CRH Financial Model
Materials Company Financials Example (Free Excel Download)
CRH plc is a leading global provider of building materials solutions, manufacturing and distributing aggregates, cement, readymixed concrete, asphalt, and complex building products.
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About this model
This model provides a sum-of-the-parts equity valuation and cash flow forecast for CRH plc, enabling an analyst to assess the earnings impact of US infrastructure spending, ongoing aggressive M&A consolidation, and the valuation re-rating following the company's transition to a US primary listing and S&P 500 inclusion.
CRH plc is a leading global provider of building materials solutions, manufacturing and distributing aggregates, cement, readymixed concrete, asphalt, and complex building products. The company operates a vertically integrated business model, capturing value from upstream heavy materials extraction down to downstream paving services and outdoor living solutions.
Business segments:
- Americas Materials Solutions (approximately 45% of revenue)
- Americas Building Solutions (approximately 19% of revenue)
- International Solutions (approximately 36% of revenue)
Key geographies are North America (which generates roughly 75% of group EBITDA), Europe, and Australia. The business model is highly asset-heavy, requiring significant quarry reserves and production facilities, but benefits from strong local pricing power due to the high weight-to-value ratio of construction materials. CRH is the largest building materials company in North America, competing with Vulcan Materials and Martin Marietta. Recent major events include moving its primary listing from London to the NYSE in September 2023, joining the S&P 500 in December 2025, and combining its former Europe Materials and Europe Building segments into a single International Solutions segment in Q4 2024.
The downloadable CRH financial model includes SEC-sourced historical financials, forecast assumptions, core operating schedules, and valuation outputs in an Excel workbook built for review and scenario analysis.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
Historicals & AssumptionsCRH financial modelCompany, Historicals & Assumptions used
Source: SEC EDGAR · values in USD
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $29.21B | $32.72B | $34.95B | $35.57B | $37.45B |
| Gross profit | $9.83B | $10.81B | $11.96B | $12.70B | $13.53B |
| Operating income | $3.33B | $3.81B | $4.19B | $4.92B | $5.44B |
| Net income | $2.63B | $3.86B | $3.18B | $3.49B | $3.75B |
How to build a detailed financial model for CRH
A complete walkthrough of every driver, margin, working-capital input, and capital-allocation assumption used in the downloadable model.
Revenue Deep Dive
Americas Materials Solutions
- Segment name: Americas Materials Solutions
- Revenue driver formula: (Aggregates Volume x Price) + (Cement Volume x Price) + (Asphalt/RMC Volume x Price) + Paving Services Revenue
- Historical growth rate: 5% to 8% CAGR (heavily influenced by bolt-on M&A and strong pricing)
- Key growth levers and headwinds: Supported by the US Infrastructure Investment and Jobs Act (IIJA) and robust pricing power; headwinds include adverse weather events and subdued residential new-build activity.
- Pricing dynamics: Highly localised and consolidated markets allow for strong spot pricing power, often outpacing inflation.
- Revenue recognition notes: Recognised at the point of delivery for materials; over time using percentage-of-completion for paving and construction contracts.
- Seasonality: Highly seasonal. Q1 is the weakest due to winter weather in North America, while Q3 is the strongest during peak construction season.
Americas Building Solutions
- Segment name: Americas Building Solutions
- Revenue driver formula: Product Volume x Average Selling Price per Unit
- Historical growth rate: 4% to 6% CAGR
- Key growth levers and headwinds: Driven by non-residential construction, infrastructure build-out, and repair and remodel (R&R) demand.
- Pricing dynamics: Competitive but supported by value-added engineering and connected product portfolios.
- Revenue recognition notes: Generally recognised upon delivery of products to the customer site.
- Seasonality: Follows the broader construction season, peaking in Q2 and Q3.
International Solutions
- Segment name: International Solutions
- Revenue driver formula: (European Materials/Products Volume x Price) + (Australian Materials Volume x Price)
- Historical growth rate: 2% to 4% CAGR
- Key growth levers and headwinds: Benefiting from Eastern European economic growth and Australian market dynamics (following the Adbri acquisition), offset by sluggish Western European residential markets.
