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, driven by strong North American performance, disciplined cost management, and accretive M&A activity.

• The Transformation Accelerator Initiative was launched, targeting €500 million in annualized result contributions by end of 2026, focusing on asset optimization and cost leadership, especially in Europe.

• Free cash flow over the last 12 months reached €2.0 billion, with leverage at 1.5x, slightly up due to share buybacks and acquisitions.

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

• Multiple acquisitions in the US, UK, Morocco, and Malaysia expanded the portfolio, especially in aggregates, recycling, and circular solutions.

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 (-3% LfL), operating EBITDA at €3,280m (+2% LfL), and RCO at €2,327m (+2% LfL) year-over-year.

• Adjusted earnings per share rose 14% to €8.8; leverage at 1.5x.

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

• Group RCOBD margin improved by 106 bps to 20.8%; RCO margin increased by 67 bps to 14.8%.

Outlook and guidance

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

• Confident in Q4 performance, expecting substantial organic EBIT growth and supported by positive October trends.

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