2026 Half Year Results

31 July 2026

RHI Magnesita N.V.

("RHI Magnesita" or the "Company" or "Group")

2026 Half Year Results

Consistent self-help delivery and strong steel business performance delivers 42% Adj. EBITA growth on constant currency basis

RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, today announces its unaudited results for the six months ended 30 June 2026 (“H1 2026” or the “Period”).

1. Adjusted figures are alternative performance measures “APMs” excluding impairments, amortisation of intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details are shown in the APM section.
2. H1 2026 Net debt includes IFRS16 lease liabilities of €86 million. For further details see Note 13.
3. Pro Forma Adjusted EBITDA is used to assess financial gearing and includes a full year of Adjusted EBITDA contribution from businesses acquired during the year.
4. Gross Profit restatated due to accounting policy changes

Operational and strategic highlights

• The Group increased Adj. EBITA by €24 million, or 17%, versus H1 2025, despite a continuing soft refractory demand and a material foreign exchange headwind. On a constant currency basis, Adj. EBITA increased by 42% year-over-year.

• The improvement reflects continued delivery of the Group’s structural self-help cost measures and price adaptations, in line with expectations for 2026. These initiatives are well advanced and will deliver further benefits in 2027 as new raw materials and network optimisation programmes  are rolled out.
• The Steel segment performed well, supported by cost and price self-help and demand growth in some regions, particularly in India and U.S..

• The Industrial segment had weaker shipments than expected, reflecting softer demand for high-margin Industrial Projects for Glass and Industrial Applications. Cement and Non-Ferrous Metals improved slightly year-over-year.

Financial highlights

• Adjusted EBITA increased to €165 million (H1 2025: €141 million), with margin expanding to 10.3% (H1 2025: 8.4%). This included a foreign exchange headwind of €24 million.
• Adjusted EPS increased 32% to €1.81 (H1 2025: €1.37).

• Working capital intensity temporarily increased to 24% as the Group increased raw material inventory ahead of expected stronger H2 order books, consistent with the normal working capital cycle and to mitigate tariff uncertainty. This resulted in softer than usual operating cash flow and cash conversion of 97%. Net debt increased to €1,528 million, while leverage remained flat at 2.9x net debt / Adjusted EBITDA.

• An interim dividend of €0.60 per share was declared, in line with dividend policy.

Outlook and guidance updates

• Full-year adj. EBITA is confirmed at €400 million, including a material year-on-year foreign exchange headwind of €35 million.
• The Group remains on track to deliver self-help from price adaptations and cost measures, including the previously guided €45 million adj. EBITA improvement, being €15 million from each of price adaptations, network optimisation and administrative cost savings. The self-help is being delivered in the current low-demand environment, strengthening the Group and enhancing its operating leverage for when demand improves.
• Capital expenditure guidance for FY 2026 has been reduced from €130 million to €115 million.
• Guidance for working capital intensity remains unchanged at 22% by year-end, reflecting the unwind of the temporary inventory build in H1.
• Gearing is expected to reduce towards 2.6x net debt to Adjusted EBITDA by year-end 2026, with net debt expected to fall to approximately €1,400 million.

Stefan Borgas, Chief Executive Officer, said: “RHI Magnesita delivered a solid double-digit earnings improvement compared with the first half of 2025, supported by continued progress on our self-help initiatives. We are pursuing further measures across the plant network and raw materials, to reduce costs and sell into non-refractory raw material markets, to enhance the Group’s operating leverage when demand improves. In addition, our €100 million investment in digital infrastructure, now around two-thirds complete, will provide a strong foundation for future efficiency gains.

Our steel business is on a positive trajectory, particularly in North America, Europe and India. Conversely, Industrial customers remain cautious in the current volatile market environment, which continues to weigh on investment decisions. This has once again delayed the recovery we had expected in our high-margin Industrial Projects business.

We remain confident in stronger operational and financial performance going forward, underpinned by continued operational improvement, a firm order book in Steel and Industrials, and a clear focus on cash flow generation and deleveraging.”