- Pricing dynamics: Regulated carbon pricing in Europe (ETS) necessitates aggressive price increases to cover rising input and compliance costs.
- Revenue recognition notes: Standard point-of-delivery recognition.
- Seasonality: Pronounced winter slowdown in Northern and Eastern Europe during Q1 and Q4.
Cost Structure
Variable Costs / COGS
- Line-by-line breakdown: Raw materials (limestone, sand, gravel), energy and fuel (kiln fuels, electricity, diesel for transport), direct labour, freight and logistics, and plant maintenance.
- Gross margin range: 34% to 36.5% (reported at 35.5% in 2024 and 36.1% in 2025).
- Key input costs and commodity exposures: Highly exposed to energy prices (petcoke, coal, electricity) and diesel for distribution.
- How COGS scales with revenue: High operating leverage. Once fixed plant costs are covered, incremental volume drops through at a very high margin.
Operating Expenses
- R&D: Negligible as a percentage of revenue; innovation is typically embedded in process engineering rather than capitalised R&D.
- SG&A: Typically 12% to 14% of revenue. Includes corporate overhead, regional management, sales staff, and IT infrastructure.
- Depreciation & Amortisation: Approximately 5% of revenue (around $1.8 billion in 2024), heavily weighted towards tangible asset depreciation (quarries, kilns).
- Stock-Based Compensation: Low relative to tech, typically under 0.5% of revenue.
- Restructuring / one-time charges: Frequent non-cash impairment charges (e.g., $350 million in 2024) related to portfolio optimisation and divestitures.
Margin Profile
- Gross margin: 34% to 36.5%
- EBITDA margin: 18% to 20.5% (expanding, reaching 19.5% in 2024)
- Operating margin: 13% to 15%
- Net margin: 8% to 10.5%
- Margin trend: Expanding consistently over the last decade due to value-over-volume pricing strategies, divestment of lower-margin businesses, and accretive M&A.
Balance Sheet Structure
- Total assets: Approximately $55 billion to $60 billion.
- Key asset categories: Property, Plant and Equipment (PP&E) is the largest tangible category, representing quarries, cement plants, and mobile equipment.
- Goodwill & intangibles: Very high (often exceeding 40% of total assets) due to decades of serial acquisitions.
- Working capital profile:
- Days Sales Outstanding (DSO): 45 to 55 days.
- Days Inventory Outstanding (DIO): 40 to 50 days.
- Days Payable Outstanding (DPO): 50 to 60 days.
- Net working capital as % of revenue: Low single digits (typically 4% to 6%).
- Working capital dynamics: Highly seasonal. The company builds inventory in Q1 and consumes cash, then generates massive working capital inflows in Q4 as receivables are collected.
- PP&E: Depreciated over 10 to 40 years depending on the asset (quarries are depleted based on extraction volumes).
- Right-of-use assets: Material but manageable, primarily related to leased land, railcars, and distribution fleet.
Capital Expenditure & Investment
- Capex as % of revenue: 7% to 8.5% (approximately $2.8 billion to $3.0 billion annually).
- Maintenance capex vs. growth capex: Roughly 60% maintenance and 40% growth/efficiency.
- Major capex programmes underway: Decarbonisation investments (alternative fuels, carbon capture pilots) and plant modernisations.
- Capitalised software: Immaterial to the overall group.
- M&A pattern: Highly aggressive serial acquirer. The company spent $5.0 billion on 40 acquisitions in 2024 (including Texas cement assets) and $4.1 billion in 2025 (including Eco Material and North American Aggregates).
- Typical acquisition multiple paid: 8x to 10x EV/EBITDA pre-synergies, often dropping to 6x to 7x post-synergies.
Debt & Capital Structure
- Total debt: Approximately $14 billion to $16 billion, with Net Debt around $10.5 billion at the end of 2024.
