Heidelberg Materials lifts third-quarter result 9% and expands its cost programme by EUR 300m
The German building materials group said growth momentum accelerated in Europe and North America, confirmed its 2026 guidance and extended its Transformation Accelerator Initiative to 2028.
Heidelberg Materials reported on 4 November 2026 that third-quarter revenue rose 10% to EUR 6,413 million from EUR 5,807 million a year earlier. Its result from current operations (RCO) increased 9% to EUR 1,281 million from EUR 1,179 million.
The company confirmed its 2026 outlook for RCO of EUR 3.40 billion to 3.65 billion and announced additional savings of EUR 300 million by the end of 2028. According to Reuters via Euronext, the shares advanced 9% in morning trading after sales came in above expectations.
A stronger third quarter
The Heidelberg-based group said the growth momentum that began to take shape in the second quarter accelerated further in the third. It pointed to strong business development in Europe and sustained growth in North America, together with active cost and price management, productivity improvements and a continuing recovery in demand.
"The growth momentum that began to take shape in the second quarter further accelerated in the third quarter," chairman of the managing board Dominik von Achten said in the statement. He described the result as "a great achievement by the entire Heidelberg Materials team in challenging times".
The revenue increase amounted to EUR 606 million year on year, while RCO grew by EUR 103 million. Heidelberg Materials did not change its full-year guidance, but said the positive development of the past two quarters supported its decision to confirm it. Return on invested capital is still forecast to remain slightly above 10%.
Cost programme extended to 2028
The Transformation Accelerator Initiative, announced in November 2024, will exceed its target of EUR 500 million in savings by the end of 2026, the company said. It will now be continued and expanded, with additional savings of EUR 300 million to be realised in nearly equal parts in 2027 and 2028.
Von Achten said the focus beyond operational excellence would be primarily on structural changes, especially in Europe. The company said special attention is being paid to its clinker and cement network in Europe, where some markets remain weak, and recalled that it announced the closure of its Ranville site in France on 16 September.
Acquisitions in the Nordics, Australia and Peru
Heidelberg Materials also continued to reshape its portfolio. On 7 October 2026 it signed an agreement to acquire the Swedish and Norwegian aggregates and asphalt activities of NCC's Industry business area, which operates 106 aggregates sites and 44 hot-mix asphalt plants.
On 1 October it completed the purchase of the construction materials business line of Australia's Maas Group, including 43 quarries with more than 350 million tonnes of reserves, 22 ready-mixed concrete plants, five asphalt operations and one recycling site. The same day it closed the acquisition of a 70% majority stake in Peru's Cementos Inka, adding two grinding and two ready-mixed concrete plants.
Buyback completed
The third and final tranche of the share buyback programme was completed on 1 October 2026, worth about EUR 448 million. The overall programme, announced in February 2024 with a volume of EUR 1.2 billion, has been completed as planned.
Carbon capture remains central
The company said construction of its carbon capture project at Padeswood in North Wales is progressing, with work on the main foundation under way and the first large plant sections expected on site from April 2027. The project aims to capture around 95% of the plant's CO2 emissions, about 800,000 tonnes a year, for permanent storage.
In July 2026, Heidelberg Materials and three other European cement producers opened what they describe as the world's first research facility for carbon capture using the pure oxyfuel process in Mergelstetten, Germany. The first high-purity CO2 was captured there in July.
Market reaction
The results landed on a busy earnings day. European shares rose on Wednesday, and RTTNews via finanznachrichten.de listed Heidelberg Materials among a series of companies whose numbers supported sentiment, alongside Continental, Pandora and Novo Nordisk.
What it means for European founders and investors
Heidelberg Materials is one of Europe's largest industrial buyers of decarbonisation technology, and its numbers show it has the cash flow to keep investing. The Padeswood and Mergelstetten projects create demand for carbon capture, transport and storage suppliers, while the push into low-clinker cement opens room for materials science startups.
The extended savings programme is also a signal: structural changes in European cement mean more automation, process optimisation and data tools, but also plant closures. Construction tech founders should watch where the group consolidates. For comparison with other industrial results this season, see our coverage of Continental and Airbus.
What happens next
Heidelberg Materials still has to close the NCC Industry deal and deliver the fourth quarter within its confirmed RCO range of EUR 3.40 billion to 3.65 billion.
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