Shareholders, ladies and gentlemen, on behalf of the Supervisory Board and the Managing Board, I would like to extend a very warm welcome to you. My name is Bernd Scheifele, and as Chairman of the Supervisory Board, I shall chair the meeting and hereby open the 137th annual general meeting of Heidelberg Materials AG, and this is being held as a virtual AGM. I'm very happy because of the great interest in our company that you are demonstrating through your participation in our virtual AGM. We are much looking forward to exchanging views with you today via video communication. I would also like to extend a warm welcome to the shareholder representatives of the media, former and current employees of the company, and all other guests who are following our AGM online today.
The minutes of the AGM will again be certified this year by Ms. Anna Ehrich, Notary from Heidelberg. I'd like to extend a warm welcome to her. Now, the formalities. Ladies and gentlemen, I will now explain the formalities essential for the Annual General Meeting and provide you with some guidance. Today's virtual Annual General Meeting is divided into four sections. I will first outline the formalities. I will then present today's agenda items. This will be followed by a general debate on all agenda items. Finally, in the last section, we will vote on agenda items two through eight. Today's AGM will once again be held as a virtual meeting for shareholders who are duly registered, as well as their proxies. The entire meeting will be broadcast live with audio and video via our password-protected investor portal on the company's website.
Upon careful consideration, the Managing Board has decided to hold the annual general meeting in a virtual format. This makes use of the authorization provided in Article 16 5 of the company's articles of association. Thanks to the virtual format, shareholders can actively participate in the annual general meeting with less effort. At the same time, we are reducing the environmental footprint caused by travel to attend the meeting, this facilitates participation by international investors, as they can easily join the meeting regardless of their location. The virtual annual general meeting entails lower costs for the company compared to an in-person meeting. The first part of the AGM, up to the end of Dr. von Achten's report on the annual financial statements and the company's strategic direction, will also be broadcast live on the Internet and will remain available there afterwards.
I would like to ask you to refrain from making video/audio recordings of the virtual AGM. These are not permitted. Shareholders and shareholder representatives who follow the virtual annual general meeting via the public broadcast rather than through the investor portal are not automatically connected to the annual general meeting. Electronic connection to the virtual AGM and the exercise of shareholder rights at the AGM are possible exclusively via the investor portal. Due to the high number of foreign shareholders, we are again offering simultaneous translation of the AGM into English. Rights to speak, submit motions, and request information as at the in-person AGM, duly registered shareholders and their proxies have extensive rights to speak, submit motions, and request information today. This creates the opportunity for direct dialogue between management and shareholders.
As the chair of the meeting, I declare that the right to request information may be exercised exclusively via video communication and thus as part of a speech. I further confirm the Managing Board's decision that requests for information pursuant to Section 131 4 first sentence of the German Stock Corporation Act may also be made exclusively via video communication and thus as part of a speech. All rights to speak, submit motions, and request information are exercised via the investor portal. Shareholders and their proxies may access the investor portal by entering their personal login details provided in the confirmation of registration. Further technical recommendations and instructions are published in the notice convening the annual general meeting can be found on our website. I ask for your understanding that we can only accept contributions and questions in German.
If you have any questions or technical issues with the investor portal, I would like to ask registered shareholders to contact the hotline by phone or email. The contact details can be found on the investor portal, and they're also shown here. To facilitate the exchange of views, shareholders and their proxies were able to submit written statements via electronic communication by May 7, 2026. Two shareholders made use of this opportunity in due time and form. The two statements concerned the virtual format of the AGM and were duly made available to registered shareholders on the investor portal. We published Dr. von Achten's speech on the company's website as early as May 8 to give you the opportunity to refer to its contents in your speeches.
You were able to exercise your voting rights in the run-up to the AGM by absentee vote or by authorizing the proxies appointed by the company, and you can still do so via the investor portal today until I close the voting on the relevant agenda items. Up to that time, you may also grant proxies to third parties for voting via the investor portal. I will, of course, remind you of this again shortly before voting begins. I would like to ask you to exercise your voting rights in good time, as they may be slightly late in the live stream. Attendance. Well, all members of the Managing Board and I, as Chairman of the Supervisory Board, are present here in person. All other members of the Supervisory Board are participating at the AGM via audio-video link in accordance with Section 166 of Articles of Association.
