Why Is Construction Materials Company CRH Stock Up Premarket Friday?

CRH plc CRH shares are trading higher after it reported first-quarter FY24 results and disclosed its share repurchase program.

Revenue rose 2% Y/Y to $6.5 billion, while organic revenues increased 1% Y/Y, aided by early-season project activity and favorable weather in certain regions of North America, which were further supported by pricing progress and contributions from acquisitions. 

By segment, revenue from Americas Materials Solutions’ grew 16% Y/Y, Americas Building Solutions rose 2%, Europe Materials Solutions was down 8%, and Europe Building Solutions declined 10% Y/Y in the year. 

Adjusted EBITDA rose 15% Y/Y to $445 million, aided by continued delivery of the integrated solutions strategy, strong commercial progress, ongoing cost control, and further operational efficiencies. Adjusted EBITDA margin expanded to 6.8% from 6.0% the prior year. 

EPS stood at $0.16 (vs. loss per share of $(0.05)) due to positive operating performance and the gain on the divestiture of the Lime operations.

CRH ended first-quarter FY24 with cash and equivalents of $3.3 billion and $3.8 billion of undrawn committed facilities available until May 2029.

Buyback: CRH repurchased shares worth $0.4 billion in the quarter and disclosed that it has completed the latest phase of its share buyback program of $0.3 billion.

CRH also disclosed that it inked an arrangement with HSBC Securities to repurchase an aggregate maximum consideration of up to $0.3 billion, which commenced today, May 10, 2024, and will end no later than August 7, 2024.

Dividend: The Board declared a quarterly dividend per share of $0.35, payable on June 26, 2024, to shareholders of record as of May 24, 2024.

FY24 Outlook: CRH continues to expect EPS of $5.15-$5.45 vs. consensus of $5.40 and adjusted EBITDA of $6.55 billion-$6.85 billion.

Overall, the company projects a favorable market and continued positive pricing momentum in 2024.

Price Action: CRH shares are up 4.36% at $83.81 premarket at the last check Friday.

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