RHI Magnesita
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RHI Magnesita (RHIM) investor relations material

RHI Magnesita Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary2 Mar, 2026

Executive summary

  • Delivered full-year profit guidance in 2025 through structural, cost-based self-help initiatives, despite unprecedented market challenges and no visible market recovery, with strong H2 recovery driven by internal measures.

  • Revenue declined 3% year-over-year to €3.37bn, with gross profit down 10% and adjusted EBITA down 8%.

  • Strategic focus on operational discipline, safety, sustainability, and local-for-local production, with significant progress in safety culture and CO2 intensity reduction.

  • Strategic acquisition of Resco transformed North American footprint, increased US local production, and contributed to earnings.

  • No expectation of market recovery before 2027; guidance for 2026 is based on controllable factors.

Financial highlights

  • Revenue: €3.37bn (-3% YoY); Adjusted EBITDA declined to EUR 373 million in 2025 from EUR 407 million in 2024, with a margin of 11.1%.

  • Operating cash flow was EUR 391 million, with cash conversion over 100% and free cash flow of EUR 214 million.

  • Net debt increased to EUR 1.5 billion due to the Resco acquisition; leverage at 2.9x net debt to EBITDA.

  • Final dividend of EUR 1.20 per share, full-year dividend EUR 1.80, in line with 2024.

  • Working capital intensity improved to 21.7%, with ~€90m released via improved inventory and AR management.

Outlook and guidance

  • 2026 adjusted EBITDA/EBITA guidance: EUR 435 million constant currency, EUR 400 million reported, margin ~11.5%.

  • No demand improvement expected in steel; gradual improvement in industrial business anticipated, especially in H2 2026.

  • Currency headwinds expected to negatively impact earnings by EUR 35 million in 2026.

  • Deleveraging target of 2.6x by end 2026, with strong cash generation supporting balance sheet.

  • No meaningful cash outflows for M&A expected in 2026; focus on future opportunities.

Backward integration margin recovery outlook
North America Network Optimisation benefits
Deleveraging strategy beyond 2026 target
Future EBITA margin potential
India overcapacity strategy
Middle East conflict impact on 2026 guidance
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Frequently asked questions

RHI Magnesita N.V. is a refractory materials producer that develops, produces and supplies refractory products and systems used in industrial high-temperature processes worldwide. It offers magnesia spinel, dolomite, dolomite-magnesia, magnesia-chrome, alumina, alumina silicate and mortars for the cement industry; shaped products based on silicon carbide, magnesia zirconium fireclay and alumina; unshaped refractories; and high temperature insulation amongst other special products. RHI also provides induction furnaces, AOD converters dome & delta ladles isostatically pressed products slide gates among others

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