RHI Magnesita’s 2025 Year: Cost Cuts, New Deals and a Push for Recycling

RHI Magnesita finished 2025 with earnings that matched what investors expected, even though the market was tough. The company kept its spending tight and focused on turning around weaker parts of the business, which helped it stay profitable. Revenue fell by 3 % to €3. 4 billion, but the company still generated a strong cash flow of €214 million and converted its earnings into cash at 105 %. A big move was the purchase of Resco for €391 million in January. The acquisition added €184 million to sales and €25 million of profit over eleven months, boosting the North American division by 22 %. Integrating Resco has also helped RHI Magnesita build a “local‑for‑local” production strategy in the U. S. , making it easier to serve big customers there.

Cost‑saving projects ran across every part of the business, from operations to marketing and plant management. These initiatives produced long‑term savings that offset lower prices and the fact that some fixed costs were not fully covered in the first half of the year. As a result, the company’s adjusted EBITA margin stayed at 11. 1 %. The 4PRO model, which offers custom solutions to clients, grew in 2025. RHI Magnesita renewed long‑term contracts with major customers and won four new Green Steel deals, expanding its reach into industrial markets. The company also pushed its recycling program to a record 15. 9 %, surpassing its global target and cutting dependence on raw materials while lowering CO₂ emissions. Looking ahead to 2026, RHI Magnesita plans to keep building on these gains. It will aim for a debt ratio of about 2. 6× by year‑end, continue to unlock synergies from the Resco deal, and stay disciplined with capital use. The company expects that its self‑help measures and strategic progress will keep earnings strong, even as the market stays challenging.

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