RHI Magnesita announces 2025 Full Year Results: Disciplined execution in a challenging market

2026-03-02

Mar. 2, 2026 - RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, today announces its results for the year ended 31 December 2025.

The Group delivered a strong second half performance, driven by continued execution of management-led self-help measures across pricing, cost control, and plant network optimisation, supported by modestly improved industrial demand. These actions resulted in a materially stronger H2 performance and provide a strong foundation for rebuilding margins into 2026 and beyond.

Operational and strategic highlights

• Successful execution of sustainable self-help cost saving initiatives across operations, SG&A, and plant network, combined with modest price increases and slightly improved industrial demand, drove strong H2 performance after a poor H1.

• Regionalisation is further strengthened to lowerfixed costs and drive agility in an increasingly fragmented and protectionist trade environment. North America continues to perform well delivering 32% of the Group’s gross profit. India delivers 4% volume growth alongside growing steel production, but very soft pricing environment currently caps earnings growth. European demand remains poor but plant network optimisation and cost savings turned around profitability in H2. Business performance in South America and the newly defined region META (Middle East, Türkiye and Africa) has been undermined by Chinese exports.

• The acquisition and integration of Resco (closed on 28 January 2025) progressed well, delivering €184 million of revenue and €25 million of Adjusted EBITA during the eleven months.

• Continued progress on sustainability initiatives - recycling rate at a record of 15.9% (2024: 14.2%) and further potential through recent acquisitions (BPI).

Financial highlights
• Persistent global demand weakness and sustained pressure from Chinese steel and refractory exports resulted in a sales volume decline of 2%and a revenue decline of 3%(1% on constant currency basis) to €3,366 million (including Resco).
• Revenue decreases in several regions were largely offset by growth in North America of €154 million (+22% y/y, including Resco). Europe recorded the largest revenue decline of 12% primarily driven by lower sales volumes.
• Full yearAdjusted EBITA is €373 million with a strong H2 weighting driven by self-help actions. This result meets expectations despite external pressure driving fixed cost underabsorption, weak pricing in H1 and foreign exchange headwinds.
• Steel revenues were slightly ahead of the prior year at constant currency at €2,328 million. The Resco acquisition offsets an organic volume reduction in steel across several regions, which together with pricing pressure, contributed to a reduced gross margin.
• The higher-margin Industrials project business (e.g., Non-ferrous metals and Glass) was softer than guided particularly in H1 2025. Further weakness in H2 2025 was largely offset by over-delivery on cost savings.
• Cash generation remains strong, with cash conversion of 105%(2024: 103%), supported by disciplined working capital management. Free cash flow of €214 million was broadly in line with 2024 level.
• Despite strong cash generation the cash-out for the Resco acquisition increased net debt to €1,495 million resulting in a leverage of 2.9x Net Debt to Pro Forma Adjusted EBITDA, lower than guidance.

Outlook and guidance

Market conditions are expected to remain challenging. They continue to be impacted by global uncertainty that depressescustomer demand and investment.Steel end-markets remain at cyclical lows globally, with no near-term demand recovery reflected in the order book.

A number of regulatory developments in two of our key markets, the European Union and Brazil, may provide medium-term support, but the timing and impact of these measures remain uncertain and are not expected to materially affect refractory demand before 2027.

Industrial project market visibility remains limited, with modest improvements expected in non-ferrous metals and no recovery currently evident in the glass segment. Overall visibility is expected to improve in the second half of 2026 at the earliest reflecting the planning lead time of industrial projects.

Adjusted EBITA for FY 2026 is expected to increase by approximately 17% to €435 million on constant currency basis, which translates to around €400 million due to foreign exchange headwinds. This improvement is driven by continuedexecution of self-help and efficiency measures. Earnings are expected to follow a more normalised H1:H2 split. With refractory raw material pricing expected to remain at historically low levels, further cost and portfolio optimisation measures are being implemented across raw material assets to support a structural improvement in vertical integration profitability over the coming years. Initial benefits from this are expected in2026 with an increase
to a double digit run rate from 2027.

Strong cash generation is expected to continue, with cash conversion above 90% and further deleveraging supported by disciplined working capital management. Net debt is expected to reduce further, with leverage reducing to around 2.6x at year end. M&A remains a core component of the strategy,but no closure of a sizable deal with an associated cash out is anticipated in 2026.

Stefan Borgas, CEO said: “Our relentless self-help driven turnaround measures delivered a strong and sustainable business performance increase in the second half against a very challenging market backdrop. While management was focused on the business performance turnaround, equally important strategic progress has been made. The Resco integration and synergy realisation are on track, recycling rates are up in almost all regions and our digital transformation is progressing well. Despite not yet foreseeing a major market tailwind yet, we expect our self-help measures and strategic progress to drive business performance further operational and financial improvements in 2026. I want to thank all employees, customers, partners, and shareholders for their continued trust. With our enhanced global footprint, rigorous operational discipline, and clear strategic focus, we believe RHI Magnesita is forging a path for continued success despite persistent headwinds.”