For further enquiries, please contact:

Investors:  Alexander Ordosch, Head of Investor Relations, +43 699 1870 6162, alexander.ordosch@rhimagnesita.com

Media:   Hudson Sandler, +44 020 7796 4133, rhimagnesita@hudsonsandler.com

Conference call

A presentation for investors and analysts will be held on 31 July 2026 starting at 8:15am UK time (9:15am CEST). The presentation will be webcast live and details can be found on: https://ir.rhimagnesita.com/. Alternatively, the webcast can be accessed using the following link:

https://www.investis-live.com/rhimagnesita/6a574b2e88e8430025846b80/nzrtd

A replay will be available on the same link shortly after event.

About RHI Magnesita

RHI Magnesita is the global leader in refractory products, systems, and solutions that enable high-temperature industrial processes exceeding 1,200°C. Through its refractory products, services, and expertise, the company supports customers across the steel, cement, non-ferrous metals, glass, and other high-temperature process industries. With more than 20,000 employees and a global network of raw material sites, production facilities, recycling centers, and sales offices, it serves customers worldwide.

RHI Magnesita is listed on the London Stock Exchange (RHIM) and has a secondary listing on the Vienna Stock Exchange. For more information, visit www.rhimagnesita.com. 

FORWARD LOOKING STATEMENTS

This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's current expectations and projections about future events. These statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, reflect the directors' beliefs and expectations and involve a number of risks, uncertainties and assumptions which could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. Statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this announcement is subject to change without notice and, except as required by applicable law, the Company does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained in it and nor does it intend to. You should not place undue reliance on forward looking statements, which apply only as of the date of this announcement. No statement in this announcement is or is intended to be a profit forecast or profit estimate or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of the Company. As a result of these risks, uncertainties and assumptions, the recipient should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise. The Company has no obligation or undertaking to update or revise the forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable regulations. The numbers presented throughout this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.

OVERVIEW

Health & safety

Ensuring a safe working environment for our own workforce, including those working at customer sites, as well as contractors on our sites, and visitors, remains a core value at RHI Magnesita. During the first half of 2026, the Total Recordable Injury Frequency (TRIF) was 5.4 per 1 million hours worked up from 4.1 per 1 million hours worked end of 2025. The Preventive Rate exceeded its H1 target, while the corrective action Closing Rate reached 90%, demonstrating consistent follow-up of identified risks.

The increase in TRIF reflects the Group’s proactive approach to safety enhancement, as customer sites where our workforce operates have been incorporated into its Safety Management System (SMS). The rollout of the SMS was completed in 2026 Q1, with more than 113,000 safety reports submitted during the first half of 2026, an increase of 18% compared with H1 2025. This reporting increase demonstrates the open Safety Culture that results in improved Preventive Rates and ultimately a better safety performance and is not a primary signal of a higher number of safety incidents.

In parallel, the Safety Culture Transformation continued to progress across the Group, reinforcing leadership engagement and proactive risk management in support of the Group's ambition of Zero Harm.

Financial overview

Revenue declined by 4.9% to €1,595 million (H1 2025: €1,677 million) and stayed flat on constant currency basis. Pricing initiatives could not fully offset a 2.7% reduction in sales volumes, particularly in high revenue per ton Industrial Projects (Glass and Industrial Applications), and the significant foreign exchange headwind.

Against this backdrop, Adjusted EBITA increased to €165 million (H1 2025: €141 million) representing a 42% increase on constant currency basis. Margins improved to 10.3% (H1 2025: 8.4%) driven primarily by self-help measures. Raw material contribution stable at low of 0.9 percentage points (H1 2025: 1.1 percentage points).

Business performance in steel increased noticeably driven by product mix and price increases. Steel Europe and Steel India achieved a turnaround in profitability, and earnings in Steel North America further improved. In contrast, the Industrial business recorded a 13% revenue decline compared to H1 2025, which has already been a weaker period for Industrials. The drop higher-margin Industrial Projects (Glass and Industrial Applications) impacted refractory margins negatively due to an unfavourable product mix and fixed cost underabsorption.

