CRH Continues Share Buyback Program

Rhea-AI Summary

CRH plc (NYSE: CRH), a leading provider of building materials solutions, has completed the latest phase of its share buyback program, returning an additional $0.3 billion to shareholders. Between May 10 and August 7, 2024, 3.8 million ordinary shares were repurchased on the NYSE. This brings the total cash returned to shareholders to $7.9 billion since May 2018.

CRH has also announced a new arrangement with BNP Paribas Securities Corp. to repurchase up to $0.3 billion worth of ordinary shares listed on the NYSE. This new buyback will run from August 8 to November 6, 2024, with a maximum of 55,000,000 shares to be acquired. The purpose is to reduce CRH's share capital, and all repurchased shares will be cancelled.

Positive

• Returned $0.3 billion to shareholders in the latest buyback phase
• Total of $7.9 billion returned to shareholders since May 2018
• New $0.3 billion share buyback program announced
• Consistent commitment to returning value to shareholders

Negative

• Potential reduction in available cash for other investments or operations

Insights

Financial Analyst

CRH's continuation of its share buyback program is a positive signal for investors. The company has consistently returned cash to shareholders, with $7.9 billion repurchased since 2018. This latest $0.3 billion phase demonstrates strong cash flow generation and management's confidence in the company's financial position.

The buyback's purpose to reduce share capital could potentially boost earnings per share and increase shareholder value. However, investors should note that this comes at the expense of cash that could be used for growth investments or debt reduction. The program's execution within regulatory parameters and the involvement of BNP Paribas adds credibility to the process.

Overall, this news suggests CRH maintains a shareholder-friendly capital allocation strategy, which could support positive sentiment towards the stock in the near term.

Market Research Analyst

CRH's ongoing share buyback program reflects a broader trend in the building materials sector, where companies are focusing on returning value to shareholders amidst market uncertainties. This strategy could be seen as a defensive move, potentially indicating organic growth opportunities in the current market environment.

The company's ability to sustain such a large buyback program ($7.9 billion since 2018) suggests robust cash generation from its operations. However, investors should consider whether this capital allocation strategy is the most effective for long-term value creation, especially in an industry that may require significant investments to adapt to changing environmental regulations and technological advancements.

The market's reaction to this news will be important to monitor, as it may indicate investor preferences for cash returns versus growth investments in the current economic climate.

Legal Expert

CRH's share buyback program demonstrates careful compliance with complex regulatory frameworks. The company's adherence to Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act, as well as EU and UK market abuse regulations, reflects strong corporate governance and risk management practices.

The use of an independent third party (BNP Paribas) to execute the buyback adds an extra layer of compliance and transparency, potentially mitigating legal risks associated with insider trading concerns. The predefined parameters and maximum share limit (55,000,000 shares) provide clear boundaries for the program's execution.

Investors should view this structured approach positively, as it reduces the likelihood of regulatory scrutiny and potential legal challenges that could negatively impact the company's reputation and financial position.

NEW YORK--(BUSINESS WIRE)-- CRH plc (NYSE: CRH), the leading provider of building materials solutions, is pleased to announce that it has completed the latest phase of its share buyback program, returning a further $0.3 billion of cash to shareholders.

Between May 10, 2024 and August 7, 2024, 3.8 million ordinary shares listed on the New York Stock Exchange were repurchased. This brings total cash returned to shareholders under our ongoing share buyback program to $7.9 billion since its commencement in May 2018.

CRH today also announces that it has entered into an arrangement with BNP Paribas Securities Corp. (“BNPP”) to repurchase ordinary shares listed on the New York Stock Exchange on CRH’s behalf for an aggregate maximum consideration of up to $0.3 billion (the “Buyback”). The Buyback will commence today, August 8, 2024, and will end no later than November 6, 2024.

BNPP will conduct the Buyback on CRH’s behalf and will make trading decisions under the Buyback independently of CRH in accordance with certain pre-set parameters. The maximum number of ordinary shares which may be acquired pursuant to the Buyback is 55,000,000. The purpose of the Buyback is to reduce the share capital of CRH.

The Buyback will be conducted within the parameters prescribed by (i) Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended and (ii) the EU Market Abuse Regulation (596/2014) and Commission Delegated Regulation (EU) 2016/1052 as such legislation forms part of the law in the United Kingdom (“UK”) pursuant to the EU (Withdrawal) Act 2018 (as may be amended and/or supplemented from time to time). No repurchases will be made outside of the United States. The repurchased ordinary shares will be cancelled.

Any decision in relation to any future buyback program will be based on an ongoing assessment of the capital needs of the business and general market conditions.

Albert Manifold		Chief Executive
Jim Mintern		Chief Financial Officer
Frank Heisterkamp		Director of Capital Markets & ESG
Tom Holmes		Head of Investor Relations

About CRH

CRH (NYSE: CRH, LSE: CRH) is the leading provider of building materials solutions that build, connect and improve our world. Employing approximately 78,500 people at approximately 3,390 operating locations in 28 countries, CRH has market leadership positions in both North America and Europe. As the essential partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions, CRH’s unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment. The company is ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies. A Fortune 500 company, CRH’s shares are listed on the NYSE and LSE.

Forward-Looking Statements

This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally, but not always, be identified by the use of words such as "will" or similar expressions. These forward-looking statements include all matters that are not historical facts or matters of fact at the date of this document. Forward-looking statements are subject to risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond CRH’s control or precise estimate. Such forward-looking statements include, but are not limited to, expectations related to the structure, timing and volume of the Buyback and manner in which the Buyback will be conducted and expectations related to decisions on any future buyback program. There are important factors that could cause actual outcomes and results to be materially different, including risks and uncertainties relating to CRH described in Item 1.A —Risk Factors of CRH’s Annual Report on Form 10-K for the year ended December 31, 2023 and CRH’s other filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. CRH expressly disclaims any obligation or undertaking to publicly update or revise these forward-looking statements other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807486274/en/

ir@crh.com

Source: CRH plc

FAQ

How much did CRH (NYSE: CRH) return to shareholders in its latest buyback phase?

CRH returned $0.3 billion to shareholders in its latest completed buyback phase.

What is the total amount CRH (NYSE: CRH) has returned to shareholders since May 2018?

CRH has returned a total of $7.9 billion to shareholders through its ongoing share buyback program since May 2018.

How many shares did CRH (NYSE: CRH) repurchase between May 10 and August 7, 2024?

CRH repurchased 3.8 million ordinary shares listed on the New York Stock Exchange between May 10 and August 7, 2024.

What is the maximum value of CRH's (NYSE: CRH) new share buyback program announced on August 8, 2024?

CRH announced a new share buyback program with a maximum value of $0.3 billion on August 8, 2024.

When will CRH's (NYSE: CRH) newly announced share buyback program end?

CRH's newly announced share buyback program will end no later than November 6, 2024.