DAVY VIEW

Sector updates paint a reassuring picture of CRH’s largest US end-market in 2021. The group’s main aggregates peers, Martin Marietta (MLM) and Vulcan Materials (VMC), have both issued positive outlooks – pointing to solid activity levels and strong pricing in 2021. Importantly, both expect to fully offset rising fuel costs and grow margins. That outlook excludes any government help by way of further stimulus or an infrastructure bill. However, both look increasingly likely given comments from President Biden in recent days. He has indicated that once the $1.9trn stimulus has passed, his focus will quickly move to infrastructure. That is likely to feature prominently in his delayed joint address to Congress in early March.