2026 Half Year Results
Summary by AI BETAClose X
31 July 2026
RHI Magnesita N.V.
("RHI Magnesita" or the "Company" or "Group")
2026 Half Year Results
Consistent self-help delivery and strong steel business performance delivers 42% Adj. EBITA growth on constant currency basis
RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, today announces its unaudited results for the six months ended 30 June 2026 ("H1 2026" or the "Period").
|
Financial results |
H1 2026 |
H1 2025 |
Change |
H1 2025 (constant currency) |
Change (constant currency) |
|
Revenue |
1,595 |
1,677 |
(5)% |
1,595 |
0% |
|
Adjusted EBITDA |
230 |
211 |
9% |
186 |
24% |
|
Adjusted EBITA |
165 |
141 |
17% |
117 |
42% |
|
Adjusted EBITA margin |
10.3% |
8.4% |
190bps |
7.3% |
300bps |
|
Adjusted EPS (€/per share) |
1.81 |
1.37 |
32% |
|
|
|
Adjusted Operating Cash Flow |
160 |
175 |
(8)% |
|
|
|
Net debt2 |
1,528 |
1,583 |
(3)% |
|
|
|
Net debt to Pro Forma Adjusted |
2.9 |
3.1 |
|
|
|
|
(Reported, €m unless stated otherwise) |
H1 2026 |
H1 20254 |
|
Revenue |
1,595 |
1,677 |
|
Gross profit |
354 |
354 |
|
EBIT |
98 |
61 |
|
Profit before income tax |
47 |
14 |
|
Profit after income tax |
36 |
11 |
|
EPS (€/per share) |
0.68 |
0.15 |
|
Dividend (€/per share) |
0.60 |
0.60 |
1. Adjusted figures are alternative performance measures "APMs" excluding impairments, amortisation of intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details are shown in the APM section.
2. H1 2026 Net debt includes IFRS16 lease liabilities of €86 million. For further details see Note 13.
3. Pro Forma Adjusted EBITDA is used to assess financial gearing and includes a full year of Adjusted EBITDA contribution from businesses acquired during the year.
4. Gross Profit restatated due to accounting policy changes
Operational and strategic highlights
· The Group increased Adj. EBITA by €24 million, or 17%, versus H1 2025, despite a continuing soft refractory demand and a material foreign exchange headwind. On a constant currency basis, Adj. EBITA increased by 42% year-over-year.
· The improvement reflects continued delivery of the Group's structural self-help cost measures and price adaptations, in line with expectations for 2026. These initiatives are well advanced and will deliver further benefits in 2027 as new raw materials and network optimisation programmes are rolled out.
· The Steel segment performed well, supported by cost and price self-help and demand growth in some regions, particularly in India and U.S..
· The Industrial segment had weaker shipments than expected, reflecting softer demand for high-margin Industrial Projects for Glass and Industrial Applications. Cement and Non-Ferrous Metals improved slightly year-over-year.
Financial highlights
· Adjusted EBITA increased to €165 million (H1 2025: €141 million), with margin expanding to 10.3% (H1 2025: 8.4%). This included a foreign exchange headwind of €24 million.
· Adjusted EPS increased 32% to €1.81 (H1 2025: €1.37).
· Working capital intensity temporarily increased to 24% as the Group increased raw material inventory ahead of expected stronger H2 order books, consistent with the normal working capital cycle and to mitigate tariff uncertainty. This resulted in softer than usual operating cash flow and cash conversion of 97%. Net debt increased to €1,528 million, while leverage remained flat at 2.9x net debt / Adjusted EBITDA.
· An interim dividend of €0.60 per share was declared, in line with dividend policy.
Outlook and guidance updates
· Full-year adj. EBITA is confirmed at €400 million, including a material year-on-year foreign exchange headwind of €35 million.
