RHI Magnesita's London shares surge on robust margins, forecast (updated)
10/11/2025 10:31
Adds details on profits, steel demand and shares throughout
Nov 10 (Reuters) - London-listed shares of RHI Magnesita RHIM.L RHIM.VI jumped 20% on Monday after the refractory products supplier reported robust profit margins and reaffirmed its full-year forecast despite a challenging steel market.
Adjusted earnings before interest, tax and amortisation was 136 million euros ($158.6 million) for the July-October period, with a 12.7% margin, ahead of the first half despite the seasonally weaker third quarter, the company said.
RHI Magnesita's London-listed shares were leading gains on the FTSE mid-cap .FTMC index at 0926 GMT, trading up 15.8% to 2,310 pence, and on track for their best day since May 2023.
Chinese overcapacity has been driving intense pricing competition and weak volumes in the steel industry, which accounts for nearly 70% of the Austria-based company's revenue.
The company's refractory or heat-resistant materials are essential for production in the steel industry, and other sectors such as cement and glass.
"Steel volumes for the period remained weak and broadly consistent with full-year guidance, reflecting subdued but stable overall demand, with only modest improvement compared to the first half," it said in a statement.
Most of the margin gains were driven by cost-saving initiatives, including two German plant closures, and the company also pushed through modest price increases as customers paid premiums for local supply over Chinese imports.
RHI Magnesita maintained its full-year adjusted EBITA outlook of 370 million euros to 390 million euros. It also expects to retain pricing benefits into the first half of 2026, though it warned that quick normalization of demand was not anticipated.
While increased local production in the U.S. helped it mitigate overall tariff exposure, the company noted new headwinds from levies on raw materials and finished goods imported from Brazil.
U.S. local-for-local production increased to 65% in 2025 and is expected to exceed 75% in the second half of 2026, the company said.
($1 = 0.8575 euros)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Mrigank Dhaniwala and Eileen Soreng)
((RaechelThankam.Job@thomsonreuters.com;))