Self-help cost saving measures across the plant network and SG&A were delivered in line with expectations, partially offsetting external pressure from weaker mix, lower volumes and foreign exchange.

Working capital increased to €798 million (FY 2025: €769 million), primarily driven by higher inventory levels, which temporarily weakened cash generation during the first half of 2026. Inventory intensity increased to 31.0% (FY 2025: 26.3%) as the Group increased raw material inventory ahead of expected stronger H2 order books, consistent with the normal working capital cycle, and to mitigate tariff uncertainty.

Adjusted EPS increased to €1.81 (H1 2025: €1.37), reflecting primarily higher earnings. An interim dividend of €0.60 per share was declared, in line with the Group’s dividend policy.

Sustainability

During H1 2026, RHI Magnesita continued to make progress towards its 2030 sustainability targets. CO₂ intensity decreased by 6%against the 2024 baseline, driven by energy efficiency circular economy initiatives. Energy performance also improved, with 35 ISO 50001-certified sites covering 94% of global energy consumption and projects expected to deliver annual savings of approx. 50 GWh by 2026.

ustainable procurement also progressed, with supplier assessment coverage reaching 61,3 % in H1 2026 (61,8% in H1 2025). While spend coverage declined following the inclusion of recently acquired businesses within the KPI scope, this reflects the expanded reporting boundary rather than a deterioration in supplier engagement.

Circular economy initiatives continued to contribute significantly to both environmental and financial benefits of sustainability measures. The Group also improved its EcoVadis score to 81 (2025: 79), placing RHI Magnesita among the top 5% of companies globally. The recycling rate increased to 19.5% in H1 2026 (H1 2025: 15.7%). A total of 270 kt of recycled materials was incorporated into production (H1 2025: 208kt), resulting in an estimated 227 kt reduction in CO₂ emissions. In parallel, the Group continues to strengthen its position as a leading technology partner for customers developing low-carbon and green steel production technologies.

Outlook and guidance updates

We confirm full-year Adjusted EBITA guidance of €400 million, including a €35 million foreign exchange headwind, unchanged for 2026. The business is naturally more H2 weighted, because of stronger Industrial shipments during the cement season end of the year, and higher Industrial Project deliveries. These market drivers and effective self-help also drove the stronger H2 performance in 2025.

Self-help measures initiated in 2025 continue to deliver the previously guided €45 million adj. EBITA improvement improving operating leverage ahead of a demand recovery. Administrative cost reductions remain on track to deliver the guided €15 million earnings uplift, and network optimisation is also expected to deliver €15 million.

Steel market conditions remain soft, but the outlook is improving. Trade measures should support local demand, price adaptations, and 4PRO business development. Underlying demand growth, particularly in India, together with pricing actions, remains on track to deliver a further €15 million earnings improvement.

The Industrials business remains more challenging, mainly due to weakness in Industrial Projects, although underlying fundamentals remain strong. Order books in Non-ferrous and Glass are beginning to recover from a low base. This will support the €15 million earnings guidance as fixed-cost underabsorption eases and product mix improves. It will also drive meaningful inventory reductions. The main risk remains macro-induced timeline slippage, with more than €50 million of revenue already deferred into future years and €10 million moved into H2 2026.

Following a review of internal projects, FY 2026 capital expenditure guidance has been reduced from €130 million to €115 million. Working capital intensity is still expected to be c.22%, as the temporary inventory build is reduced and U.S. accounts receivable reduce following the ERP go-live. This should support leverage declining to around 2.6x net debt to adjusted EBITDA by year-end 2026.

Dividend

Consistent with the Company’s dividend policy to pay an interim dividend equal to one third of the previous final dividend, the Board has declared an interim dividend of €0.60 per share representing €28 million in aggregate. The interim dividend will be paid on 24 September 2026 to shareholders on the register on 28 August 2026.