· The Group remains on track to deliver self-help from price adaptations and cost measures, including the previously guided €45 million adj. EBITA improvement, being €15 million from each of price adaptations, network optimisation and administrative cost savings. The self-help is being delivered in the current low-demand environment, strengthening the Group and enhancing its operating leverage for when demand improves.
· Capital expenditure guidance for FY 2026 has been reduced from €130 million to €115 million.
· Guidance for working capital intensity remains unchanged at 22% by year-end, reflecting the unwind of the temporary inventory build in H1.
· Gearing is expected to reduce towards 2.6x net debt to Adjusted EBITDA by year-end 2026, with net debt expected to fall to approximately €1,400 million.
Stefan Borgas, Chief Executive Officer, said: "RHI Magnesita delivered a solid double-digit earnings improvement compared with the first half of 2025, supported by continued progress on our self-help initiatives. We are pursuing further measures across the plant network and raw materials, to reduce costs and sell into non-refractory raw material markets, to enhance the Group's operating leverage when demand improves. In addition, our €100 million investment in digital infrastructure, now around two-thirds complete, will provide a strong foundation for future efficiency gains.
Our steel business is on a positive trajectory, particularly in North America, Europe and India. Conversely, Industrial customers remain cautious in the current volatile market environment, which continues to weigh on investment decisions. This has once again delayed the recovery we had expected in our high-margin Industrial Projects business.
We remain confident in stronger operational and financial performance going forward, underpinned by continued operational improvement, a firm order book in Steel and Industrials, and a clear focus on cash flow generation and deleveraging."
For further enquiries, please contact:
Investors: Alexander Ordosch, Head of Investor Relations, +43 699 1870 6162, alexander.ordosch@rhimagnesita.com
Media: Hudson Sandler, +44 020 7796 4133, rhimagnesita@hudsonsandler.com
Conference call
A presentation for investors and analysts will be held on 31 July 2026 starting at 8:15am UK time (9:15am CEST). The presentation will be webcast live and details can be found on: https://ir.rhimagnesita.com/. Alternatively, the webcast can be accessed using the following link:
https://www.investis-live.com/rhimagnesita/6a574b2e88e8430025846b80/nzrtd
A replay will be available on the same link shortly after event.
About RHI Magnesita
RHI Magnesita is the global leader in refractory products, systems, and solutions that enable high-temperature industrial processes exceeding 1,200°C. Through its refractory products, services, and expertise, the company supports customers across the steel, cement, non-ferrous metals, glass, and other high-temperature process industries. With more than 20,000 employees and a global network of raw material sites, production facilities, recycling centers, and sales offices, it serves customers worldwide.
RHI Magnesita is listed on the London Stock Exchange (RHIM) and has a secondary listing on the Vienna Stock Exchange. For more information, visit www.rhimagnesita.com.
FORWARD LOOKING STATEMENTS
This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's current expectations and projections about future events. These statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, reflect the directors' beliefs and expectations and involve a number of risks, uncertainties and assumptions which could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. Statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this announcement is subject to change without notice and, except as required by applicable law, the Company does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained in it and nor does it intend to. You should not place undue reliance on forward looking statements, which apply only as of the date of this announcement. No statement in this announcement is or is intended to be a profit forecast or profit estimate or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of the Company. As a result of these risks, uncertainties and assumptions, the recipient should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise. The Company has no obligation or undertaking to update or revise the forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable regulations. The numbers presented throughout this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.
OVERVIEW
Health & safety
Ensuring a safe working environment for our own workforce, including those working at customer sites, as well as contractors on our sites, and visitors, remains a core value at RHI Magnesita. During the first half of 2026, the Total Recordable Injury Frequency (TRIF) was 5.4 per 1 million hours worked up from 4.1 per 1 million hours worked end of 2025. The Preventive Rate exceeded its H1 target, while the corrective action Closing Rate reached 90%, demonstrating consistent follow-up of identified risks.
