Heidelberg Materials Wins Fresh Buy Calls as Its Cost-Cutting Pledge Faces a 2028 Deadline
Published on 11/07/2026 at 16:55 | Editorial boerse-global.de
Heidelberg Materials has given investors a new yardstick to judge it by: an extra EUR 300 million in savings, promised by the end of 2028. The group said on Wednesday it expects to beat its current cost target and intends to bank that additional relief over the next few years. How reliably that pledge turns into a stronger earnings base is now the question hanging over the stock.
The third-quarter figures published the same day show why execution matters. Revenue climbed 10% to EUR 6,413 million, while result from current operations (RCO) rose 9% to EUR 1,281 million. Earnings therefore grew, but not quite as fast as the top line — a gap that cost discipline could help narrow if the operating business loses momentum. According to dpa-AFX, savings measures, price increases and a steady recovery in demand all contributed to the quarter, with the group benefiting from firmer demand.
Analysts responded with a split verdict on valuation, even as most kept their positive ratings. Goldman Sachs lifted its target to EUR 220 from EUR 210 on Thursday and maintained its buy recommendation. RBC Capital Markets also raised its sights that day, moving to EUR 217 from EUR 211 while staying at "Outperform." JPMorgan, for its part, left the stock at "Overweight" on Wednesday with an unchanged EUR 225 target.
Should investors sell immediately? Or is it worth buying Heidelberg Materials?
Not everyone moved in the same direction. Berenberg trimmed its price target to EUR 210 from EUR 215 on Thursday but kept its "Buy" rating — a slightly more cautious read set against the raised targets elsewhere. The confirmed RCO guidance for 2026, a range of EUR 3.40 billion to EUR 3.65 billion, remains the concrete benchmark for the full year.
Beyond the numbers, Heidelberg Materials is reshaping its footprint. The company intends to shut its Paderborn cement plant permanently, and at its Skövde site activities will be concentrated on cement production from 2027. It has also confirmed an agreement to acquire the Swedish and Norwegian aggregates and asphalt operations of NCC AB's industrial division, extending its reach across both Scandinavian markets.
For shareholders, the takeaway is a two-speed story: near-term judgment rests on actual earnings delivery against guidance, while the longer view hinges on whether the savings program materializes on schedule. Should revenue keep outrunning operating profit, the cautious case gains weight; should the cost relief arrive alongside sustained growth, the bullish calls look better founded.
Ad
Heidelberg Materials Stock: New Analysis - 7 November
Fresh Heidelberg Materials information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
