Heidelberg Materials Comment: Q4 2025

Quarter four sales were lower than expected, as an already challenging quarter rounded off with a disappointing December. A lack of confidence in the market and persistent rain saw many people packing up early for Christmas, impacting volumes.

The Mineral Products Association’s latest report confirms the downturn in mineral product sales. Ready-mixed concrete volumes edged up +0.9% in Q4 compared to Q3 but for 2025 as a whole, volumes were down -9.9% to 11 million cubic metres. A further drop from 2024’s previous 60-year low.

Aggregates fell -1.6% in 2025 – a fourth consecutive year of decline – while asphalt finished the year -1.1% down. Mortar sales, closely linked to housebuilding, lost momentum in Q3 and Q4, limiting the annual increase to +5.2%.

It’s little surprise then that the Construction Products Association (CPA) revised down its forecasts for construction output in 2026 from +2.8% to +1.7%. The forecast suggests new housing starts and large commercial tower projects will be subdued until the end of 2026, while infrastructure activity will increase.

In my opinion, we’ll be lucky to hit +1.7% growth on heavy building materials this year; the signs are its going to be another flat year for volumes. Housebuilding, infrastructure and RMI all need to pick up to pull the sector out of this inertia. After an underwhelming Autumn statement, we can only hope for more government stimulus for construction in the Spring budget, such as a renewed Help to Buy scheme to boost consumer and market confidence and get housebuilding moving again.

While we wait for the government to come good on its promises to the construction sector, we are focusing on our sustainability commitments. Our project in Padeswood to produce the world’s first carbon captured near-zero cement on an industrial scale is powering ahead, and we expect the facility to be operational by 2029.

To promote what we are doing to reduce embodied carbon, we recently opened our evoHub in London. Here, legislators, specifiers and customers can learn about decarbonisation in construction, and we’ll be hosting events throughout the year including CPD presentations, seminars and Meet the Expert drop-in sessions. Come along and learn more about the future of construction!

Share this article:

Categories

View All (990)

Archive