The increase in TRIF reflects the Group's proactive approach to safety enhancement, as customer sites where our workforce operates have been incorporated into its Safety Management System (SMS). The rollout of the SMS was completed in 2026 Q1, with more than 113,000 safety reports submitted during the first half of 2026, an increase of 18% compared with H1 2025. This reporting increase demonstrates the open Safety Culture that results in improved Preventive Rates and ultimately a better safety performance and is not a primary signal of a higher number of safety incidents.
In parallel, the Safety Culture Transformation continued to progress across the Group, reinforcing leadership engagement and proactive risk management in support of the Group's ambition of Zero Harm.
Financial overview
Revenue declined by 4.9% to €1,595 million (H1 2025: €1,677 million) and stayed flat on constant currency basis. Pricing initiatives could not fully offset a 2.7% reduction in sales volumes, particularly in high revenue per ton Industrial Projects (Glass and Industrial Applications), and the significant foreign exchange headwind.
Against this backdrop, Adjusted EBITA increased to €165 million (H1 2025: €141 million) representing a 42% increase on constant currency basis. Margins improved to 10.3% (H1 2025: 8.4%) driven primarily by self-help measures. Raw material contribution stable at low of 0.9 percentage points (H1 2025: 1.1 percentage points).
Business performance in steel increased noticeably driven by product mix and price increases. Steel Europe and Steel India achieved a turnaround in profitability, and earnings in Steel North America further improved. In contrast, the Industrial business recorded a 13% revenue decline compared to H1 2025, which has already been a weaker period for Industrials. The drop higher-margin Industrial Projects (Glass and Industrial Applications) impacted refractory margins negatively due to an unfavourable product mix and fixed cost underabsorption.
Self-help cost saving measures across the plant network and SG&A were delivered in line with expectations, partially offsetting external pressure from weaker mix, lower volumes and foreign exchange.
Working capital increased to €798 million (FY 2025: €769 million), primarily driven by higher inventory levels, which temporarily weakened cash generation during the first half of 2026. Inventory intensity increased to 31.0% (FY 2025: 26.3%) as the Group increased raw material inventory ahead of expected stronger H2 order books, consistent with the normal working capital cycle, and to mitigate tariff uncertainty.
Adjusted EPS increased to €1.81 (H1 2025: €1.37), reflecting primarily higher earnings. An interim dividend of €0.60 per share was declared, in line with the Group's dividend policy.
Sustainability
During H1 2026, RHI Magnesita continued to make progress towards its 2030 sustainability targets. CO₂ intensity decreased by 6%against the 2024 baseline, driven by energy efficiency circular economy initiatives. Energy performance also improved, with 35 ISO 50001-certified sites covering 94% of global energy consumption and projects expected to deliver annual savings of approx. 50 GWh by 2026.
ustainable procurement also progressed, with supplier assessment coverage reaching 61,3 % in H1 2026 (61,8% in H1 2025). While spend coverage declined following the inclusion of recently acquired businesses within the KPI scope, this reflects the expanded reporting boundary rather than a deterioration in supplier engagement.
Circular economy initiatives continued to contribute significantly to both environmental and financial benefits of sustainability measures. The Group also improved its EcoVadis score to 81 (2025: 79), placing RHI Magnesita among the top 5% of companies globally. The recycling rate increased to 19.5% in H1 2026 (H1 2025: 15.7%). A total of 270 kt of recycled materials was incorporated into production (H1 2025: 208kt), resulting in an estimated 227 kt reduction in CO₂ emissions. In parallel, the Group continues to strengthen its position as a leading technology partner for customers developing low-carbon and green steel production technologies.
Outlook and guidance updates
We confirm full-year Adjusted EBITA guidance of €400 million, including a €35 million foreign exchange headwind, unchanged for 2026. The business is naturally more H2 weighted, because of stronger Industrial shipments during the cement season end of the year, and higher Industrial Project deliveries. These market drivers and effective self-help also drove the stronger H2 performance in 2025.
