Heidelberg Materials deepens cost cuts after forecast-beating Q3 results

FRANKFURT, Nov 4 (Reuters) - Building materials maker Heidelberg Materials on Wednesday reported higher-than-expected sales and profits for the third quarter, citing improving demand and strong growth in Europe and North America.

The company, which has been squeezed by higher energy costs in the wake of the Iran war, told Reuters last month that it was seeing first signs of a recovery in the construction sector.

• Heidelberg Materials said its Q3 result from current operations rose to €1.28 billion from €1.18 billion a year earlier, while revenue increased by 10% to €6.41 billion.

• It plans a further €300 million of savings, spread roughly evenly across 2027 and 2028.

• The group said the expanded programme would focus on operational efficiency and structural changes, particularly in Europe, where persistently weak markets have prompted plant shutdowns.

• Heidelberg Materials confirmed its 2026 outlook for RCO of €3.40 billion to €3.65 billion and said return on invested capital would remain slightly above 10%.

• "The growth momentum that began to take shape in the second quarter further accelerated in the third quarter. The strong business development in Europe and sustained growth in North America particularly stood out," CEO Dominik von Achten said.

(Reporting by Christoph Steitz, editing by Thomas Seythal)