...November 20, 2023 Heidelberg Materials has again revised upward its full year guidance for 2023 following strong earnings growth in the third quarter. Despite weak demand and lower volumes, all business units have achieved solid margin expansion amid continuous price increases and effective cost controls, while raw material and energy costs are coming down from the peaks seen in 2022. As a result, the company's reported operating EBITDA increased by 17% to 3.18 billion for the first nine months of 2023, with a margin increase of more than 250 bps to 19.8%. We now forecast S&P Global Ratings-adjusted funds from operations (FFO) to debt to further increase to 42%-45% in 2023 from a strong 40.3% last year, indicating comfortable rating headroom. This range reflects our estimate of our adjusted EBITDA of 3.85 billion-3.95 billion in 2023, followed by a modest increase to above 4 billion in 2024, based on a broadly stabilizing trend in volumes and prices. We expect construction activity to further...