Self-help measures initiated in 2025 continue to deliver the previously guided €45 million adj. EBITA improvement improving operating leverage ahead of a demand recovery. Administrative cost reductions remain on track to deliver the guided €15 million earnings uplift, and network optimisation is also expected to deliver €15 million.
Steel market conditions remain soft, but the outlook is improving. Trade measures should support local demand, price adaptations, and 4PRO business development. Underlying demand growth, particularly in India, together with pricing actions, remains on track to deliver a further €15 million earnings improvement.
The Industrials business remains more challenging, mainly due to weakness in Industrial Projects, although underlying fundamentals remain strong. Order books in Non-ferrous and Glass are beginning to recover from a low base. This will support the €15 million earnings guidance as fixed-cost underabsorption eases and product mix improves. It will also drive meaningful inventory reductions. The main risk remains macro-induced timeline slippage, with more than €50 million of revenue already deferred into future years and €10 million moved into H2 2026.
Following a review of internal projects, FY 2026 capital expenditure guidance has been reduced from €130 million to €115 million. Working capital intensity is still expected to be c.22%, as the temporary inventory build is reduced and U.S. accounts receivable reduce following the ERP go-live. This should support leverage declining to around 2.6x net debt to adjusted EBITDA by year-end 2026.
Dividend
Consistent with the Company's dividend policy to pay an interim dividend equal to one third of the previous final dividend, the Board has declared an interim dividend of €0.60 per share representing €28 million in aggregate. The interim dividend will be paid on 24 September 2026 to shareholders on the register on 28 August 2026.
FINANCIAL REVIEW
|
(€m) |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
Change |
Change (constant currency) |
|
Revenue |
1,595 |
1,677 |
1,595 |
(5)% |
0% |
|
Cost of goods sold |
(1,241) |
(1,323) |
(1,271) |
(6)% |
(2)% |
|
Gross profit |
354 |
354 |
325 |
0% |
9% |
|
SG&A |
(171) |
(192) |
(188) |
(11)% |
(9)% |
|
R&D expenses |
(18) |
(21) |
(20) |
(14)% |
(10)% |
|
OIE |
(42) |
(54) |
(52) |
(23)% |
(19)% |
|
EBIT |
98 |
61 |
39 |
60% |
149% |
|
Amortisation |
(25) |
(25) |
(26) |
0% |
(2)% |
|
EBITA |
123 |
87 |
65 |
42% |
90% |
|
Adjusted items |
42 |
54 |
52 |
(23)% |
(19)% |
|
Adjusted EBITA |
165 |
141 |
117 |
17% |
42% |
|
Refractory EBITA |
152 |
122 |
- |
25% |
- |
|
Vertical integration EBITA |
13 |
19 |
- |
(32)% |
- |
|
|
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
Change |
Change (constant currency) |
|
Steel |
|
|
|
|
|
|
Revenue (€m) |
1,130 |
1,146 |
1,082 |
(1)% |
5% |
|
Gross profit (€m) |
249 |
237 |
214 |
5% |
17% |
|
Gross margin |
22.0% |
20.7% |
19.7% |
130bps |
230bps |
|
Adjusted EBITA (€m) |
126 |
95 |
75 |
33% |
69% |
|
Adjusted EBITA margin |
11.2% |
8.3% |
6.9% |
290bps |
430bps |
|
Industrial |
|
|
|
|
|
|
Revenue (€m) |
423 |
487 |
470 |
(13)% |
(10)% |
|
Gross profit (€m) |
99 |
112 |
109 |
(12)% |
(9)% |
|
Gross margin |
23.4% |
23.0% |
23.2% |
40bps |
20bps |
|
Adjusted EBITA (€m) |
37 |
46 |
44 |
(19)% |
(15)% |
|
Adjusted EBITA margin |
8.8% |
9.3% |
9.3% |
(50)bps |
(50)bps |
Reporting approach
The Company uses a number of alternative performance measures (APMs) in addition to measures reported in accordance with IFRS Accounting Standards as adopted by the European Union ("IFRS"), which reflect the way in which the Board and the Executive Management Team assesses the underlying performance of the business. The Group's results are presented on an "adjusted" basis, using APMs that are not defined or specified under the requirements of IFRS, but are derived from the IFRS financial statements. The APMs are used to improve the comparability of information between reporting periods and to address investors' requirements for clarity and transparency of the Group's underlying financial performance. The APMs are used internally in the management of our business performance, budgeting and forecasting. A reconciliation of key metrics to the reported financials is presented in the section titled APMs.
