Heidelberg Materials: Buying Through the Downturn, Positioned for a Construction Recovery

ANDRIEVSKII.CH | October 23, 2026

Heidelberg Materials is seeing early signs of a construction recovery. CEO Dominik von Achten said tentative improvements emerged in the third quarter, while projects linked to Germany’s €500 billion infrastructure package are beginning to move towards implementation.

Investment in energy infrastructure and data centres is gradually gathering momentum. The company is also discussing supplies of lower-carbon building materials with major technology groups.

High energy costs remain a headwind. In July, Heidelberg Materials lowered the upper end of its 2026 operating profit guidance from €3.75 billion to €3.65 billion, retaining the €3.4 billion floor. Price increases, cost savings and production optimisation remain central to its response.

Meanwhile, the group continues to expand. It increased its stake in Turkey’s Akçansa to 79.44%, completed the acquisition of Maas’s construction materials business in Australia, and announced deals involving Cementos Inka in Peru and NCC’s operations in Sweden and Norway. This expansion coincided with its €1.2 billion share buyback programme, whose final tranche amounts to up to €450 million.

Andrievskii Verdict

In my view, the company is deploying cash wisely and at the right time: strengthening its market position through acquisitions while repurchasing shares during a correction. This could support earnings per share as demand recovers. Following the share price decline, the stock looks attractive as a long-term investment, with infrastructure demand adding resilience. The acquisitions still need to prove their returns, but the strategic direction looks convincing.

On October 20, Deutsche Bank maintained its Buy recommendation while lowering its price target to €206. Against the €143.20 share price cited on the day, that implied approximately 44% upside.

Disclaimer: This publication is provided for informational purposes only and does not constitute personalised investment advice or a recommendation to buy or sell securities. Investments in financial instruments involve risks, including the potential loss of capital.

Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein