A presentation for analysts will be held at 08:15 UK time (09:15 CET) on 30 July 2025. It can be accessed using the following link: LINK
RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, today announces its unaudited results for the six months ended 30 June 2025.
Watch the video with CEO Stefan Borgas and CFO Ian Botha talking about the company’s H1 performance:
Revenue declined by 3% to €1,677 million (H1 2024: €1,728 million), with volume and pricing pressure in the base business partly offset by the contribution from the recent Resco acquisition. Adjusted EBITA decreased to €141 million (H1 2024: €190 million), reflecting an 8.4% Adjusted EBITA margin, impacted by a less favourable product mix in Industrial business, reduced demand in the glass sector and postponement of investment decisions by non-ferrous metals customers amid global trade tensions and competitive pressure across key markets.
RHI Magnesita achieved a strong cash conversion despite a build-up of inventory in preparation to meet higher customer demand for the second half of the year. Net debt increased to €1,583 million following the completion of the Resco acquisition, resulting in a leverage ratio of 3.1x. Gearing is expected to reduce to approximately 2.8x by the 2025 year end.
In January 2025, RHI Magnesita completed the €390 million acquisition of Resco, strengthening the company’s position in the North American refractory market. Resco contributed €90 million in revenue and €11 million in Adjusted EBITA during its first five months of consolidation. Integration is progressing well and trading in the US has remained resilient.
In June, RHI Magnesita agreed on a recycling joint venture with BPI, Inc., expanding its circular economy platform across North America. Significant cost and sustainability synergies are anticipated, based on the existing proven business model in Europe. Recycling of raw materials within US borders is expected to have increased relevance in a high tariff environment whilst using reclaimed refractory raw materials is also the fastest route for RHI Magnesita to reduce its CO2 emissions, when compared to the use of newly mined raw materials. These developments build on RHI Magnesita’s long-term growth strategy, while near-term focus remains on integration, network optimisation, and deleveraging.
RHI Magnesita remains on track to meet or exceed its 2025 sustainability targets encompassing the areas of health and safety, CO2 emissions intensity, energy consumption and recycling. In parallel, RHI Magnesita has established new targets for 2030 under the CSRD framework. The group’s Ecovadis rating improved to 79 in 2025 (2024: 76), placing it among the top 3% of companies globally.
RHI Magnesita continues to be a leading technology partner for customers developing ‘green steel’ technologies, which have the potential to make a significant contribution to the reduction of CO2 emissions globally due to the high emissions intensity of steel production.
Commenting on the results, Stefan Borgas, Chief Executive Officer of RHI Magnesita, said: “RHI Magnesita continues to navigate an extremely challenging external market environment with cyclically lower industrial project business, uncertainty caused by tariff negotiations, FX headwinds, aggressive competition and continued weak end market demand all contributing to sharply lower margins in the first half of 2025. Notwithstanding these external factors, we are disappointed with our financial performance and we are determined to take the urgent and necessary steps to deliver improvements. In the second half we expect market share gains in certain jurisdictions and improved margins based on actions we have already taken to secure Industrial project business, increase prices and reduce costs, including two European plant closures already executed. We reduce our outlook for full year Adjusted EBITA to be between €370 and €390 million, to account for the weaker than expected H1 2025 performance and FX. Our active M&A programme has resulted in an elevated gearing level of 3.1x EBITDA but we expect this to reduce over the course of the second half and 2026. We remain confident that our strategy to grow through M&A in the fragmented global refractory market is by far the best route to generate value for shareholders in a low growth environment, building on our existing strengths as an industry leader.”
Market conditions remain challenging with end market demand weakness expected to continue into H2 2025. Steel refractory demand therefore remains low but a modest improvement is assumed in the second half based on the order book and normal seasonality. The highly competitive pricing environment is expected to continue but the group is targeting price increases for H2 on a selective basis.
In the Industrial business, the group now has greater confidence in project deliveries in H2, primarily for Non-ferrous metals customers.
H2 2025 Adjusted EBITA is expected to benefit from management action on price increases and cost reductions including plant closures, SG&A savings and fixed cost initiatives. Full year Adjusted EBITA is now expected to be in the range of €370 to €390 million, at an average margin of approximately 10.5 to 11%. Gearing is forecast to decline from its expected peak of 3.1x to around 2.8x by year end.
RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers around the world, with over 20,000 employees in 65 main production sites (including raw material sites), 12 recycling facilities and more than 70 sales offices. RHI Magnesita intends to leverage its leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefiting from more dynamic economic growth prospects.
The Group is listed within the Equity Shares (Commercial Companies) category (“ESCC”) of the Official List of the London Stock Exchange (symbol: RHIM) and is a constituent of the FTSE 250 index, with a secondary listing on the Vienna Stock Exchange (Wiener Börse). For more information please visit: www.rhimagnesita.com
For further inquiries, please contact:
Abhijit Borah
Head of Global Communications & Public Affairs
Abhijit.borah@rhimagnesita.com
+43 699 1870 6728