RHI Magnesita (RHIM) Q2 2026 earnings summary

Executive summary

• Self-help and operational improvements drove margin and profit growth, especially in steel, cement, and non-ferrous segments, despite a 5% revenue decline and significant FX headwinds.

• Steel segment showed resilience with improved gross profit and margin, while industrial projects and glass faced historic lows and project delays.

• Management confirmed full-year guidance, focusing on cash flow, deleveraging, and safety culture transformation with digital initiatives.

Financial highlights

• Revenue declined 4.9% to €1,595m, broadly flat on constant currency; gross profit stable at €354m.

• Adjusted EBITA/EBITDA rose 17% to €165m, margin improved to 10.3%; adjusted EPS increased 32% to €1.81.

• Net debt increased by €33m to €1,528m; leverage stable at 2.9x net debt/EBITDA.

• Cash conversion remained strong at 97%.

• Interim dividend of €0.60/share declared.

Outlook and guidance

• Full-year adjusted EBITA guidance confirmed at €400m (reported), €435m (constant currency), with a €35m FX headwind.

• Deleveraging targeted to 2.6x net debt/EBITDA by year-end; net debt targeted at ~€1.4bn.

• Capex guidance for FY 2026 reduced to €115m; working capital intensity expected to fall to 22% by year-end.

• Self-help initiatives expected to deliver €45m EBITA improvement in 2026.