Heidelberg Materials Plans Profit Growth from Infrastructure Boom by 2030

Heidelberg Materials Plans Profit Growth from Infrastructure Boom by 2030

Heidelberg Materials, the world’s second-largest cement maker, announced plans for strong profit growth through 2030, powered by rising demand in infrastructure, defence, energy, data centres, and housing.

At its Capital Markets Day held at the company’s carbon capture site in Brevik, Norway, Heidelberg said its result from current operations (RCO) is expected to grow 7–10% annually until 2030.

The firm also expects its return on invested capital to rise from 10% in 2025 to around 12% by 2030. To support this, it will increase annual capital spending to about €1.3 billion ($1.5 billion) from the current €1.1 billion.

CEO Dominik von Achten said the company is benefiting from “five major trends” —

  1. Higher defence spending,
  2. Growing data centre demand,
  3. The global energy transition,
  4. Major infrastructure development, and
  5. A global housing boom.

“These are five decisive waves from which we are benefiting across the board,” von Achten told Reuters, noting that demand for heavy building materials like cement, concrete, aggregates, and asphalt is growing rapidly.

Heidelberg Materials’ shares have risen by more than 50% this year, giving it a market value of about €33 billion, as investors expect the company to benefit from Germany’s €500 billion public investment drive.

The company also announced a second round of capacity adjustments in Europe by 2030. It plans to close five high-emission clinker plants to improve efficiency and cut CO₂ emissions, while adding new grinding mills to expand cement output.

Von Achten said the goal is to “make a significant leap in margins in Europe” by focusing production where it is most cost- and energy-efficient.


Summary:

Heidelberg Materials is preparing for a decade of growth led by infrastructure and sustainability investments. With a focus on clean technology and efficient production, the company is positioning itself as a key player in Europe’s next construction boom.

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