Heidelberg Materials (HEI) investor relations material

Executive summary

• Q2 2026 revenue grew 6% year-over-year to €6,044 million, marking the first positive volume impact in over four years and resilient operational performance despite inflation and geopolitical tensions.

• Strategic M&A included acquisitions in North America (BURNCO, AmeriTex), Turkey (Akçansa), Canada, and Australia, with a minority stake in the US and exit from Kazakhstan.

• Pricing discipline, cost savings, and Transformation Accelerator Initiative (EUR 440 million savings) offset rising energy and distribution costs.

• Shareholder returns increased by 13% through higher dividends and share buybacks, with a €1.2 billion program underway.

• Sustainability initiatives advanced, including a new kiln in France reducing CO2 by nearly 30% and the world’s first pure oxyfuel pilot plant in Germany.

Financial highlights

• Q2 2026 revenue reached €6,044m (+6% YoY); H1 2026 revenue was €10,580m (+1.7% YoY); like-for-like growth was 2.8%.

• Operating EBITDA for Q2 was €1,417m (+3% YoY); operating EBIT (RCO) €1,086m (+4% YoY); H1 RCO was €1,249m (-2.6% YoY).

• Adjusted EPS up 2% to €4.47; reported EPS at €4.19; profit for shareholders up 7.5% to €738m.

• Free cash flow for the last 12 months was €1.9bn; leverage stable at 1.66x; net debt increased to €7,726m.

• Share of revenue from sustainable products reached 38% in H1 2026.

Outlook and guidance

• 2026 RCO guidance narrowed to €3.40–3.65bn; ROIC expected slightly above 10%.

• CO2 emissions targeted at previous year’s level (510 kg/t); Akçansa acquisition temporarily increases footprint.

• Net CapEx expected at €1.2–1.3bn, including major sustainability projects.

• Shareholder returns to increase further via progressive dividend and share buyback.

• Demand in the construction sector expected to stabilize, with continued focus on price adjustments and cost management.