HEICO Corporation Stock Price: Quote, Forecast, Splits & News (HEI)

Perplexity Finance

HEI

HEICO Corporation

HEI

NYSE

Market Closed

Thursday, May 22, 2025

$268.84

-$8.28

2.99%

At close: May 21, 4:00:02 PM EDT

$268.80

-$0.04

0.01%

After hours: 7:48:27 PM EDT

Change

-$8.28

2.99%

Financial Profile

Prev Close

$277.12

Market Cap

$32.61B

Day Range

$268.27 - $278.20

Open

$276.70

P/E Ratio

66.4

52W Range

$211.92 - $283.60

24H Volume

$88.59M

Dividend Yield

0.08%

EPS

4.05

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

8m 53s

Good afternoon, ladies and gentlemen, and welcome to Heidelberg Materials First Quarter twenty twenty five Trading Update Conference Call. My name is Youssef, your Chorus Call operator. I would like to remind you that all participants will be in listen only mode and that this conference is being After the presentation, a Q and A session will follow. Assistance, please press star followed by 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Christoph, [indiscernible] Please go ahead.

9m 29s

Thank you, operator. Good afternoon, everyone. Good morning. For our q one conference call. As always in the room, we have Dominic Van Aatten, our CEO then Heidelberg, CFO and Robert and Ozan from the IR team. Look forward to discussing the Q1 results with you. We have prepared a couple of slides Dominic will go through and then we look forward to your questions. Over to you, Dominik. Chris, thanks a lot. Hello, everybody.

10m 2s

Very warm welcome from us here in Heidelberg. Thanks for joining. I'll turn to the presentation that has been shared and just go through it and draw a little bit the red line in the sand as always, and then we are looking forward to your questions. If you go to summary, I think it was a very encouraging start for us in 2025. Strong results despite, as you well know, difficult weather conditions. Revenue up more than 5%, RCO almost 1.5% up So a year over year improvement both on the revenue side and on the RCO line. That was not so much help across the world everywhere by the market. When it comes to volume especially, but we helped ourselves with the Transformation Accelerator program, which contributed a strong €50,000,000 already year to date in the program. And we are well on track to get to our €500,000,000 target. With that tailwind, we obviously continue as promised our €1,200,000,000 share buyback and open the second tranche within May as we have announced and promised earlier, stick to what we have said. The growth path and that's important continues The larger transactions in The U. S, Giant is closing on time.

11m 26s

And that means closing was on April 1. And since then, it's taking long already. And the other point that is important from our side to stress is the M and A pipeline around the world is very well filled. On Brilich, very good news. We had started actually now capturing CO2. We've liquefied it. And we've already temporarily stored it. And the ship is also out there testing the connection. So everything is set for the opening of the plant June. We are fully on track. And with all of that, we confirm our outlook to deliver an RCO between €3,250,000,000 and €3,550,000,000 The ROIC will be around 10% and the CO2 emission will be slightly reduced. If you go to Page three, you see the numbers up on revenues, basically flat on EBITDA, basically flat on the margin and slightly up on RCO. So I think a good quarter also in the historical content and then especially given the weather conditions. If you go to Page four, you see the bridge As I said earlier, this was not really helped by the market because the volume is still negative. So there are a couple of markets where volumes are not our friends.

13m

But price over cost is working well in a combination of good pricing and even better cost discipline and that altogether then leads to a positive price over cost. Chart. Talking about cost, Page five shows you, we have announced the CHF500 million and we are already at 10% of that year to date. Only a couple of months into the program. It's fully set up organizationally. It's fully set up process wise. We're following up in every quarterly management meeting per country. And I can tell you personally from our recent discussions with all of the countries, we are fully on track to deliver what we have promised. When you then turn to the different regions, you see Europe stabilizing on a higher level, with revenues being slightly up, EBITDA margin flat, RCO slightly down okay, early days that's always a winter quarter for us. You see also the absolute amount of result is compared to what they need to deliver for full year basically zero. So I think in that respect, important to get out of the gate quite well and that worked okay from our perspective. [indiscernible] Europe. North America, to be honest, a little bit of rocky road in the first quarter, also weather driven, as you have heard from other publications.

14m 29s

Result dropped, okay, also there the magnitude of the drop looks steep in the graphs, but CHF 16,000,000 in the scheme of the total year is fairly a very small number. I think overall revenues stabilizing just below the CHF1 billion. And also from a business line EBITDA margin, I think we are more or less close to the 30% or above. So I think in that respect, that's okay. Asia Pacific, ready to get going again. This is actually from our perspective very positive. You know that in the last two or three years, we were always hoping for a rebound in Asia, also working hard there. Now Roberto Pajera and his team have really worked hard on the costs and productivity. And now the markets are also coming back one by one. So in that respect, we are quite optimistic for Asia for the remainder of the year. And the first quarter was actually quite good. Stabilized on last year's level. So overall fine despite the fact that Australia, for example, is a market is still down in the market, but also the other team has done a good job. On cost discipline. I would say the star of the quarter is our African Mediterranean and West Asian performance.