All references to comparative 2025 numbers in this review are on a reported basis, unless stated otherwise. All reported volume changes year-on-year are excluding mineral sales.
Revenue
The Group recorded revenues of €1,595 million, down 4.9% on a reported basis, and broadly stable on a constant currency basis. Results were impacted by an €82 million foreign exchange headwind, which also weighed on earnings, primarily due to the depreciation of the U.S. dollar and Indian rupee against the euro.
|
Revenue |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
% change (reported) |
% change (constant currency) |
|
North America |
416 |
427 |
397 |
(3)% |
5% |
|
Europe & CIS |
341 |
375 |
375 |
(9)% |
(9)% |
|
Latin America |
278 |
282 |
269 |
(1)% |
4% |
|
India |
199 |
218 |
191 |
(9)% |
4% |
|
China & East Asia |
173 |
182 |
176 |
(5)% |
(2)% |
|
Middle East, Türkiye & Africa |
146 |
149 |
144 |
(2)% |
1% |
|
|
|
|
|
|
|
|
Steel |
1,130 |
1,146 |
1,082 |
(1)% |
5% |
|
Industrial |
423 |
487 |
470 |
(13)% |
(10)% |
|
Minerals |
42 |
44 |
43 |
(5)% |
(2)% |
North America remained the Group's largest revenue contributor and benefited from the Resco acquisition completed at the end of January 2025. Revenue growth in Steel, particularly in North America and other higher-value markets, was largely offset by lower Industrial revenue and the impact of foreign exchange.
Average revenue per tonne in constant currency increased in all regions except Europe & CIS and China & East Asia, reflecting higher pricing and continued progress growing 4PRO contracts in Steel. North America and META recorded the strongest increases.
Steel accounted for 71% of Group revenue in H1 2026, above the prior year's 68%, reflecting lower activity in Industrial Projects. Industrial Projects remained subdued, with the sharpest decline in Glass, where revenue was down a further 40% on a constant currency basis versus a weak prior-year period. Revenues also remained below historic peaks in Non-Ferrous Metals and Industrial Applications, with total project numbers still around 40% below historic averages.
Cost of Goods Sold
Cost of goods sold decreased by 6% to €1,241 million (H1 2025: €1,323 million; figures excluding amortisation), driven by lower plant-related personnel costs, despite unplanned cost increases related to the Middle East conflict of €28 million.
Plant-based personnel costs reduced by €22 million driven by plant closures, driving together with other production and services related cost reductions, a large share of the total change in CoGS.
Raw material costs went up slightly by €5 million driven by rising Fused Magnesia, DBM, Alumina and resins prices, of which approximately €10 million are caused by the impact of the Middle East conflict. Lower consumption and price management systems of energy and freight services more than offset the €11 million increase in transport costs by the Middle East war.
Gross profit
Gross profit was flat year on year at €354 million, while gross margin improved to 22.2% from 21.1% in H1 2025. All regions except LATAM recorded improvements in gross profit and gross margin. This was achieved despite lower shipments and average revenue per tonne, as well as the fact that some of the €28 million of cost increases related to the Middle East conflict had not yet fully been passed on to customers.
