The Company’s operations in the Philippines are conducted through a Variable Interest Entity (VIE), wherein the Company holds 40% of the equity share capital and a 55% share of earnings and distributions. The remaining noncontrolling interest of 60% equity share capital and 45% share of earnings and distributions is held by an unrelated party. The Company’s voting rights are not proportional to its share of earnings and distributions, and substantially all of the activities of the Philippines business are conducted on behalf of the Company and controlled by the Company through contractual relationships. The Philippines business meets the definition of a VIE for which the Company is the primary beneficiary and, therefore, is consolidated.

Further, the Company has provided subordinated debt to the intermediate parent of the Philippines business which exposes the Company to the profits and losses of the Philippines business. The debt is repayable only where the shareholder agreement of the intermediate parent of the Philippines business is terminated or where the Company transfers its shares in the intermediate parent to an unrelated entity (i.e., the debt exposure of the Company becomes in substance a residual interest in the intermediate parent).

The carrying amounts of assets and liabilities of the consolidated VIE, reported within the Condensed Consolidated Balance Sheets before intragroup eliminations with other CRH companies were:


	June 30	December 31	June 30
in $ millions	2026	2025	2025
Assets
Current assets:
Cash and cash equivalents	18	40	27
Accounts receivable, net	40	42	43
Inventories	92	81	91
Other current assets	33	39	61
Total current assets	183	202	222
Property, plant and equipment, net	744	793	849
Goodwill	180	187	196
Intangible assets, net	–	–	1
Operating lease right-of-use assets, net	4	4	4
Other noncurrent assets	10	9	11
Total assets	1,121	1,195	1,283

Liabilities
Current liabilities:
Accounts payable	97	119	104
Accrued expenses	38	33	43
Current portion of long-term debt	318	13	62
Operating lease liabilities	1	1	1
Other current liabilities	16	21	25
Total current liabilities	470	187	235
Long-term debt	70	377	347
Deferred income tax liabilities	83	89	95
Noncurrent operating lease liabilities	3	3	4
Other noncurrent liabilities	22	21	23
Total liabilities	648	677	704

The operating results of the consolidated VIE, reported within the Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows before intragroup eliminations with other CRH companies were:


	Three months ended		Six months ended
	June 30		June 30
in $ millions	2026	2025	2026	2025
Total revenues	73	82	147	166
Total cost of revenues	(69)	(85)	(153)	(165)
Gross profit (loss)	4	(3)	(6)	1
Net loss	(5)	(17)	(28)	(30)

Net cash used in operating activities			(35)	(12)