FINANCIAL REVIEW

Reporting approach

The Company uses a number of alternative performance measures (APMs) in addition to measures reported in accordance with IFRS Accounting Standards as adopted by the European Union (“IFRS”), which reflect the way in which the Board and the Executive Management Team assesses the underlying performance of the business. The Group’s results are presented on an “adjusted” basis, using APMs that are not defined or specified under the requirements of IFRS, but are derived from the IFRS financial statements. The APMs are used to improve the comparability of information between reporting periods and to address investors’ requirements for clarity and transparency of the Group’s underlying financial performance. The APMs are used internally in the management of our business performance, budgeting and forecasting. A reconciliation of key metrics to the reported financials is presented in the section titled APMs.

All references to comparative 2025 numbers in this review are on a reported basis, unless stated otherwise. All reported volume changes year-on-year are excluding mineral sales.

Revenue

The Group recorded revenues of €1,595 million, down 4.9% on a reported basis, and broadly stable on a constant currency basis. Results were impacted by an €82 million foreign exchange headwind, which also weighed on earnings, primarily due to the depreciation of the U.S. dollar and Indian rupee against the euro.

North America remained the Group’s largest revenue contributor and benefited from the Resco acquisition completed at the end of January 2025. Revenue growth in Steel, particularly in North America and other higher-value markets, was largely offset by lower Industrial revenue and the impact of foreign exchange.

Average revenue per tonne in constant currency increased in all regions except Europe & CIS and China & East Asia, reflecting higher pricing and continued progress growing 4PRO contracts in Steel. North America and META recorded the strongest increases.

Steel accounted for 71% of Group revenue in H1 2026, above the prior year’s 68%, reflecting lower activity in Industrial Projects. Industrial Projects remained subdued, with the sharpest decline in Glass, where revenue was down a further 40% on a constant currency basis versus a weak prior-year period. Revenues also remained below historic peaks in Non-Ferrous Metals and Industrial Applications, with total project numbers still around 40% below historic averages.

Cost of Goods Sold

Cost of goods sold decreased by 6% to €1,241 million (H1 2025: €1,323 million; figures excluding amortisation), driven by lower plant-related personnel costs, despite unplanned cost increases related to the Middle East conflict of €28 million.

Plant-based personnel costs reduced by €22 million driven by plant closures, driving together with other production and services related cost reductions, a large share of the total change in CoGS.

Raw material costs went up slightly by €5 million driven by rising Fused Magnesia, DBM, Alumina and resins prices, of which approximately €10 million are caused by the impact of the Middle East conflict. Lower consumption and price management systems of energy and freight services more than offset the €11 million increase in transport costs by the Middle East war.

Gross profit

Gross profit was flat year on year at €354 million, while gross margin improved to 22.2% from 21.1% in H1 2025. All regions except LATAM recorded improvements in gross profit and gross margin. This was achieved despite lower shipments and average revenue per tonne, as well as the fact that some of the €28 million of cost increases related to the Middle East conflict had not yet fully been passed on to customers.

The Steel segment recorded a €12 million increase in gross profit, which was offset by an equivalent decline in Industrials. Within Industrials, lower gross profit in Glass and Industrial Applications was not fully offset by improvements in Non-ferrous and Cement & Lime, resulting in an overall decline in Industrial gross profit.

Adjusted EBITDA

The Group recorded Adjusted EBITDA of €230 million, up 9% compared with the prior reporting period (H1 2025: €211 million). The Adjusted EBITDA margin also improved to 14.4% (H1 2025: 12.6%).  On a constant currency basis, Adjusted EBITDA increased by 24% year on year, highlighting the significant foreign exchange headwind in H1 2026.

Adjusted EBITA

Adjusted EBITA increased to €165 million (H1 2025: €141 million; €117 million on a constant currency basis), with the margin rising to 10.3% (H1 2025: 8.4%). Adjusted EBITA improved more strongly than gross profit, reflecting the continued benefit of cost-saving measures. The refractory margin contribution was 9.5 percentage points, above the total adjusted EBITA margin in H1 2025. As is typical for the Group, the refractory margin is usually lower in the first half than in the second half, reflecting the seasonally stronger contribution from higher-margin Industrial sales in H2.