16m

That has really for the first time ever surpassed the revenue level of €500,000,000 in the first quarter and they've surpassed for the first time €100,000,000 result in just one quarter. And look at the margin development, I think there is nothing to add in that respect. Those figures I think talk for themselves. And we remain very optimistic also for that area. On Page 10, you see then the highlights on sustainability. As I said earlier, capturing of CO2 is working with a massive unit there. The storage temporarily is also working and the ship is there and the connection is being done. All of that will be presented to you in our nice Capital Market Day at the end of the month.

16m 48s

You should should expect not only nice discussions with us, but also a beautiful landscape in a around Brevik. So in that respect, welcome to all of you that join us. And then almost a little bit unnoticed, we already opened the largest calcined clay plant in the world in Ghana outside of Accra. And is now fully in production. It's working and we are selling and marketing the products that are completely new to the market in West. Africa. And then wrapping it up on Slide 11, I need to repeat the numbers but just to add, we also stick to our CapEx guidance of €1,200,000,000 and also on the leverage, we stay comfortably between one point five percent and two in brackets. Right now, we are clearly below. So let's wait and see what the year brings. I don't need to wrap up again with the executive summary. I would argue, let's go directly into your questions. And we are looking forward to them.

18m 1s

Thanks. [indiscernible] Children's suite, it's a small quarter for us. So please operator, would you start the M and A? M and A Q and A, sorry. He's already in M and A mode, our communication team. That's good. You know, this is how you, how you get the story rolling. Good.

18m 20s

Ladies and gentlemen, we will now begin the question and answer session. Will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone wants a question, may press star one at this time.

18m 43s

Okay. The first question comes from Elodie Roll from JP Morgan. Elodie, hello. Say hello.

18m 49s

Hello. Thanks for taking my questions. So I'll limit them to two, but I was wondering if you could give us a bit of color about the exit rate at the end of Q1, in particular, in the regions which were impacted by bad bad weather. And if you've seen so the exit rate and if you've seen basically current trends, so basically April and yet to date, in May. If you've seen some acceleration in performance and if you've seen volumes turning positive, So that's my first question. And the second question would be on pricing. If you could give us a bit of color about the pricing element in Q1, how much was that? And if you have pushed more price increases in April, Thank you.

19m 44s

I believe, sorry, maybe that was a technical issue at the very beginning. Can you just repeat the first part of your question? When you say exit rate, what do you mean what is exit rate Just to be sure that everybody on the call also understands exactly what you are talking about.

20m 1s

Yeah. I was just asking for some color about the sequential improvement between the beginning of the quarter January, February being quite bad, and March. And the current trends since then.

20m 15s

Yes. Okay, fair enough. So let me start and then maybe Rene can add. I think let me start with your volume I guess that's the exit rate. And you are right, January, February was fairly slow. Weather was was harsh in some parts of the year. So it was sluggish. Then March was strong. And basically made up in many cases for the weak start. But there is no break off in April from our perspective from what the exit of March was. I think that's what you asked. So for us, we sit here fairly relaxed Ladies and gentlemen, we have lost connection with the The conference will continue shortly.

21m 58s

Hello? Hello? Yep. Hello?

22m 5s

Elodie, can you hear us again?

22m 7s

Yes.

22m 8s

Okay. Sorry. Somehow somehow the line got so excited about what I was telling you. So let's get back to your exit rate question around volumes. As I said, January, February was weak in volumes. March was good. And we do not see a negative exit rate of March going into April. In fact, the trend goes from our perspective in the right direction. And you have to even keep in mind that there is a working day shift to that hits April at least in Europe to some extent because last year, Easter was in March and this year, Easter is in April, okay? Then you have Ramadan around the world. So more or less, from our perspective, the exit is absolutely fine. No concerns from our perspective. Pricing, holding up well. Of course, there's a mixed picture around the world. But we are going constantly for price increases. You know that there is not this normal rhythm once a year and then you are done and we always try to go in January. Then it's whether you go and forth with things. But there are still price increases coming in many markets of the world. There are second price increases coming in some parts of the world.

23m 22s

But from our perspective, the pricing is fine. So no concerns on the pricing from our perspective. Okay. Thanks. Elodie. The next question comes from Robbie Efron from Citigroup. Hello, Robbie.

