RHI Magnesita N.V. (LSE: RHIM)

Quick Facts / Company Snapshot

• Company Name: RHI Magnesita N.V.
• Headquarters: Vienna, Austria
• Stock Exchange Listing: London Stock Exchange (LSE), Vienna Stock Exchange (Wiener Börse)
• Ticker Symbol: RHIM
• Index Constituent: FTSE 250
• Total Revenue (2024): €3,487 million
• Adjusted EBITA (2024): €407 million
• Adjusted EBITDA (2024): €543 million
• Profit After Income Tax (2024): €154 million
• Adjusted Earnings Per Share (EPS): €5.32
• Total Net Debt (2024): €1,251 million
• Adjusted Operating Cash Flow (2024): €419 million
• Dividend Per Share (2024): €1.80
• Total Employees: Over 20,000
• Main Production Sites: 65
• Recycling Facilities: 12
• Sales Offices: 70+
• Annual Production Capacity: Approximately 3 million tons
• Recycling Rate (2024): 14.2%
• Lost Time Injury Frequency (LTIF): 0.011

Company overview

RHI Magnesita N.V. operates as the leading global supplier of high-grade refractory products, systems, and solutions. These critical materials are highly specialized and strictly indispensable for industrial high-temperature processes exceeding 1,200°C. The organization serves a wide array of vital global industries, comprehensively covering steel, cement, non-ferrous metals, and glass manufacturing.

• Operations demand materials capable of withstanding extreme thermal environments exceeding 1,200°C.
• The global workforce consists of over 20,000 employees globally.
• The operational network spans 65 main production sites and 12 dedicated recycling facilities.

The enterprise utilizes a highly vertically integrated business model, effectively managing the entire value chain from primary raw material extraction at proprietary mining assets to the specialized manufacturing of complex refractory products. The organization is actively evolving from functioning merely as a supplier of consumable refractory products to operating as a provider of comprehensive “Full Line Service” contracts. These service contracts incorporate automated data capture, robotic solutions, and online thickness measurements directly at customer sites to optimize primary production processes.

• The organization maintains a secondary listing on the Vienna Stock Exchange (Wiener Börse).
• Total raw material and production output reaches roughly 3 million tons of refractory products each year.
• The enterprise acts as a constituent of the Equity Shares (Commercial Companies) category.

Business segments

Steel Segment

The Steel segment represents the core operational division and the absolute majority of the corporate revenue profile. This division manufactures and supplies critical refractory solutions for the global steel production industry, encompassing both basic oxygen furnace (BOF) and electric arc furnace (EAF) technologies. The segment handles the most intensive thermal environments and provides dedicated full-performance, heat-management solutions at customer steel plants.

• Total Steel segment revenue for 2024 achieved €2,373 million.
• The Steel segment accounts for 68.05% of the total consolidated revenue.
• Steel revenues decreased by exactly 4% compared to the previous fiscal year.

The operational scope of the Steel segment involves the deployment of highly engineered refractory materials that line the furnaces, ladles, and tundishes utilized in continuous steel casting. The division experienced a 3% increase in sales volumes, heavily supported by strategic M&A activities, which was subsequently offset by a 6% strategic reduction in pricing to protect global market share against cost-plus competitors. The segment successfully improved its gross margin through highly disciplined raw material cost management.

• The gross margin for the Steel segment improved to 23.2% in 2024, up from 22.3% in 2023.
• Shipped volumes strictly increased by 1% excluding M&A contributions.

Industrial Segment

The Industrial segment covers all non-steel refractory applications, catering directly to the cement, glass, and non-ferrous metals industries. This segment relies on highly customized engineering solutions to support the unique thermal and chemical resistance requirements of different industrial manufacturing processes. The division provides essential components for rotary kilns, glass melting tanks, and smelting furnaces.

• Total Industrial segment revenue for 2024 stood at €1,114 million.
• The Industrial segment represents precisely 31.95% of the total consolidated revenue.
• The non-ferrous metals and glass projects experienced a relatively strong year due to the specific timing of customer investment cycles.

This segment operates within markets that are increasingly focused on energy efficiency and emission reductions. The Industrial division has faced specific headwinds related to persistent weakness in end-market demand, particularly in the cement and non-ferrous metals categories, which are expected to face continued pricing pressures in the immediate future.

History and evolution

The enterprise possesses a deep industrial heritage, with foundational roots extending back to 1908. Over the subsequent decades, the organization expanded its global footprint and technical capabilities through sustained organic growth and targeted consolidation within the fragmented refractory industry. The current corporate structure is the direct result of continuous evolution aimed at securing supply chain dominance and vertical integration.