The Steel segment recorded a €12 million increase in gross profit, which was offset by an equivalent decline in Industrials. Within Industrials, lower gross profit in Glass and Industrial Applications was not fully offset by improvements in Non-ferrous and Cement & Lime, resulting in an overall decline in Industrial gross profit.
|
Gross profit |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
% change (reported) |
% change (constant currency) |
|
North America |
118 |
117 |
100 |
1% |
18% |
|
Latin America |
69 |
82 |
76 |
(16)% |
(9)% |
|
Europe & CIS |
68 |
67 |
71 |
1% |
(4)% |
|
India |
32 |
29 |
24 |
11% |
37% |
|
China & East Asia |
32 |
29 |
27 |
8% |
17% |
|
Middle East, Türkiye & Africa |
30 |
25 |
26 |
20% |
15% |
|
|
|
|
|
|
|
|
Steel |
249 |
237 |
214 |
5% |
17% |
|
Industrial |
99 |
112 |
109 |
(12)% |
(9)% |
|
Minerals |
6 |
5 |
5 |
27% |
11% |
Adjusted EBITDA
The Group recorded Adjusted EBITDA of €230 million, up 9% compared with the prior reporting period (H1 2025: €211 million). The Adjusted EBITDA margin also improved to 14.4% (H1 2025: 12.6%). On a constant currency basis, Adjusted EBITDA increased by 24% year on year, highlighting the significant foreign exchange headwind in H1 2026.
Adjusted EBITA
Adjusted EBITA increased to €165 million (H1 2025: €141 million; €117 million on a constant currency basis), with the margin rising to 10.3% (H1 2025: 8.4%). Adjusted EBITA improved more strongly than gross profit, reflecting the continued benefit of cost-saving measures. The refractory margin contribution was 9.5 percentage points, above the total adjusted EBITA margin in H1 2025. As is typical for the Group, the refractory margin is usually lower in the first half than in the second half, reflecting the seasonally stronger contribution from higher-margin Industrial sales in H2.
Raw materials contributed 0.9 percentage points to adjusted EBITA, or €14 million, the lowest level on record, compared with 1.1 percentage points in 2025. While magnesite- and dolomite-based raw material prices remained at low levels in H1 2026, lower refractory shipments led to fixed-cost underabsorption. Around €3 million of earnings were lost as a result of demand disruption related to the Middle East conflict, as steel producers in the region reduced output and some Industrial Projects were cancelled. In addition, some of the cost increases already described had not yet been fully passed on by 30 June 2026.
A foreign exchange headwind of €24 million continued to materially affect earnings in H1 2026, mainly due to the weakening of the U.S. dollar and Indian rupee against the euro. Adjusted EBITA and Adjusted EBITDA both exclude €42 million of items classified as "Items excluded from adjusted performance" (H1 2025: €54 million), as set out in the next section.
Items excluded from adjusted performance
In order to accurately assess the underlying performance of the business, the Group excludes certain items from adjusted EBITA related to other income and expenses of €42 million, including related to -€21m Digitalisation investment, -€14m Network Optimisation and -€7m SG&A reduction, largely in Europe.
Net finance expenses
Net finance expenses increased to €51 million in H1 2026 from €47 million in H1 2025. Net interest expense totalled €29 million, up from €22 million in H1 2025, primarily caused by refinancing of existing debt facilities at higher base interest rates and increased spreads driven by elevated leverage.
Foreign exchange losses reduced to €3 million (H1 2025: €13 million) driven primarily by lower Balance sheet exposures and less volatility in some of the Group's key currencies compared to H1 2025, including the U.S. dollar.
