Jul. 31, 2026 - RHI Magnesita, the leading global supplier of refractory products, systems, and solutions, today announces its results for the six months ended 30 June 2026.
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.
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.
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.
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.”
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