Heidelberg Materials AG ADR (HDLMY) AI Stock Analysis

Heidelberg Materials AG ADR

(Other OTC:HDLMY)

Select Model

Rating:66Neutral

Price Target:$41.00▲(10.07% Upside)

Action:reiterated

Date:10/17/26

The score is driven primarily by solid profitability and a reasonable balance sheet, partially offset by weaker cash conversion and pressured free cash flow. Valuation (P/E ~15.4) is supportive but not deeply discounted, while technical upside/downside conviction is limited due to missing indicators.

Positive Factors

Solid profitabilityHealthy operating and net margins indicate effective cost and pricing discipline in a mature, capital-intensive industry. This profitability provides internal funding for maintenance, investment, and debt service, while creating resilience if construction demand remains uneven over the next several quarters.

Negative Factors

Weak cash conversionCash conversion is materially weaker than reported earnings, reducing the amount of profit available for reinvestment, debt reduction, or shareholder returns. The gap, alongside working-capital swings and elevated capital spending, makes underlying cash generation a continuing constraint on financial flexibility.

Heidelberg Materials AG ADR (HDLMY) vs. SPDR S&P 500 ETF (SPY)

Not enough price history over this period.

Market Cap: $17.98B
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 16.3
Beta (1Y): ―
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 48,973
Sector: General
Sector Strength: 55
Industry: Construction Materials

Heidelberg Materials AG ADR Business Overview & Revenue Model

Company Description

Heidelberg Materials AG is a global enterprise that manufactures and supplies a wide array of construction materials through its various subsidiaries. Its primary product lines encompass cement, diverse aggregates (including natural stone varieties l...

How the Company Makes Money

Heidelberg Materials primarily makes money by selling heavy building materials and related services to construction and infrastructure customers. Key revenue streams include: (1) Cement: Revenue is generated from manufacturing clinker and cement and...

Heidelberg Materials AG ADR Earnings Call Summary

Earnings Call Date:Feb 24, 2026(Q4-2025)|Next Earnings Date:May 04, 2021

Earnings Call SentimentPositive

The call presented a strong set of operational and financial achievements — record RCO, improved margins, substantial Transformation Accelerator savings, healthy cash generation and active, disciplined M&A — alongside clear innovation progress in low-carbon products, CCS and digital/automation initiatives. Key challenges are persistent volume declines (a multi-year headwind), regional demand softness (notably parts of Asia‑Pacific and ready-mix in North America), restructuring cash outs and regulatory uncertainty around EU ETS/CO2 pricing that could delay some CCUS investments. Management emphasized confidence in margin expansion, a full M&A pipeline, and continued progress on cost and decarbonization levers, indicating that the positives materially outweigh the negatives.

Positive Updates

Record RCO and strong top-line performance

Reported RCO reached a record EUR 3.4 billion (up from EUR 2.5 billion in 2022, ~+36%), underpinning management's claim of a 'very good year' and supporting the midterm 7%–10% RCO growth ambition.

Negative Updates

Volume decline headwind

Cumulative volume declines over recent years created an estimated ~EUR 1 billion negative impact on results; Q4 again saw a material volume hit and management repeatedly warned recovery is required for upside.

Company Guidance

Management guided 2026 RCO of EUR 3.40–3.75 billion, with ROIC again above 10% (current record 10.4%, mid‑term ambition ~12%), and said CO2 emissions should decline slightly; CapEx is expected slightly higher than 2025 at about EUR 1.2–1.3 billion and leverage is intended to remain around the 1.5x mid‑term target (2025 year‑end ~1.2x). The guidance factors in a roughly three‑digit‑million negative FX headwind (≈3%) and includes scope/M&A contribution of ~1.5–2% (management cited ~8% organic+scope growth excluding FX), while noting upside from Transformation Accelerator savings (EUR 380m delivered in 2025, EUR 500m target) and a continued progressive shareholder‑return policy including a third share‑buyback tranche (~EUR 450m within a EUR 1.2bn program).

Heidelberg Materials AG ADR Financial Statement Overview

Summary

Overall fundamentals are solid: profitability is healthy (TTM operating margin ~15%, net margin ~10%) and leverage is manageable (debt-to-equity ~0.45x). The main drag is cash-flow quality—operating cash flow is well below net income (coverage ~0.46) and free cash flow is under pressure (TTM FCF ~1.7B; FCF vs. net income ~0.54) alongside modest, uneven growth.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.04B	21.46B	22.10B	21.26B	21.10B	18.72B
Gross Profit	14.27B	13.78B	6.67B	13.20B	12.43B	11.50B
EBITDA	4.46B	4.31B	4.12B	4.30B	3.77B	4.23B
Net Income	1.99B	1.86B	1.86B	1.93B	1.60B	1.76B
Balance Sheet
Total Assets	38.34B	36.12B	38.25B	35.47B	33.26B	33.71B
Cash, Cash Equivalents and Short-Term Investments	2.19B	2.63B	3.22B	3.30B	1.47B	3.13B
Total Debt	9.98B	8.11B	9.47B	8.62B	7.11B	7.97B
Total Liabilities	18.53B	16.83B	18.28B	17.10B	15.63B	17.05B
Stockholders Equity	18.63B	18.16B	18.80B	17.24B	16.54B	15.44B
Cash Flow
Free Cash Flow	1.70B	1.82B	1.99B	1.88B	1.08B	976.50M
Operating Cash Flow	3.18B	3.13B	3.38B	3.21B	2.42B	2.40B
Investing Cash Flow	-1.99B	-2.13B	-1.86B	-1.48B	-1.48B	619.80M
Financing Cash Flow	-286.50M	-1.49B	-1.55B	134.60M	-2.54B	-2.84B

Heidelberg Materials AG ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

HDLMY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTAM	71Outperform	$2.56B	14.45	16.96%	1.15%	5.46%	7.16%
ANDG	70Outperform	$7.41B	6.10	-19.22%	―	17.95%	154.85%
SUNB	70Outperform	$34.27B	25.27	18.46%	1.26%	―	―
HDLMY	66Neutral	$29.64B	16.26	9.03%	―	―	―
JHX	65Neutral	$15.81B	107.88	2.27%	―	42.93%	-67.45%
EQPT	59Neutral	$4.36B	182.57	5.46%	―	18.16%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

HDLMY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HDLMY	Heidelberg Materials AG ADR	―	―	―
TTAM	Titan America SA	13.87	-1.06	-7.09%
JHX	James Hardie Industries PLC	27.24	6.79	33.20%
ANDG	Andersen Group, Inc. Class A	65.55	42.05	178.94%
EQPT	EquipmentShare.com, Inc.	17.18	-15.38	-47.24%
SUNB	Sunbelt Rentals Holdings Inc	83.63	10.89	14.98%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 17, 2026

Heidelberg Materials AG ADR AI Stock Analysis