CRH delivered a strong performance in 2023 supported by good underlying demand in key end-use markets, positive pricing and contributions from acquisitions. The company’s total revenues increased 7% to $34.9 billion from the prior year while organic revenues were up 3%.
Americas Materials Solutions’ total revenues were 8% ahead of 2022, primarily driven by price increases across all lines of business. Adjusted EBITDA was up 16%, as good commercial management offset the impact of higher input costs. For the Essential Materials business, total revenues increase by 10%, supported by double-digit pricing growth in both aggregates and cement, which were up 14% and 15%, respectively. Aggregates volumes declined by 1% and cement volumes declined by 3%, impacted by unfavorable weather in certain regions.
For Road Solutions, total revenues increased by 7% driven by increased pricing and positive infrastructure activity underpinned by Infrastructure Investment and Jobs Act (IIJA) funding. Asphalt prices increased by 7% while asphalt volumes were in line with the prior year as improved demand in the South and West during the second half of the year was offset by lower volumes in the Great Lakes and Northeast regions. Paving and construction revenues increased by 6%. Ready mixed concrete pricing was 12% higher compared with 2022, however volumes were 2% behind due to lower activity levels in the South.
“2023 marked another record year of financial delivery for CRH, supported by good underlying demand across our key end-use markets, further pricing progress and the continued benefits of our differentiated, customer-focused strategy. Over the last decade our business has evolved from being a supplier of base materials into a fully integrated provider of value-added solutions,” said CEO Albert Manifold.
“Through our technical expertise and the advancements we have made in product innovation, we are solving complex problems for our customers while making the construction process simpler, safer and more sustainable. Despite continued inflationary cost pressures during 2023 we expanded our margins and delivered further growth in profits, cash generation and returns. The strength of our balance sheet together with our relentless focus on the efficient allocation of capital enables us to capitalize on the opportunities we see for further growth and value creation in 2024 and beyond,” he concluded.
CRH operations in North America are expected to benefit this year from increased infrastructure activity underpinned by strong federal and state funding, while investments in critical manufacturing and clean energy initiatives are expected to support key non-residential segments. New-build residential activity is expected to remain subdued in 2024 due to ongoing affordability constraints arising from the current interest rate environment, while residential repair and remodel activity is expected to remain resilient.