Heidelberg Materials (HEI) Q4 2024 earnings summary

Executive summary

• Achieved record RCO of €3.2 billion and EBITDA margin of 21.3%, meeting target corridor despite volume pressure.

• Free cash flow remained strong at €2.2 billion, reducing leverage to 1.2x.

• Shareholder returns exceeded €1 billion, with a €1.2 billion share buyback initiated and first tranche completed.

• "Transformation Accelerator" launched, targeting €500 million result contribution by 2026.

• Annual financial statements prepared under German Commercial Code, confirmed by audit with no reservations.

Financial highlights

• Revenue at €21.2 billion, down 2% like-for-like; operating EBITDA up 6% to €4.5 billion.

• Adjusted EPS rose 11% to €11.9 per share; five-year adjusted EPS CAGR of 15%.

• Free cash flow stable at €2.2 billion; net debt flat at €5.3 billion; leverage improved to 1.18x.

• ROIC at 9.9%, slightly below 10% due to currency and acquisition timing.

• Dividend of €3.30 per share proposed, totaling €588.8 million.

Outlook and guidance

• RCO guidance for 2025 set at €3.25–3.55 billion, with ROIC around 10%.

• CapEx to rise by €100 million, mainly for carbon capture projects; net CapEx expected at ~€1.2 billion.

• Positive volume development expected in 2025, especially in North America and Europe.

• CO2 emissions targeted for further slight reduction.

• Share buyback program of up to €1.2 billion launched, with further tranches planned through 2026.