Ms. Katja Karcher is unable to attend due to illness. In addition, at least one proxy of the company is always present on-site. The annual general meeting was convened in due form and time by invitation at the Federal Gazette on March 30th, 2026. A printout from the Federal Gazette is attached to the notary's minutes. Documents relating to today's AGM have been available on the company's website since the invitation to the meeting was issued. I hereby confirm that the AGM has been convened in due form and time. No request for receipt from shareholders within the statutory time period to add further items. Therefore, only the published agenda will be dealt with. On 28th April, 2026, the company received three countermotions from the Dachverband der Kritischen Aktionärinnen und Aktionäre e.V. Cologne.
They regard agenda items two, three, and four in accordance with Section 126 of the German Stock Corporation Act. These countermotions were made available to shareholders on the company's website. I shall return to this matter later. I've not received any nominations subject to disclosure under Section 127 of the German Stock Corporation Act. If you wish to table a motion or nomination as a speaker at the AGM, I would like to ask you to register this via our virtual Request to Speak function on the Investor portal. This will enable me to decide whether, in the exceptional circumstances, you shall be given priority. The list of attendees will again be prepared electronically. This year we'll announce attendance as soon as the figures are available to me.
The list of participants is available to you on the Investor portal will be updated regularly. As a shareholder or shareholder representative, you have the option of lodging an objection to the resolutions of the AGM via the portal. Please note that objections can only be lodged until the end of today's AGM and not afterwards. The objection will be directly forwarded to the notary. The general debate. As usual, we intend to discuss all items on the agenda in a general debate. I would like to ask those who wish to speak during the debate to register their wish at the virtual speakers' desk via the portal. The virtual speakers list has been available via the Investor portal since 9:30 today. To register as a speaker, please click on Request to Speak under Actions in the Investor portal.
To join the meeting, you will need a stable internet connection with an up-to-date web browser, a camera, and a microphone. Shortly before you're connected to the general debate, a check will be carried out to ensure that video and audio work all right between the shareholder and the company. Once the check has been successfully completed, you will be directed to a virtual waiting room before I call you in the Investor portal and give you access to deliver your speech. We will start with the agenda. I assume that you are already familiar with the proposed resolutions of the managing board and supervisory board, or of the supervisory board alone. These were published in the Federal Gazette on 30 March , 2026 when the meeting was convened, and the proposed resolutions are also available on our website and the Investor portal.
I'll call item one of the agenda. That's the submission of the adopted annual financial statement, the approved consolidated financial statements, and the combined management report of Heidelberg Materials AG and the group, as well as the report of the Supervisory Board for fiscal 2025. The following documents are available. The annual financial statements of Heidelberg Materials AG as per 31st December 2025, the consolidated financial statements and the combined management report for Heidelberg Materials AG and the group as per 31st December 2025, the proposal by the Managing Board and Supervisory Board regarding the appropriation of the balance sheet, as well as the report of the Supervisory Board.
The supervisory board has audited the annual financial statements and the combined management report of Heidelberg Materials AG and of the group and, as well as the consolidated financial statements, and approved them at the meeting on 25th March. The annual financial statements have been adopted in accordance with statutory provisions. No resolutions will pass on agenda item one. Now, the activities of the Supervisory Board in the 2025 financial year. I'll give you an overview of the topics that we discussed together with the Managing Board. I shall also report on the key strategic initiatives that we initiated and supported together with the Managing Board. In the past financial year, the Supervisory Board once again performed its duties with due diligence, and in particular, we continuously monitored and provided advisory support to the Managing Board.
Managing board and supervisory board worked together closely in mutual trust for the benefit of the company, maintained an open and intensive dialogue. The supervisory board received regular and comprehensive reports on business performance, strategic direction, financial and risk situation, compliance issues, and sustainability aspects. The supervisory board's committees made a significant contribution to sound preparation and decision-making of this regard. The market environment in 2025 was again characterized by ongoing geopolitical and economic uncertainties. Nevertheless, Heidelberg Materials was able to impressively continue along its growth path and to finish the fiscal year with a record result. The group increased both revenue and operating profit, improved the RCOBD margin, and raised adjusted earnings per share. Dr. von Achten will speak about the details as he speaks about the annual financial statements.
