RHI Magnesita (LSE:RHIM) has confirmed a planned change at the top of the refractory products group, with Gustavo Franco set to take over as chief executive from Stefan Borgas on 1 November 2026.
Franco, a long-standing member of the company’s leadership team, brings around two decades of experience in the refractory industry. His appointment follows a structured succession process and will include a handover period with Borgas ahead of the leadership change.
Franco also played an important role in the 2017 merger of RHI and Magnesita, which created the current group. His promotion is expected to provide continuity as RHI Magnesita pursues its existing strategy and seeks to generate sustainable long-term value for customers, employees and shareholders.
Outlook Balances Operational Challenges With Deleveraging Potential
The leadership transition comes as RHI Magnesita navigates a challenging operating environment. The company’s financial position remains adequate, although weaker revenue, pressure on margins and increased leverage have weighed on the overall picture.
End-market conditions are also expected to remain subdued, with weak demand potentially continuing until at least 2027. Against this backdrop, management’s guidance has placed greater emphasis on execution, including opportunities to improve EBITA and reduce leverage.
Supporting the outlook are constructive technical trends and a valuation profile that remains relatively favourable to shareholders. Progress on operational improvements and deleveraging could therefore become increasingly important if demand across the group’s major industrial markets remains soft.
More about RHI Magnesita NV
RHI Magnesita is a global supplier of refractory products, systems and services used in industrial processes operating at temperatures above 1,200°C. Its customers span the steel, cement, non-ferrous metals, glass and other process industries.
The group employs more than 20,000 people and operates an extensive international network encompassing raw-material locations, manufacturing facilities, recycling centres and sales offices. RHI Magnesita is listed in London and also maintains a secondary listing in Vienna.
Its portfolio combines refractory materials with technical expertise and related services, making the company an important supplier to heavy industry. The business has developed a geographically diversified footprint following the combination of RHI and Magnesita, with its strategy centred on customer partnerships, operational efficiency, sustainability, innovation and digitalisation.
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