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Uncovering Hidden Value: Heidelberg Materials' Earnings Potential Beyond Statutory Profit
ByAinvest
Friday, Aug 8, 2025 1:52 am ET1min read
Heidelberg Materials AG's earnings announcement didn't significantly impact the stock price, but our analysis reveals positive underlying factors. The company's profit was reduced by €351m due to unusual items, but these are often one-off and may not repeat. Analysts forecast improved profitability next year, and EPS has increased 28% annually over the last three years. Despite investment risks, Heidelberg Materials' earnings potential is at least as good as it seems.
Heidelberg Materials AG reported its earnings for the half-year ended June 30, 2025, with sales reaching EUR 10,416.9 million, a 4% increase compared to the same period last year [1]. Net income was EUR 686.2 million, an improvement of 20% year-over-year, despite a reduction of EUR 351 million due to unusual items [1]. Basic earnings per share (EPS) from continuing operations increased to EUR 3.89, up 22% from EUR 3.19 a year ago [1].Analysts have largely maintained their positive outlook on Heidelberg Materials. Post-earnings, analysts forecast revenues of EUR 22.1 billion for 2025, representing a 2.1% increase from the previous 12 months, and per-share earnings are expected to expand by 17% to EUR 12.28 [2]. The consensus price target remains unchanged at EUR 189 per share, indicating analysts' confidence in the company's execution and growth prospects [2].
Despite the unusual items impacting net income, the company's EPS has increased by 28% annually over the last three years, reflecting robust operational performance. Analysts expect Heidelberg Materials to continue growing faster than the broader industry, with an annualized revenue growth rate of 4.3% projected to the end of 2025 [2].
References:
[1] https://www.marketscreener.com/news/heidelberg-materials-ag-reports-earnings-results-for-the-half-year-ended-june-30-2025-ce7c5fd2df8df522
[2] https://simplywall.st/stocks/de/materials/etr-hei/heidelberg-materials-shares/news/analysts-have-made-a-financial-statement-on-heidelberg-mater
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