The Supervisory Board has closely monitored all relevant economic, strategic, and operational developments with the Strategy 2030 presented last year making a material difference. Heidelberg Materials has set itself ambitious targets for growth and profitability until 2030, building on a strong track record. The company consistently focuses on its core business with high growth potential. In doing so, Heidelberg Materials underlines that the possession of the globally positioned building materials manufacturer benefiting from global synergy effects in the three areas of sustainability, digitization, and technical excellence. In the past financial year, a key focus of the Supervisory Board was the further development and implementation of sustainability strategy. Particular emphasis was placed on updated CO2 roadmap and decarbonization of cement production through carbon capture and storage.
With the delivery of evoZero, the world's first carbon captured net-zero cement from Brevik in Norway, Heidelberg Materials is opening up new opportunities for forward-thinking partners in the construction industry to make an active contribution for a more sustainable future. This is another milestone. That's the world's second CO2 capture project for cement production in Padeswood, U.K., which will enable us to produce almost entirely decarbonized cement in the U.K. In addition, four other European decarbonization projects were selected for funding agreements with the Innovation Fund. The supervisory board also examined in detail the implications of the EU Emissions Trading System and the Carbon Border Adjustment Mechanism. Furthermore, the supervisory board supported the group's portfolio optimization, including strategic acquisitions, especially in the North America and Asia Pacific regions.
The acquisition of BURNCO Rock Products in Canada and Walan Specialty Construction Products in the U.S., amongst others, further strengthened the circular and low-carbon portfolio in North America. In Australia, Heidelberg Materials expanded its presence in key markets and further broadened its range of sustainable solutions through the acquisition of Midway Concrete's ready-mixed concrete business. Supervisory Board was closely involved in all major investment, divestment, and portfolio decisions. To further accelerate the transformation towards profitable products and profitable growth in a dynamic market environment, Heidelberg Materials launched the Transformation Accelerator initiative in November 2024, with the aim of achieving savings of around EUR 500 million by the end of 2026. In the financial year under review, we saved around EUR 380 million. The focus is on optimizing the production network, cross-functional efficiency improvements, and technical initiatives at a global level.
In addition, the supervisory board supported the managing board in implementing the digitization strategy and discussed the milestones achieved. The supervisory board's deliberations focused in particular on the development of appropriate governance structures in the area of digitization, use of artificial intelligence, and the associated investment requirements, as well as the further harmonization of IT systems to achieve sustainable efficiency gains in operational business. In the past financial year, the supervisory board was once again satisfied that the managing board has established an internal control and risk management system appropriate to the group's business activities and risk profile, as well as a functioning monitoring system. This system is effectively designed and capable of identifying at an early stage any developments that could jeopardize the company's continued existence.
In addition, the Supervisory Board discussed the staffing and organizational structure of the compliance function and satisfied itself as to the effectiveness of the compliance management system, which ensures group-wide compliance with laws, regulation, and internal set guidelines. Naturally, during the past financial year, the Supervisory Board also dealt with the audit and approval of the 2024 annual and consolidated financial statements, including the non-financial statements, as well as the adoption of the operational plan for 2025. The auditor issued an unqualified audit opinion on the annual financial statements of Heidelberg Materials AG and the consolidated financial statements 2024, as well as on the combined management report of Heidelberg Materials AG and the Group. Another key focus of the Supervisory Board's work was the 2024-2026 share buyback program, with a total volume of EUR 1.2 billion.
Heidelberg Materials successfully completed the second of a total of three tranches of this program on 1st December , 2025, acquiring around 2.1 million shares with a total value of approximately EUR 400 million. These shares were canceled with the approval of the supervisory board on 29th January, 2026. This third tranche is scheduled to begin in the current quarter shortly after today's AGM. The managing board and supervisory board continue to pursue a balanced capital allocation and are convinced that this approach creates sustainable value for our shareholders. In line with our progressive dividend policy, the managing board and supervisory board will propose to the annual general meeting that a dividend of EUR 3.60 per share are paid for the last financial year, under the proviso that you will give your approval today.
This represents an increase of 30% per share or around 9% compared with the previous year's dividend of EUR 3.30 per share. The combination of the progressive dividend policy, targeted share back programs, and disciplined M&A activities ensure that you, our shareholders, benefit directly from the success of our business activities and the long-term strategic direction of Heidelberg Materials. Like, the Managing Board, the Supervisory Board attaches great importance to dialogue with our shareholders. During the reporting year, I was in regular contact with investors and addressed their suggestions on matters specific to the Supervisory Board.
