RHI Magnesita (LSE:RHIM) has reported a robust trading update for the period ending October 2025, showcasing improved performance in the face of challenging global market conditions. The company achieved adjusted EBITA of €136 million over the four-month period, representing a 12.7% margin—a notable improvement over the first half of the year.
Although steel sector volumes remained subdued, RHI Magnesita recorded solid growth in India, the Middle East, Africa, and Türkiye, helping offset regional softness elsewhere. The company’s cost efficiency initiatives, including the closure of certain plants in Germany, contributed to stronger margins, while the ongoing integration of former Resco facilities continues to enhance its operational footprint across North America. Management reaffirmed that the group remains on track to meet its full-year adjusted EBITA target, with expectations for continued performance improvement into 2026.
Despite operational progress, RHI Magnesita NV faces financial headwinds, including margin pressure and elevated leverage. Technical indicators show mixed momentum, with potential resistance at higher moving averages, while valuation remains a concern given the high price-to-earnings ratio. However, the company’s dividend yield continues to provide some appeal for income-focused investors.
More about RHI Magnesita NV
RHI Magnesita is a global leader in high-grade refractory products, systems, and solutions, essential to high-temperature industrial processes in sectors such as steel, cement, non-ferrous metals, and glass. With a vertically integrated supply chain, the company operates 65 main production sites, 12 recycling facilities, and over 70 sales offices, employing more than 20,000 people worldwide. Leveraging its global scale and diversified product portfolio, RHI Magnesita aims to strengthen its presence in fast-growing markets and maintain leadership in refractory technology and innovation.
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