Heidelberg Materials (HEI) Q2 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year in H1 2025 to €10.4bn, with strong operational performance, margin expansion, and major acquisitions including Giant Cement (US) and Asment Témara (Morocco), supporting growth ambitions.

• Transformation Accelerator Initiative delivered €140m in savings, supporting efficiency, innovation, and margin improvements.

• Sustainability progress includes a 4% year-over-year reduction in CO₂ emissions, upgraded 2030 targets, and the launch of the world's first industrial-scale carbon capture plant in Brevik.

• Outlook for 2025 confirmed, with mid-term targets raised under Strategy 2030, focusing on growth, profitability, and decarbonisation.

Financial highlights

• H1 2025 revenue reached €10,398m, up €404m (+4%) year-over-year; operating EBITDA rose 6% to €1,930m, and RCO increased 7% to €1,282m.

• Profit for the period rose 21.7% year-over-year to €759m; profit attributable to shareholders was €686m, up 19.5%.

• Free cash flow for the last 12 months at €2.3bn, with a cash conversion rate of 49%.

• Leverage stable at 1.56x, net debt at €7,197m.

• Adjusted EPS at €4.38, up 3% year-over-year.

Outlook and guidance

• 2025 guidance confirmed: RCO €3.25–3.55bn, ROIC around 10%, net CapEx ~€1.2bn, leverage ~1.5x.

• Slight reduction in CO₂ emissions expected; all 2030 sustainability targets upgraded.

• Global construction demand seen stabilising at a low level, with continued cost volatility in energy and raw materials.

• Focus remains on price adjustments and strict cost management.