CRH plc CRH acquired Dutra Materials in San Rafael, CA, expanding its America’s Materials Solutions business in the Western United States. This deal brings additional strategic aggregate reserves and asphalt production capabilities, helping CRH better serve the northern California construction market.
The California construction market is one of the largest in the United States, presenting CRH with significant growth opportunities. Following its entry into California earlier this year through the acquisitions of BoDean Company and Northgate Ready Mix, CRH has been expanding its presence in the state. This move enhances the company’s ability to provide integrated solutions to its customers in this important market.
As the leading supplier of aggregates, asphalt and ready-mixed concrete in North America, CRH aims to support the development of Northern California with its broad range of building materials and solutions.
Acquisition Strategies Bode Well for CRH
CRH consistently focuses on expanding its geographical footprint and product portfolio through strategic acquisitions. The company utilizes several opportunities to expand its product offerings in various fields comprising CRH’s solutions capabilities and road infrastructure, utility infrastructure and outdoor living.
During the first nine months of 2024, the company has made significant progress in its capital allocation strategy. It has completed 35 acquisitions, investing approximately $4.6 billion. These acquisitions are part of the company’s ongoing efforts to expand CRH’s portfolio and strengthen its position in the market.
The company’s largest acquisition this year was the purchase of material assets in Texas for $2.1 billion. This deal strengthens CRH’s position as the leading building materials business in the fastest-growing state. The integration is progressing well, with early successes supporting the company’s $65 million run-rate synergy target.
In July, the company completed the acquisition of a majority stake in Adbri, a leading provider of building materials in Australia. This acquisition strengthens CRH’s existing operations in Australia and creates new opportunities to expand its solution strategy in the market.
Furthermore, the company has invested approximately $1.7 billion year to date on 33 strategic bolt-on acquisitions across Essential Materials, Road and Critical Utility Infrastructure, and Outdoor Living. This activity highlights CRH’s commitment to disciplined capital allocation in high-growth markets. The company can further develop CRH’s integrated solutions strategy to drive growth and create value for its shareholders.
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Shares of this building materials provider solutions have risen 42.2% year to date, outperforming the Zacks Building Products - Miscellaneous industry’s 22.1% growth.
CRH’s Zacks Rank & Key Picks
CRH currently carries a Zacks Rank #3 (Hold).
Here are better-ranked stocks from the Construction sector.
EMCOR Group, Inc. EME currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EME delivered a trailing four-quarter earnings surprise of 32.3%, on average. The stock has risen 133.5% in the past year. The Zacks Consensus Estimate for EME’s 2024 EPS indicates growth of 55.6% from the prior-year reported levels.
Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 21.5%, on average. STRL shares have surged 180% in the past year.
The consensus estimate for STRL’s 2024 sales and EPS implies increases of 9% and 33.3%, respectively, from the prior-year reported levels.
Louisiana-Pacific Corporation LPX presently sports a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has risen 83% in the past year.
The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates improvements of 12.7% and 72.1%, respectively, from a year ago.
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