Heidelberg Materials (HEI) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered 6% revenue growth 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 the US (AmeriTex), Turkey (Akçansa), Canada (BURNCO), and Australia (MAAS expected to close), while exiting Kazakhstan.

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

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

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

Financial highlights

• Q2 2026 revenue reached €6,044m (+6% YoY), operating EBITDA €1,417m (+3% YoY), and operating EBIT (RCO) €1,086m (+4% YoY); H1 2026 revenue was €10,580m (+1.7% YoY).

• Adjusted EPS increased by 2% to €4.47; profit for shareholders rose 7.5% to €738m.

• Free cash flow for the last 12 months was €1.9bn, impacted by working capital outflow, expected to normalize by year-end.

• Net debt increased to €7,726m, leverage stable at 1.66x.

• RCOBD margin for Q2 2026 was 23.4% (-72 bps YoY); H1 2026 margin was 18.0% (-59 bps YoY).

Outlook and guidance

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

• Specific net CO2 emissions targeted at 510 kg/tonne, stable year-over-year.

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

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

• Construction sector shows initial signs of recovery, but inflation and high financing costs continue to weigh on residential construction.