Building materials firm CRH sees strong water systems, data center demand

Building materials company CRH expects strong demand from the infrastructure sector in 2026 after reaffirming its full-year financial guidance, citing continued strength in water systems and data center construction to offset subdued residential activity.

CRH said in its first-quarter results announcement April 30 that it expects robust demand across its key infrastructure markets, led by water transmission and water quality projects, while reindustrialization and investment in large-scale manufacturing facilities and data centers are anticipated to drive demand in the US and internationally.

Repair and remodeling activity in the US residential sector remains resilient; however, newbuild housing continues to face affordability headwinds, according to the company. Favorable demographic trends and prolonged underbuilding support attractive long-term housing market fundamentals.

"As we have said in the past, this is not a demand issue, and we believe the long-term fundamentals in this market remain very attractive, supported by favorable demographics and significant levels of underbuilt," the company said. "In summary, the overall trend is positive for our business with our strategic focus on growing infrastructure megatrends."

CRH reported total revenues of $7.4 billion in the first quarter, up 9% from the year-ago period, driven by positive underlying demand, disciplined commercial execution and contributions from acquisitions.

Americas Materials Solutions led the performance with total revenues of $2.7 billion, up 21% year over year. Aggregate volumes increased 14%, while cement volumes rose 10%.

In Road Solutions, asphalt volumes advanced 13% and ready-mixed concrete volumes gained 12%, while paving and construction revenues climbed 16%.

Americas Building Solutions reported total revenues of $1.7 billion, down 1% from the prior year, as subdued newbuild residential demand and adverse weather conditions offset acquisition contributions.

International Solutions posted total revenues of $3.0 billion, up 5% year over year. Aggregate volumes increased by 8%, while cement prices rose by 3%.

During the quarter, CRH invested $900 million in nine acquisitions, including the $700 million purchase of Axius Water, which strengthened the company's water infrastructure platform in North America.

"We delivered a strong start to 2026, reflecting good momentum from early-season project activity, disciplined commercial execution and positive contributions from acquisitions," CEO Jim Mintern said. "Notwithstanding the current geopolitical and macroeconomic uncertainty, we are encouraged by the continued strength of underlying demand across our key markets."