Analysts Have Made A Financial Statement On Heidelberg Materials AG's (ETR:HEI) Interim Report

Last week saw the newest half-yearly earnings release from Heidelberg Materials AG (ETR:HEI), an important milestone in the company's journey to build a stronger business. Heidelberg Materials reported in line with analyst predictions, delivering revenues of €10b and statutory earnings per share of €9.87, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Heidelberg Materials after the latest results.

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After the latest results, the 15 analysts covering Heidelberg Materials are now predicting revenues of €22.1b in 2025. If met, this would reflect a credible 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 17% to €12.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of €22.0b and earnings per share (EPS) of €12.49 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Heidelberg Materials

The analysts reconfirmed their price target of €189, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Heidelberg Materials at €224 per share, while the most bearish prices it at €91.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Heidelberg Materials'historical trends, as the 4.3% annualised revenue growth to the end of 2025 is roughly in line with the 4.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.3% annually. So although Heidelberg Materials is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Heidelberg Materials going out to 2027, and you can see them free on our platform here.

Even so, be aware that Heidelberg Materials is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.