• The foundational operations of the enterprise were established in 1908.
• The ultimate parent undertaking is incorporated and registered under the laws of the Netherlands.
• The administrative seat and central management are located in Vienna, Austria.

In recent years, the strategic evolution has been characterized by an aggressive and highly targeted M&A program designed to localize supply chains and expand regional manufacturing footprints. Between December 2021 and early 2025, the organization fundamentally transformed its global capacity, actively mitigating the risks associated with long-distance supply chains and import reliance.

• Total deal value of M&A completed since December 2021 reached a cumulative €1.2 billion.
• The strategic acquisition of the Resco Group was officially completed on January 28, 2025.
• The Resco Group acquisition was executed for a total enterprise value of €391 million.

Products and services

Consumable Refractory Products

The primary product category consists of consumable high-grade refractory bricks, mixes, and specialized shapes designed to line industrial furnaces and high-temperature vessels. These products are manufactured from internally sourced magnesite and dolomite, combined with highly advanced synthetic materials to provide extreme thermal shock resistance and chemical durability.

• Refractory products must withstand operational environments exceeding 1,200°C.
• The company produces approximately 3 million tons of refractory products annually.
• A 6% reduction in the cost of goods sold per tonne was successfully achieved in 2024.

Full Line Service and Heat Management Solutions

The enterprise offers comprehensive Full Line Service contracts that transition the business model from product sales to performance-based partnerships. These services include the complete management of a customer’s refractory lifecycle, incorporating precise installation, continuous monitoring, and structured maintenance protocols.

• Customer service KPIs, including net promoter score, reached record highs in 2024.
• The PIFOT metric (“Process In Full and On Time”) simultaneously achieved record high levels.

Digital and Robotic Solutions

The technology portfolio includes advanced automated data capture systems, robotic maintenance solutions, and sophisticated online thickness measurement tools. These digital services are directly integrated into customer production processes to maximize furnace uptime, enhance operational safety, and dramatically improve overall yield.

• The enterprise incurred €52 million in expenses specifically relating to digital transformation and business process improvements.
• New IT-enabled Safety Management Systems are being aggressively rolled out globally.

Brand portfolio

RHI Magnesita Corporate Brand

The primary and dominant brand representing the consolidated global entity is RHI Magnesita. This brand encompasses the vast majority of the vertically integrated product and service offerings across all regional territories and industrial segments. It stands as the undisputed marker of quality, scale, and technical leadership in the global refractory market.

• The RHI Magnesita brand accounts for 100% of the organically generated consolidated revenue.
• Total revenue generated under the primary corporate umbrella equaled €3,487 million in 2024.

Resco Group (Acquired Brand)

Following the strategic completion of the acquisition on January 28, 2025, the Resco Group brand was integrated into the corporate portfolio. This brand is highly recognized within the North American market and serves as a critical asset for localizing the supply chain and directly addressing regional customer demand for domestically manufactured refractory solutions.

• The Resco Group was acquired for a total enterprise value of €391 million.
• The acquisition specifically expands the capacity of the supply chain within the USA.

Geographical presence

North America

The North American region represents a critical growth territory and a major focus of recent strategic capital allocation. The operational footprint in this geography is designed to serve the large domestic steel and industrial markets, actively shifting away from a reliance on imported materials toward localized manufacturing and rapid-response service capabilities.

• Global steel demand decreased in the key market of North America during 2024.
• The Resco Group acquisition significantly expanded the manufacturing footprint and supply chain capacity within the USA.

Europe

Europe functions as the historical core and administrative center of the enterprise. The region encompasses significant manufacturing, research and development, and corporate governance infrastructure. Operations in Europe serve a highly advanced industrial base characterized by strict environmental regulations and a strong push toward sustainable production methods.

• The administrative headquarters is officially located in Vienna, Austria.
• M&A activities drove strong volume growth specifically within the European region.
• Network optimization expenses are expected to be incurred in Europe as a result of plant footprint adjustments.

China & East Asia

The Asian market, particularly China, is a complex and highly dynamic geography for the enterprise. While the region provides significant raw material sourcing capabilities and manufacturing capacity, it also presents challenges related to fluctuating domestic demand and the subsequent export of displaced industrial materials.

