Heidelberg Materials (HEI) Q3 2025 earnings summary

Executive summary

• Revenue increased by 1.4% year-over-year to €21,460m in 2025, with recurring operating income (RCO) up 5.5% and EPS improving to €10.92.

• Operating EBITDA margin rose by 65 basis points year-over-year, supported by €250m in transformation savings.

• Share buyback program's second tranche of €1.2bn is on track for completion by December.

• Major decarbonization milestones achieved, including FID for CCS projects and launch of evoZero® cement.

• Free cash flow remained robust at €2.3bn for the last 12 months, supporting investment and shareholder returns.

Financial highlights

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

• Adjusted EPS increased by 4% to €8.7; reported EPS up 11%.

• Last 12 months' free cash flow at €2.3bn; leverage at 1.5x.

• RCOBD margin improved to 21.8% year-over-year.

• Net debt increased to €5,715m, while equity declined to €19,301m.

Outlook and guidance

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

• CapEx to remain around €1.2bn; leverage expected below 1.5x.

• CO2 emissions expected to decrease slightly.

• Continued focus on margin expansion and sustainable product revenue share.