RHI Magnesita (RHIM) H1 2025 earnings summary

Executive summary

• Revenue declined by 2–3% year-over-year to €1.68bn, with significant margin compression and adjusted EBITA down 26% to €141m at an 8.4% margin, driven by weak industrial demand and price competition.

• Net profit dropped to €11m from €111m year-over-year; adjusted EPS fell 47% to €1.37, impacted by lower EBITA and FX losses.

• Management is implementing urgent actions including price increases, cost reductions, and network optimization to restore margins in H2 2025.

• Resco acquisition integration is progressing well, contributing €14m adjusted EBITDA in H1 and supporting North America growth.

• Interim dividend maintained at €0.60 per share; full-year margin and capex guidance reduced.

Financial highlights

• Revenue was €1.68bn, down 2–2.9% year-over-year; adjusted EBITDA declined 18% to €211m; adjusted EBITA margin dropped to 8.4% from 11.0%.

• Gross margin declined by 330bps to 20.8% due to lower prices, unfavorable mix, and low plant utilization.

• Free cash flow was €70m, down from €136m prior year; cash conversion strong at 124% due to working capital release.

• Net debt to pro forma adjusted EBITDA at 3.1x, up from 2.3x at year-end 2024, due to the Resco acquisition.

• Dividend per share unchanged at €0.60; available liquidity at €927m.

Outlook and guidance

• Full-year adjusted EBITA guidance lowered to €370–390m (10.5–11.0% margin), reflecting H1 weakness and FX headwinds.

• H2 recovery expected from delivery of postponed industrial projects, price increases, cost savings, and plant closures.

• Capex guidance for FY 2025 reduced to €130m; gearing expected to fall to ~2.8x by year-end.

• Management targets a €120m EBITDA step-up in H2, with high certainty for most measures.