Image source: Getty Images
The CRH (LSE:CRH) share price has surged 19% in 2025, making it one of the FTSE 100‘s best-performing stocks.
CRH shares spiked again on Tuesday (30 September) after the company unveiled its financial targets through to 2030. They impressed the market, with RBC Capital analyst Anthony Codling noting that, unlike some of its US and global peers, Tuesday’s guidance represents an upgrade to current medium-term consensus in terms of revenue growth, EBITDA margin, and free cashflow conversion
Let’s drill down into the numbers, and consider why — even though tough conditions persist in key markets — the FTSE company is worth serious consideration right now.
Robust outlook
CRH certainly isn’t shy about discussing its strengths. It proclaims itself to be “the global leader in building materials and the number one infrastructure play in North America“, and yesterday said that between 2026 and 2030 it expects to deliver:
- average annual revenue growth of between 7% and 9%
- an adjusted EBITDA margin of 22%-24% by the end of the period
- average annual adjusted free cash flow conversion of above 100%
Those robust predictions were also above what City estimates had largely been expecting. According to research platform Visible Alpha, annual growth of 5.6% had been expected by brokers over the five years, alongside an adjusted EBITDA margin of 20.4%-21.2%, and average annual adjusted free cash flow around 80%.
Adding an extra sweetener, CRH said it expects to record $40bn of financial capacity — which is cash and debt financing available after maintenance capex — through to 2030. That’s up from the $35bn it has tipped between 2024 and 2028.
Are CRH shares a buy?
Also on Tuesday, CRH affirmed its financial expectations for the current financial year. This includes adjusted EBITDA forecasts of $7.5bn to $7.7bn, up from $6.9bn in 2024.
All in all, then, the Dublin company’s outlook appears brighter than ever. But how much of this good news is already priced in?
Based on 2025’s predicted earnings, CRH’s share price commands a princely price-to-earnings (P/E) ratio of 20.4 times. To put that into perspective, the broader FTSE 100’s forward multiple sits way back around 12.5.
It’s also important to consider the risks the building materials supplier faces. Its operations are highly cyclical, leaving it vulnerable to worsening economic conditions and especially in the US, its core market.
A top FTSE 100 stock
That said, I still think CRH a top blue-chip share to consider given its excellent long-term returns. These have averaged 18% per year since 2015.
Past performance isn’t always a reliable guide to future returns. But there’s a lot I’m confident about here, including the firm’s ability to grow earnings and maintain margins in tough conditions, as Tuesday’s update illustrates.
Thanks to booming US infrastructure spending, CRH looks set for a decade of robust earnings growth. It has significant financial strength to fully maximise this opportunity, too, through additional M&A. Its latest move came in July with the $2.1bn acquisition of cement specialist Eco Material Technologies.
I think that strong balance sheet means investors can also reasonably expect more share buybacks and a steadily growing dividend.
CRH shares don’t come cheap. But I think the company is worth its premium valuation, and merits a serious look from investors today.
