RHI Magnesita N.V. (RHIM.L,RHIM.VI), a supplier of refractory products, systems and solutions, on Wednesday reported higher first-quarter EBIT and adjusted EBITA, key earnings metrics, as cost discipline and self-help measures offset slightly weaker global demand. Further, the firm reaffirmed its fiscal 2026 guidance.
In its first-quarter trading update, the company noted that EBIT increased 25 percent from last year on a reported basis and 84 percent on a constant currency basis.
Adjusted EBITA rose 15 percent year-on-year on a reported basis, and the growth was 46 percent on a constant currency basis.
The gains were driven by cost discipline, network optimisation and supply chain agility implemented in 2025 and 2026.
According to the firm, global demand for steel and industrial refractories was slightly weaker than a year earlier with regional variations.
Demand weakened in steel markets in Europe, Middle East and Latin America and was at expected levels elsewhere.
Steel sales volumes were broadly in line with the first quarter 2025, with moderate pricing benefits realised.
North America and Latin America delivered strong profit contribution, while India, China & East Asia and META performed in line with expectations.
Europe & CIS underdelivered due to volume shifts to the second quarter, but the company sees potential improvement for the remainder of the year supported by cost cuts and early recovery signs in Industrial, particularly non-ferrous metals.
Looking ahead to the fiscal 2026, the company continues to expect adjusted EBITA of about 435 million euros at constant currency, or around 400 million euros including FX headwinds.
Stefan Borgas, Chief Executive Officer cited further opportunities in digitization, network optimization and SG&A efficiency to support improvement over the next 18-24 months.
The company plans to hold its Annual General Meeting on May 13.
On the LSE, shares of RHI Magnesita were losing 0.19 percent, trading at 2,685.00 pence.
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