Heidelberg Materials (HEI) Q4 2025 earnings summary

Executive summary

• Achieved record financial results for 2025, with RCO at €3.4 billion and EBITDA margin rising to 21.8%, supported by Transformation Accelerator Initiative savings of €380 million.

• Free cash flow reached €2.1 billion, leverage stable at 1.2x, and ROIC hit a record 10.4%.

• Shareholder return increased 10% through progressive dividend and share buybacks totaling €1.1 billion.

• Launched evoZero®, the world’s first carbon-captured near-zero cement, and advanced CCS projects.

• Maintained growth trajectory despite challenging market conditions, supported by strict cost management and diversified geographic presence.

Financial highlights

• Revenue increased 1% year-over-year to €21.5 billion; RCO up 6% to €3.4 billion.

• Adjusted EPS rose 4% to €12.41; ROIC improved to 10.4%.

• Free cash flow at €2.1 billion with a 45% cash conversion rate.

• Net debt increased, but leverage remained flat at 1.2x.

• RCOBD margin improved to 21.8% from 21.3% year-over-year.

Outlook and guidance

• 2026 guidance: RCO expected between €3.40–3.75 billion, ROIC above 10%, and further CO₂ emission reductions.

• CapEx net guidance €1.2–1.3 billion, with leverage to stay around 1.5x.

• Positive outlook for North America, Africa, Mediterranean, Western Asia, and continued strength in Europe, especially Eastern and Southern regions.

• Asia Pacific expected to see good momentum in Australia and India, with some challenges in Indonesia and China.

• Anticipates further reduction in specific net CO₂ emissions and continued growth in core markets.