Heidelberg Materials (ETR:HEI) used its 137th annual general meeting to highlight record 2025 results, a higher proposed dividend, continued share buybacks and progress on decarbonization and digitalization initiatives.
Bernd Scheifele, chairman of the Supervisory Board, opened the virtual AGM and said the company had again opted for an online format to ease shareholder participation, reduce travel-related environmental impact, facilitate access for international investors and lower costs compared with an in-person meeting. The public portion of the meeting included reports from Scheifele and Dr. von Achten, who presented the Managing Board’s review of the 2025 financial year and the outlook for 2026.
Company Reports Record 2025 Performance
Dr. von Achten said the company’s result from current operations, or RCO, rose 6% to EUR 3.4 billion in 2025. He also pointed to an operating margin of 21.8%, adjusted earnings per share of EUR 12.41, return on invested capital of 10.4% and free cash flow of EUR 2.1 billion. Specific net CO2 emissions fell 3% to 512 kilograms per ton of cementitious materials.
Dr. von Achten said the company’s performance was supported by three core elements: a diversified global footprint across roughly 50 countries, a focus on cement, aggregates and ready-mix concrete, and strict cost and price management. He described Heidelberg Materials as “an anchor of stability” in a period of rapid economic and political change.
Dividend Increase and Buyback Program Continue
The Managing Board and Supervisory Board proposed a dividend of EUR 3.60 per share for 2025, up from EUR 3.30 per share for the previous year. Dr. von Achten said the increase reflects the company’s progressive dividend policy and its goal of allowing shareholders to participate in the company’s success.
Heidelberg Materials also continued its 2024-2026 share buyback program, which has a total volume of up to EUR 1.2 billion. Scheifele said the company completed the second of three tranches on Dec. 1, 2025, repurchasing around 2.1 million shares for approximately EUR 400 million. Those shares were canceled on Jan. 29, 2026, with Supervisory Board approval. The third tranche is scheduled to begin in the current quarter after the AGM and is expected to be completed by the end of 2026.
Dr. von Achten said the combination of a higher dividend and the buyback program underscores the company’s ambition to remain an attractive long-term investment. He said total shareholder return in the past financial year was 87%, outperforming the German benchmark index.
Strategy 2030 Focuses on Growth, Efficiency and M&A
Both Scheifele and Dr. von Achten emphasized the company’s Strategy 2030, which aims to accelerate growth and profitability while maintaining a focus on the core heavy building materials business. Dr. von Achten said the company is positioned to benefit from megatrends including the energy transition, infrastructure expansion and renewal, urbanization, defense modernization and digitalization, while noting that private residential construction is currently lagging expectations.
The company also highlighted recent acquisitions. Dr. von Achten said Heidelberg Materials strengthened its position with a majority stake in Akçansa, one of Turkey’s largest cement producers, giving the company “an excellent export platform for international markets.” He also cited acquisitions including MAS Group in Australia, BURNCO Rock Products in Canada and Walan Specialty Construction Products in the U.S.
The Transformation Accelerator initiative, launched in November 2024, remains a key profitability lever. Scheifele said the company saved around EUR 380 million in the financial year under review, while Dr. von Achten said the initiative had delivered EUR 405 million in savings over the past 15 months. The company is targeting more than EUR 500 million in total savings by the end of 2026.
Decarbonization and Digital Tools Remain Central Themes
Scheifele said a major focus for the Supervisory Board in 2025 was the further development and implementation of the company’s sustainability strategy, including its updated CO2 roadmap and carbon capture and storage projects. He cited the delivery of evoZero, described as the world’s first carbon-captured net-zero cement from Brevik in Norway, and the Padeswood project in the U.K., which he said will enable almost entirely decarbonized cement production.
Dr. von Achten said the Padeswood CCS project shows the importance of government as a partner, with support for funding and infrastructure. He also discussed the CAP2U project in Lengfurt, Germany, a joint venture with Linde to build a carbon capture and liquefaction facility expected to go into operation shortly. Around 70,000 tons of CO2 per year are expected to be used as a raw material for the chemical and food industries.
The company also highlighted digitalization and artificial intelligence across its operations, including autonomous vehicles in quarries, the Spot robot dog for plant inspections, AI-supported safety monitoring, centralized cement plant control from the Heidelberg Materials Remote Optimisation Center in Texas, AI-powered concrete mix optimization and digital customer applications used by more than 40,000 customers each month.
2026 Outlook Confirmed
Dr. von Achten said Heidelberg Materials started 2026 with a “robust result” despite a challenging geopolitical environment and difficult weather conditions in many core markets. He said lower volumes in the first quarter were partially offset by cost discipline and price adjustments, and that demand had begun to recover noticeably in many markets at the start of the second quarter.
The company confirmed its full-year outlook for 2026, expecting result from current operations of EUR 3.4 billion to EUR 3.75 billion, return on invested capital above 10% and a further slight reduction in specific net carbon emissions.
Scheifele said the Supervisory Board looks to the future with confidence after a year of strong results, while Dr. von Achten said the company would continue investing and pursuing transformation with “discipline” and “sound judgment.”
About Heidelberg Materials (ETR:HEI)
Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products; natural stone aggregates, including sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts, such as stairs, ceiling elements, or structural components.
