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Heidelberg Materials expects its core markets in Europe and North America to stabilize further this year, supporting a potential rise in operating profit of up to 10.3%. The company projects its RCO for 2026 between 3.4 billion euros and 3.75 billion euros (USD 4.0 billion 4.4 billion), compared with 3.4 billion euros in 2025. CEO Dominik von Achten highlighted optimism despite volatility in some regions, citing infrastructure and defense spending as key growth drivers. ROIC improved to 10.4% last year and is expected to remain above 10% in 2026, reflecting strong capital efficiency.
Heidelberg Materials, the world's second-largest cement producer, anticipates that its key construction markets, particularly in Europe and North America, will see further stability this year. The company expects its operating profit to increase by up to 10.3%, driven by steady demand in these core regions. It projects a result from current operations (RCO) between 3.4 billion euros and 3.75 billion euros (USD 4.0 billion 4.4 billion) for 2026, slightly higher than the 3.4 billion euros recorded in 2025. Analysts surveyed by the company have a median forecast of 3.7 billion euros. Advertisement
CEO Dominik von Achten expressed optimism about the financial year, acknowledging that while some markets remain volatile, the core regions are stabilizing. He highlighted that growth in building materials is expected to be supported by infrastructure and defense spending. Last year, Heidelberg Materials return on invested capital (ROIC) increased to 10.4% from 9.9% in 2024, and the company anticipates maintaining ROIC above 10% in 2026.
The company's focus on efficiency and disciplined capital allocation has helped it navigate previous fluctuations in the construction sector. With infrastructure projects expanding and demand in defense-related construction rising, Heidelberg Materials is positioned to leverage these trends to support steady earnings growth. Observers note that the European construction market had shown signs of stabilization last year, while North American demand remained resilient despite broader economic pressures.
Source Reuters
5th Jun, 2025
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