- Debt/EBITDA ratio: Maintained conservatively between 1.3x and 1.8x.
- Credit rating: BBB+ / Baa1 (investment grade).
- Key debt instruments: Senior unsecured notes (e.g., $750 million 5.400% Notes due 2034) and a large undrawn revolving credit facility.
- Maturity profile: Well-laddered with average maturities exceeding 5 years.
- Interest rate profile: Predominantly fixed-rate bonds.
- Covenants: Standard investment-grade covenants; significant headroom exists.
- Share repurchase programme: Highly active, running at approximately $300 million per quarter ($1.2 billion+ annually).
- Dividend policy: Progressive dividend policy, paying quarterly with a yield typically around 1.5% to 2.0%.
Cash Flow Characteristics
- Operating cash flow conversion: Very strong, typically 1.2x to 1.4x of Net Income (generating ~$5.0 billion OCF in 2024).
- Free cash flow margin: 8% to 11% of revenue.
- Major non-cash items: High D&A (over $1.8 billion) and frequent non-cash impairment charges.
- Working capital cash flow impact: Neutral over a full year but creates massive intra-year swings.
- Capex intensity: Moderate to high, requiring continuous investment to maintain quarry operations and heavy machinery.
- Cash tax rate vs. GAAP effective tax rate: Cash taxes are often slightly lower than the effective rate due to accelerated depreciation on heavy plant equipment.
Sheet Structure
- Assumptions: Hardcoded drivers for macroeconomic inputs, segment growth, pricing, margins, and capital allocation.
- Scenarios: Base, Bull, and Bear cases toggling infrastructure funding delays and M&A volume.
- Income Statement: Consolidated US GAAP income statement from Revenue down to Net Income and EPS.
- Balance Sheet: Standard US GAAP balance sheet mirroring the 10-K presentation.
- Cash Flow Statement: Indirect method starting from Net Income, detailing working capital changes, capex, M&A, and financing activities.
- Revenue & Gross Margin Build: Disaggregated revenue and gross profit for Americas Materials Solutions, Americas Building Solutions, and International Solutions.
- Opex & EBITDA Build: SG&A, D&A, and impairment forecasts bridging Gross Profit to Adjusted EBITDA.
- PP&E & Intangibles: Roll-forward of gross PP&E, accumulated depreciation, quarry depletion, and goodwill from M&A.
- Working Capital: Schedules for receivables, inventory, and payables driven by DSO, DIO, and DPO.
- Debt & Interest: Tranche-by-tranche debt schedule, revolver mechanics, and interest expense calculation.
- Shareholders Equity: Retained earnings roll-forward, dividend payouts, and share count reduction from buybacks.
- DCF Valuation: Unlevered free cash flow build, WACC calculation, and terminal value.
- SOTP Valuation: Sum-of-the-parts applying different EV/EBITDA multiples to the Americas segments versus the International segment.
Key Financial Relationships
- `Americas Materials Revenue = Prior Year Revenue * (1 + Organic Volume Growth + Organic Price Growth + M&A Contribution %)`
- `International Solutions Revenue = Prior Year Revenue * (1 + Volume Growth + Price Growth) * FX Translation Impact`
- `Segment Gross Profit = Segment Revenue * Segment Gross Margin %`
- `Consolidated Adjusted EBITDA = Sum of Segment Gross Profits - Consolidated SG&A + D&A (excluding impairments)`
- `Quarry Depletion Expense = (Current Year Aggregates Volume / Total Proven Reserves) * Capitalised Quarry Asset Value`
- `Maintenance Capex = D&A Expense * Maintenance Capex Ratio (typically 80%)`
- `Total Capex = Maintenance Capex + Growth Capex (hardcoded based on management guidance)`
- `Goodwill Additions = Annual M&A Spend * Assumed Goodwill % of Purchase Price`
- `Interest Expense = Average Total Debt * Weighted Average Interest Rate`
- `Ending Share Count = Beginning Share Count - (Annual Share Repurchase Spend / Average Share Price)`
- `Dividends Paid = Prior Year Annual Dividend per Share * (1 + Dividend Growth Rate) * Ending Share Count`
Cross-Sheet Dependencies
- The Revenue & Gross Margin Build is the foundation, feeding the top line of the Income Statement.
