Heidelberg Materials, one of the world’s top cement producers, has started the 2025 financial year on a solid note, with better-than-expected earnings in the first quarter. The German company, which trades on the Frankfurt Stock Exchange under the ticker HEIG.DE, announced on Thursday that its Result from Current Operations (RCO) rose to €235 million (approximately $266 million). This figure surpassed the average forecast of €207 million provided by analysts.
The company’s Chief Executive Officer, Mr. Dominik von Achten, expressed satisfaction with the company’s performance in the early months of the year. In a statement released to journalists, he said, “Despite the political and economic uncertainties as well as difficult weather conditions in some regions, we got off to a very good start to the 2025 financial year.”
Heidelberg Materials credited much of its success to strong growth in Africa. Though the company did not name specific countries, it acknowledged that the continent continues to show signs of economic development and rising demand for building materials. This positive momentum mirrors the performance of another major player in the cement industry, Holcim. The Swiss-based company had also recently pointed to robust activity in North Africa as a key factor behind its better-than-expected first-quarter results.
Heidelberg Materials confirmed its full-year forecast, maintaining expectations for 2025 RCO to range between €3.25 billion and €3.55 billion. This projection aligns closely with the market’s average estimate of €3.44 billion, showing that the company remains optimistic about its financial targets for the year.
In terms of regional performance, the company revealed that while Africa and some other areas experienced growth, North America did not perform as well. The region, which makes up more than 20% of the group’s total sales for the quarter, saw a sharp decline. According to the report, RCO from North America dropped by nearly two-thirds, highlighting the mixed global landscape in which the cement industry is currently operating.
Market experts say the fall in North America could be due to a combination of economic slowdown, policy shifts, or possibly seasonal factors that affect construction activity. Nevertheless, the overall global performance of Heidelberg Materials in the first quarter was strong enough to keep investor confidence steady.
The positive news comes at a time when many industries around the world are grappling with inflation, supply chain disruptions, and geopolitical tensions. The cement industry, however, seems to be holding its ground—especially in regions where infrastructure development is a key focus.
As of the time of reporting, €1 equals approximately $1.13 (based on the given conversion rate of $1 = 0.8830 euros). Heidelberg Materials’ performance shows that with smart operations and strategic regional focus, companies can still thrive even during uncertain times.
