CRH Lowers 2026 Earnings Guidance Despite Acquisitions and Buyback
CRH reduced its full-year earnings outlook following weaker third-quarter profits and housing headwinds, even as it completed major acquisitions and authorized a $6 billion share repurchase program.
Building materials supplier CRH recently reduced its full-year 2026 financial outlook following pressure on third-quarter profitability. The company cut its annual net income projection to between USD 3.1 billion and USD 3.3 billion, down from its prior target of USD 3.9 billion to USD 4.1 billion. Full-year adjusted EBITDA is now expected to land between USD 7.8 billion and USD 8.0 billion, while diluted earnings per share are projected at USD 4.63 to USD 4.85.
The guidance reduction followed third-quarter results reported on October 29, 2026, where revenue increased 3 percent year over year to USD 11.396 billion, driven by pricing and acquisitions. However, net income dropped 22 percent to USD 1.184 billion, and diluted earnings per share fell to USD 1.86 from USD 2.21. Results were weighed down by cost inflation, subdued residential construction, and USD 178 million in impairment losses, compared to USD 40 million in the prior-year period.
Despite near-term earnings headwinds, CRH has continued to expand through acquisitions. On October 23, the group completed its purchase of Arcosa for an enterprise value of approximately USD 8.5 billion, funded via a USD 2.5 billion term loan, a USD 3.3 billion bridge facility, and existing cash. On November 9, 2026, CRH also announced an agreement to buy assets from Western Rock Resources and Columbia Northwest Recycling, securing four active quarries along Oregon's Interstate 5 corridor.
Alongside its growth transactions, CRH launched Velocity, an efficiency program aimed at generating annual run-rate benefits of about USD 400 million by late 2028, matched by roughly USD 400 million in one-off transformation costs. Meanwhile, the board approved a share buyback program of up to USD 6 billion running through 2030, and lifted the quarterly dividend by 5 percent to USD 0.39 per share, payable on December 9 to shareholders of record on November 13.