• Falling domestic demand in China resulted in elevated exports of steel, displacing production in other global markets.
• M&A activities successfully drove strong volume growth in the China & East Asia region.
• A tragic fatal incident in China prompted the immediate global rollout of new IT-enabled Safety Management Systems.

South America, India, West Asia & Africa

These combined regions represent crucial emerging markets characterized by robust industrial development and expanding infrastructure requirements. The enterprise maintains strategic production facilities and extensive sales networks across these territories to capture the upward trajectory of steel and cement production demand.

• Global steel demand actively grew in India, West Asia & Africa, and South America during 2024.
• Plant network optimization costs included a €29 million impairment of assets specifically located in Brazil.

Financial performance analysis

The 2024 fiscal year thoroughly tested the financial resilience of the enterprise against a macroeconomic backdrop of declining global demand. The organization maintained rigorous operational efficiency and strict cost discipline, which ultimately delivered highly robust margin performance despite historically weak end markets.+1

• Total consolidated revenue decreased by exactly 2% to €3,487 million.
• Gross profit stood highly resilient at €848 million.
• Total net adjustments to EBITA reached €125 million.

The financial strategy heavily prioritized cash generation and balance sheet protection. The enterprise successfully executed a pricing strategy that perfectly matched a 6% reduction in product pricing with a 6% reduction in the cost of goods sold per tonne, effectively neutralizing the margin impact of protective pricing measures.

• Adjusted EBITA remained effectively flat at €407 million compared to €409 million in 2023.
• The Adjusted EBITA safely landed within the formally guided range of €400–€410 million.
• Adjusted Earnings Per Share (EPS) grew by an impressive 7% to reach €5.32.

Profit and loss analysis

The consolidated statement of profit or loss highlights the strict operational gearing and cost management protocols enacted by the executive leadership. Despite top-line volume pressures, profitability metrics were rigidly defended through strategic raw material sourcing and manufacturing efficiencies.

Financial Metric	2024 (€ million)	2023 (€ million)	YoY Change
Revenue	3,487	3,572	(2)%
Gross Profit	848	857	(1)%
EBIT	242	333	(27)%
EBITA	281	378	(25)%
Adjusted EBITA	407	409	0%
Adjusted EBITDA	543	543	0%
Net Finance Costs	-42	-100	58%
Profit Before Income Tax	200	233	(14)%
Profit After Income Tax	154	171	(10)%

• The Adjusted EBITA margin successfully expanded by 30 basis points to reach 11.7%.
• A record-high refractory margin of exactly 10.9% was officially recorded in 2024.
• The vertical integration (raw material) contribution margin remained weak at 0.8%.

Balance sheet analysis

The balance sheet structure demonstrates a highly conservative approach to capital management, ensuring sufficient liquidity to fund massive strategic M&A while actively reducing the overall debt burden. Working capital was optimized with extreme efficiency throughout the fiscal year.

Balance Sheet Metric	2024 (€ million)	2023 (€ million)	YoY Change
Total Net Debt	1,251	1,304	(4)%
Leases Included in Net Debt	77	70	10%

• Total Net Debt was successfully reduced by precisely €53 million during the year.
• The Net Debt to Pro Forma Adjusted EBITDA ratio was perfectly maintained at 2.3x.
• Efficient management of inventory and receivables directly enabled a €115 million release of working capital.

Cash flow analysis

Cash flow generation represents one of the most significant strengths of the enterprise. The operational gearing allowed the company to convert profitability into tangible free cash flow at an exceptionally high rate, completely funding organic capital expenditures and supporting dividend distributions.

Cash Flow Metric	2024 (€ million)	2023 (€ million)	YoY Change
Adjusted Operating Cash Flow	419	418	0%

• The organization achieved a vastly impressive 103% cash conversion rate in 2024.
• Adjusted operating cash flow strictly matched the prior year at €419 million.
• Working capital release contributed an additional €115 million to the cash position.

Board of directors and leadership team

The governance structure strictly follows a one-tier board system, consisting of both Executive Directors and Non-Executive Directors. The Board is mathematically comprised of at least half independent Non-Executive Directors, explicitly excluding the Chairman.

Herbert Cordt (Chair)

Herbert serves as the Chair of the Board and concurrently chairs the Nomination & Governance Committee. He possesses deep experience in corporate financing, international business, and industrial company management. He holds a Doctorate in Law from the University of Vienna and a Master’s of Science degree in Foreign Service from Georgetown University.+1

John Ramsay (Deputy Chair and Senior Independent Director)

John operates as the Deputy Chair, Senior Independent Director, and the dedicated Chair of the Audit and Compliance Committee. He provides extensive listed company experience and possesses highly specialized knowledge in global accounting and financial risk management. He is a formally qualified Chartered Accountant.

