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RHI Magnesita NV on Monday said performance has improved in the second half of 2025 despite subdued demand conditions. The Vienna-based refractory products maker said adjusted earnings before interest, tax and amortisation were €136 million in the four months to October, significantly ahead of the run-rate in the first half of 2025 and in line with guidance. In the first six months of 2025, RHI Magnesita reported Ebita of €141 million. ‘RHI Magnesita has delivered the expected step-up improvement through the second half of 2025 by systematically implementing its self-help actions,’ commented Chief Executive Officer Stefan Borgas. In response, shares in RHI Magnesita shot up 16% at 2,310.00 pence each in London on Monday morning. In a trading update, the FTSE 250-listing said steel volumes for the period remained weak and broadly consistent with full-year guidance, while the industrial project order book has improved. The pricing environment remains highly competitive, although small price increases were achieved, while cost efficiency programmes remain ‘solidly’ on track, the firm added. Earnings growth from the former Resco plants is progressing well, with integration advancing ‘smoothly’ and synergies being delivered in line with expectations. As a result, RHI Magnesita said it remains on track to deliver full-year adjusted Ebita of €370 million to €390 million, down from €407 million in 2024. The company said the current industrial order book underpins expectations that the improved performance achieved in the second half of 2025 will continue into 2026. ‘Nevertheless, end-markets demand especially in the steel industry remains at a cyclical low, and a rapid normalisation is not anticipated,’ the firm added. But the firm noted developments in Europe and Brazil which ‘could become a positive development for RHI Magnesita in late 2026 or 2027.’ The firm noted the European Commission is proposing to cut by almost half its tariff-free steel import quota to support onshoring steel production volumes, which could stabilise refractory demand in Europe. In addition, Brazil has launched an investigation into potential duty protection for refractory materials, although the outcome and timing is uncertain at this point. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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