RHI Magnesita shares fall as warns tough market backdrop to persist
RHI Magnesita NV shares slumped on Monday as it reported a decline in annual earnings and cautioned that tricky market conditions are to continue.
Shares in the refractory products maker slumped 12% to 2,940.00 pence each in London on Monday morning.
The Vienna-based firm said pretax profit in 2025 declined 36% to €128 million from €200 million in 2024. Revenue fell 3.5% to €3.37 billion from €3.49 billion the year prior.
‘The group delivered a strong second half performance, driven by continued execution of management-led self-help measures across pricing, cost control, and plant network optimisation, supported by modestly improved industrial demand. These actions resulted in a materially stronger H2 performance and provide a strong foundation for rebuilding margins into 2026 and beyond,’ RHI Magnesita said.
By geography, it said the largest revenue decline came in Europe, where the slump was 12%. There was 22% growth in North America, however.
Looking ahead, it cautioned that ‘market conditions are expected to remain challenging’.
‘They continue to be impacted by global uncertainty that depresses customer demand and investment. Steel end-markets remain at cyclical lows globally, with no near-term demand recovery reflected in the order book. A number of regulatory developments in two of our key markets, the European Union and Brazil, may provide medium-term support, but the timing and impact of these measures remain uncertain and are not expected to materially affect refractory demand before 2027,’ RHI added.
‘Industrial project market visibility remains limited, with modest improvements expected in non-ferrous metals and no recovery currently evident in the glass segment. Overall visibility is expected to improve in the second half of 2026 at the earliest reflecting the planning lead time of industrial projects.’
Adjusted earnings before interest, tax and amortisation fell 8.4% to €373 million from €407 million in 2024. On a constant currency basis, the Ebita fell 5% to €393 million. It expects the adjusted Ebita to improve 17% to €435 million at constant currency in 2026.
RHI announced an unchanged final dividend of €1.20 per share and maintained its total dividend at €1.80 per share.
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