The increase in other net financial expenses to €19 million is mainly attributable to the positive impact in H1 2025 from the revaluation of the Group's obligation to purchase the remaining stakes it does not already own in Jinan New Emei and Chongqing.
|
(€m) |
H1 2026 |
H1 2025 |
|
Net interest expenses |
(29) |
(22) |
|
Interest income |
6 |
7 |
|
Interest expenses on borrowings |
(35) |
(29) |
|
FX effects |
(3) |
(13) |
|
Balance sheet translation |
(5) |
(27) |
|
Derivatives |
2 |
14 |
|
Other net financial expenses |
(19) |
(12) |
|
Present value adjustment |
(3) |
(3) |
|
Factoring costs |
(7) |
(5) |
|
Pension charges |
(5) |
(5) |
|
Non-controlling interest expenses |
(1) |
(1) |
|
Interest expense - Transaction costs |
(1) |
0 |
|
Other |
(2) |
1 |
|
Total net finance expenses |
(51) |
(47) |
Taxation
Income tax for H1 2026 in the income statement amounted to €11 million (H1 2025: €3 million), representing a 23% reported effective tax rate (H1 2025: 23%).
Reported profit before tax amounted to €47 million (H1 2025: €14 million). Adjusted profit before tax amounted to €117 million (H1 2025: €90 million), with an adjusted effective tax rate of 23% (H1 2025: 23%). Adjusted items include non-taxable IFRS income related to put option valuation, non-capitalizable losses due to restructuring projects, and non-deductible M&A-related expenses.
Profit after tax
On a reported basis the Group recorded profit after tax of €36 million (H1 2025: €11 million), profit attributable to shareholders of RHIM N.V. of €32 million (H1 2025: €7 million). Adjusted for OIE, profit after tax was €89 million with adjusted earnings per share of €1.81 (H1 2025: €1.37).
Profit attributable to shareholders is stated after non-controlling interests of €86 million (H1 2025: €65 million). The Group, holding a majority stake of 56% in RHI Magnesita India Ltd., attributes most of its non-controlling interests to the earnings consolidated from this subsidiary.
|
(€m) |
H1 2026 reported |
Items excluded from adjusted performance |
H1 2026 adjusted |
H1 2025 reported |
Items excluded from adjusted performance |
H1 2025 adjusted |
|
EBITA |
123 |
42 |
165 |
87 |
54 |
141 |
|
Amortisation |
(25) |
25 |
- |
(25) |
25 |
- |
|
Net financial expenses |
(51) |
3 |
(48) |
(47) |
(4) |
(51) |
|
Profit before tax |
47 |
69 |
117 |
14 |
76 |
90 |
|
Income tax |
(11) |
(16) |
(27) |
(3) |
(18) |
(21) |
|
Profit after tax |
36 |
53 |
89 |
11 |
58 |
69 |
|
Non-controlling interest |
4 |
- |
4 |
4 |
- |
4 |
|
Profit attributable to shareholders |
32 |
53 |
86 |
7 |
58 |
65 |
|
Shares outstanding |
47 |
- |
47 |
47 |
- |
47 |
|
Earnings per share |
0.68 |
1.12 |
1.81 |
0.15 |
1.23 |
1.37 |
Working capital
Working capital increased to €798 million compared to the 2025 FY Results figure (incl. Resco) of €769 million. Despite this, cash conversion still stood at 97%.
Working capital intensity, measured as a percentage of annualised revenue over the last three months, increased one percentage point to 24.4% (30 June 2025: 23.4%). The FX impact was €22 million compared to year-end 2025.
Inventories increased by €54 million on constant currency basis to year-end 2025, which was the main driver of the increase in Net Debt. As a result, Inventory intensity increased temporary to 31.0% (30 June 2026) ahead of an expected stronger order book in H2. This is consistent with the normal working capital cycle.
|
All figures on Group level |
H1 2026 (in m€) |
H1 2025 (in m€) |
2025 (in m€) |
H1 2026 (in %)1 |
H1 2025 (in %)1 |
2025 (in %)1 |
|
Working Capital |
798 |
800 |
769 |
24.4% |
23.4% |
21.7% |
|
Inventories |
1012 |
987 |
932 |
31.0% |
28.9% |
26.3% |
|
Accounts Receivable |
438 |
399 |
414 |
13.4% |
11.7% |
11.7% |
|
Accounts Payable |
652 |
586 |
577 |
20.0% |
17.1% |
16.3% |
1 - percentage of annualised revenue over the last three months
Accounts receivable increased by €39 million year on year, mainly due to delayed invoicing in May 2026 in the U.S. as a result of the ERP implementation. Accounts receivable is defined as trade receivables excluding factoring, plus contract assets, less contract liabilities and down payments received. A full reconciliation is provided in the APM section.