As part of a governance roadshow in March and April this year, I, as the representative of the supervisory board, discussed matters specific to the supervisory board in detail with national and international shareholders, in particular, the duties, work, and composition of the supervisory board, as well as ESG issues. During the year under review, the supervisory board dealt intensively with corporate governance issues and in this context carried out regular self-assessments in accordance with the recommendations of the German Corporate Governance Code. In fact, the fact that these efforts are being recognized is also demonstrated by the assessment published for 2025 in the corporate governance ranking of the DVFA Scorecard, and Heidelberg received a rating of excellence.
Furthermore, various managing board matters were on the agenda of the full supervisory board and its personnel committee during the past reporting year and the first quarter of 2026. In January 2026, Dr. Roberto Callieri's board appointment was renewed early until 31st of December 2029. In March 2026, Dr. Axel Conrads was also reappointed early for a five-year term until the 31st of January 2032. Overall, the reporting year was once again characterized by intensive activity on the part of the supervisory board and its committees. The attendance rate at the full meetings was 98.61%. The attendance rate at committee meetings was a pleasing 100%.
In summary, it should be noted that in the 2025 financial year, the supervisory board again fulfilled its duties under the law, the articles of association, and the rules of procedure, and the German Corporate Governance Code in a proper and diligent manner. Please note that further details on the work of the supervisory board can be found in the supervisory board's written report on pages 10- 15 of the 2025 annual and sustainability report. In conclusion, on behalf of the entire supervisory board, I would like to express my particular appreciation to all members of the managing board and to all company's employees for the record results achieved in the past financial years. I would like to thank you warmly for your outstanding achievements and your high level of personal commitment.
Ladies and gentlemen shareholders, I would like to thank you for your continued trust in the work of our supervisory board and Heidelberg Materials. Following a year of very good results, the supervisory board looks to the future with confidence. With a strong management team and the great commitment of its employees worldwide, Heidelberg Materials is excellently in positioned to shape the company's future. Report of the managing board, it is Dr. von Achten who I'd like to ask to present the 2025 annual financial statements and the report on current developments and the outlook for the current financial year, 2026. Dr. von Achten, please.
Ladies and gentlemen, dear shareholders, I would also like to extend a very warm welcome to you to this year's annual general meeting. I'm very pleased that you've joined us today.
We live in a time in which reliability can no longer be taken for granted. News about conflicts, political tensions, and a fragile economic environment accompany us every day. Many of us ask ourselves, "In such an environment, what can I still rely on? Whom can I trust over the long term?" Well, the honest answer is the world as we knew it will not return in the same way. The rules of the game are changing rapidly and fundamentally. What was true yesterday may be outdated tomorrow. In times of change, those who stand still lose ground. For us at Heidelberg Materials, one thing is therefore clear, only those who constantly evolve remain resilient, and it is precisely this ability that makes us an anchor of stability in these turbulent times for our employees, for our customers, for our partners, and for you, our shareholders.
Especially in turbulent times, resilience and reliability create the greatest value, but only if they go hand in hand with openness to constant change. For us, this means continuity through agility in volatile times. We see that the economy, politics, and society are changing in ever shorter cycles. In this new reality, a company's resilience becomes the decisive factor. We cannot control the external framework conditions, we can control our own positioning. My message to you is therefore, we remain on course. Our business model is built on a solid foundation. Let me highlight three aspects. First, our diversified global footprint. We're active in around 50 countries and are continuously expanding our presence in attractive growth markets. This allows us to offset fluctuations in individual markets. Second, the clear focus on our core business.
We concentrate on cement, aggregates, and ready-mix concrete, precisely where we are strong and have long-term customer relationships. Third, strict cost and price management. We manage our plants efficiently, optimize our processes, and keep a constant eye on our costs. At the same time, we consistently adjust prices to the volatile environment. These three elements, global diversification, the clear focus on our core business, and consistent cost and price management, form the basis of our continuity. They enable us to grow profitably even in a challenging environment. That this approach is paying off is demonstrated by our record results in the past financial year. The result from current operations, or as we call it RCO, rose to EUR 3.4 billion, an increase of 6%. A look at the 2025 financial year shows even in volatile times, we were able to improve our performance across almost all key financial indicators.
Our operating margin increased to 21.8%. Adjusted earnings per share rose by 4% to EUR 12.41. Our return on invested capital amounted to 10.4%, significantly above the previous year's level. Free cash flow remained very strong at EUR 2.1 billion. Our specific net CO2 emissions decreased by a further 3% to 512 kg/ ton of cementitious materials. Our resilience and our profitable growth are not an end in themselves. They create value and do so on a lasting basis, and you, our shareholders, benefit directly from this. We are your trusted partner. A central element is our progressive dividend policy. We stand by our ambition to ensure that you participate in the company's success. This is why we propose an increase in the dividend to EUR 3.60 per share today.