Stefan Borgas (Chief Executive Officer)

Stefan functions as the Chief Executive Officer, heavily focusing on global business transformations and change management within process industries. He holds a business administration degree from the University Saarbrücken and a formal MBA from the University of St. Gallen-HSG.

Ian Botha (Chief Financial Officer)

Ian serves as the Chief Financial Officer, bringing extensive financial and commercial leadership experience derived from multinational mining, metals, and industrial sectors. He holds a Bachelor’s degree in Commerce from the University of Cape Town and operates as a registered chartered accountant.

• Karl Sevelda acts as a dedicated Member of the Nomination & Governance Committee.
• Janet Ashdown strictly chairs the Corporate Sustainability Committee.
• Marie-Hélène Ametsreiter serves as a Member of the Corporate Sustainability Committee.
• Stanislaus Prinz zu Sayn-Wittgenstein serves as a Member of the Corporate Sustainability Committee.

Executive Management Team

The executive management structure is highly decentralized and operationally focused, encompassing specific leadership roles:

• Gustavo Franco operates as the Chief Customer Officer.
• Rajah Jayendran serves as the Chief Technology Officer.
• Ticiana Kobel functions as the EVP Legal & Digital Transformation.
• Simone Oremovic operates as the EVP People, Projects, Integrations & Recycling.

Subsidiaries, associates, joint ventures

The corporate structure relies on a vast network of wholly owned subsidiaries and strategic operating entities designed to localize production and capture regional market share.

Resco Group

Acquired definitively on January 28, 2025, the Resco Group represents the most significant recent expansion of the subsidiary network. Operating entirely within the United States, this entity was acquired to dramatically secure domestic supply lines and expand production capacity specifically tailored to the North American steel and industrial markets.

• The Resco Group was acquired for a complete enterprise value of €391 million.
• The total deal value of all M&A completed since December 2021 amounts to €1.2 billion.
• M&A transactions closed specifically in 2023 contributed €77 million to the 2024 Adjusted EBITDA.

Physical properties (offices, plants, factories, etc.)

The physical asset base of the enterprise is incredibly extensive, heavily geographically diversified, and specifically positioned near primary raw material deposits and major industrial customer hubs.

• The total operational footprint includes precisely 65 main production sites worldwide.
• The enterprise operates 12 dedicated recycling facilities.
• The commercial network spans more than 70 distinct sales offices globally.
• The administrative and operational headquarters is physically located in Vienna, Austria.

The plant network is subject to continuous optimization. Significant restructuring efforts are actively underway to balance the footprint following recent acquisitions, ensuring maximum utilization rates and minimum logistical friction.

• Plant network optimization costs included a formal €29 million impairment of physical assets located in Brazil.
• Future network optimization expenses are fully expected to be incurred in Europe and Brazil following the Resco integration.

Segment-wise performance

The operational and financial performance by segment highlights a strict adherence to margin defense in the face of declining volumetric demand.

Steel Segment Financial Performance

The Steel segment faced severe volume pressures driven by macroeconomic shifts, specifically the transition of the Chinese economy and the resulting influx of cheap steel exports. However, rigorous cost control allowed the segment to improve profitability metrics.

• Steel segment revenues officially decreased by 4% to €2,373 million.
• Despite lower revenues, the gross margin for the segment mathematically expanded from 22.3% to 23.2%.

Raw Material Integration Performance

The vertical integration strategy, while providing complete supply chain security, faced significant profitability headwinds due to global pricing dynamics.

• The vertical integration margin contributed a strictly limited 0.8% to the total Adjusted EBITA margin.
• The pure refractory margin recorded a record high of exactly 10.9%.

Founders

The enterprise traces its absolute operational origins to the foundational establishment of the business in 1908. Over the course of more than a century, the organization transitioned from a localized mining and manufacturing operation into a fully consolidated, publicly listed global industrial powerhouse.

• The historical foundation of the enterprise officially occurred in the year 1908.
• The corporate structure operates as a public company with limited liability under the laws of the Netherlands.

Shareholding pattern

The enterprise operates as a publicly traded commercial company with a highly institutionalized shareholding structure. The equity shares are actively traded on major European bourses, attracting significant global capital allocation from industrial and value-focused funds.

