Heidelberg Materials AG (ETR:HEI) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Heidelberg Materials AG (ETR:HEI) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to €161 in the week after its latest quarterly results. Results overall were respectable, with statutory earnings of €10.92 per share roughly in line with what the analysts had forecast. Revenues of €6.0b came in 3.5% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Heidelberg Materials from 16 analysts is for revenues of €22.2b in 2026. If met, it would imply a credible 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 9.9% to €12.75. In the lead-up to this report, the analysts had been modelling revenues of €22.1b and earnings per share (EPS) of €12.84 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Heidelberg Materials
There were no changes to revenue or earnings estimates or the price target of €215, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Heidelberg Materials analyst has a price target of €286 per share, while the most pessimistic values it at €140. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Heidelberg Materials' rate of growth is expected to accelerate meaningfully, with the forecast 4.3% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.0% per year. Heidelberg Materials is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €215, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Heidelberg Materials analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Heidelberg Materials that we have uncovered.
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