Heidelberg Materials (HEI) Q2 2024 earnings summary

Executive summary

• Results improved despite revenue declines, with EBITDA up 4%, RCO up 5%, and EBITDA margin up 130 bps year-over-year; North America delivered a step change with a 5.4 percentage point margin increase, driven by operational performance and investments like the Mitchell plant.

• Free cash flow over the last 12 months exceeded €2.2bn; first green bond issued for €700m; share buyback program initiated with a €1.2bn target and €350–400m started in Q2.

• Adjusted EPS rose 17% to €4.30; leverage improved to 1.57x; net debt at €6,771m; over €1bn returned to shareholders.

• Specific CO2 emissions reduced by nearly 2% year-over-year, with further sustainability progress and new recycling initiatives.

• Workforce increased by 234 FTE to 51,726, driven by expansion in circular materials in the UK and North America.

Financial highlights

• Q2 2024 revenue was €5,506m (down 2% year-over-year); H1 2024 revenue was €9,994m (down 4.6%); Q2 EBITDA reached €1,286m (+4%), RCO €971m (+5%), and Q2 margin at 23.4%.

• Adjusted EPS up 17% to €4.30; profit for the period dropped 20.3% to €624m due to restructuring and impairment charges.

• Free cash flow improved by €70m year-over-year to €2.2bn; CapEx 10% lower than last year; cash conversion rate at 52%.

• Leverage at 1.57x; net debt at €6,771m.

• M&A contributed over €100m EBITDA this year; major business combinations in H1 2024 added €26.5m revenue and €0.8m profit.

Outlook and guidance

• 2024 guidance confirmed: RCO expected at €3.0–3.3bn, ROIC around 10%, and further reduction in specific CO2 emissions.

• Revenue, leverage, and CapEx guidance unchanged; volumes expected to stabilize at a low level globally.

• Price adjustments and strict cost management remain focus areas amid high financing costs and inflation.