Heidelberg Materials (HEI) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw EBITDA and EBIT up 3% year-over-year, with EBITDA margin above 25% and stable or slightly declining revenue, reflecting resilience amid challenging conditions.

• North America delivered strong performance, supported by accretive M&A and disciplined cost management, while Europe remained stable and Asia showed signs of improvement.

• The Transformation Accelerator Initiative was launched, targeting €500 million in annualized result contributions by end of 2026 and asset efficiency in Western Europe.

• Free cash flow over the last 12 months reached €2 billion.

• Industry-first carbon-captured Net Zero cement and concrete to be offered in H1 2025.

Financial highlights

• Q3 2024 revenue was €5,756m (flat like-for-like), operating EBITDA at €1,451m (+3% LfL), and RCO at €1,124m (+3% LfL) compared to Q3 2023.

• 9M 2024 revenue at €15,750m (-2.1% year-over-year), operating EBITDA at €3,280m (+2% LfL), and RCO at €2,327m (+2% LfL).

• Adjusted earnings per share rose 14% to €8.8; leverage at 1.5x, impacted by share buybacks, acquisitions, and seasonality.

• Free cash flow for the last 12 months at €2.0bn.

• Issued two Green Bonds totaling €1.2bn with strong demand.

Outlook and guidance

• 2024 RCO guidance raised to €3.1–3.3bn (previously €3.0–3.3bn); ROIC expected around 10%.

• Confident in Q4 performance, expecting substantial organic EBIT growth and continued positive momentum into 2025.

• Transformation Accelerator expected to deliver 40% of savings in 2025 and 60% in 2026.

• Slight reduction in specific net CO₂ emissions per tonne of cementitious material targeted for 2024.