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Heidelberg Materials AG
XMUN:HEI

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Heidelberg Materials AG
XMUN:HEI
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Price: 223.4 EUR 0.22% Market Closed
Market Cap: 26B EUR

Heidelberg Materials AG
Investor Relations

Heidelberg Materials AG, a stalwart in the construction materials sector, traces its origins back to the late 19th century. Its journey began on the banks of the Neckar River in Germany, where the company originally focused on cement production. Over the decades, what started as a modest family business evolved into a global powerhouse, becoming one of the largest suppliers of cement, aggregates, and ready-mixed concrete worldwide. This transformation was possible through strategic acquisitions and relentless innovation, enabling Heidelberg Materials to secure a formidable presence in more than 60 countries. The company embraces sustainability as a core tenet, diligently working to reduce its carbon footprint by investing in new technologies and environmentally-friendly materials, reflecting in its ongoing development of low-carbon products.

At the heart of Heidelberg Materials' business model lies diversification and integration across its operations. By maintaining control over its production processes, from raw material extraction to the delivery of finished products, the company enhances operational efficiency and scales its output effectively. The cement segment remains the cornerstone of its revenue, being critical to construction projects globally. Aggregates, such as sand and gravel, complement this, forming essential components for construction. The ready-mixed concrete segment bridges these materials, offering tailored solutions for specific building needs. The synergy between these segments not only fortifies Heidelberg Materials' market position but also allows the firm to deliver consistent value through a well-rounded product portfolio that meets the diverse demands of infrastructure and building projects around the world.

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Last Earnings Call
Fiscal Period
Q3 2024
Call Date
Nov 7, 2024
AI Summary
Q3 2024

Guidance Raised: Heidelberg Materials lifted its lower guidance band for RCO to EUR 3.1–3.3 billion, reflecting increased confidence for the rest of 2024.

Margin Progress: Q3 EBITDA margin exceeded 25%, and both EBITDA and EBIT rose 3% despite flat revenues.

Cost-Cutting Initiative: The new 'transformation accelerator' targets EUR 500 million in annualized savings by end-2026, with 40% of savings in 2025 and most efforts focused on Europe.

Strong North America: North America drove results with resilient pricing, disciplined cost management, and successful M&A, offsetting sluggish volumes.

Free Cash Flow: Last 12 months free cash flow was EUR 2 billion, with expectations to finish the year at a similar level.

Sustainability Push: The Brevik carbon capture project is on track for mechanical completion by December and will start up in the first half of 2025.

Volume Trends: European volumes are stabilizing, with strong Eastern Europe and signs of bottoming out in Western regions; Asia remains sluggish but shows recent improvement.

Key Financials
Operating EBITDA Margin
above 25%
Free Cash Flow
EUR 2 billion (last 12 months)
Leverage
1.5
RCO Guidance
EUR 3.1–3.3 billion
ROIC
around 10%
Scope Effect (EBITDA)
EUR 76 million year-to-date
Earnings Call Recording
Other Earnings Calls

Management

Contacts

Address
BADEN-WUERTTEMBERG
Heidelberg
Berliner Strasse 6
Contacts