This corresponds to an increase of 9% compared with last year. This is complemented by our ongoing share buyback program with a total volume of up to EUR 1.2 billion, which we launched in 2024. We successfully completed the second of three tranches in December. In this tranche, we repurchased a total of around 2.1 million shares at a total value of around EUR 400 million. These shares were canceled at the end of January. The third and final tranche will start in the second quarter after today's AGM, and it is scheduled to be completed by the end of this year. Taken together, that is the higher dividend and the substantial share buyback program, this underlines that we have an ambition that your share remains a highly attractive long-term investment for you. This is also reflected in the performance of our share.
In the past financial year, the total shareholder return amounted to 87%. Once again, we clearly outperformed the German benchmark index. As you can see, the capital market recognizes our strategy and our reliability. Our focus is always on the future. Our ambition is clear. We want to further accelerate our profitable growth. To this end, we have sharpened our midterm targets with our Strategy 2030. Building on a strong track record, the strategy sets out on an ambitious path towards accelerated growth and profitability. At its core, it is based on six strategic pillars, and I would like to briefly touch on a few of them. We are exceptionally well positioned to benefit from the mega trends of our time. These trends include the energy transition, the expansion and renewal of infrastructure, residential construction and urbanization, the modernization of defense, and digitalization.
Not all of these trends translate into immediate growth. For instance, private residential construction is currently lagging expectations. In many areas though, we see substantial growth opportunities. We remain true to our core business, heavy building materials. We consistently align our portfolio with attractive markets. This also includes targeted bolt-on acquisition in growth regions. Most recently, we strengthened our position with a majority stake in Akçansa, one of the largest cement producers in Turkey. This gives us an excellent export platform for international markets. With acquisitions such as the Maas Group in Australia, BURNCO Rock Products in Canada, and Walan Specialty Construction Products in the U.S., we have expanded our business in other important markets. By 2030, we intend to invest significantly in further M&A-driven growth, and we proceed with financial discipline and a clear focus on strategic fit.
Our strategy creates real and sustainable value for customers and shareholders. In doing so, we keep a clear focus on profitability. An important lever is our Transformation Accelerator initiative, which we launched in November 2024. Over the past 15 months, it has already delivered savings of EUR 405 million. The initiative focuses on optimizing our production network, driving cross-functional efficiency improvements, and technical initiatives on a global scale. By the end of 2026, we aim to achieve total savings of more than EUR 500 million. Another important value driver is our unique global setup. Based on this, our focus on the core business really comes into play. As a locally rooted and globally connected company, we drive our success across all regions and business lines. We leverage this strength along three dimensions: sustainability, digitalization, and technical excellence.
In all these areas, automation and artificial intelligence play an important role. I would now like to take you on a short journey through our exciting landscape of projects and solutions. In the quarry, we push the future of autonomous driving. Together with our partners, we equip heavy-duty vehicles worldwide with sensors, cameras, and intelligent software. In this way, we improve safety, boost efficiency, and address the skills shortage. Here at this site in Texas alone, we have already processed around 3,000,000 tons of material in this way. At our plant in Leimen, our autonomous robot dog, Spot, ensures safety and efficient processes. It assists us with repair and preventive maintenance. In total, Spot records over 170 measurement points, far more than we humans are capable of. The aim? To identify problems early, reduce routine work, and free up more time for what really matters.
It is also deployed in areas that are dangerous or difficult for humans to access. Digitalization and AI make a valuable contribution to health and safety. In our pilot plants, we test AI-supported systems that use camera images to detect potential safety risks. These include situations where employees are not wearing their full personal protective clothing. These systems help us to further improve our processes and thus enhance safety in our plants. In cement production, we increasingly rely on digital control rooms and centralized control. From the Heidelberg Remote Optimisation Center, HROC for short, in Texas, we now centrally control and support 12 plants. Data streams from various sites converge there. On this basis, we optimize our processes, reduce energy consumption, and lower our CO2 emissions. We also use digital solutions at our ready-mix concrete plants.
The AI-powered Smart Mix software uses our data to analyze and specifically adjust concrete mix designs. In this way, we advance the automated mixing and recipe optimization of concrete. We have already trained the system on around 180,000 recipes. This allows us to use our raw materials more efficiently, save costs, and reduce our carbon footprint.
