarterly dividend per share of $0.35, payable on April 17, 2024, to shareholders of record as of March 15, 2024. 

FY24 Outlook: CRH expects EPS of $5.15-$5.45 vs. consensus of $4.96.

Overall, the company projects a favorable market and continued positive pricing momentum in 2024, led by significant infrastructure investment and re-industrialization activity across its key markets in North America and Europe.

Also Read: CRH Proposes To Acquire Australia’s Adbri In Partnership With Barro Family: Details

Price Action: CRH shares are up 6.73% at $84.66 premarket on the last check Thursday.