23m 41s

Two quick questions. Firstly, can you give us a sense of the scope impact from the Giant Cement acquisition for the rest of the year and also the sale of the Congolese assets. And secondly, on your big deal Kansai and Klein clay plant in Ghana, congratulations. On that. Can you talk about a bit of marketing strategy in terms of the pricing dynamics, especially are you having to you know, do something with pricing to kind of enable penetration of that product to the market or is it virtually indistinguishable and hence you can kind of just sell it in your existing channels without any pricing changes? Thank you.

24m 23s

Yes. Thanks a lot. Let me the second one, and then Redi will take the first one on the scope impact. On the cash line, clearly, I think it thank you for your question. It's important to understand from our mindset, we are not subsidizing the market with products that we have invented If we invent decarbonized products for the Western African continent, we are not selling them cheaper than the traditional product. It's rather the opposite. There is no pressure from us to push any volumes into the market. We do this very carefully and make sure that the market understands that there is a higher value than what they traditionally got especially because nobody else can offer this right now in Western Africa. So in that respect, the message is rather the opposite of what you indicated We will carefully make the market for this product with a very convincing business case. That's our mantra all of what we do in decarbonization and that is also true for this setup.

25m 19s

Okay. Let's go to your swap question. Let's do the easy one. First sale of DRC, I guess it's not yet closed. We won't have this done hopefully by June. That's not a super big operation for us. So there's not a material impact on our numbers, probably it's low single digit millions. So not material. And then the Geil acquisition, obviously, cannot tell you that for one operation what result we expect but read our press release what we have done.

25m 48s

And make an estimation that we have that probably then nine months in our numbers. And and that that that's how you need to to look at this.

25m 58s

Yes. And I think it's important to also, if I may add, just as a general remark, we've done a lot of acquisitions in The U. S, but the meaningful ones, especially are contributing spot on or even above what we have assumed in our business cases. So the North American team is very focused and now also very experienced in putting the synergies that we need. And we always said that we acquired it as an attractive multiple even before synergies, but to make this a super attractive case, we need to get the synergies and that's what the team is all working is already working on since more than one month. [indiscernible] Next in line is Tom Zhang from Barclays. Hi, good afternoon. Thanks for taking our questions.

26m 46s

Two from me as well, please. So first, maybe just a clarification. In the press release, you wrote deliveries are all regions or sorry, you wrote deliveries are up in all business lines. I meant to read that as every region volumes are up even in North America and APAC where you were posting relatively small year on year increases in revenue. And then the second question, if you could just talk a bit about the price cost contribution to EBIT. I guess that's continued to decline a little bit. Plus €24,000,000 year on year is the lowest since Q3 twenty twenty two. Is that just because price hikes have been delayed a little bit more into April? Or is there something on the cost side that's relevant for you to flag? Thanks.

27m 32s

Yes. Let me do the first one. I think we are just checking what you are referring to because obviously the volumes are not up everywhere. That's also hopefully not what we have communicated. I think we've given you in the presentation the volume split up. So I think it's clear that there are regions where the volume is up, but there are also regions where the volume is down. Notably, U. S. Was down in volumes. So I think in that respect and also Europe, we have a mixed bag up and down. Africa was clearly up. And in APAC, you have more increases than decreases But and then Australia was a little bit down to some extent. Also cyclone driven, the Europe, there was a big weather event in Australia. So this is these are the facts and we checked the communication, but it was not our intent to assume that deliveries up in all regions or businesses. Yes.

28m 32s

Tom, just to confirm what Dominic said, the biggest thing was obviously North America with the shitty weather in Q1. Volumes were down. I guess, not a surprise everybody had the same And all the other regions, especially in cement, were okay. Then let's go to the price of our cost thing. You say it looks low. The number There's it's Q1 negative inventory effect, double digit millions, maintenance timing, you name it. And as Dominic said it, pricing for Q1 was okay. And then you had in Europe, you had some higher energy costs electricity costs in the first three months. But just to tell you our fixed cost base is down in an inflationary environment, let's say, you look the whole world, there's 3% to 4% inflation. If you put the emerging markets also into this. So our fixed costs are even down, and that is a transformation accelerator. We are not at all saying that the price of a cost number is too low because it's Q1 and there are a lot of one offs back and forth inventory. So that's we are very confident with that number.

29m 41s

Okay. That's clear. Thank you. Yes, the line I meant was just on the quarterly statements. In the first paragraph, it says deliveries in all business lines recorded a slight increase. So maybe that was business lines rather than we Yeah. The recorded numbers were up. The like for like numbers were slightly down in aggregates and and in ready mix, but the recorded numbers were up.

30m 1s

Got it. Okay, that's clear. Thank you. That's all I have So the next question comes from Poojesh Siya from HSBC. Hey, Pujesh. Pujesh, hello. Hi.

