RHI Magnesita NV (GB:RHIM)
LSE:RHIM
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RHI Magnesita NV
(LSE:RHIM)
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Rating:56Neutral
Price Target:
2,457.00 p
▼(-10.98% Downside)
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
Consistently positive operating and free cash flow provides durable financial flexibility to fund dividends, work capital needs, and deleveraging without relying on market recovery. High cash conversion supports resilience through cyclical downturns and enables management to execute structural improvements.
Negative Factors
Elevated leverage
High absolute debt and rising leverage reduce balance-sheet flexibility and increase refinancing and covenant risk during prolonged weakness. If demand remains soft, earnings and cash flow volatility could slow deleveraging and constrain capital allocation towards growth or larger M&A for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive operating and free cash flow provides durable financial flexibility to fund dividends, work capital needs, and deleveraging without relying on market recovery. High cash conversion supports resilience through cyclical downturns and enables management to execute structural improvements.
Read all positive factors
RHI Magnesita NV (RHIM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.29B
Dividend Yield5.56%
Average Volume (3M)24.71K
Price to Earnings (P/E)4.6
Beta (1Y)1.88
Revenue Growth-2.32%
EPS Growth-38.83%
CountryUK
Employees29,207
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)1.89
Shares Outstanding47,337,524
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
£3,366.25Price Target Upside21.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.98
Revenue Forecast (FY)£2.97B
RHI Magnesita NV Business Overview & Revenue Model
Company Description
RHI Magnesita N.V., together with its subsidiaries, develops, produces, sells, installs, and maintains refractory products and systems used in industrial high-temperature processes worldwide. It offers magnesia spinel, dolomite, dolomite-magnesia,...
How the Company Makes Money
RHI Magnesita makes money mainly by selling refractory products and delivering refractory-related services to industrial customers that operate high-temperature equipment (e.g., steel furnaces, converters, ladles, cement kilns). Key revenue stream...
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
Positive
2760.00
Price Trends
2587.20
Positive
2729.10
Positive
2478.40
Positive
Market Momentum
20.72
Positive
52.87
Neutral
37.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RHIM, the sentiment is Positive. The current price of 2760 is above the 20-day moving average (MA) of 2715.00, above the 50-day MA of 2587.20, and above the 200-day MA of 2478.40, indicating a bullish trend. The MACD of 20.72 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 37.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £3.82B | 5.41 | 23.73% | 1.80% | 15.24% | 54.30% | |
71 Outperform | £6.52B | 7.91 | 24.91% | 1.29% | 4.25% | 29.89% | |
67 Neutral | £2.49B | 9.92 | 20.10% | 2.04% | 3.03% | 13.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £603.97M | 24.77 | 6.66% | 4.87% | -9.46% | -57.37% | |
60 Neutral | £5.12B | 12.49 | 13.86% | 2.46% | 2.26% | -14.63% | |
56 Neutral | £1.29B | 4.56 | 8.52% | 5.56% | -2.32% | -38.83% |
* Industrials Sector Average
GB:RHIM
RHI Magnesita NV
2,735.00
-60.62
-2.17%
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RHI Magnesita NV Corporate Events
Regulatory Filings and Compliance
RHI Magnesita Updates Market on Current Voting Rights and Share Capital
Neutral
Apr 1, 2026
RHI Magnesita has reported that, as of 31 March 2026, its issued share capital comprises 47,336,625 ordinary shares, with an additional 2,141,080 ordinary shares held in treasury that do not carry voting rights. This leaves 47,336,625 shares in is...
Business Operations and StrategyShareholder Meetings
RHI Magnesita Sets Hybrid 2026 AGM to Boost Access and Cut Costs
Positive
Mar 26, 2026
RHI Magnesita has published the notice for its 2026 Annual General Meeting, which will take place on 13 May 2026 at 14:00 CEST as a hybrid event with a physical venue in Amsterdam and directors joining via webcast. Shareholders will be able to att...
Business Operations and StrategyExecutive/Board Changes
RHI Magnesita Grants Long-Term Nil-Cost Share Options to Senior Executives
Positive
Mar 10, 2026
RHI Magnesita has granted new awards under its 2026 Long Term Incentive Plan to several senior executives, including the chief executive and chief financial officer, in the form of nil-cost performance share options. The options, priced for calcul...
Financial DisclosuresRegulatory Filings and Compliance
RHI Magnesita Publishes 2025 Annual Report and Accounts
Neutral
Mar 2, 2026
RHI Magnesita has published its Annual Report and Accounts for the year ended 31 December 2025, making the full document available on the company’s investor relations website for shareholders and other stakeholders. The report has also been ...
Regulatory Filings and Compliance
RHI Magnesita Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
RHI Magnesita has reported its total voting rights position as of 28 February 2026, stating that its issued share capital comprises 47,307,527 ordinary shares, with an additional 2,170,178 ordinary shares held in treasury. Excluding treasury share...
Business Operations and StrategyDividendsFinancial Disclosures
RHI Magnesita Delivers Second-Half Rebound and Targets Margin Rebuild in 2026
Positive
Mar 2, 2026
RHI Magnesita reported 2025 full-year results showing revenue of €3.37 billion and adjusted EBITA of €373 million, slightly down year on year but with a pronounced second-half rebound driven by pricing actions, cost controls and plant-...
Business Operations and StrategyFinancial Disclosures
RHI Magnesita leans on self‑help to lift margins amid weak demand
Positive
Mar 2, 2026
RHI Magnesita reported 2025 full‑year results showing a strong second‑half recovery, as management’s self‑help measures in pricing, cost control and plant optimisation offset weak global demand and Chinese export pressure. ...
Business Operations and StrategyFinancial Disclosures
RHI Magnesita Sets Date for 2025 Full-Year Results and Analyst Briefing
Neutral
Feb 13, 2026
RHI Magnesita has scheduled the release of its preliminary full-year results for 2025 on 2 March 2026, with a detailed analyst presentation to be held in London and simultaneously broadcast via webcast and conference call. The company will also pr...
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.