HeidelbergCement AG

For full-year 2025, Heidelberg Materials reported RCO of EUR 3.4 billion, free cash flow of EUR 2.1 billion, leverage of around 1.2x, ROIC of 10.4%, and shareholder returns of EUR 1.1 billion. Dominik von Achten said adjusted EPS was up 4%, group share profit was EUR 1.94 billion, and the company generated a record EBITDA margin of almost 22%; he also highlighted European margins of 20.5%. On the cost side, the Transformation Accelerator had already delivered EUR 380 million of savings, versus a EUR 500 million target by end of this year. For 2026, the company guided RCO to EUR 3.4 billion to EUR 3.75 billion, ROIC above 10%, slightly lower CO2 emissions, slightly higher CapEx, and leverage around 1.5x. Management said the guidance assumes a negative FX impact in the low hundreds of millions, with scope/M&A contributing some upside and organic growth around 8% before FX, based on René Aldach’s comments.

Dominik von Achten framed 2025 as a record year and emphasized structural profitability improvements, decarbonization leadership, digitalization, and a stronger product mix through evoZero and evoBuild. He said the company is “the clear leader” in decarbonization and is using CCS, automation, and AI to support margins and growth, not just sustainability messaging. His tone was confident and openly dismissive of market noise around ETS and CCS, repeatedly saying the business remains financially disciplined and that investments only proceed when the business case is strong.

René Aldach focused on the financial bridge: adjusted EPS up 4%, RCO and EBITDA supported by price-over-cost, and free cash flow of EUR 2.1 billion despite higher CapEx and restructuring cash out. He said fixed costs were reduced by EUR 40 million reported, or EUR 80 million on a like-for-like basis after inventory effects, and noted restructuring cash out should be materially lower in 2026. He also said leverage remains comfortably below target at 1.2x, shareholder returns will rise further in 2026 with the last buyback tranche of about EUR 450 million, and the company is staying within its strict M&A return framework (Maas at AUD 1.7 billion, or about EUR 950 million, after synergies at an 8.4x multiple).

Analysts pressed on 2026 guidance assumptions, ETS benchmarks, European pricing, North American volume declines, cash conversion, and the scale of future M&A. Management said 2026 guidance already includes a negative FX headwind of roughly 3%, about 1.5% to 2% scope contribution, and that any upside would come from timing, FX, and further M&A closings. On ETS, the company said there is no impact on current pricing or price-cost spread expectations and no sign of collapsing demand for evoZero/evoBuild; if carbon prices fell sharply, management said it would slow or stop CO2-price-dependent CapEx rather than force weak projects through. On North America, they pushed back on the severity of the volume decline, saying weakness was driven mainly by ready-mix rather than cement or aggregates, and on M&A they said there will be no equity raise and acquisitions will stay within core markets and strict return hurdles.