Strong Financial Performance#
RHI Magnesita N.V. reported a notable 15% year-over-year increase in adjusted EBITA (Earnings Before Interest, Taxes, and Amortization) for the first quarter of 2026. This growth was attributed to effective cost management and internal improvements, as detailed in a trading update released on Wednesday.
Sales and Market Demand#
During the quarter, the company's adjusted EBITA surged by 46% when measured in constant currency, which accounts for fluctuations in exchange rates. However, sales volumes in the steel sector remained largely unchanged compared to the previous year, with only slight benefits from pricing adjustments. The company faced reduced demand in steel markets across Europe, the Middle East, and Latin America.
Regional Performance#
In terms of regional performance, the Americas showed strong contributions, while markets in India, China, East Asia, and the Middle East and Africa (META) met expectations. Conversely, the European and Commonwealth of Independent States (CIS) regions exhibited signs of weakness. The ongoing conflict in the Middle East did impact sales in that area, but RHI Magnesita managed to redirect affected shipments through alternative routes.
Financial Outlook#
As of March 31, the company's net debt to EBITDA ratio remained stable at 2.9x, with an increase in net debt attributed to higher working capital, a typical seasonal occurrence. Management anticipates that this leverage ratio will decrease to approximately 2.6x by the end of the year. RHI Magnesita has reaffirmed its fiscal 2026 EBITA guidance, projecting €435 million on a constant currency basis and €400 million on a reported basis. Despite the challenges, management noted that demand in the steel and industrial markets remains resilient, with promising order intake for the second quarter and early signs of recovery in non-ferrous markets.