Heidelberg Materials expects a solid operating performance in 2026, with improving cement volumes and margins across key markets, according to group chief executive Dr Dominik von Achten.
Speaking to BNP Paribas, von Achten said the group anticipates slightly higher cement volumes this year, supported by modest growth in the United States and early signs of recovery in Europe, excluding the UK. Germany’s construction sector could benefit from a planned stimulus package, while price increases in both the US and Europe are expected to support margins. Energy risks are also limited, with around 50 per cent of the group’s energy needs hedged for 2026.
Von Achten said a ceasefire in Ukraine could indirectly benefit Heidelberg Materials, if neighbouring countries could supply building materials to a rebuild of Ukraine. Moreover, Ukraine’s cement dumping into Eastern Europe would stop immediately, and Türkiye could play an important role in reconstruction, potentially supporting US cement prices if imports to the US from Türkiye ease back.
On regulation, von Achten said he does not expect the EU’s Carbon Border Adjustment Mechanism (CBAM) to be rolled back. He doesn’t see amendments like progressive phasing out of CO2 allowances and reducing the benchmark upon which they are based happening. He is clear that evolving regulation and higher CO2 prices will reshape the industry and steepen the cost curve. He added that CCUS will play an important role in decarbonisation for the group and leading solutions like SCMs. But he believes not everyone will survive and that European consolidation is likely.
European focus
The European market has been a focus for Heidelberg Materials with the start of deliveries of evoZero®, the first carbon captured cement from Brevik, Norway. In Germany, evoZero will be used in the DRIEHAUS project to build 3D-printed houses. The final investment decision for the CCS project at Padeswood is maintaining Heidelberg Materials’ role as a pioneer for embracing decarbonising technologies. This was further supported by the EU Innovation Fund’s selection for grant preparation of the Anthemis project in Belgium, AirvaultGoCO2 investment on France, DREAM in Italy and HuCCsar project in Poland. These projects will form part of the Innovation Fund's Net-Zero Technologies Call.
Growth and transformation
Heidelberg Materials' plans include accelerating growth using a strong balance sheet with an estimated EUR10bn excess cash war chest by 2030. There are opportunities to grow organically and pursue M&A options in US aggregates and further buybacks. The group also announced its efforts to expand its portfolio of low-carbon products in North America following the purchase of Walan Speciality Construction Products in Delaware, USA, in November 2025.
Green finance is a growing vehicle for the group that has successfully placed its third Green Bond as part of its Green Finance Framework. The issue amounts to EUR600m until 2036. Following the first two Green Bonds with a total volume of EUR1.2bn, Heidelberg Materials is aligning sustainable finance measures with operational investments. The funds will support plant modernisation, increased alternative fuels and carbon capture technologies.
Heidelberg Materials has worked on its Transformation Accelerator Initiative since November 2024 when it was introduced. The initiative targets optimisation of the production network, cross-functional efficiency enhancements and technical initiatives on a global scale. It is expected that the programme will bring savings of EUR300m by the end of 2026.
While the group’s stock price has improved the multiples haven’t rerated to match the value of some peers, despite Heidelberg Materials' leadership not just in decarbonisation, but in digital and circularity.