30m 17s

Hi. Good afternoon, gents. Two for me as well. First one is on the call sign play. If you could I know it's early days, but what do you think in terms of the IRR of those project and if you could give a little bit of what margin, what kind of margin you aspire to be, is it similar in that case, yeah, I mean, what kind of pricing approach you will have? The second one is on the European market and a rather little broader one. In the statement you talk about some increase in fixed cost as well as raw material and Q1. So if you could just elaborate what kind of inflation you have seen in Q1 and how do you see that in the context of your earlier guidance that raw energy cost to be flattish for the full year? And given that the energy costs are now trending down. So if you can just marry those steps please.

31m 15s

Oh, okay. We just I don't Let let's do the counter and play first. Obviously, is the what is there are two two things we have to say here. Obviously, the Carlsson Clay can [indiscernible] clinker which which which which we would need to import. Yeah? So because we have no clinker production in Ghana, that replaces the clinker. That is an effect, so you save cost over there. Plus you will bring new products to the market with a lower CO2 say, footprint. And this is a little bit the business case. Because we save a lot of money for of clinker imports and as well the supply chain, you need to track it from the Kaiser plant to our plant and not wait for ships and demurrage and whatever. The business case is here purely based on cost savings plus selling then, let's say, lower carbon products. So and remember, that is a joint venture between us and then another company And so we get half of the volume allocated to us. So that's a little bit regarding Cartilage and Clay. Now European markets, when you are asking cost inflation, as I said, energy cost for Q1 if we talk electricity, were a little bit up.

32m 40s

Especially January, February, March was okay. And fuel costs were slightly down, so that nearly offsets each other So Europe nearly flat on electricity or energy. And then our sales head regarding fixed cost reduction and third party services, let's say, neutralized cost while coming even off. The outlook, as we said it, we assume energy costs at worst flat versus prior year. And you said it rightly, some costs are coming even down. Oil prices are very cheap. So overall, where we have the fuel benefits and electricity now the summer should be okay. So and the worst case is flat, but probably there's a little bit upside to our energy.

33m 28s

And I think what's unclear, you know that we have now a new government here in Germany. They are changing their rules on the energy costs and there may be coming some relief also in that respect. So there are a little bit a couple of points that could help us down the road. But obviously, with energy, it remains volatile. We don't it's hard to predict.

33m 51s

Okay. Thank you. We just Next question comes from Sida Ekblom from Morgan Stanley.

33m 57s

Sida, hello.

33m 59s

Two questions. Can you just talk a little bit more about [indiscernible] It is a bit of a drag, and it is a region that you allocated capital to. With increasing your footprint in Indonesia. Quite meaningfully. So I just like to understand how we should be thinking about the potential for that business going forward and how we might fix some of the profitability issues in the region. From here. And then secondly, can you just talk a little bit about the backdrop for and the capacity for M and A from here because clearly scope was a a nice helpful tailwind in the first quarter and hopefully more of that can continue. So I'd like to just get a sense of know, how you're thinking about the balance sheet, what types of assets and regions are in focus, if the sort of backdrop from a tariff perspective has changed, the landscape for M and A at all, what you're hearing from potential sellers, etcetera, that would be helpful. Thank you.

35m 1s

Well, Peter, you are a very experienced analyst. You put 10 questions into two headlines, so well done. Let us try to answer and I'll start and then maybe Rene has to add a little bit. On Asia, you're right, it's been a drag for two or three years. And I think it's too big to be a drag for a long time. That's why we have we've changed the management on Board level Lenny has taken over himself in Australia. And Roberto Cagliere after a very, very successful job in Edin. Has taken over in Asia and he obviously gets going with the team. Working on many fronts, but also first of all, the cost position. There is there is still room for maneuver and that's what you see already now in the numbers. And then we are working on the market positions. That's especially Thailand, the market he knows very well because historically he's been working for detachment in Thailand. So obviously, is the market. Then Indonesia for us a very important market where we have seen prices stabilizing and coming back a little bit, volumes are still a little bit subdued, but important to see that pricing seems to have turned the corner a little bit there.

36m 20s

And then the other meaningful market is obviously India. Where we make no secrets about the fact that the Indian market has been sluggish for a while. Not so much in terms of volumes, but in terms of pricing and overall market dynamics. And that also seems to turn So that's good news. So we are quite hopeful that India will also be fixed down the road. And then you have the smaller markets for us, Hong Kong, Bangladesh, China, nothing exciting to say. In fact, China is still very bad on volumes, but has stabilized in terms of results. And the Chinese team is doing an excellent job delivering okay results in a very difficult market environment. Do you want to say something on Australia?