- Segment margins from the Opex & EBITDA Build feed the SOTP Valuation to apply segment-specific multiples.
- The PP&E & Intangibles sheet calculates D&A, which flows to the Income Statement (reducing operating income) and the Cash Flow Statement (added back to OCF).
- The Debt & Interest sheet creates a circularity: Interest Expense reduces Net Income, which reduces Retained Earnings and Cash, which in turn dictates Revolver borrowing needs, thereby changing the Debt balance and Interest Expense. A circuit breaker switch must be included.
- The Cash Flow Statement ending cash balance must link directly to the Balance Sheet cash line to ensure the model balances.
Sign Convention
- Revenues, Assets, and Equity: Entered and displayed as positive numbers.
- Expenses (COGS, SG&A, Interest, Taxes): Entered as positive numbers in their specific build schedules, but subtracted in the Income Statement formulas.
- Liabilities: Entered as positive numbers.
- Cash Flow Statement: Inflows (e.g., Net Income, D&A, debt issuance) are positive. Outflows (e.g., Capex, M&A, dividends, debt repayment, working capital increases) are negative.
Things Most Likely to Go Wrong
- Segment Restatements: The company combined Europe Materials and Europe Building into "International Solutions" in Q4 2024. Using pre-2024 historical data requires manual restatement to match the new three-segment structure.
- M&A Distortion: CRH spends billions annually on M&A. Failing to model acquired revenue and EBITDA separately from organic growth will result in vastly overstated organic pricing/volume assumptions.
- Seasonality in Stub Periods: If modelling quarterly, applying a flat 25% of annual revenue to Q1 will break the model. Q1 is historically weak due to winter weather; Q3 is the peak.
- Impairment Noise: CRH frequently reports non-cash impairments (e.g., $350 million in 2024). These must be excluded from Adjusted EBITDA to reflect true operating performance.
- Currency Translation: The International Solutions segment is exposed to the Euro, Pound, and Australian Dollar. Fluctuations can swing consolidated revenue by 2% to 4% YoY.
- Depletion vs Depreciation: Quarry assets are depleted based on extraction volume, not straight-line time. The model must account for this distinction in the PP&E schedule.
- Share Count Reduction: Ignoring the aggressive $1.2 billion+ annual buyback programme will severely understate future EPS.
- GAAP Transition: CRH transitioned from IFRS to US GAAP recently. Ensure historical benchmarks do not mix IFRS figures with US GAAP figures.
Validation Checks
- "Total Assets = Total Liabilities + Equity" must hold true in every forecast period.
- "Gross margin should be in the 34% to 37% range based on the last 5 years; flag if outside this band."
- "Adjusted EBITDA margin should remain between 18% and 22%; flag if it drops below historical floors."
- "Net Debt / EBITDA should remain below 2.5x per rating agency guidance; flag if leverage exceeds this threshold."
- "OCF / Net Income conversion should be >1.1x; flag if cash conversion drops, indicating a working capital issue."
- "Capex as a % of revenue should typically run between 7% and 9%."
- "Effective tax rate should remain between 20% and 24%."
- "Dividend payout ratio should remain within 25% to 35% of Net Income."