Hi, this is Heidi, your virtual agent from Heidelberg Materials.
May I introduce you to Heidi? Digital assistants like Heidi complement our customer service in Australia and provide support with inquiries, quotations, and technical questions 24 by 7. This makes us faster and more precise and frees up more time for personalized advice. With our on-site app, we enable real-time digital tracking of concrete deliveries, including loading times, arrival times, and the live location of our mixer trucks. This reduces waiting times, improves capacity utilization, and cuts emissions.
Over 40,000 customers use our HConnect applications every month. This includes our digital customer portal, Hub. With Hub, customers can keep track of their orders, deliveries, and invoices at any time. For us, digitalization doesn't stop at the construction site. The restoration of our quarries plays a central role in our contribution to biodiversity. With AirSeT, we use an AI-powered tool in Europe to analyze the development of the various habitats in our quarries. We use satellite imagery and link the data to our own AI model. It becomes clear at Heidelberg Materials we apply automation and AI along the entire value chain from raw materials extraction to the customer, and this is only the beginning. We want to continue to set the benchmark for our industry in the long run.
For all our enthusiasm about technology, one thing remains clear, our employees are at the center of everything we do. It is about combining the best of both worlds, people and technology as a strong team. Our employees live this every day. They work with new systems, they test applications, they share their experience with colleagues. Without this willingness to embrace change, no digital solution would work. To put it even more clearly, openness to new things and enjoyment of change are becoming a clear competitive advantage. Our robot dog, Spot, and our colleague, Shami, are a great example of successful collaboration between humans and machines.
Shami, hello. Great to be with us. Please tell us, what do you like most about the cooperation between man and machine?
Every day I am fascinated with what technology has to offer with supporting ears and eyes now in the factory where people can't go or where they overlook details, Spot supports us on the ground, and this is the interaction of man and machine. What is cool about this is that we always have somebody who can look things over. When it comes to your staff, you know, many of our colleagues remain skeptical, "What does this do with me?"
Can you tell us, you know, about how you feel when working with a machine?
For me, the project is very exciting. The experience I've made with the team and the works to use, you know, when using this technology, is great fun for me. I like it.
What is cool is it motivates me to see that the particular value is received by the colleagues, and I can also, you know, follow up on my passion.
Well, that's always great. Now, this passion of yours that is being tested, or that has been tested intensively in Leimen, how can we make sure that this is rolled out in the world of Heidelberg Materials?
Now, we want maximum transparency, so we document all of our learnings, and we give regular updates for the milestones. With this, we give the colleagues throughout the world a chance to participate actively. It's important for us that everybody can see for themselves how the technology benefits them. Because of this, we invite everybody to come to Leimen to really see the mobile sensors by themselves, for themselves, and to be enthused.
Thank you, Shami, for sharing this with you, and all the best for the two of you in the future. Thank you, Shami. This is how you create a strong team of motivated people and modern technology, and this interaction makes our processes safer, more efficient, and fit for the future. Strong teams are not only crucial for our digitization efforts, they're also key to our long-term success in sustainability. For us, sustainability is not a one-off project, it is a core component of our business model, from research to scaling and production, through to marketing. Strong partnerships are decisive in this context. Trust is the key as well. What this means in practice can be seen when we look at our projects. Our Padeswood CCS project in the U.K., for example, illustrates how important government is as a partner.
There, the government supports us with targeted funding and by building the necessary infrastructure. This enables us to construct and operate the world's first cement plant with a fully decarbonized production process. The expertise of our own teams also plays a central role in this project. We benefit from the transfer of knowhow from our pioneering Brevik CCS project in Norway. CCS, that's carbon capture and storage. In this way, a lighthouse project becomes a scalable model. Another project with significant scaling potential and a strong partner is our CAP2U project in Lengfurt, Germany. There, we founded a joint venture with Linde, a leading provider of industrial gases and process solutions. Together, we are driving forward the construction of a carbon capture and liquefaction facility, which will go into operation shortly. Linde is not just a technology partner, but also the marketer of the captured CO2.
