Heidelberg Materials Trims 2026 Profit Outlook on Iran War, Energy Cost Concerns

Heidelberg Materials has lowered the upper end of its 2026 profit forecast, citing the expected impact of rising energy costs linked to the war in Iran. The German building materials giant announced the revision on Thursday, signaling a more constrained earnings environment ahead.

Guidance Trimmed

The company now projects its 2026 operating profit, defined as the result from current operations, to fall within a range of €3.40 billion to €3.65 billion ($3.89 billion to $4.18 billion). This adjustment narrows the previous forecast of €3.40 billion to €3.75 billion, effectively reducing the top-end expectation by €100 million.

Market Headwinds

Ad

Heidelberg Materials identified elevated energy costs as the primary factor for the more cautious outlook. The company also stated that persistent inflation and high financing costs will likely continue to pressure the global residential construction industry, a key market for its products.

In a statement, CEO Dominik von Achten described the current environment as "geopolitically and economically very challenging." However, he also noted that the company has observed "early signs of a demand recovery" in its core markets, providing a counterpoint to the prevailing economic pressures.