RHI Magnesita Reaffirms Guidance as H1 Profitability Improves Despite Sales Dip

RHI Magnesita N.V. (RHIM) reaffirmed its full-year earnings guidance after reporting a significant increase in first-half profitability, driven by wider margins that successfully offset a decline in sales revenue and volumes.

First-Half Financial Performance

The company announced on Friday that its sales for the first half of 2026 totaled €1,595 million, a 5% decrease on a reported basis compared to the prior year. On a constant currency basis, sales remained flat, while volumes declined by 2.7%.

Despite the lower revenue, profitability metrics showed strong improvement, which the company attributed to cost reduction measures and price adjustments. Key figures from the report include:

• EBITA: €165 million, an increase of 17% year-over-year (or 42% in constant currency).
• EBITA Margin: 10.3%, an expansion of 190 basis points from the previous year.
• Earnings Per Share (EPS): €1.81, up 32%.

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As of the end of the period, RHI Magnesita's net debt stood at €1,528 million. This resulted in a leverage ratio of 2.9 times, which was unchanged from the end of 2025.

Outlook and Guidance Confirmed

Looking ahead, management confirmed its full-year adjusted EBITA guidance of €400 million. This forecast incorporates an anticipated foreign exchange headwind of €35 million, which is expected to be partially offset by €45 million in benefits from internal efficiency programs.

The company noted an improving outlook for steel markets, though it faces more challenging conditions in industrial projects. Order books for its non-ferrous and glass segments are reportedly strengthening. RHI Magnesita also projects its net debt will fall to approximately €1,400 million by the end of the year, with its net debt to EBITDA ratio declining toward 2.6 times.