Heidelberg Materials (HEI) Q1 2025 earnings summary

Executive summary

• Revenue increased by 5.1% year-over-year in Q1 2025 to €4,715 million, driven by price increases and positive scope and currency effects, despite challenging weather conditions.

• RCO (Operating EBIT) rose by 1.4% year-over-year to €235 million, with RCOBD up 2.6% to €557 million.

• Transformation Accelerator program delivered €50 million in savings in Q1, supporting efficiency and innovation, and is on track for a €500 million target for 2025.

• Second tranche of €1.2 billion share buyback to open in May/Q2 2025, with all treasury shares from the first tranche cancelled.

• Major M&A activity included the acquisition of Giant Cement in the U.S. and Midway Concrete in Australia, with a robust global pipeline.

Financial highlights

• Revenue reached €4,715 million, up 5.1% year-over-year; like-for-like growth was 1.7%.

• RCOBD increased by 2.6% to €557 million; RCO margin at 5.0% (down from 5.2%).

• Operating EBITDA margin declined by 28 bps to 11.8% due to higher freight, services, and raw material costs.

• Price over cost remained positive, offsetting negative volume trends.

• Dividend proposal of €3.30 per share for 2024, a 10% increase year-over-year.

Outlook and guidance

• 2025 RCO guidance confirmed at €3.25–€3.55 billion; ROIC expected around 10%.

• CapEx guidance maintained at €1.2 billion; leverage expected to remain between 1.5x and 2x, currently below this range.

• Slight reduction in CO2 emissions per ton of cementitious material targeted.

• Energy costs expected to be flat or slightly down for the year, with some upside potential.