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RHI Magnesita NV
(LSE:RHIM)
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Rating:56Neutral
Price Target:
2,977.00 p
▲(7.86% Upside)
Action:Reiterated
Date:03/05/26
The score is driven primarily by middling financial quality (softening revenue, margin compression, and higher leverage) and weak technical signals. These are partly offset by supportive valuation (notably the ~5.5% dividend yield) and earnings-call guidance pointing to self-help-led EBITA improvement and modest deleveraging, albeit with demand recovery not expected until 2027.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow with 105% cash conversion provides durable financial flexibility. This underpins dividend capacity, funds structural self-help, and supports deleveraging even if revenue recovery is slow, improving resilience over the next 2–6 months.
Negative Factors
Elevated leverage
Higher leverage and declining equity limit balance-sheet flexibility and elevate refinancing and operational risk if earnings remain weak. With operating cash flow covering only a smaller share of debt, capacity to absorb shocks or fund growth is constrained over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow with 105% cash conversion provides durable financial flexibility. This underpins dividend capacity, funds structural self-help, and supports deleveraging even if revenue recovery is slow, improving resilience over the next 2–6 months.
Read all positive factors
RHI Magnesita NV (RHIM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.31B
Dividend Yield5.56%
Average Volume (3M)24.71K
Price to Earnings (P/E)17.2
Beta (1Y)1.87
Revenue Growth-2.32%
EPS Growth-38.83%
CountryUK
Employees15,316
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)1.89
Shares Outstanding47,364,300
10 Day Avg. Volume21,327
30 Day Avg. Volume24,712
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)1.47
Price to Sales (P/S)0.46
P/FCF Ratio8.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£3,155.00Price Target Upside14.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.86
Revenue Forecast (FY)£2.94B
RHI Magnesita NV Business Overview & Revenue Model
Company Description
RHI Magnesita N.V. is a global company that develops, produces, sells, installs, and maintains refractory products and systems vital for industrial high-temperature processes worldwide. Its extensive product portfolio encompasses a broad spectrum ...
How the Company Makes Money
RHI Magnesita makes money primarily by selling refractory products and delivering refractory-related services to industrial customers whose operations require heat-resistant linings and components.
Key revenue streams include:
- Refractory produc...
RHI Magnesita NV Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the company met full-year guidance and demonstrated strong cash generation, decisive self-help measures and a successful H2 operational turnaround (all structural actions underpinning medium-term resilience). However, material demand weakness—most notably a 40% collapse in industrial project volumes, a 9% top-line contraction, sustained margin pressure from Chinese exports, and significant currency headwinds—means near-term market recovery is not expected before 2027. Management’s emphasis on continued structural cost actions, M&A discipline and sustainability progress offsets many of the operational headwinds but does not eliminate the demand and macro risks in the short term.Positive Updates
Delivered Full-Year Guidance with Strong Cash Generation
Adjusted EBITA of EUR 373 million (2025) with an EBITA margin of 11.1%; adjusted operating cash flow of EUR 391 million and free cash flow of EUR 214 million. Cash conversion was 105%, supporting a final dividend of EUR 1.20 per share and a full-year dividend of EUR 1.80 (in line with 2024).
Negative Updates
Severe Industrial Projects Downturn
Industrial project volumes fell 40% in 2025 (unprecedented), notably in glass and nonferrous segments, causing first top-line contraction since 2020. This reduced revenues and created material fixed-cost under-absorption in specialized plants.
Read all updates
Q4-2025 Updates
Positive
Negative
Delivered Full-Year Guidance with Strong Cash Generation
Adjusted EBITA of EUR 373 million (2025) with an EBITA margin of 11.1%; adjusted operating cash flow of EUR 391 million and free cash flow of EUR 214 million. Cash conversion was 105%, supporting a final dividend of EUR 1.20 per share and a full-year dividend of EUR 1.80 (in line with 2024).
