Building materials group CRH has cut its full-year 2026 guidance after third-quarter profit fell sharply, even as revenue grew, the company reported on Thursday, October 29.
For the three months ended September 30, 2026, CRH reported total revenues of $11.396 billion, up 3% from $11.069 billion a year earlier, driven by positive pricing, resilient underlying demand and contributions from acquisitions. Net income fell 22% to $1.184 billion from $1.519 billion, and the net income margin narrowed to 10.4% from 13.7%.
Diluted earnings per share fell 16% to $1.86 from $2.21. That headline figure needs care: the $2.09 per share figure circulating in some earnings summaries is CRH’s diluted earnings per share before impairment, which fell 8% from $2.27 a year earlier. It is not the GAAP diluted earnings per share. The main drag on the GAAP figure was a $178 million loss on impairments, up from $40 million a year earlier and related to the Philippines reporting unit within International Solutions.
Adjusted EBITDA, a non-GAAP measure, was broadly flat at $2.7 billion, but its margin slipped to 23.5% from 24.3%, as cost inflation, subdued residential activity and divestitures offset pricing and acquisition contributions.
Guidance cut is the bigger story
CRH revised its full-year 2026 guidance down sharply. It now expects net income of $3.1 billion to $3.3 billion, down from $3.9 billion to $4.1 billion previously, and adjusted EBITDA of $7.8 billion to $8.0 billion, down from $8.1 billion to $8.5 billion. Diluted earnings per share guidance was cut to $4.63 to $4.85 from $5.60 to $6.05.
The company cited the earlier-than-anticipated completion of the Arcosa acquisition, the inflationary cost backdrop and a more challenging residential construction market. It said it still expects favourable underlying demand in its key end-markets, underpinned by public investment in infrastructure and continued reindustrialisation, but expects the residential market to remain weak in the near term.
Segments split sharply
Americas Materials Solutions grew revenue 6% and adjusted EBITDA 1%, helped by positive pricing in aggregates and asphalt and strong demand from major projects. Americas Building Solutions saw revenue fall 3% and adjusted EBITDA fall 18%, reflecting subdued residential demand, divestitures, cost inflation and the non-recurrence of a prior-year gain on the disposal of certain land assets. International Solutions grew revenue 1% and adjusted EBITDA 6% on strong pricing and operational execution.
For the first nine months of 2026, revenue rose 5% to $29.543 billion, while net income fell 9% to $2.515 billion and adjusted EBITDA rose 4% to $5.9 billion.
Arcosa closed, $6 billion buyback announced
On October 23, CRH completed its acquisition of Arcosa, Inc., a US provider of aggregates and critical infrastructure products, for $150.00 per share in cash, an enterprise value of about $8.5 billion. CRH said the deal reinforces its position as the leader in US aggregates and increases exposure to fast-growing metropolitan areas, grid modernisation, electrification and data-centre construction.
CRH also announced a quarterly dividend of $0.39 per share, up 5% on the prior year, payable on December 9, 2026, to shareholders registered at the close of business on November 13, 2026, and a new share buyback programme of up to $6 billion expiring at the end of 2030.
The company also launched Velocity, a transformation initiative it says should deliver about $400 million in annual run-rate benefits by the end of 2028, at a total non-routine cost of about $400 million. It has recognised $49 million of transformation-related costs since the programme began through the end of the third quarter.
Did CRH miss estimates? It depends on the estimate
Readers may see conflicting “beat” or “miss” verdicts, and the reason is the estimate used. Quiver Quantitative compared the $2.09 pre-impairment figure with its $2.22 estimate and its $11.396 billion revenue with its $11.63 billion estimate, calling both a miss. Other pre-release consensus figures differed — MarketBeat, for example, listed a $2.06 earnings-per-share consensus and an $11.56 billion revenue consensus before the release. This article therefore reports CRH’s own figures and the guidance cut, which are unambiguous, rather than presenting any single third-party estimate as the definitive benchmark. No October 29 share-price reaction is claimed here, as no verified closing move was available in the sources checked.
Frequently asked questions
What did CRH report for Q3 2026? Revenue of $11.396 billion, up 3%; net income of $1.184 billion, down 22%; diluted earnings per share of $1.86, down 16%; and adjusted EBITDA flat at $2.7 billion.
Why did profit fall if revenue rose? Mainly a $178 million impairment loss, higher income tax expense, losses from equity method investments and transformation-related costs, plus cost inflation and weaker residential activity squeezing margins.
What is the $2.09 figure? Diluted earnings per share before impairment, down 8% from $2.27. It is a non-GAAP figure and is not the same as the $1.86 GAAP diluted earnings per share.
What guidance did CRH cut? Full-year 2026 net income to $3.1–$3.3 billion (from $3.9–$4.1 billion) and adjusted EBITDA to $7.8–$8.0 billion (from $8.1–$8.5 billion).
Sources
- Business Wire (CRH press release) — CRH Reports Third Quarter 2026 Results
- Quiver Quantitative — CRH ($CRH) Releases Q3 2026 Earnings
- TradingView News — CRH (CRH) Q3 Revenue Up 3%, EPS Falls; Unveils $6B Buyback
