- Heidelberg Materials reported a profit from current operations of €1.05 billion for Q2, a 7.9% increase from the previous year, surpassing the €1.03 billion estimate.
- The company’s Operational EBITDA for Q2 was €1.37 billion, up 6.8% year-on-year, slightly above the projected €1.36 billion.
- Overall revenue for Q2 was €5.68 billion, which represents a 3.2% increase year-on-year but fell short of the €5.72 billion forecasted.
- In the first half of the year, total revenue reached €10.40 billion, marking a 4% increase from the previous year.
- In North America, the profit from current operations edged up by 0.9% to €328 million, which was below the expected €339.2 million.
- The Asia-Pacific region showed significant growth, with a profit from current operations at €91 million, up 12% year-on-year, exceeding the €88.7 million estimate.
- The Africa-Mediterranean-Western Asia segment experienced a substantial profit increase of 44%, reaching €144 million, surpassing the €135.1 million estimate.
- The Group Services segment saw a decline in profit from operations, coming in at €10 million, reflecting a 9.1% decrease year-on-year.
- In terms of revenue, North America recorded €1.48 billion, a 3.6% increase year-on-year, but below the estimated €1.55 billion.
- The Europe region’s revenue was €2.58 billion, rising by 1.9% year-on-year, slightly under the projected €2.59 billion.
- The Asia-Pacific region encountered a revenue drop of 4.2% to €815 million, falling short of the €860.2 million expectation.
- Africa-Mediterranean-Western Asia reported €675 million in revenue, representing a 24% increase, exceeding the €614 million forecast.
- The Group Services segment experienced a 4.9% decline in revenue, amounting to €333 million.
- For the year, Heidelberg Materials anticipates a profit from current operations to lie between €3.25 billion to €3.55 billion, compared to the forecast of €3.38 billion.
- The company projects a Return on Invested Capital (ROIC) of around 10% for 2025.
- Heidelberg Materials foresees stabilizing demand in the construction sector and anticipates continued volatility in energy and raw materials markets, hence focusing on price adjustments and strict cost management.
- The second tranche of the 2024-2026 share buyback programme commenced in June, targeting up to €450 million, and aims for completion by December 15, 2025.
Heidelberg Materials on Smartkarma
Heidelberg Materials has garnered positive attention from analysts on Smartkarma, especially noted in the research report by Baptista Research. Titled “Heidelberg Materials – High-Stakes Global Acquisitions Powering the Next Growth Wave!”, the report highlights the company’s strong performance in the fiscal year 2024, showcasing significant advancements in various financial and operational aspects. Notably, Heidelberg Materials achieved a record Recurring Cash Operation (RCO) of EUR 3.2 billion and saw a substantial improvement in the EBITDA margin, which now stands at 21.3%, aligning with their target range set earlier.
A look at Heidelberg Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Heidelberg Materials AG, a company specializing in building materials and solutions, appears to have a promising long-term outlook based on its Smartkarma Smart Scores. With solid ratings in Growth, Resilience, and Momentum, the company seems well-positioned to expand and adapt in the market. The Growth score of 4 suggests potential for future development, while a Resilience score of 4 indicates the company’s ability to withstand economic challenges. Furthermore, Heidelberg Materials’ high Momentum score of 5 signals strong market momentum, reflecting positive investor sentiment.
Although scoring average in Value and Dividend, with both receiving a score of 3, Heidelberg Materials’ overall Smartkarma Smart Scores indicate a positive trajectory for the company. As a producer and distributor of cement, aggregates, and ready-mixed concrete serving customers globally, the company’s combination of growth potential, resilience, and market momentum bodes well for its future performance in the building materials sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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