CRH PUBLIC LTD CO

Previous wording

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and six months ended June 30, 2026. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report.

Current wording

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to convey management’s perspective regarding operational and financial performance for the three and nine months ended September 30, 2026. This MD&A should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and related notes appearing in Part I, Item 1. "Financial Statements” of this Quarterly Report.

Previous wording

CRH delivered a strong second quarter performance, resulting in the following performance highlights (comparisons are versus the prior year's second quarter):

Current wording

CRH delivered a resilient third quarter performance despite a challenging cost environment and subdued residential activity, resulting in the following performance highlights (comparisons are versus the prior year's third quarter):

Previous wording

•Net income margin was 14.0% compared with 13.1%, an increase of 90bps. Adjusted EBITDA margin* was 24.4%, an increase of 30bps on the prior year's second quarter Adjusted EBITDA margin* of 24.1%; and

Current wording

•Net income margin was 10.4% compared with 13.7%, a decrease of 330bps. Adjusted EBITDA margin* was 23.5%, a decrease of 80bps on the prior year's third quarter Adjusted EBITDA margin* of 24.3%; and

Previous wording

•Diluted Earnings Per Share (EPS) was $2.21 compared to $1.94.

Current wording

•Diluted Earnings Per Share (EPS) was $1.86 compared to $2.21. Diluted EPS pre-impairment* was$2.09 comparedto $2.27.

Previous wording

CRH delivered a strong performance in the six months ended June 30, 2026, resulting in the following performance highlights (comparisons are versus the prior year's first six months):

Current wording

CRH delivered a solid performance in the nine months ended September 30, 2026, resulting in the following performance highlights (comparisons are versus the prior year's first nine months):

Previous wording

•Net income was $1.5 billion compared with $1.3 billion, an increase of $0.2 billion or 13%. Adjusted EBITDA*1 was $2.6 billion, an increase of $0.2 billion, or 7%;

Current wording

•Net income was $2.5 billion compared with $2.8 billion, a decrease of $0.2 billion or 9%. Adjusted EBITDA*2 was $5.9 billion, an increase of $0.2 billion, or 4%;

Previous wording

•Net income margin was 7.3%, in line with theprior year's first six months. Adjusted EBITDA margin* was 17.7%, an increase of 30bps on the prior year's first six months Adjusted EBITDA margin* of 17.4%; and

Current wording

•Net income margin was 8.5%, compared with 9.8%, a decrease of 130 bps. Adjusted EBITDA margin* was 20.0%, a decrease of 20bps on the prior year's first nine months Adjusted EBITDA margin* of 20.2%; and

Previous wording

•Diluted EPS was $1.93 compared to $1.78. Diluted EPS pre-impairment* was $2.01 compared to $1.78.

Current wording

•Diluted EPS was $3.79 compared to $3.99. Diluted EPS pre-impairment* was $4.09 compared to $4.05.

Previous wording

•The first 2026 quarterly dividend of $0.39 per share was declared in February 2026, a second quarterly dividend of $0.39 per share was declared in April 2026, and a third quarterly dividend of $0.39 per share was announced on July 30, 2026, representing an annualized increase of 5% on the prior year;

Current wording

•CRH declared a quarterly dividend of $0.39 per share in February 2026, April 2026 and July 2026 and a fourth quarterly dividend per share of $0.39 per share was announced on October 29, 2026, representing an annualized increase of 5% on the prior year;

Previous wording

•A total of 16 acquisitions were completed for a total consideration of $1.2 billion, compared with $0.7 billion in the first six months of the prior year. Subsequent to the period end, a further acquisition was completed in July for a consideration of $0.2 billion, bringing the year-to-date total consideration to $1.4 billion; and

Current wording

•A total of 25 acquisitions were completed during the nine months ended September 30, 2026, for a total consideration of $1.7 billion, compared with $3.2 billion in the first nine months of the prior year. Subsequent to the period end, a further three acquisitions were completed in October, including the acquisition of Arcosa for a total enterprise value of $8.5 billion, bringing the year-to-date total consideration to $10.4 billion, inclusive of debt acquired; and

Previous wording

•$1.2 billion was invested in the six months ended June 30, 2026, in growth and maintenance capital expenditure projects, compared with the $1.3 billion invested in the comparable period in 2025.

Current wording

•$1.8 billion was invested in the nine months ended September 30, 2026, in growth and maintenance capital expenditure projects, compared with the $1.9 billion invested in the comparable period in 2025.

