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CRH plc has completed the latest phase of its share buyback program, returning $0.3 billion to shareholders. Since May 2018, $7.6 billion has been returned to shareholders. HSBC Securities (USA) Inc. will repurchase ordinary shares for up to $0.3 billion on behalf of CRH, starting on May 10, 2024. The Buyback aims to reduce CRH's share capital and will be conducted in compliance with relevant regulations.
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Insights
CRH plc's completion of their recent share buyback phase, where they repurchased 3.7 million shares, is a positive reinforcement of the company's commitment to returning value to shareholders. By reducing the number of shares outstanding, the earnings per share (EPS) may potentially increase, which can be attractive to investors. The continuation of the program, with an additional $0.3 billion allotted for further buybacks, indicates a strong balance sheet and cash flow position, allowing the company to invest in its own shares. It's important to monitor how these buybacks affect the capital structure and whether they are a sign of the company's confidence in its intrinsic value as opposed to other investment opportunities. Historically, buybacks can be seen as a signal that a company believes its stock is undervalued. For retail investors, the key takeaway is that CRH is utilizing its capital to invest in itself, which could be interpreted as a management endorsement of current stock price levels.
The share repurchase program aligns with a common strategy used by firms to manage their capital and signal confidence to the market. For investors, it's essential to understand that buybacks can sometimes be preferable to dividends as they offer management greater flexibility in returning cash to shareholders. However, investors should also be cautious and look at broader market conditions and sector performance. The building materials sector might be experiencing changes in demand due to economic cycles and CRH's decision to buy back shares rather than invest in new projects or acquisitions could reflect on the state of the industry. Nonetheless, if the sector is stable and growing, CRH's action can be interpreted as a move to optimize shareholder value amidst favorable market conditions.
DUBLIN--(BUSINESS WIRE)--
CRH plc, 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 February 29, 2024 and May 9, 2024, 3.7 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 $7.6 billion since its commencement in May 2018.
CRH today also announces that it has entered into an arrangement with HSBC Securities (USA) Inc. (“HSBC”) 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, May 10, 2024, and will end no later than August 7, 2024.
HSBC 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 60,000,000. 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.
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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 the LSE.
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.
Contact CRH at +353 1 404 1000
Albert Manifold, Chief Executive
Jim Mintern, Chief Financial Officer
Frank Heisterkamp, Director of Capital Markets & ESG
Tom Holmes, Head of Investor Relations
Source: CRH plc
FAQ
What is CRH plc announcing?
CRH plc has completed a phase of its share buyback program, returning $0.3 billion to shareholders.
How much has been returned to shareholders under the share buyback program since its commencement in May 2018?
$7.6 billion has been returned to shareholders under the share buyback program since its commencement in May 2018.
Who will repurchase ordinary shares for CRH under the Buyback program?
HSBC Securities (USA) Inc. will repurchase ordinary shares for CRH under the Buyback program.
