HeidelbergCement AG

For full-year 2025, Heidelberg Materials reported record RCO of EUR 3.4 billion, free cash flow of EUR 2.1 billion, leverage of around 1.2x, and ROIC of 10.4%. Adjusted EPS increased 4%, and reported group share profit was EUR 1.94 billion, up EUR 160 million. Management said EBITDA margin rose to almost 22%, Europe’s margin reached 20.5%, and shareholder return increased 10% to EUR 1.1 billion. Looking to 2026, the company guided RCO to EUR 3.4 billion to EUR 3.75 billion, ROIC above 10%, CO2 emissions slightly lower, CapEx slightly higher than 2025, and leverage around 1.5x.

Dominik von Achten framed 2025 as a record year and emphasized that the business is improving structurally, not just cyclically. He highlighted price-cost discipline, the Transformation Accelerator, decarbonization progress, and digital/automation efforts such as autonomous trucks and cloud-based workflow partnerships. His tone was confident and sometimes dismissive of market noise around ETS and CCS, saying Heidelberg Materials will stay financially disciplined and only invest when the business case is strong.

René Aldach focused on the mechanics behind the numbers: adjusted EPS up 4%, free cash flow at EUR 2.1 billion, cash conversion at 45%, ROIC at 10.4%, and leverage at 1.2x. He said reported fixed costs fell by EUR 40 million, or EUR 80 million on a like-for-like basis after inventory effects, and that restructuring cash out should be materially lower in 2026, which should help cash conversion move closer to 50%. He also said 2026 buybacks will continue, including a third tranche of about EUR 450 million after the AGM, and reaffirmed no equity raise for M&A.

Analysts focused on 2026 guidance, FX and scope effects, European ETS/benchmark changes, margin expansion, North American volume weakness, cash conversion, and whether M&A could require equity. Management said 2026 guidance embeds a three-digit million negative FX impact, scope contributes roughly 1.5% to 2%, and the rest implies about 8% organic growth before FX; it also said no equity raise is planned. On ETS, management said there is no sign of collapsing demand or falling prices for evoZero/evoBuild carbon capture products, and that any carbon-price-driven projects without a strong business case would simply be delayed.