Heidelberg Materials (HEI) Q3 2025 earnings summary

Executive summary

• Revenue increased by 1–1.4% year-over-year, with RCO up 5–5.5% and operating EBITDA margin up 65 basis points, reflecting strong operational performance despite challenging markets.

• Transformation accelerator program delivered €250 million in savings, halfway to the €500 million target, with 15 months remaining.

• Share buyback program is on track, with the second tranche of €1.2 billion to be completed by mid-December.

• Decarbonization leadership expanded with final investment decisions for major CCS projects, including Padeswood, and the launch of evoZero low-carbon products.

• Profit for the year rose to €2,130 million, and EPS improved to €10.92.

Financial highlights

• Q3 2025 revenue reached €5,807 million, up 1% year-over-year; operating EBITDA at €1,502 million, up 3%; RCO at €1,179 million, up 5%.

• 2025 revenue grew to €21,460 million, with RCOBD up 4% to €4,679 million and RCO up 5.5% to €3,381 million.

• Adjusted EPS increased by 4% to €8.7; reported EPS up 11% due to prior-year impairments.

• Free cash flow for the last 12 months reached €2.3 billion; year-end free cash flow at €2,109 million.

• Leverage at 1.5x, expected to fall to 1.2–1.3x by year-end.

Outlook and guidance

• RCO guidance narrowed to €3.3–3.5 billion for 2025; ROIC expected around 10%.

• CapEx to remain around €1.2 billion; leverage expected at or below 1.5x.

• Positive outlook for 2026, with expectations of improved pricing in Europe and the U.S.

• Slight reductions in CO2 emissions anticipated.

• Preliminary and unaudited figures for 2025 indicate continued focus on margin expansion and sustainable product revenue share.