Around 70,000 tons of CO2 per year will be used as a valuable raw material for the chemical and food industries. In Mergelstetten, we are working together with other cement producers on research and technology development. There, we are jointly testing the highly innovative so-called pure oxy-fuel process for carbon capture. The plant will be commissioned this summer. Joining forces, we are creating the basis for groundbreaking technology at industrial scale in our home market. All of these projects have one thing in common: they have received government funding in different ways. The construction of the new U5 underground line in Hamburg shows the role of the public sector as an end customer. For the first time in Germany, a systematic carbon reduction strategy is being implemented in the construction of the subway line. The city of Hamburg is relying on our products.
We are supplying around 200,000 tons of low-carbon evoBuild cements for the first construction phases. From 2028 onwards, the use of cements with partial carbon capture is also planned, and we are ideally positioned for this as well. The U5 project can thus become a blueprint for a green lead market using the example of the largest current public transport infrastructure project in Germany. It is not only public sector clients who are shaping the future of construction. We see customers, contractors, and planners from all industries and around the world boldly embarking on a more sustainable future with clear visions. Together with us, they are implementing pioneering projects. With our unique product, evoZero, flagship projects are already being realized across Europe. An underground station in Oslo, a 3D printed residential building in Germany, infrastructure projects in the U.K., and many other projects.
All of these examples demonstrate partnerships along the entire value chain are essential to our success. We at Heidelberg Materials are ready to invest in new technologies and sustainable products to secure our long-term competitiveness. We are fully committed to our transformation. Our projects show what is possible. At the same time, one thing becomes very clear: major investments in decarbonization only pay off for all stakeholders if the framework conditions are right. Planning certainty is a key prerequisite for a viable business model and cost-effective climate protection. We need reliable political framework conditions for CCUS projects from carbon capture to transport through to storage. Clear rules are essential. We need incentives for sustainable products. Public tenders and regulations must explicitly recognize low-carbon building materials, and this is how demand is created and investments in more climate-friendly technologies become economically viable much faster.
We need a reduction in bureaucracy. We need to cut red tape. Planning and permitting processes must become much faster and more efficient. Lengthy procedures slow down investment and delay innovation. We need more pragmatism in implementation. It is not only about targets on paper. What matters is what is actually made possible on the ground. Only if profitability and sustainability go hand in hand will the business model for decarbonization be viable in the long term. The importance of our focus on profitability is evident in the first quarter. Despite a really challenging geopolitical environment and difficult weather conditions in many of Heidelberg Materials' core markets, we have started the 2026 financial year with a robust result. Thanks to our strong focus on cost discipline and price adjustments, we were able to partially offset lower volumes in the first quarter.
At the start of the second quarter, we are already seeing a noticeable recovery in demand in many markets, and we expect construction activity to continue to stabilize over the course of the year. We therefore confirm our outlook for the full year. We expect the result from current operations to be between EUR 3.4 billion and EUR 3.75 billion. Return on invested capital is forecast to be above 10%. For specific net carbon emissions, we expect a further slight reduction. In the end, reliability also means staying on course in volatile times. Ladies and gentlemen, we spent all our energy on that, and it will be a tough effort. Ladies and gentlemen, in closing, I would like to return to what has run like a common thread through my remarks. Trust, reliability through change.
In an environment characterized by uncertainty and rapid change, these are not just buzzwords for us. They are guiding principles for our actions in our day-to-day business and in our strategic decisions. Stability means today we drive change instead of being driven by it. This also includes the uncomfortable truth that real resilience requires a major effort from all of us. My special thanks therefore go to our employees around the world. They are our most valuable asset and the heart of Heidelberg Materials. With their commitment, their expertise, and their openness to change, they drive our transformation every day. I would also like to thank our customers and partners along the entire value chain in industry, in politics, and in research. Together, we bring new technologies to market and shape the future of construction. Above all, I would like to thank you, our shareholders.
Your trust and your long-term support give us the backing in these truly turbulent times to continue investing consistently, to explore new paths, and to make a real difference in our industry. We will continue on our path with a clear sense of direction, with discipline and with sound judgment. Thank you.
Thank you, Dr. von Achten, for your comprehensive and interesting remarks on the course of the last financial year and for your outlook for the current financial year. We're coming to the end of the public part of the live broadcast of our annual general meeting. Thank you for your interest. From this point onwards, only shareholders and their proxies who have logged on into our investor portal will be able to follow the remainder of the meeting.
Dear shareholders and shareholder representatives, if you have been following the AGM via the public live stream up to this point, I would like to ask you to switch to our investor portal. It is only via that portal that you can exercise your shareholder rights. To all other viewers, I would like to thank you for your interest in our company.