Previous wording

In the three months ended June 30, 2026, CRH completed 11 value-accretive acquisitions for total consideration of $1.1 billion, compared with $0.1 billion in the same period in 2025. Americas Materials Solutions completed five acquisitions, Americas Building Solutions completed two acquisitions and International Solutions completed four acquisitions.

Current wording

In the three months ended September 30, 2026, CRH completed nine acquisitions for total consideration of $0.5 billion, compared with $2.5 billion in the same period in 2025. Americas Materials Solutions completed four acquisitions, Americas Building Solutions completed two and International Solutions completed three acquisitions.

Previous wording

With respect to divestitures, in the three months ended June 30, 2026, cash proceeds from divestitures and disposals of long-lived assets were $1.7 billion, net of disposal costs and deferred proceeds, compared with $31 million in the same period in 2025. For the six months ended June 30, 2026, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.8 billion, net of disposal costs and deferred proceeds, compared with $0.1 billion in the same period of the prior year. These primarily comprised the divestiture of three non-core businesses: CRH's construction accessories operations for $0.7 billion, lawn and garden operations for $1.1 billion, and MoistureShield, a manufacturer of composite decking for $0.1 billion.

Current wording

For the nine months ended September 30, 2026, CRH realized cash proceeds from divestitures and disposals of long-lived assets of $1.9 billion, net of disposal costs and deferred proceeds, compared with $0.2 billion in the same period of the prior year. These primarily comprised the divestiture of three non-core businesses: CRH's construction accessories operations for $0.7 billion, its lawn and garden operations for $1.1 billion, and MoistureShield, a manufacturer of composite decking for $0.1 billion.

Previous wording

We expect favorable underlying demand across our key end-markets, underpinned by significant public investment in infrastructure and continued reindustrialization activity. Within the residential sector we anticipate resilient repair and remodel activity, while the new-build segment is expected to remain subdued. Assuming normal seasonal weather patterns and absent any further major dislocations in the geopolitical or macroeconomic environment, CRH's superior strategy, connected portfolio and leading positions of scale in attractive high-growth markets, together with our strong and flexible balance sheet, are expected to underpin another year of growth and value creation in 2026.

Current wording

Notwithstanding the volatile cost environment, we continue to expect favorable underlying demand across our key end-markets, underpinned by significant public investment in infrastructure and continued reindustrialization activity. We expect the residential end-market to remain weak in the near-term. Assuming normal seasonal weather patterns and absent any further major dislocations in the geopolitical or macroeconomic environment, CRH's superior strategy, connected portfolio and leading positions of scale in attractive high-growth markets, together with our strong and flexible balance sheet, are expected to underpin another year of growth and value creation in 2026 and beyond.

Previous wording

Revenues are derived from a range of products and services across three segments. The Americas Materials Solutions segment utilizes an extensive network of reserve-backed quarry locations to produce and supply a range of materials including aggregates, cementitious materials, readymixed concrete and asphalt, as well as providing paving and construction services. The Americas Building Solutions segment manufactures, supplies and delivers high-quality building products. The International Solutions segment integrates building materials, products and services for the construction and renovation of transportation infrastructure, critical utility networks, commercial and residential buildings, and outdoor living spaces.

Current wording

Revenues are derived from a range of products and services across three segments. The Americas Materials Solutions segment uses an extensive network of reserve-backed quarry locations to produce and supply a range of materials including aggregates, cementitious materials, ready mix concrete and asphalt, as well as providing paving and construction services. The Americas Building Solutions segment manufactures, supplies and delivers high-quality building products. The International Solutions segment integrates building materials, products and services for the construction and renovation of transportation infrastructure, critical utility networks, commercial and residential buildings, and outdoor living spaces.

Previous wording

Total revenues were $10.8 billion for the three months ended June 30, 2026, an increase of $0.6 billion, or 6%, from the second quarter of 2025, driven by positive pricing momentum, good underlying demand, and contributions from acquisitions.

Current wording

Total revenues were $11.4 billion for the three months ended September 30, 2026, an increase of $0.3 billion, or 3%, from the third quarter of 2025, driven by positive pricing momentum, resilient underlying demand, and contributions from acquisitions.

Previous wording

Total revenues were $18.1 billion for the six months ended June 30, 2026, an increase of $1.2 billion, or 7%, from the first six months of 2025, driven by positive underlying demand, disciplined commercial execution, and contributions from acquisitions.

Current wording

Total revenues were $29.5 billion for the nine months ended September 30, 2026, an increase of $1.5 billion, or 5%, from the first nine months of 2025, driven by positive underlying demand, disciplined commercial execution, and contributions from acquisitions.