Read all positive updates
Company Guidance
Management guided 2026 adjusted EBITA of EUR 435m on a constant‑currency basis (up 17% versus 2025’s EUR 373m and 11.1% margin), and after an expected ~EUR 35m currency headwind (mainly USD and INR) they expect reported adjusted EBITA of about EUR 400m, implying a c.11.5% margin; the uplift is to be delivered by four structural levers each contributing roughly EUR 15m (c. EUR 60m in total) — including a gradual industrial project recovery, pricing/4PRO mix, network optimization (the Americas program contributing ~EUR 5m this year) and SG&A reductions — while management expects leverage to fall from 2.9x (net debt EUR 1.5bn at year‑end 2025) to around 2.6x (net debt ~EUR 1.4bn) by year‑end 2026, with no meaningful M&A cash outlay planned and strong cash‑generation momentum following 2025 operating cash flow of EUR 391m (cash conversion 105%) and free cash flow of EUR 214m; they reiterated they are not relying on a market demand recovery before 2027.RHI Magnesita NV Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.31B | 3.49B | 3.57B | 3.32B | 2.55B |
| Gross Profit | 707.00M | 848.00M | 857.40M | 763.40M | 583.50M |
| EBITDA | 494.90M | 472.00M | 507.30M | 477.80M | 463.20M |
| Net Income | 84.45M | 142.00M | 164.60M | 155.70M | 243.10M |
Balance Sheet | |||||
| Total Assets | 4.43B | 4.58B | 4.85B | 4.07B | 3.91B |
| Cash, Cash Equivalents and Short-Term Investments | 364.45M | 577.00M | 708.00M | 495.50M | 559.10M |
| Total Debt | 1.85B | 1.82B | 2.00B | 1.67B | 1.59B |
| Total Liabilities | 3.26B | 3.20B | 3.49B | 3.03B | 3.09B |
| Stockholders Equity | 1.03B | 1.20B | 1.20B | 1.00B | 785.90M |
Cash Flow | |||||
| Free Cash Flow | 185.59M | 288.00M | 320.20M | 77.10M | -343.90M |
| Operating Cash Flow | 294.58M | 433.00M | 499.70M | 233.80M | -91.80M |
| Investing Cash Flow | -430.09M | -154.00M | -482.00M | -199.70M | -128.90M |
| Financing Cash Flow | -67.75M | -409.00M | 173.00M | -83.90M | 197.70M |
RHI Magnesita NV Technical Analysis
Neutral
2760.00
Price Trends
2781.08
Negative
2681.91
Positive
2534.09
Positive
Market Momentum
-14.54
Positive
46.83
Neutral
33.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RHIM, the sentiment is Neutral. The current price of 2760 is below the 20-day moving average (MA) of 2843.50, below the 50-day MA of 2781.08, and above the 200-day MA of 2534.09, indicating a neutral trend. The MACD of -14.54 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 33.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RHIM.
RHI Magnesita NV Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £4.03B | 15.92 | 23.73% | 1.80% | 15.24% | 54.30% | |
71 Outperform | £6.70B | 27.63 | 24.91% | 1.29% | 4.25% | 29.89% | |
67 Neutral | £2.41B | 21.38 | 20.10% | 2.04% | 3.03% | 13.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £592.91M | 28.45 | 6.66% | 4.87% | -9.46% | -57.37% | |
60 Neutral | £4.83B | 29.66 | 13.86% | 2.46% | 2.26% | -14.63% | |
56 Neutral | £1.31B | 17.17 | 8.52% | 5.56% | -2.32% | -38.83% |
* Industrials Sector Average
GB:RHIM
RHI Magnesita NV
2,765.00
-49.42
-1.76%
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RHI Magnesita NV Corporate Events
Regulatory Filings and Compliance
RHI Magnesita Clarifies Total Voting Rights as of 30 June 2026
Neutral
Jul 1, 2026
RHI Magnesita has confirmed that, as of 30 June 2026, its issued share capital comprises 47,364,298 ordinary shares, with an additional 2,113,407 ordinary shares held in treasury that do not carry voting rights. This leaves a total of 47,364,298 s...
Regulatory Filings and Compliance
RHI Magnesita Updates Total Voting Rights and Share Capital Structure
Neutral
Jun 1, 2026
RHI Magnesita has reported that, as of 31 May 2026, its issued share capital comprises 47,353,840 ordinary shares, with an additional 2,123,865 ordinary shares held in treasury that do not carry voting rights. Excluding the treasury shares, the co...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings
RHI Magnesita Wins Strong Shareholder Backing at 2026 AGM
Positive
May 13, 2026
RHI Magnesita shareholders approved all voting resolutions at the company’s 2026 annual general meeting, including adoption of the 2025 accounts, a final dividend of €1.20 per share and the release of directors from liability for the p...
Regulatory Filings and Compliance
RHI Magnesita Clarifies Total Voting Rights and Share Capital Structure
Neutral
May 1, 2026
RHI Magnesita has reported that, as of 30 April 2026, its issued share capital comprises 47,337,525 ordinary shares, with an additional 2,140,180 ordinary shares held in treasury that do not carry voting rights. This leaves a total of 47,337,525 s...
Business Operations and StrategyFinancial Disclosures
RHI Magnesita lifts Q1 profit, reaffirms 2026 outlook despite softer demand
Positive
Apr 29, 2026
RHI Magnesita reported that global demand for steel and industrial refractories softened slightly in the first quarter of 2026, with regional divergence, but the Group delivered a meaningful year-on-year increase in adjusted EBITA driven by pricin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.