Key Assumptions (Default Values)
| Assumption | Default Value | Unit | Rationale |
|---|---|---|---|
| Americas Materials Revenue Growth | 5.5 | % | Blended organic pricing power and continued bolt-on M&A |
| Americas Building Revenue Growth | 4.5 | % | Supported by US infrastructure funding and non-residential demand |
| International Solutions Revenue Growth | 3.0 | % | Slower European growth offset by Australian market strength |
| Consolidated Gross Margin | 36.0 | % | In line with 2024/2025 reported US GAAP figures |
| SG&A as % of Revenue | 13.0 | % | Historical average reflecting disciplined cost management |
| D&A as % of Revenue | 5.0 | % | Consistent with heavy asset base and recent M&A step-ups |
| Effective Tax Rate | 22.0 | % | Blended rate across US, Irish, and international jurisdictions |
| Capex as % of Revenue | 7.5 | % | Management guidance for maintenance and growth investments |
| Annual M&A Spend | 2,500 | $ Millions | Conservative run-rate compared to $5bn in 2024 and $4.1bn in 2025 |
| Annual Share Buybacks | 1,200 | $ Millions | Based on recent $300m quarterly run-rate |
| Dividend Growth Rate | 5.0 | % | Progressive dividend policy |
| Average Interest Rate on Debt | 5.2 | % | Based on recent senior notes issuances (e.g., 5.400% 2034 notes) |
| Days Sales Outstanding (DSO) | 50 | Days | Historical average |
| Days Inventory Outstanding (DIO) | 45 | Days | Historical average |
| Days Payable Outstanding (DPO) | 55 | Days | Historical average |
| WACC | 8.5 | % | Reflects US large-cap risk profile and current rate environment |
| Terminal Growth Rate | 2.5 | % | Long-term inflation and GDP growth proxy |
Data Sources & Benchmarks
- Filings: SEC EDGAR for CRH plc 10-K and 10-Q filings (note: filings prior to 2023 may be under foreign private issuer forms like 20-F).
- Investor Relations: CRH investor relations website for earnings presentations and non-GAAP reconciliations.
- Key Peers for Benchmarking: Vulcan Materials Company (VMC), Martin Marietta Materials (MLM), Holcim Ltd, Heidelberg Materials.
- Industry Data: Dodge Construction Network for US construction starts, Portland Cement Association (PCA) for cement consumption forecasts, and ARTBA for US highway funding data.
- Consensus Estimates: Bloomberg or FactSet for forward-looking EPS and EBITDA estimates.
Sources
Do more with the CRH model
Frequently asked
What does CRH plc do?+
CRH plc is a leading global provider of building materials solutions, manufacturing and distributing aggregates, cement, readymixed concrete, asphalt, and complex building products. The company operates a vertically integrated business model, capturing value from upstream heavy materials extraction down to downstream paving services and outdoor living solutions.
What are the main revenue drivers for CRH plc?+
CRH's revenue is primarily driven by demand for building materials across its Americas Materials Solutions, Americas Building Solutions, and International Solutions segments. Key geographies like North America, Europe, and Australia contribute significantly, with North America generating roughly 75% of group EBITDA. The business also benefits from strong local pricing power due to the high weight-to-value ratio of construction materials.
What is CRH plc's capital expenditure strategy?+
CRH plc maintains a significant capital expenditure program, with capex typically ranging from 7% to 8.5% of revenue, amounting to approximately $2.8 billion to $3.0 billion annually. Roughly 60% of this is allocated to maintenance capex, while the remaining 40% supports growth and efficiency initiatives, including decarbonisation investments and plant modernisations.
How does CRH plc's M&A activity impact its valuation?+
CRH is a highly aggressive serial acquirer, spending billions annually on acquisitions, which significantly impacts its balance sheet with high goodwill and intangibles. The company typically pays 8x to 10x EV/EBITDA pre-synergies for acquisitions, often reducing to 6x to 7x post-synergies, which influences its overall valuation and future cash flow projections.
Is a financial model for CRH plc available for download?+
No, a downloadable Excel financial model for CRH plc is not currently available. This model provides a sum-of-the-parts equity valuation and cash flow forecast, enabling analysts to assess the impact of US infrastructure spending and M&A.
What is the geographic focus of CRH plc's operations?+
CRH plc has a global presence, with key geographies including North America, Europe, and Australia. North America is particularly significant, generating approximately 75% of the group's EBITDA and housing its largest business segments, Americas Materials Solutions and Americas Building Solutions.
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