Previous wording

For additional discussion on segment revenues, see “Segments” section on pages 29 to 31.

Current wording

For additional discussion on segment revenues, see “Segments” section on pages 31 to 33.

Previous wording

Gross profit for the three months ended June 30, 2026, was $4.3 billion, an increase of $0.3 billion, or 7% from the second quarter of 2025. The gross profit margin of 39.8% increased 40bps from 39.4% in the second quarter of the prior year. The increase in Total cost of revenues was primarily driven by a 16% increase in energy costs, driven by higher activity levels, cost inflation and acquisitions, a 4% increase in labor costs, attributable to higher headcount from acquisitions and inflationary pressures, and an 8% increase in depreciation and amortization charges, reflecting the impact of acquisitions, while other costs were 4% ahead of the second quarter of the prior year.

Current wording

Gross profit for the three months ended September 30, 2026, was $4.4 billion, an increase of $0.1 billion, or 3% from the third quarter of 2025. The gross profit margin of 38.8% decreased 10bps from 38.9% in the third quarter of the prior year. The increase in Total cost of revenues was primarily driven by a 19% increase in energy costs, driven by cost inflation, higher activity levels and acquisitions and a 2% increase in labor costs, attributable to inflationary pressures, while other costs were 2% ahead of the third quarter of the prior year.

Previous wording

Gross profit for the first six months ended June 30, 2026, was $6.3 billion, an increase of $0.5 billion, or 8% from the same period of 2025. The gross profit margin of 34.9% increased 30bps from 34.6% in the first six months of the prior year. The increase in Total cost of revenues was primarily driven by a 15% higher depreciation and amortization charge, reflecting the impact of acquisitions, as well as a 5% increase in labor costs, attributable to higher headcount from acquisitions and wage inflation. Energy costs also increased by 12% driven by higher activity levels, cost inflation and acquisitions, while other costs were 5% ahead of the first six months of the prior year.

Current wording

Gross profit for the first nine months ended September 30, 2026, was $10.8 billion, an increase of $0.6 billion, or 6% from the same period of 2025. The gross profit margin of 36.4% increased 10bps from 36.3% in the first nine months of the prior year. The increase in Total cost of revenues was primarily driven by a 14% increase in energy costs, driven by cost inflation, higher activity levels and acquisitions, an 11% increase in depreciation and amortization charges, reflecting the impact of acquisitions and capital expenditure, as well as a 4% increase in labor costs, attributable to wage inflation. Other costs were 4% ahead of the first nine months of the prior year.

Previous wording

Selling, general and administrative expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administrative expenses were $2.3 billion for the three months ended June 30, 2026, an increase of $0.1 billion, or 7%, from the comparable 2025 period. The increase was primarily driven by a 21% increase in haulage expenses resulting from acquisitions, higher activity levels and fuel price inflation, as well as a 3% increase in labor costs reflecting higher headcount from acquisitions and wage inflation.

Current wording

Selling, general and administrative expenses, which are primarily comprised of haulage costs, labor costs, and other selling and administrative expenses were $2.4 billion for the three months ended September 30, 2026, an increase of $0.1 billion, or 3%, from the comparable 2025 period. The increase was primarily driven by a 14% increase in haulage expenses resulting from fuel price inflation, acquisitions and higher activity levels.

Previous wording

Selling, general and administrative expenses, were $4.3 billion for the six months ended June 30, 2026, an increase of $0.4 billion, or 9%, from the comparable 2025 period. The increase was primarily driven by an 18% increase in haulage expenses resulting from acquisitions, higher activity levels and fuel price inflation, as well as a 7% increase in labor costs reflecting higher headcount from acquisitions and wage inflation.

Current wording

Selling, general and administrative expenses, were $6.7 billion for the nine months ended September 30, 2026, an increase of $0.4 billion, or 7%, from the comparable 2025 period. The increase was primarily driven by a 17% increase in haulage expenses resulting from fuel price inflation, acquisitions and higher activity levels, as well as a 3% increase in labor costs reflecting wage inflation.

Previous wording

Gain on disposal of long-lived assets was $52 million for the three months ended June 30, 2026, an increase of $23 million compared with the same period in 2025, and $74 million for the six months ended June 30, 2026, an increase of $31 million compared with the same period in 2025.

Current wording

Gain on disposal of long-lived assets was $19 million for the three months ended September 30, 2026, a decrease of $91 million compared with the same period in 2025, and $93 million for the nine months ended September 30, 2026, a decrease of $60 million compared with the same period in 2025. The decrease in both periods is due to the non-recurrence of the prior year gain on the disposal of certain land assets in the Americas Building Solutions segment.