37m 10s

Yes. Okay. See that in Australia, you have seen as everybody has read, there was in March the big cyclone where Queensland was out of business for a week and then we needed two, three weeks to pump out the quarries. And overall market is so la la, I would say it's maximum flat versus prior year. Inflation is pretty high. Pricing is good. Costs have massively reduced. Australia is up for us in the quarter. Even with the cyclone and with flat markets. And now with acquisitions coming in Australia, I think Australia can have a good year this year.

37m 47s

Yes. And then on M and A capacity, Sida, I'm not sure what you are assuming, but I would say we're coming rather than M and A machine down the road. So it's clearly our target to even ramp up the M and A activities. Refer to the balance sheet, there is room to do so in a very disciplined way as we have proven over the past years. And the pipeline in all areas is very full. But we are very selective of what we execute. So that's now a very comfortable position from our perspective, but it's very clear that M and A activity is here to stay or rather increase So and that is true for all regions. And then we may put all eggs in one region basket but split it between different regions depending on the local market conditions and perspectives.

38m 39s

Okay. So I should just take it that M and A in all regions in all asset types, is on the table. Is there any preference for bolt on or more platform size deals? Or is it literally we'd look at any we've got lots of capacity and we want to grow through M and A?

38m 56s

I think we've got we stay focused on our business lines. That you know. We have a preference towards aggregate and partially and cement and materials deals. Less so on ready mix, very selective there. We also do do deals that includes also asphalt. But in general, that's a little bit the focus. I think to be fair, maybe the focus is not so much in Europe in terms of massive M and A activity also because we can't do massive deals in Europe in most of our markets. But all the other areas are clearly in focus. And even in Europe, there are tuck ins here and there that we are looking at. But we are very selective because we have a very good asset base and heavy asset base in Europe. And the homework in Europe is not necessarily to work only on M and A, but also on other things.

39m 53s

Okay. Thank you.

39m 54s

Thank you, Peter. Thanks. Next one comes from Anu Lehmann from Bank of America. [indiscernible] Hello. Good afternoon, gentlemen.

40m 5s

Two and a half question from me. That's okay. Firstly, on Africa had a good quarter. I appreciate the base effect was relatively easy for the region. But can you give us a bit of color on the performance there? And do you think that the good Q1 in Africa is sustainable into the rest of the year? The second question is on Brevik.

40m 30s

You mentioned in the statement that the plant is now starting to operate. Is there any accounting impact that we need to consider from opening the plant in terms of depreciation higher OpEx, or anything meaningful that we need to account in the numbers for for the Europe region. And lastly, if you could give us any negative currency effect on your EBITDA or operating income at the at the spot rate with the weak dollar particular. Thank you.

41m 5s

Okay, Aloha. Thank you. The last one and half questions, Rene is taking. I'll take the Africa one. Africa is, as we always said, is not one market, it's a portfolio of countries and that's also what you see in our results. This is not one market only that's sticking out. It's really broadly across Africa that the business comes back. And I think that's also I think the African countries have gone through dire straits for quite a while, especially after corona, but also before. And you know that the emerging markets now almost ten, twelve years were not the name of the street. But the sentiment has turned also on the back of the oil price impact because you know that they are still living on a lot of oil dependent countries there. If the oil price in general comes down, that's one thing. And then also if the dollar weakens, that also helps them to some extent. In that respect, there are some hard facts that help the countries to get going again. And the activity level we see there is good and looks very sustainable for the time being. So not at all a reverse change going into Q2, if that was what you were also asking.

42m 21s

Rene? Yes.

42m 22s

So I know for Rewik accounting impact, would say, nothing to consider right now. The CapEx, as you know, a big part of this was funded and we need to if it's not fully operating yet, so it needs to be capitalized first and then we only have on our balance sheet part of the CapEx we pay. So that's not a material impact for the group. And then OpEx, as you also know, it's a certain extent, to a high extent funded. So there's no no accounting impact you would need to consider. Then currency effect, obviously, you all see you are referring to spot If you just look at the U. S. Dollar and the Aussie dollar, there's obviously a headwind compared to few months ago. But you've seen we keep our guidance where it is. That tells you that our remaining operations will make this up. So I think, yes, we have negative currency is not not our friend right now. As you know, the U. S. Dollar but the operational business is running nicely.

43m 28s

Understood.

43m 28s

Thank you for your questions. The next question comes from Yassine Tuohy from On Field. Research. Yassine? Yes.

43m 38s

Thank you very much for taking my questions. So two questions as well on my side.

43m 43s

First question, a bit more color on the North America. It looks like the aggregates margin were a little bit under pressure in Q1.

