HeidelbergCement AG

2025 reported RCO was EUR 3.4 billion, a record high. EBITDA margin rose to almost 22%, and Europe’s margin increased to 20.5%; management also cited a cement EBITDA margin of 30% in one region and an aggregate EBITDA margin of 33.3% in North America. Adjusted EPS increased 4%, free cash flow was EUR 2.1 billion, leverage was around 1.2x, and ROIC reached 10.4%. Management said shareholder returns were up 10% to EUR 1.1 billion, including dividend growth and share buybacks, and Transformation Accelerator savings reached EUR 380 million versus a EUR 500 million target by end-2025. For 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 struck an upbeat but disciplined tone, calling 2025 a record year and saying the company is “strongly” positioned for 2026. He emphasized structural profitability, decarbonization, digital/AI-enabled efficiency, and product innovation such as evoZero, while insisting these initiatives must translate into margin and cash gains. He also said Europe’s Q4 showed the benefits of the cost actions already taken and suggested more margin expansion is coming.

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 2025 included EUR 80 million of like-for-like fixed cost reduction tied to Transformation Accelerator, while restructuring cash outflow and higher CapEx weighed on free cash flow. He also said 2026 restructuring cash out should be materially lower, helping cash conversion move closer to 50%, and noted the third share buyback tranche will be the biggest at EUR 450 million after the AGM.

Analysts pressed on 2026 guidance, especially FX, scope/M&A, and what could drive the range. Management said the guidance includes a three-digit-million negative FX impact, scope adds about 1.5% to 2%, and organic plus scope together imply roughly 8% growth before FX; they also said the lower end depends partly on volume recovery, while upside could come from TAI, FX and scope. Questions on EU ETS and carbon prices prompted a firm response that there is no sign of collapsing demand or pricing for evoZero/evoBuild, and that if carbon-linked project economics worsen, Heidelberg would delay discretionary CapEx rather than force investments.