RHI Magnesita N.V.

Adjusted EBITA was EUR 373 million in 2025, down from EUR 407 million in 2024, with an EBITA margin of 11.1%. Operating cash flow was EUR 391 million, cash conversion was 105%, and free cash flow was EUR 214 million. Net debt ended at EUR 1.5 billion and leverage at 2.9x net debt to adjusted EBITA. On the earnings bridge, Industrial EBITA declined by EUR 74 million, Steel EBITA declined by EUR 41 million, currency reduced earnings by EUR 13 million, management self-help added EUR 70 million, and Resco contributed EUR 25 million. For 2026, management guided to EUR 435 million adjusted EBITA on a constant-currency basis, or about EUR 400 million reported, implying a margin of around 11.5%; they also expect around EUR 35 million of currency headwind at current exchange rates.

Stefan Borgas emphasized that 2025 was about structural self-help, not market recovery, and said the company met guidance by controlling what it can control. He pointed to a stronger second half driven by cost actions, a sharpened strategy focused on regionalization, portfolio review, innovation, digital transformation, and sustainability, and said the company’s operating leverage will matter when demand eventually improves. His tone was cautious on the market, repeatedly saying there are no green shoots and that he expects no meaningful demand recovery before 2027.

Ian Botha said the earnings decline was mainly market-driven, with Industrial down EUR 74 million, Steel down EUR 41 million, and FX a EUR 13 million drag, partly offset by EUR 70 million of self-help and EUR 25 million from Resco. He highlighted working capital intensity improvement to 21.7%, operating cash flow of EUR 391 million, free cash flow of EUR 214 million, and leverage of 2.9x, with about 70% of debt fixed at a weighted average cost of 3.3%. For 2026, he guided to about EUR 400 million reported adjusted EBITA after currency, with roughly EUR 35 million of FX headwind and four structural uplift drivers each contributing about EUR 15 million on a like-for-like basis.

Analysts pressed on why there is no benefit from Chinese export weakness in India, with management saying India’s main issue is local overcapacity and undisciplined competition, not Chinese exports, so there is no near-term relief. Questions on M&A were answered with the explanation that opportunities exist but deals take about two years to close, so 2026 is unlikely to see a major cash outlay. On reporting, management said it stopped providing divisional EBITA because investors had asked for simpler, less complex disclosure. Analysts also asked about Middle East exposure, regulatory tailwinds, working capital, and currency; management said META revenue was EUR 350 million last year, that any regulatory benefit is likely delayed to 2027 or later, working capital should stay around current levels in 2026, and currency is a major headwind driven mainly by the U.S. dollar and Indian rupee.