43m 52s

I understand it's a very small quarter. So so my question is that are you expecting aggregate margin to improve As they improved in March, are you expecting an improvement in in the coming quarter? And maybe coming back on the question of LOD on the exit rate, In The U. S, are you seeing volume up in in March and April? And then second question, which is on m and a. When when I look at the scope impact based on the acquisition that you will already done at the EBITDA level for the year, is there a number that you you would consider? Something like a is something like a hundred million or a hundred and 50,000,000 of additional EBITDA reasonable as an assumption for M and A impact for the year?

44m 36s

Okay. Maybe, Yassine, let me take the exit rate question and then Rene will talk to you about the aggregates margins in The U. S. And about the M and A scope impact for the full year. Now on the exit rates, I said it earlier in my remark, short term think there are rocks in the road in The U. S. And we do not unless there is a sentiment change versus the own administration, we don't see a massive volume trend to the right side. So volumes are sluggish from our perspective It's now big picture. I can't go into any details. In that respect. But I think overall the volumes remain sluggish for the first four months and we've not seen significant trend change in that respect. Neither to that they are falling off the cliff. But also not to the positive. And again, if there is no significant sentiment change, you know the figures. GDP has been disappointing in the development You saw the interest rate decision, so there is no movement on that end. So I think there is no trigger point at this point to drive that sentiment. Now let's see what the administration comes up within the next weeks or months But I think it needs some sort of a trigger point in order to turn the sentiment around.

46m 4s

Yes. C and A, get margins, you said it by yourself, million would make a difference already. We would have higher margins in Q1. And but going forward, pricing in aggregate for The U. S. Was good. And now it comes, as Dominik alluded to, how do volumes behave in The U. S. That is have a margin impact because of fixed cost absorption or not.

46m 28s

But overall price over cost due to good pricing in The U. S. And our Transformation Accelerator will good. And then it depends on volume. I'm not here raising that Why is this a good super business? You've seen the development It's good and we think it can move forward. And then M and A scope, I think I've when we did the guidance, I said 3 digit millions EBITDA for the current ones we have, let's say, announced, signed and we confirm that Q1 was not too bad. I would have said And let's see what we can do what we do further in the year We want to do further in month eight, probably that number can be even can go even up So 3 digit million at least. [indiscernible] Thanks, Justine. And the last question today comes from Harry Goat Berenberg.

47m 24s

Harry, hello.

47m 26s

Hey, good afternoon. Yes, I've got two, please. So firstly, in Europe, I appreciate it was Q1 is always impacted by weather, but can you just remind us what you think for the outlook for Europe underlying volumes as we progress through the year and maybe a little bit of detail by by key country.

47m 46s

And then secondly, with regard to the 500,000,000 cost saving program, can you just remind us how much of that we think or we should have seen will actually drop through to to profit. As in, I guess, there's a headwind from cost headwinds that's being offset as well. Thanks.

48m 6s

Okay, Harry.

48m 7s

Again, for competitive reasons, need to be a little bit careful about talking about specific countries in Europe. You know that many European markets, Western And Northern Europe, has been sluggish for a couple of years now when it comes to volumes. We indicated to you that in some markets, we do see stabilization in an upward trend. And that continues market after market. But it's also fair to say there is no massive quick turnaround at this point in some of those markets. The volumes in Eastern Europe, okay, first quarter we have to be careful because it's a winter quarter in most of those markets. But overall, the volume is intact in most of those markets and the same is true for the Southern European markets. That's a little bit split picture that I was talking about earlier. And that's also now the assumption for us. So we don't assume that volumes further decline from here. We assume stable to slightly increasing volumes for the remainder of the year. But also not a positive explosion. The one remark I need to make is again Germany you know that they have indicated this huge program CHF 500,000,000,000 infrastructure. The government is now in place.

49m 24s

They get going. The indications we hear that they want to get going quickly. And I assume that they also will go quickly starting the DKK 500,000,000,000 getting them into action. But we have not yet got any formal decisions yet and legislation that has come So I think we should be rather conservative not to assume that in 2025 you see much of that going to be actually placed. With one caveat Ladies and gentlemen, we have lost connection with the speakers. Conference will continue shortly.

50m 24s

Are we?

50m 25s

Yeah. We can hear you. Thanks.

50m 27s

Yeah. Sorry. I'm not sure what we we checked the technology. I'm not sure what happened. So I'm not sure what you heard, Harry, but I think big picture, Eastern Europe clocking along well, but the winter quarter same is true for Southern Europe, okay. Northern And Western Europe, still subdued from far away from the peak, but stabilizing market after market. And outlook for us is no further decline. But rather stabilization further stabilization and slight increase, but also no explosion to the positive. In the short term. And then the German program of €500,000,000,000 coming hopefully into legislation, impact to the market short term probably not so quick. But sentiment change could drive quicker acceleration of volume up That's a little bit the message.

