DAVY VIEW

CRH will issue a trading update on Tuesday November 24th. We see upside risk to the group’s Q3 guidance (flat like-for-like EBITDA) given peer updates through earnings season. Those updates have highlighted mixed activity levels but much stronger margins, aided by solid pricing, lower input costs and cost takeout. The group may also update on development activity (Brazil disposal) and guide to a debt position at year-end. That will highlight CRH’s growing financial firepower and prompt questions around capital allocation, in particular, resuming the share buyback. We expect no detailed 2021 guidance but some directional commentary around end-markets is likely.