Heidelberg Materials (HEI) investor relations material

Executive summary

• Q1 2026 revenue was €4,536 million, down 4% year-over-year, mainly due to adverse weather in the US and Europe impacting volumes and leading to a 30% drop in RCO to €163 million.

• Transformation Accelerator Initiative delivered €405 million in savings by March 2026, targeting €500 million by year-end.

• Share buyback increased to €450 million, with the third tranche to start after the AGM; dividend proposal up 9% to €3.60 per share.

• Strategic acquisitions in Australia (Maas Group) and Turkey (Akçansa) are progressing, strengthening the growth trajectory and Mediterranean presence.

• Major investment in the French Airvault plant completed, with a new kiln line improving efficiency and reducing carbon footprint by 30%.

Financial highlights

• Revenue declined to €4,536 million, down 4% year-over-year; RCO dropped 30% to €163 million; RCOBD margin at 10.7%, down from 11.8% prior year.

• Operating EBITDA was €484 million, down 13% year-over-year.

• Group margin (LTM) increased to 21.6%; cement and aggregates LTM EBITDA margins improved to 27.5% and 25.7%, respectively.

• Dividend proposal increased to €3.60 per share.

Outlook and guidance

• Full-year 2026 RCO guidance confirmed at €3.40–€3.75 billion, with ROIC expected above 10%.

• CapEx guidance at €1.2–€1.3 billion; leverage targeted around 1.5x.

• No contribution from Maas or Akçansa included in current guidance; earlier consolidation would be an upside.

• Slight reduction in specific net Scope 1 CO₂ emissions per tonne of cementitious material expected.

• Management remains confident in achieving guidance despite geopolitical and market volatility.