RHI Magnesita (RHIM) Q3 2025 TU earnings summary

Executive summary

• Achieved a strong recovery in the second half of 2025, driven by self-help measures, cost reductions, pricing discipline, and successful RESCO integration, despite weak market demand and competitive pricing pressures.

• Revenue for H1 2025 was €1.68bn, down 2% at constant currency, with both volume and price declines in the base business, partially offset by M&A contributions.

• Adjusted EBITA fell 26% to €141m in H1, with margin dropping to 8.4% due to competitive pricing and deferred industrial projects, but margin improved to 12.7% for July–October 2025.

• Management expects momentum to continue into 2026, supported by a solid order book and ongoing self-help measures.

• RESCO acquisition integration is progressing well, contributing €14m Adjusted EBITDA in H1 and increasing U.S. local production coverage from 50% to over 65%, targeting 75%+ by next year.

Financial highlights

• Adjusted EBITA/EBITDA for July–October 2025 was €136 million, with a 12.7% margin, up from H1 2025’s 8.4%; full-year Adjusted EBITA/EBITDA guidance remains €370–390 million, with a margin of 10.5–11%.

• Adjusted EPS dropped 47% to €1.37 in H1; interim dividend maintained at €0.60 per share.

• Adjusted operating cash flow was €175m in H1, with strong cash conversion at 124%; full-year cash conversion expected at roughly 90%.

• Net debt to pro forma Adjusted EBITDA increased to 3.1x, temporarily above target range, with deleveraging expected by year-end.

• Capital expenditure guidance for FY 2025 reduced to €130m.

Outlook and guidance

• H2 2025 EBITA uplift expected from price increases, cost savings, and industrial project execution, with improved performance expected to continue into H1 2026.

• Full-year Adjusted EBITA/EBITDA guidance: €370–390m; margin 10.5–11.0%.

• Capex guidance at €130m, working capital intensity c.24%, and gearing expected to reduce in H2.

• Solid order book visibility into H1 2026, with momentum from self-help actions expected to continue.

• Expect a more balanced first-half/second-half split in 2026, with annualized benefits from cost and synergy measures.