• The enterprise is a constituent of the prestigious FTSE 250 index.
• Shares are listed within the Equity Shares (Commercial Companies) category on the London Stock Exchange.
• A secondary listing is actively maintained on the Vienna Stock Exchange (Wiener Börse).

Parent

The ultimate corporate structure is governed by a single overarching parent entity that completely controls the consolidated global operations, subsidiaries, and strategic joint ventures.

• The ultimate parent undertaking of the entire Group is RHI Magnesita N.V.
• RHI Magnesita N.V. is formally incorporated and registered strictly under the laws of the Netherlands.

Investments and capital expenditure plans

Capital allocation is heavily prioritized toward driving future operational efficiency, expanding the digital technology portfolio, and restructuring the physical manufacturing footprint to perfectly align with the newly acquired M&A assets.

• Total restructuring costs of €60 million are formally planned over the period 2025–2027.
• Total capital expenditure strictly linked to these restructuring programs is set at €40 million.
• These targeted investments will directly deliver €10 million of EBITA benefit in 2025.
• The restructuring investments are planned to deliver €20 million in EBITA benefit in 2026, and €30 million per annum thereafter.

Future strategy

The forward-looking strategy is explicitly focused on leveraging the dominant scale, diverse product portfolio, and expansive geographic presence of the enterprise. Management is actively targeting countries and specific regional markets that heavily benefit from highly dynamic economic growth prospects.

• The organizational vision is explicitly stated as becoming a €10 billion company.
• The strategic operational shift involves transitioning customers entirely toward comprehensive “Full Line Service” contracts.
• The integration of the Resco Group acquisition remains a primary strategic operational focus for 2025.

Key strengths

The absolute primary strength of the enterprise lies in its total vertical integration, providing an unmatched level of supply chain security and raw material cost control in a highly volatile global industrial market.

• The organization achieved a tremendously resilient 103% cash conversion rate during 2024.
• The business successfully mitigated a 6% pricing reduction by achieving an exact 6% reduction in the cost of goods sold per tonne.
• Total annual CO2 emission savings reached 1.8 Mt compared strictly to 2018 baseline levels.
• The enterprise achieved a record formal recycling rate of 14.2%, up from 12.6% in 2023.

Key challenges and risks

The operating environment presents severe macroeconomic risks, primarily driven by global shifts in industrial production and highly volatile end-market demand.

• Refractory demand remains persistently weak, with absolutely no immediate recovery in end-market demand visible.
• Falling domestic demand strictly within the Chinese market continues to force cheap exports, reducing customer output globally.
• The industrial segment, particularly cement and non-ferrous metals, is heavily expected to face intense future pricing pressures.

Conclusion and strategic outlook

RHI Magnesita N.V. has decisively demonstrated highly resilient margin defense and exceptional cash flow generation during the 2024 fiscal year, despite navigating historically weak end markets. The completion of the Resco Group acquisition perfectly positions the enterprise to capitalize on localized supply chain demand within North America. While the immediate macroeconomic outlook for 2025 remains constrained by low volumes in steel and acute pricing pressures in industrial segments, the massive operational gearing of the enterprise ensures that any global industrial recovery will translate rapidly into substantial free cash flow. The Adjusted EBITA performance for 2025 is formally projected to be modestly above 2024 levels, rigorously weighted approximately 45% in the first half and 55% in the second half of the year.

FAQ section

What was the total revenue for RHI Magnesita in 2024?

Total revenue for the 2024 fiscal year was €3,487 million, which represents a 2% decrease compared to the €3,572 million recorded in 2023.

How much Adjusted EBITA did the company generate?

The company generated an Adjusted EBITA of €407 million in 2024, remaining relatively flat compared to the €409 million generated in 2023, and falling squarely within the guided range.

What is the company’s dividend payout for 2024?

The board recommended a final dividend of €1.20 per share, which brings the total full-year dividend for 2024 to exactly €1.80 per share.

How is the company addressing supply chain issues in North America?

The company officially completed the acquisition of the US-based Resco Group on January 28, 2025, for an enterprise value of €391 million, explicitly to expand manufacturing capacity and localize the supply chain in the USA.

What was the total cash conversion rate achieved by the business?

The business achieved an exceptional 103% cash conversion rate in 2024, fundamentally supported by a €115 million release of working capital due to highly efficient inventory and receivables management.

What are the expected restructuring costs for the 2025-2027 period?

Total restructuring costs of €60 million and capital expenditure of €40 million are actively planned over the 2025-2027 period to optimize the plant network following recent M&A activities.

Official Site: https://www.rhimagnesita.com

Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.