Raw materials contributed 0.9 percentage points to adjusted EBITA, or €14 million, the lowest level on record, compared with 1.1 percentage points in 2025. While magnesite- and dolomite-based raw material prices remained at low levels in H1 2026, lower refractory shipments led to fixed-cost underabsorption. Around €3 million of earnings were lost as a result of demand disruption related to the Middle East conflict, as steel producers in the region reduced output and some Industrial Projects were cancelled. In addition, some of the cost increases already described had not yet been fully passed on by 30 June 2026.

A foreign exchange headwind of €24 million continued to materially affect earnings in H1 2026, mainly due to the weakening of the U.S. dollar and Indian rupee against the euro. Adjusted EBITA and Adjusted EBITDA both exclude €42 million of items classified as “Items excluded from adjusted performance” (H1 2025: €54 million), as set out in the next section.

Items excluded from adjusted performance

In order to accurately assess the underlying performance of the business, the Group excludes certain items from adjusted EBITA related to other income and expenses of €42 million, including related to -€21m Digitalisation investment, -€14m Network Optimisation and -€7m SG&A reduction, largely in Europe.

Net finance expenses 

Net finance expenses increased to €51 million in H1 2026 from €47 million in H1 2025. Net interest expense totalled €29 million, up from €22 million in H1 2025, primarily caused by refinancing of existing debt facilities at higher base interest rates and increased spreads driven by elevated leverage.

Foreign exchange losses reduced to €3 million (H1 2025: €13 million) driven primarily by lower Balance sheet exposures and less volatility in some of the Group’s key currencies compared to H1 2025, including the U.S. dollar.

The increase in other net financial expenses to €19 million is mainly attributable to the positive impact in H1 2025 from the revaluation of the Group’s obligation to purchase the remaining stakes it does not already own in Jinan New Emei and Chongqing.

Taxation

Income tax for H1 2026 in the income statement amounted to €11 million (H1 2025: €3 million), representing a 23% reported effective tax rate (H1 2025: 23%).

Reported profit before tax amounted to €47 million (H1 2025: €14 million). Adjusted profit before tax amounted to €117 million (H1 2025: €90 million), with an adjusted effective tax rate of 23% (H1 2025: 23%). Adjusted items include non-taxable IFRS income related to put option valuation, non-capitalizable losses due to restructuring projects, and non-deductible M&A-related expenses.

Profit after tax

On a reported basis the Group recorded profit after tax of €36 million (H1 2025: €11 million), profit attributable to shareholders of RHIM N.V. of €32 million (H1 2025: €7 million). Adjusted for OIE, profit after tax was €89 million with adjusted earnings per share of €1.81 (H1 2025: €1.37).

Profit attributable to shareholders is stated after non-controlling interests of €86 million (H1 2025: €65 million). The Group, holding a majority stake of 56% in RHI Magnesita India Ltd., attributes most of its non-controlling interests to the earnings consolidated from this subsidiary.

Working capital

Working capital increased to €798 million compared to the 2025 FY Results figure (incl. Resco) of €769 million. Despite this, cash conversion still stood at 97%.

Working capital intensity, measured as a percentage of annualised revenue over the last three months, increased one percentage point to 24.4% (30 June 2025: 23.4%). The FX impact was €22 million compared to year-end 2025.

Inventories increased by €54 million on constant currency basis to year-end 2025, which was the main driver of the increase in Net Debt. As a result, Inventory intensity increased temporary to 31.0% (30 June 2026) ahead of an expected stronger order book in H2. This is consistent with the normal working capital cycle. 

1 - percentage of annualised revenue over the last three months

Accounts receivable increased by €39 million year on year, mainly due to delayed invoicing in May 2026 in the U.S. as a result of the ERP implementation. Accounts receivable is defined as trade receivables excluding factoring, plus contract assets, less contract liabilities and down payments received. A full reconciliation is provided in the APM section.

Accounts payable excluding forfaiting increased by €66 million year on year, driven by higher inventory purchases.

Working capital finance, used to provide low-cost liquidity and support the Group’s commercial offering to customers, amounted to €313 million on June 30 2026 (30 June 2025: €302 million). This comprised €272 million of accounts receivable financing (factoring) (30 June 2025: 254 million) and €41  million of accounts payable financing (forfaiting) (30 June 2025: €48 million). This working capital financing level is within the limit set by the Board of €320 million.

