Stock Markets April 29, 2026 02:49 AM

RHI Magnesita Posts Solid Q1 Results as Cost Measures Support Earnings

Adjusted EBITA rises on disciplined cost control; sales mix and regional dynamics leave demand picture mixed

By Hana Yamamoto
RHI Magnesita Posts Solid Q1 Results as Cost Measures Support Earnings

RHI Magnesita reported a 15% year-on-year increase in adjusted EBITA for Q1 2026, driven by cost discipline and self-help initiatives, with a 46% rise on a constant currency basis. While steel volumes were broadly flat and some regional markets softened, the Americas delivered a strong contribution. Management reiterated full-year fiscal 2026 EBITA guidance and expects leverage to decline by year-end as seasonal working capital normalises.

Key Points

  • Adjusted EBITA for Q1 2026 rose 15% year-on-year and 46% in constant currency, supported by cost discipline and self-help measures.
  • Regional performance was mixed: strong contribution from the Americas; in-line results from India, China, East Asia and META; weakness in Europe and CIS.
  • Net debt to EBITDA at March 31 remained around 2.9x with management expecting leverage to decline to approximately 2.6x by year-end; company reaffirmed fiscal 2026 EBITA guidance of

RHI Magnesita N.V. reported stronger first-quarter adjusted EBITA, citing a 15% year-over-year increase in reported terms for the first quarter of 2026. In constant currency terms the company said adjusted EBITA climbed 46%, a performance the firm attributed to ongoing cost discipline and a range of self-help measures.

Sales volumes in the steel segment were broadly flat compared with the prior year, while pricing delivered moderate positive effects. Nonetheless, the company noted softer demand conditions in several steel markets, including parts of Europe, the Middle East and Latin America.

Industrial refractory demand eased slightly, principally in cement and industrial project end markets. Regionally, the Americas were singled out as a strong contributor to the quarter, while India, China, East Asia and META performed in line with expectations. By contrast, the European and CIS regions exhibited signs of weakness.

Management also reported that the conflict in the Middle East had an impact on first-quarter sales in that region. The company said its direct exposure to the disruption remained limited and that affected shipments were routed through alternative channels to mitigate the effect.

On the balance sheet, net debt to EBITDA at March 31 remained broadly unchanged from the year-end figure of 2.9x. Net debt rose during the quarter, the company explained, because of higher working capital levels consistent with normal seasonal patterns. Management expects leverage to return to roughly 2.6x by the end of the fiscal year.

RHI Magnesita reiterated its fiscal 2026 EBITA guidance at

Looking ahead, management said demand across steel and industrial markets remains resilient but at subdued levels. It highlighted a robust order intake in the second quarter to date and cited early signs of recovery in non-ferrous markets.


Context for investors

  • Adjusted EBITA: +15% year-on-year; +46% on a constant currency basis.
  • Guidance: Fiscal 2026 EBITA reiterated at

Risks

  • Regional demand weakness - Europe and CIS showed deteriorating demand, which could weigh on sales and utilisation in those markets (affects steel and industrial sectors).
  • Geopolitical disruption - The Middle East conflict reduced sales in the region and required rerouting of shipments, demonstrating exposure to logistical and operational disruption (impacts distribution and supply chains).
  • Seasonal working capital - The increase in net debt during the quarter was driven by higher working capital consistent with seasonality; this creates short-term leverage pressure until normalisation (affects company financial metrics and credit-sensitive stakeholders).

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