51m 22s

So, Harry, to your 500,000,000 question, you always said you can't just add €500,000,000 to the results. And obviously, that's there to offset as well inflation for the group. And we always said it's probably roughly run rate EUR 200,000,000 result improvement after its fully implemented in 2026.

51m 42s

Fantastic.

51m 42s

Thank you.

51m 44s

Thank you, Harry. This concludes our call today. Let me remind you that we indeed do have our Capital Market Day ahead of us on the May. So for those who still want to come, there's some last remaining seats. So please register The link should be on the website and also on the presentation that you saw today. For everybody that's registered, we look forward to seeing you in Brevik. Thanks a lot for dialing in. Goodbye.

52m 15s

Thanks, Thank you. Bye. Bye bye.

52m 20s

Ladies and gentlemen, the conference is now over. You for choosing Chorus Call, and thank you for participating in a conference. You may now disconnect your lines. Goodbye.

Key Insights

Heidelberg Materials reported a strong start to 2025, with revenue up over 5% and RCO up nearly 1.5% year-over-year, despite challenging weather conditions and negative volume trends in some regions.
The Transformation Accelerator program contributed €50 million year-to-date, keeping the company on track for its €500 million target; the €1.2 billion share buyback continues as planned, with the second tranche opening in May.
The company confirmed its full-year outlook: RCO between €3.25 billion and €3.55 billion, ROIC around 10%, and slightly reduced CO2 emissions; CapEx guidance remains at €1.2 billion, and leverage is comfortably below the 1.5–2x range.
Regional performance was mixed: Europe stabilized, North America faced weather-driven volume declines, Asia Pacific showed signs of recovery, and Africa/Mediterranean/West Asia delivered record Q1 revenues and results; pricing remains robust globally with ongoing price increases in many markets.
M&A activity is set to increase with a well-filled pipeline; recent acquisitions in the US are performing at or above expectations, and the company expects at least a three-digit million euro EBITDA contribution from M&A for the year.

Recent Transcripts

Q1 revenue up 5%, strong cost discipline, M&A pipeline active, outlook confirmed.

HEICO delivered record Q1 results with strong margin expansion and cash flow.

Record RCO and EBITDA margin, strong cash flow, and positive 2025 outlook driven by transformation.

Feb 25

Q4 2024

RCO (Recurring Operating Cash)

€3.2B (record high)

EBITDA Margin

21.3% (up from 17.7%)

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$1.8B	$1.9B	$2.2B	$3B	$3.9B
Cost of Revenue	$1.1B	$1.1B	$1.3B	$1.8B	$2.4B
Gross Profit	$682M	$727M	$863M	$1.2B	$1.5B
Gross Profit %	38%	39%	39%	39%	39%
R&D Expenses	$66M	$69M	$76M	$96M	$0

2020

2021

2022

2023

2024

Revenue

$1.8B

$1.9B

$2.2B

$3B

$3.9B

Cost of Revenue

$1.1B

$1.3B

$1.8B

$2.4B

Gross Profit

$682M

$727M

$863M

$1.2B

$1.5B

Gross Profit %

38%

39%

R&D Expenses

$66M

$69M

$76M

$96M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$336M	$330M	$391M	$444M	$559M
Dep. & Amort.	$89M	$93M	$96M	$130M	$175M
Def. Tax	-$6M	-$16M	$8.9M	-$27M	-$22M
Stock Comp.	$10M	$9.1M	$13M	$15M	$19M
Chg. in WC	-$51M	$6.3M	-$51M	-$104M	-$121M

2020

2021

2022

2023

2024

Net Income

$336M

$330M

$391M

$444M

$559M

Dep. & Amort.

$89M

$93M

$96M

$130M

$175M

Def. Tax

-$6M

-$16M

$8.9M

-$27M

-$22M

Stock Comp.

$10M

$9.1M

$13M

$15M

$19M

Chg. in WC

-$51M

$6.3M

-$51M

-$104M

-$121M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$407M	$108M	$140M	$171M	$162M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$407M	$108M	$140M	$171M	$162M
Receivables	$271M	$325M	$389M	$621M	$651M
Inventory	$463M	$478M	$582M	$1B	$1.2B

2020

2021

2022

2023

2024

Cash

$407M

$108M

$140M

$171M

$162M

ST Investments

Cash & ST Inv.

$407M

$108M

$140M

$171M

$162M

Receivables

$271M

$325M

$389M

$621M

$651M

Inventory

$463M

$478M

$582M

$1B

$1.2B

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $33B
IPO Date: 3/17/80
CEO: Mr. Eric A. Mendelson
Fulltime Employees: 10K
Sector: Industrials
Industry: Aerospace & Defense
Country: US
Exchange: New York Stock Exchange

Peers

Mercury Systems, Inc.

Howmet Aerospace Inc.

