RHI Magnesita (RHIM) Q1 2026 TU earnings summary

Executive summary

• Adjusted EBITDA/EBITA increased approximately 15% year-over-year, driven by self-help initiatives, cost discipline, pricing actions, and supply chain agility.

• Global demand for steel and industrial refractories remained weak, with regional variations; steel volumes were flat and industrial project volumes subdued year-over-year.

• North America and Latin America delivered strong profit contributions, offsetting weaker results in Europe, where volumes shifted to Q2.

• Management continues to execute network optimisation, digitisation, and other self-help measures to support ongoing improvement.

• Strong supply chain agility enabled rapid response to geopolitical disruptions, particularly in the Middle East.

Financial highlights

• Adjusted EBITDA/EBITA rose by approximately 15% year-over-year, or 46% on a constant currency basis; reported EBIT up 25% (+84% constant currency).

• Net debt increased in Q1 due to higher working capital from inventory buildup, but is expected to decline to €1.4 billion by year-end.

• Cash conversion for the full year is expected to exceed 90%, supporting deleveraging and strong cash generation.

• Steel revenue grew 6% in constant currency, while industrial revenue declined 6%; group revenue up 2% in constant currency, down 5% reported.

Outlook and guidance

• Full-year adjusted EBITDA/EBITA guidance reconfirmed at €435 million (constant currency) or €400 million (current FX), with leverage expected to decline to 2.6x by year-end.

• EBITDA margin guidance of 11.5% for the year, with 1% from backward integration.

• Second quarter and second half expected to be stronger than first quarter/half, with a typical 45%/55% split.

• Gradual improvement in steel and industrial demand anticipated, especially in non-ferrous metals.

• No significant M&A cash outflows anticipated in 2026, though M&A remains a strategic focus.