Acquisitions

On 25 June 2026, RHI Magnesita announced a strategic joint venture with Khemka Refractories Pvt. Ltd. (“Khemka”), a leading refractory raw materials manufacturer in India. The joint venture will focus on refractory raw-material recycling and is based on the benchmark model already established in Europe with Mireco and in the U.S. with BPI. Khemka is a strong local partner, with whom the circular local-for-local business model can be scaled in India. The establishment of the joint venture does not require a material cash outlay.

The aim is to establish a dedicated recycled raw material facility to feed the Group’s existing footprint in India. Using recycled raw materials instead of mined virgin raw materials reduces raw material costs and lowers the carbon footprint of refractories. It also reduces the dependency on imported raw materials. The facility will be located in Odisha, at the heart of India’s steel industry. As there are currently no meaningful end-to-end refractory raw-material recycling capabilities in the Indian market, the proposed Odisha facility would be a first-of-its-kind project. The aim is to double recycling raw material volumes of this joint venture in the next years feeding own operation and external sales in the world’s fastest-growing steel and refractory market.

Cash flow

Adjusted operating cash flow decreased to €160 million (H1 2025: €175 million), representing a cash flow conversion from adjusted EBITA of 97% (H1 2025: 124%). This temporary reduction was driven by higher working capital.

Capital expenditure for 2026 will be reduced from the guided €130 million to approximately €115 million. Total capital expenditure spent in 2026 H1 was approximately €46 million (H1 2025: €45 million), equally split into maintenance and value projects. Most spending on value projects is associated with Network Optimisation.

Interest paid on borrowings and leases, net of interest received, increased by €1 million to €40 million (H1 2025: €39 million), primarily due to higher interest expense following the debt refinancing. Cash dividends paid in the first six months of 2026 were broadly stable year on year at €57 million.

Financial position

Net debt increased by €33 million to €1,528 million compared with year-end 2025, driven by working capital cash consumption.

The Group’s leverage ratio remained stable at 2.9x net debt to Adjusted EBITDA, with deleveraging expected to begin in the second half of 2026 toward the Group’s target of 2.6x at year-end 2026.

Available liquidity at 30 June 2026 was €1,030 million (31 December 2025: €955 million), mainly denominated in Euro. The gross debt mix was 69% floating and 31% fixed, and the weighted average cost of debt at 30 June 2026 was 3.54%, including swaps.

In H1 2026, the Group refinanced a €232 million syndicated OeKB-backed term loan maturing in May 2027 with a new €350 million syndicated OeKB-backed term loan maturing in April 2031. In July 2026, the Group further issued €450 million of Schuldscheindarlehen with an average tenor of 4.4 years to address the remaining debt maturities in 2026 and pre-finance further maturities in 2027.

Return on invested capital

ROIC is used to assess the Group’s efficiency in executing its capital allocation strategy, which is designed to support organic growth, disciplined M&A and shareholder returns. ROIC is an APM; see the APM section for full details of how ROIC reconciles to IFRS metrics.

Under the APM definition, ROIC was 8.3% in H1 2026 (H1 2025: 5.8%; previously stated value: 5.5%; invested capital restated to make 2025 and 2026 figures comparable). Higher NOPAT, driven by improved earnings, increased ROIC in both refractories and vertical integration, while invested capital increased only marginally.

OPERATIONAL REVIEW

Steel overview

Supplying refractory products and services to the steel industry accounted for approximately 71% of Group revenues in H1 2026 (H1 2025: 68%). Applications span ironmaking, primary steelmaking, secondary metallurgy and casting, with product lifecycles ranging from hours to several years depending on the application. As a result, refractory consumption is typically classified as an operating expense by steel producers and represents approximately 2-3% of steelmaking operating costs.

Global steel markets showed encouraging resilience in the first half, despite ongoing macroeconomic headwinds. Two key factors continued to influence the market: soft steel demand and elevated Chinese steel exports. Worldsteel d