Heidelberg Materials grows six percent and still trims its profit range

Heidelberg Materials generated revenue of 6.044 billion euros in the second quarter of 2026, a rise of around six percent against 5.683 billion euros in the same quarter last year. Result from current operations rose four percent to 1.086 billion euros.

At the same time the building materials group has cut the upper end of its full year guidance. For 2026 it now expects adjusted operating profit of 3.40 to 3.65 billion euros. Previously the range had run to 3.75 billion euros.

The share then closed at 161.65 euros with a daily loss of three percent. Since the start of the year it is down 27.71 percent.

The short version

• Revenue rose around six percent in the second quarter of 2026 to 6.044 billion euros, and result from current operations four percent to 1.086 billion euros.
• The upper end of full year guidance was cut, and adjusted operating profit of 3.40 to 3.65 billion euros is now expected.
• The margin fell from 24.2 to 23.4 percent, and the share closed at 161.65 euros with a daily loss of three percent.

The margin is the sore point

The reason for the cut sits not with revenue but with the margin. It fell from 24.2 to 23.4 percent.

The business is therefore growing while profitability slips slightly. Exactly that gap explains why a quarter with rising revenue and rising profit still leads to a lowered guidance.

For a building materials maker the margin is the decisive measure. Cement is a product with high energy input and high transport costs. If those costs rise faster than prices can be pushed through, the margin falls even when more is sold.

Over the first half revenue came to 10.580 billion euros, up two percent. Adjusted earnings per share also rose two percent to 4.47 euros. Below the line a half year profit of 738 million euros remained after 686 million euros a year earlier.

A first recovery in demand

Chief executive Dominik von Achten spoke of a first noticeable recovery in demand in the core markets and of an environment that remains very challenging both geopolitically and economically.

For the second half the group is confident of reaching the narrowed guidance.

Alongside organic development the company names acquisitions as a growth driver. Businesses in North America and in Turkey were acquired. At the Turkish associate Akcansa the stake was raised to 79.44 percent.

The tidying of the portfolio runs in parallel. On 8 July the sale of all shares in a cement maker in Kazakhstan was completed.

Sustainable products at 38 percent

One figure the group reports separately concerns the reshaping of its product range. The revenue share of sustainable products rose to 38 percent in the first half.

Specific carbon dioxide emissions were 510 kilograms per tonne of cementitious material and therefore at the level of the previous year.

That measure is central for the industry. Cement production releases carbon dioxide not only through the energy used but also chemically when the limestone is burned. A considerable part of the emissions therefore cannot be avoided through green power alone, but only through changed recipes or through capture.

That emissions per tonne are flat while the share of sustainable products rises shows how slowly this conversion shows up in the overall balance.

What counts for the coming quarters

The core question for the further course is whether the margin pressure eases. Within the range of 3.40 to 3.65 billion euros, the relationship of prices to costs decides where the full year result lands.

The construction industry remains heavily dependent on the economic cycle. Interest rates, public investment programmes and housing construction determine demand far more strongly than measures taken by the company itself.

On top of that comes the investment needed to convert production, which ties up capital for years before it shows in the results.

The gap between operating performance and the share price remains striking. A group that raises revenue and profit has lost more than a quarter of its market value since the start of the year.

Frequently asked questions

Why is guidance cut even though revenue rises

The reason sits not with revenue but with the margin. It fell from 24.2 to 23.4 percent. For a building materials maker the margin is the decisive measure, because cement is a product with high energy input and high transport costs.

How is the reshaping of the product range going

The revenue share of sustainable products rose to 38 percent in the first half. Specific carbon dioxide emissions were 510 kilograms per tonne of cementitious material and therefore at the level of the previous year.

What counts for the coming quarters

The core question is whether the margin pressure eases. Within the range of 3.40 to 3.65 billion euros, the relationship of prices to costs decides where the full year result lands. Interest rates, public investment programmes and housing construction determine demand.

This analysis is for information only and is not investment advice.