Heidelberg Materials reported lower first-quarter earnings for 2026 as adverse weather conditions in Europe and the northeastern USA, alongside geopolitical uncertainty and higher energy costs, weighed on volumes and profitability.
Group revenue declined 3.8 per cent YoY to EUR4.54bn (US$5.34bn) in the January-March period, while result from current operations (RCO) fell 30.4 per cent to EUR163m from EUR235m in the prior-year period. RCO before depreciation and amortisation (RCOBD) decreased 13 per cent to EUR484m, with the RCOBD margin falling to 10.7 per cent from 11.8 per cent.
The company said volumes were affected by “partly adverse weather conditions”, particularly in Europe and the northeast of the USA, as well as ongoing political and economic uncertainty and the escalation of conflict in the Middle East.
Europe recorded the sharpest regional decline, with revenue falling 5.3 per cent to EUR2.04bn and RCO almost halving to EUR39m. In North America, RCO moved into negative territory at minus EUR18m despite broadly stable revenues.
Heidelberg Materials said its Transformation Accelerator Initiative, launched in 2024, had already generated EUR405m in savings through production network optimisation, efficiency improvements and technical initiatives, with a target of at least EUR500m in savings by the end of 2026.
The company also highlighted several strategic developments during the quarter, including the opening of the new kiln line at its Airvault plant in France, the planned acquisition of Australia’s Maas Group and the increase of its stake in Turkish producer Akçansa to 79.44 per cent.
Heidelberg Materials confirmed its full-year outlook, forecasting 2026 RCO of between EUR3.4bn and EUR3.75bn, while continuing to expect a slight reduction in specific net Scope 1 CO2 emissions.
