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RHI Magnesita NV
(LSE:RHIM)
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Rating:60Neutral
Price Target:
2,830.00 p
▲(0.89% Upside)
Action:Reiterated
Date:10/01/26
Overall score reflects a balanced setup: financial performance is adequate but pressured by declining revenue, margin compression, and higher leverage with weaker debt coverage from operating cash flow. Technicals are moderately positive as the stock trades above major moving averages, though momentum is not strong. Valuation is a relative support due to a moderate P/E and an attractive dividend yield.
Positive Factors
Recurring consumables and services
The company benefits from a repeat-use product model because refractory materials wear out and must be replaced as customers operate and maintain high-temperature assets. Bundled engineering, installation and maintenance services can deepen relationships and support more stable revenue than one-off product sales.
Negative Factors
Declining revenue and margin compression
Two consecutive years of revenue decline indicate a tougher demand or pricing environment following earlier expansion. Falling net margin also shows that weaker sales are reaching profitability, potentially limiting reinvestment capacity and making earnings more sensitive to further industrial weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables and services
The company benefits from a repeat-use product model because refractory materials wear out and must be replaced as customers operate and maintain high-temperature assets. Bundled engineering, installation and maintenance services can deepen relationships and support more stable revenue than one-off product sales.
Read all positive factors
RHI Magnesita NV (RHIM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.26B
Dividend Yield5.85%
Average Volume (3M)35.72K
Price to Earnings (P/E)13.1
Beta (1Y)1.84
Revenue Growth-1.16%
EPS Growth140.06%
CountryUK
Employees20,000
SectorIndustrials
Sector Strength72
IndustryIndustrial Materials
Share Statistics
EPS (TTM)2.43
Shares Outstanding47,372,696
10 Day Avg. Volume45,267
30 Day Avg. Volume35,717
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 Upside20.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.98
Revenue Forecast (FY)£2.86B
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 supplying refractories and associated services required for customers to operate and maintain high-temperature production assets.
1) Sale of refractory products: A major revenue stream comes from selling man...
RHI Magnesita NV Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 01, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.30B | 3.31B | 3.49B | 3.57B | 3.32B | 2.55B |
| Gross Profit | 704.51M | 707.00M | 848.00M | 857.40M | 763.40M | 583.50M |
| EBITDA | 526.41M | 494.90M | 472.00M | 508.00M | 477.80M | 463.20M |
| Net Income | 111.28M | 84.45M | 142.00M | 164.60M | 155.70M | 243.10M |
Balance Sheet | ||||||
| Total Assets | 4.64B | 4.43B | 4.58B | 4.85B | 4.07B | 3.91B |
| Cash, Cash Equivalents and Short-Term Investments | 440.39M | 364.45M | 577.00M | 708.00M | 495.50M | 559.10M |
| Total Debt | 1.88B | 1.85B | 1.82B | 2.00B | 1.67B | 1.59B |
| Total Liabilities | 3.38B | 3.26B | 3.20B | 3.49B | 3.03B | 3.09B |
| Stockholders Equity | 1.11B | 1.03B | 1.20B | 1.20B | 1.00B | 785.90M |
Cash Flow | ||||||
| Free Cash Flow | 177.54M | 185.59M | 288.00M | 320.20M | 77.10M | -343.90M |
| Operating Cash Flow | 291.49M | 294.58M | 433.00M | 499.70M | 233.80M | -91.80M |
| Investing Cash Flow | -110.15M | -430.09M | -154.00M | -482.00M | -199.70M | -128.90M |
| Financing Cash Flow | -81.69M | -67.75M | -409.00M | 173.00M | -83.90M | 197.70M |
RHI Magnesita NV Technical Analysis
Negative
2805.00
Price Trends
2801.10
Negative
2819.91
Negative
2717.36
Negative
Market Momentum
-60.33
Positive
44.77
Neutral
38.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RHIM, the sentiment is Negative. The current price of 2805 is above the 20-day moving average (MA) of 2778.75, above the 50-day MA of 2801.10, and above the 200-day MA of 2717.36, indicating a bearish trend. The MACD of -60.33 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 38.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | £4.01B | 16.21 | 22.88% | 1.68% | 12.13% | 47.64% | |
76 Outperform | £6.82B | 21.20 | 32.41% | 1.22% | 7.67% | 45.97% | |
76 Outperform | £4.01B | 33.10 | 21.48% | 1.69% | 2.22% | 25.89% | |
66 Neutral | £5.51B | 27.89 | 16.03% | 2.29% | 5.07% | 21.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £715.91M | 38.89 | 5.79% | 4.71% | -5.58% | -32.73% | |
60 Neutral | £1.26B | 13.05 | 10.42% | 5.85% | -1.16% | 140.06% |
* Industrials Sector Average
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RHI Magnesita NV Corporate Events
Regulatory Filings and Compliance
RHI Magnesita Updates Total Voting Rights and Share Capital Structure
Neutral
Oct 1, 2026
RHI Magnesita has reported that, as of 30 September 2026, its issued share capital comprises 47,372,695 ordinary shares, with an additional 2,105,010 ordinary shares held in treasury. Excluding treasury shares, the company confirmed that 47,372,69...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
RHI Magnesita in advanced talks on Vesuvius takeover bid
Positive
Sep 29, 2026
RHI Magnesita has entered advanced discussions with the board of Vesuvius over a possible recommended cash-and-share offer for all outstanding Vesuvius shares, aiming to combine two major players in refractories and flow-control solutions. The lat...
Regulatory Filings and Compliance
RHI Magnesita Updates Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2026
RHI Magnesita has reported that as of 31 August 2026 its issued share capital comprises 47,372,695 ordinary shares, with an additional 2,105,010 ordinary shares held in treasury. Excluding the treasury shares, the company confirmed that the total ...
Business Operations and StrategyExecutive/Board Changes
RHI Magnesita Names Gustavo Franco as Successor to CEO Stefan Borgas
Positive
Aug 18, 2026
RHI Magnesita, the global leader in refractory products and solutions for high‑temperature industrial processes, serves steel, cement, non‑ferrous metals, glass and other sectors through a worldwide network of production, recycling and...
Regulatory Filings and Compliance
RHI Magnesita Updates Total Voting Rights and Share Capital Structure
Positive
Aug 3, 2026
RHI Magnesita has reported that, as of 31 July 2026, its issued share capital comprises 47,370,115 ordinary shares, with a further 2,107,590 ordinary shares held in treasury. Excluding the treasury stock, shareholders and other stakeholders should...
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.