U.S. construction is beginning to boom amid efforts to restore manufacturing, bringing car, chip, and renewable-energy production back to the U.S.
Thursday, CRH (ticker: CRH), one of America’s largest construction-material providers and road builders, reported first-half 2023 earnings per share of $1.58 on sales of $16.1 billion. Wall Street was looking for $1.41 and $15.8 billion, respectively.
Sales in the company’s U.S. aggregates and road-construction businesses grew 9% year over year, boosted by 15% higher prices for aggregates, or rocks used in concrete and construction. Sales in the U.S. building solutions businesses grew 21% year over year benefiting “from increased demand and robust public funding in the telecommunications, water, and energy utility markets.”
For the full year, management expects earnings before interest, taxes, depreciation, and amortization, or Ebitda, to be $6.2 billion. Wall Street currently projects closer to $6 billion, according to FactSet.
The starting point might be part of the issue. Coming into Thursday trading, shares are up 45% year to date, and up 20% over the past three months. Investors expect good news.