Previous wording

Interest income was $22 million for the three months ended June 30, 2026, a reduction of $8 million from the comparable period in 2025, and $43 million for the six months ended June 30, 2026, a reduction of $24 million from the comparable period in 2025, primarily due to lower interest rates and cash on deposit.

Current wording

Interest income was $22 million for the three months ended September 30, 2026, a reduction of $15 million from the comparable period in 2025, and $65 million for the nine months ended September 30, 2026, a reduction of $39 million from the comparable period in 2025, primarily due to lower average cash on deposit.

Previous wording

4*Represents a non-GAAP financial measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 31 to 33.

Current wording

4*Represents a non-GAAP financial measure. See the discussion within 'Non-GAAP Reconciliation and Supplementary Information' on pages 34 to 35.

Previous wording

Interest expense was $220 million for the three months ended June 30, 2026, an increase of $20 million compared with the same period in 2025, and $423 million for the six months ended June 30, an increase of $42 million from the comparable period in 2025. The increase was primarily due to higher gross debt balances.

Current wording

Interest expense was $209 million for the three months ended September 30, 2026, in line with the same period in 2025, and $632 million for the nine months ended September 30, 2026, an increase of $42 million from the comparable period in 2025. The increase was primarily due to higher gross debt balances.

Previous wording

For the three months ended June 30, 2026, Other nonoperating income (expense), net, was an income of $282 million, primarily related to the gain on divestiture of the lawn and garden operations within Americas Building Solutions, compared with an expense of $9 million in the comparable period for 2025. Other nonoperating income (expense), net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses.

Current wording

For the three months ended September 30, 2026, Other nonoperating income (expense), net, was an income of $10 million, compared with $12 million in the same period in 2025. Other nonoperating income (expense), net, includes pension and postretirement benefit costs (excluding service costs), gains and losses from divestitures, and other miscellaneous income and expenses.

Previous wording

For the six months ended June 30, 2026, Other nonoperating income (expense), net, was an income of $278 million, primarily related to the gain on divestiture of the lawn and garden operations within Americas Building Solutions, compared with an expense of $29 million in the comparable period for 2025.

Current wording

For the nine months ended September 30, 2026, Other nonoperating income (expense), net, was an income of $288 million, primarily related to the gain on divestiture of the lawn and garden operations within Americas Building Solutions, compared with an expense of $17 million in the same period in 2025.

Previous wording

For the three months ended June 30, 2026, the Company had an Income tax expense of $661 million, compared to $425 million for the comparable period in 2025. The effective tax rate was 31% for the second quarter of 2026 compared with an effective tax rate of 24% for the second quarter of 2025. The increase in the effective tax rate is mainly driven by the divestiture of the lawn and garden and construction accessories operations in the period.

Current wording

For the three months ended September 30, 2026, the Company had an Income tax expense of $494 million, compared with $428 million for the comparable period in 2025. The effective tax rate was 29% for the third quarter of 2026 compared with an effective tax rate of 22% for the third quarter of 2025. The increase in the effective tax rate was primarily driven by non-deductible impairments within International Solutions during the period and the movement in uncertain tax positions in the three months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2026, the Company had an Income tax expense of $606 million, compared to $367 million for the comparable period in 2025. The effective tax rate was 31% for the first six months of 2026 compared with an effective tax rate of 23% for the first six months of 2025. The increase in the effective tax rate is also mainly driven by the divestiture of the lawn and garden and construction accessories operations in the period.

Current wording

For the nine months ended September 30, 2026, the Company had an Income tax expense of $1,100 million, compared to $795 million for the comparable period in 2025. The effective tax rate was 30% for the first nine months of 2026 compared with an effective tax rate of 23% for the first nine months of 2025. The increase in the effective tax rate was mainly driven by the divestiture of the lawn and garden and construction accessories operations and non-deductible impairments within International Solutions during the period and the movement in uncertain tax positions and valuation allowances in the nine months ended September 30, 2025.

Previous wording

For the three months ended June 30, 2026, an income of $9 million was recorded in equity method investments, an increase of $8 million from the comparable period of 2025, and a loss of $2 million was recorded in equity method investments for the first six months of 2026, compared with a loss of $9 million for the first six months of 2025.

Current wording

For the three months ended September 30, 2026, a loss of $41 million was recorded in equity method investments, compared with income of $26 million for the comparable period in 2025, and a loss of $43 million was recorded for the nine months ended September 30, 2026, compared with income of $17 million for the comparable period in 2025. The loss in the current period primarily reflected an impairment, including tax impact, of the Company’s equity method investment in China, where market conditions remained challenging.

