Vienna (OTS) – RHI Magnesita, the leading global supplier of
refractory products,
systems, and solutions, today announces its results for the six
months ended 30 June 2026.
Zwtl.: Strong earnings improvement despite continued market weakness
RHI Magnesita delivered a solid earnings improvement in the first
half of 2026, supported by the continued implementation of management
-led self-help measures and strong performance in the Steel segment.
Adjusted EBITA increased by Ꞓ24 million, or 17%, to Ꞓ165 million
(H1 2025: Ꞓ141 million), despite a material foreign exchange headwind
of Ꞓ24 million. On a constant currency basis, Adjusted EBITA
increased by 42% year-on-year. The Adjusted EBITA margin expanded to
10.3% from 8.4%, while Adjusted EPS increased by 32% to Ꞓ1.81 (H1
2025: Ꞓ1.37).
Working capital intensity temporarily increased to 24% as the
Group increased raw material inventories ahead of expected stronger
order books in the second half and to mitigate tariff uncertainty.
This resulted in softer operating cash flow, with cash conversion of
97%. Net debt increased to Ꞓ1,528 million, while leverage remained
flat at 2.9x Net Debt to Adjusted EBITDA.
Zwtl.: Management self-help measures continue to deliver
The improvement in earnings reflects continued delivery of RHI
Magnesita’s management self-help measures across pricing,
administrative costs and plant network optimisation.
The Group remains on track to deliver the previously guided Ꞓ45
million Adjusted EBITA improvement from price adaptions, network
optimisation and administrative cost savings. These measures are
being delivered against a continued low-demand backdrop and are
strengthening RHI Magnesita’s cost base and operating leverage ahead
of an expected future market recovery.
These initiatives are well advanced and will deliver further
benefits in 2027 as new raw materials and network optimisation
programmes are rolled out. RHI Magnesita’s investment in its digital
infrastructure is also progressing, with the programme now
approximately two-thirds complete, providing a foundation for further
efficiency gains across the business.
Zwtl.: Steel business performs well whilst Industrial segment remains
subdued
The Steel segment performed well during the first half of 2026,
supported by product mix, cost reduction, pricing and self-help
measures combined with demand growth in certain regions. Steel Europe
and Steel India achieved a turnaround in profitability, and earnings
in Steel North America further improved. The business is on a
positive trajectory, particularly in North America, Europe and India.
Performance in the Industrial segment was weaker than expected,
reflecting lower shipments of higher-margin Industrial Projects for
Glass and Industrial Applications. Customers continued to take a
cautious approach to investment decisions in the current market
environment, delaying the anticipated recovery in project activity.
Cement and Non-Ferrous Metals improved slightly compared with the
first half of 2025.
Zwtl.: Full-year guidance confirmed
RHI Magnesita has confirmed its full-year Adjusted EBITA guidance
of Ꞓ400 million, including an anticipated year-on-year foreign
exchange headwind of approximately Ꞓ35 million.
Ongoing administrative cost reductions are on track to deliver
the guided Ꞓ15 million earnings increase, and network optimisation is
also expected to deliver Ꞓ15 million.
Capital expenditure guidance for 2026 has been reduced from Ꞓ130
million to Ꞓ115 million. Guidance for working capital intensity
remains unchanged at 22% by year-end, reflecting the expected unwind
of the temporary inventory build during the second half.
Net debt is expected to reduce to approximately Ꞓ1,400 million by
the end of 2026, with leverage moving towards 2.6x Net Debt to
Adjusted EBITDA.
Stefan Borgas, Chief Executive Officer, commented:
“RHI Magnesita delivered a solid double-digit earnings
improvement compared with the first half of 2025, supported by
continued progress on our self-help initiatives. We are pursuing
further measures across the plant network and raw materials, to
reduce costs and sell into non-refractory raw material markets, to
enhance the Group’s operating leverage when demand improves. In
addition, our Ꞓ100 million investment in digital infrastructure, now
around two-thirds complete, will provide a strong foundation for
future efficiency gains.
Our steel business is on a positive trajectory, particularly in
North America, Europe and India. Conversely, Industrial customers
remain cautious in the current volatile market environment, which
continues to weigh on investment decisions. This has once again
delayed the recovery we had expected in our high-margin Industrial
Projects business.
We remain confident in stronger operational and financial
performance going forward, underpinned by continued operational
improvement, a firm order book in Steel and Industrials, and a clear
focus on cash flow generation and deleveraging.”
About RHI Magnesita
At RHI Magnesita, we master heat, enabling global industries to
build sustainable modern life. As the global leader in refractories,
we provide innovative products, systems, services, and performance-
based solutions for industrial processes at temperatures of 1,200°C
and beyond. With more than 20,000 employees and a global network
spanning raw material sites, production facilities, recycling
centers, and sales offices, we combine deep technical expertise with
an integrated value chain to drive innovation, circularity, and
operational excellence. Our advanced refractory solutions are
essential for customers across the steel, cement, non-ferrous metals,
glass, and other high-temperature industries, helping them operate
more safely, efficiently, and sustainably.
RHI Magnesita is listed on the London Stock Exchange (RHIM) and
has a secondary listing on the Vienna Stock Exchange. For more
information, visit www.rhimagnesita.com .