Northrop Grumman Corporation

$473.90

NOC

0.57%

Lockheed Martin Corporation

$470.28

LMT

1.16%

General Dynamics Corporation

$277.70

1.37%

Huntington Ingalls Industries, Inc.

$223.38

HII

2.03%

L3Harris Technologies, Inc.

$232.59

LHX

0.77%

Curtiss-Wright Corporation

Kratos Defense & Security Solutions, Inc.

$34.33

KTOS

3.96%

Axon Enterprise, Inc.

Watchlist

Earnings

Report Date

—

Rev Estimate

—

Avg 1d Change

—

Report Period

Q1 2025

EPS Estimate

—

Implied Move 1d

—

Transcript

8m 53s

9m 29s

10m 2s

11m 26s

13m

14m 29s

16m

16m 48s

18m 1s

18m 20s

18m 43s

Okay. The first question comes from Elodie Roll from JP Morgan. Elodie, hello. Say hello.

18m 49s

19m 44s

20m 1s

Yeah. I was just asking for some color about the sequential improvement between the beginning of the quarter January, February being quite bad, and March. And the current trends since then.

20m 15s

21m 58s

Hello? Hello? Yep. Hello?

22m 5s

Elodie, can you hear us again?

22m 7s

Yes.

22m 8s

23m 22s

But from our perspective, the pricing is fine. So no concerns on the pricing from our perspective. Okay. Thanks. Elodie. The next question comes from Robbie Efron from Citigroup. Hello, Robbie.

23m 41s

24m 23s

25m 19s

25m 48s

And make an estimation that we have that probably then nine months in our numbers. And and that that that's how you need to to look at this.

25m 58s

26m 46s

27m 32s

28m 32s

29m 41s

30m 1s

Got it. Okay, that's clear. Thank you. That's all I have So the next question comes from Poojesh Siya from HSBC. Hey, Pujesh. Pujesh, hello. Hi.

30m 17s

31m 15s

32m 40s

33m 28s

33m 51s

Okay. Thank you. We just Next question comes from Sida Ekblom from Morgan Stanley.

33m 57s

Sida, hello.

33m 59s

35m 1s

36m 20s

37m 10s

37m 47s

38m 39s

38m 56s

39m 53s

Okay. Thank you.

39m 54s

Thank you, Peter. Thanks. Next one comes from Anu Lehmann from Bank of America. [indiscernible] Hello. Good afternoon, gentlemen.

40m 5s

40m 30s

41m 5s

42m 21s

Rene? Yes.

42m 22s

43m 28s

Understood.

43m 28s

Thank you for your questions. The next question comes from Yassine Tuohy from On Field. Research. Yassine? Yes.

43m 38s

Thank you very much for taking my questions. So two questions as well on my side.

43m 43s

First question, a bit more color on the North America. It looks like the aggregates margin were a little bit under pressure in Q1.

43m 52s

44m 36s

46m 4s

46m 28s

47m 24s

Harry, hello.

47m 26s

47m 46s

48m 6s

Okay, Harry.

48m 7s

49m 24s

50m 24s

Are we?

50m 25s

Yeah. We can hear you. Thanks.

50m 27s

51m 22s

51m 42s

Fantastic.

51m 42s

Thank you.

51m 44s

52m 15s

Thanks, Thank you. Bye. Bye bye.

52m 20s

Ladies and gentlemen, the conference is now over. You for choosing Chorus Call, and thank you for participating in a conference. You may now disconnect your lines. Goodbye.

Key Insights

Heidelberg Materials reported a strong start to 2025, with revenue up over 5% and RCO up nearly 1.5% year-over-year, despite challenging weather conditions and negative volume trends in some regions.
The Transformation Accelerator program contributed €50 million year-to-date, keeping the company on track for its €500 million target; the €1.2 billion share buyback continues as planned, with the second tranche opening in May.
The company confirmed its full-year outlook: RCO between €3.25 billion and €3.55 billion, ROIC around 10%, and slightly reduced CO2 emissions; CapEx guidance remains at €1.2 billion, and leverage is comfortably below the 1.5–2x range.
Regional performance was mixed: Europe stabilized, North America faced weather-driven volume declines, Asia Pacific showed signs of recovery, and Africa/Mediterranean/West Asia delivered record Q1 revenues and results; pricing remains robust globally with ongoing price increases in many markets.
M&A activity is set to increase with a well-filled pipeline; recent acquisitions in the US are performing at or above expectations, and the company expects at least a three-digit million euro EBITDA contribution from M&A for the year.

Earnings

Report Date

Rev Estimate

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Recent Transcripts

Earnings

Report Date

Rev Estimate

Avg 1d Change

Report Period

EPS Estimate

Implied Move 1d

Transcript

Key Insights