Uncovering Hidden Value: Heidelberg Materials' Earnings Potential Beyond Statutory Profit

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