Previous wording

Within CRH’s segments, revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The Essential Materials businesses manufacture and supply aggregates and cementitious materials for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect and protect critical water, energy and data infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces.

Current wording

Within CRH’s segments, revenues are disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The Essential Materials businesses manufacture and supply aggregates and cementitious materials for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect and protect critical water, energy and data infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces.

Previous wording

The Company’s measure of segment profit is Adjusted EBITDA, which is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, Loss on impairments, gain/loss on divestitures and investments, Income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component.

Current wording

The Company’s measure of segment profit is Adjusted EBITDA, which is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, Loss on impairments, gain/loss on divestitures and investments, Income/loss from equity method investments, substantial acquisition and integration-related costs, pension expense/income excluding current service cost component and transformation-related costs.

Previous wording

In Essential Materials, Total revenues increased by 20%, reflecting positive pricing momentum in aggregates and contributions from acquisitions, mainly the 2025 acquisition of Eco Material Technologies. Aggregates volumes increased by 2%, while cement volumes declined by 2% impacted by adverse weather in certain markets and subdued residential demand. Aggregates prices increased by 5%, while cement prices were 1% behind the comparable period in 2025 reflecting adverse geographic mix-effects.

Current wording

In Essential Materials, Total revenues increased by 19%, reflecting higher aggregates pricing and the contribution from the 2025 acquisition of Eco Material Technologies. Aggregates volumes increased by 2% and pricing increased by 5%, while cement volumes were in line with the prior year period and pricing was 2% behind, reflecting weakness in residential demand and the impact of geographic mix-effects.

Previous wording

Adjusted EBITDA for Americas Materials Solutions was 12% ahead of the prior year, supported by positive pricing momentum, disciplined cost management and contributions from acquisitions. Adjusted EBITDA margin was 40bps ahead of the second quarter of 2025.

Current wording

Adjusted EBITDA for Americas Materials Solutions was 1% ahead of the third quarter of 2025, supported by positive pricing momentum, disciplined cost management and contributions from acquisitions, offsetting the impact of divestitures and cost inflation. Adjusted EBITDA margin was 130bps lower than the third quarter of 2025.

Previous wording

Americas Materials Solutions' Total revenues were 14% ahead of the first six months of 2025, driven by favorable underlying demand, positive pricing momentum and contributions from acquisitions.

Current wording

Americas Materials Solutions' Total revenues were 10% ahead of the first nine months of 2025, driven by positive pricing momentum, favorable underlying demand and contributions from acquisitions.

Previous wording

In Road Solutions, Total revenues were 9% ahead of the prior year, driven by robust project activity. Asphalt volumes increased by 5%, while pricing increased by 5%. Readymixed concrete volumes increased by 4%, with pricing up 3% over the same period. Paving and construction revenues increased by 8%, supported by strong project execution, backlog conversion, and contributions from acquisitions.

Current wording

In Road Solutions, Total revenues were 5% ahead of the prior year period, driven by robust project activity. Asphalt volumes increased by 1%, while pricing increased by 6%. Ready mix concrete volumes increased by 4%, with pricing up 3% over the same period. Paving and construction revenues increased by 4%, supported by contributions from acquisitions and a strong demand in the first half of 2026.

Previous wording

Adjusted EBITDA for Americas Materials Solutions was 14% ahead of the prior year, driven by strong underlying demand, positive pricing, disciplined cost management, and contributions from acquisitions. Adjusted EBITDA margin was 10bps ahead of the first six months of 2025.

Current wording

Adjusted EBITDA for Americas Materials Solutions was 7% ahead of the first nine months of 2025, driven by positive pricing, disciplined cost management and contributions from acquisitions. Adjusted EBITDA margin was 60bps behind the first nine months of 2025.

Previous wording

Americas Building Solutions' Total revenues were 2% behind the second quarter of 2025, as strong data center and utility infrastructure demand was offset by the impact of divestitures.

Current wording

Americas Building Solutions' Total revenues were 3% behind the third quarter of 2025, as strong utility infrastructure, data center activity and contributions from acquisitions were offset by the impact of divestitures and subdued residential demand.

Previous wording

In Outdoor Living Solutions, Total revenues were 7% behind the prior year period, reflecting the impact of divestitures and subdued residential demand.

Current wording

In Outdoor Living Solutions, Total revenues were 15% lower than the prior year period, reflecting the impact of divestitures and subdued residential demand.