Accounts payable excluding forfaiting increased by €66 million year on year, driven by higher inventory purchases.
Working capital finance, used to provide low-cost liquidity and support the Group's commercial offering to customers, amounted to €313 million on June 30 2026 (30 June 2025: €302 million). This comprised €272 million of accounts receivable financing (factoring) (30 June 2025: 254 million) and €41 million of accounts payable financing (forfaiting) (30 June 2025: €48 million). This working capital financing level is within the limit set by the Board of €320 million.
Acquisitions
On 25 June 2026, RHI Magnesita announced a strategic joint venture with Khemka Refractories Pvt. Ltd. ("Khemka"), a leading refractory raw materials manufacturer in India. The joint venture will focus on refractory raw-material recycling and is based on the benchmark model already established in Europe with Mireco and in the U.S. with BPI. Khemka is a strong local partner, with whom the circular local-for-local business model can be scaled in India. The establishment of the joint venture does not require a material cash outlay.
The aim is to establish a dedicated recycled raw material facility to feed the Group's existing footprint in India. Using recycled raw materials instead of mined virgin raw materials reduces raw material costs and lowers the carbon footprint of refractories. It also reduces the dependency on imported raw materials. The facility will be located in Odisha, at the heart of India's steel industry. As there are currently no meaningful end-to-end refractory raw-material recycling capabilities in the Indian market, the proposed Odisha facility would be a first-of-its-kind project. The aim is to double recycling raw material volumes of this joint venture in the next years feeding own operation and external sales in the world's fastest-growing steel and refractory market.
Cash flow
Adjusted operating cash flow decreased to €160 million (H1 2025: €175 million), representing a cash flow conversion from adjusted EBITA of 97% (H1 2025: 124%). This temporary reduction was driven by higher working capital.
Capital expenditure for 2026 will be reduced from the guided €130 million to approximately €115 million. Total capital expenditure spent in 2026 H1 was approximately €46 million (H1 2025: €45 million), equally split into maintenance and value projects. Most spending on value projects is associated with Network Optimisation.
Interest paid on borrowings and leases, net of interest received, increased by €1 million to €40 million (H1 2025: €39 million), primarily due to higher interest expense following the debt refinancing. Cash dividends paid in the first six months of 2026 were broadly stable year on year at €57 million.
Financial position
Net debt increased by €33 million to €1,528 million compared with year-end 2025, driven by working capital cash consumption.
The Group's leverage ratio remained stable at 2.9x net debt to Adjusted EBITDA, with deleveraging expected to begin in the second half of 2026 toward the Group's target of 2.6x at year-end 2026.
Available liquidity at 30 June 2026 was €1,030 million (31 December 2025: €955 million), mainly denominated in Euro. The gross debt mix was 69% floating and 31% fixed, and the weighted average cost of debt at 30 June 2026 was 3.54%, including swaps.
In H1 2026, the Group refinanced a €232 million syndicated OeKB-backed term loan maturing in May 2027 with a new €350 million syndicated OeKB-backed term loan maturing in April 2031. In July 2026, the Group further issued €450 million of Schuldscheindarlehen with an average tenor of 4.4 years to address the remaining debt maturities in 2026 and pre-finance further maturities in 2027.
Return on invested capital
ROIC is used to assess the Group's efficiency in executing its capital allocation strategy, which is designed to support organic growth, disciplined M&A and shareholder returns. ROIC is an APM; see the APM section for full details of how ROIC reconciles to IFRS metrics.
Under the APM definition, ROIC was 8.3% in H1 2026 (H1 2025: 5.8%; previously stated value: 5.5%; invested capital restated to make 2025 and 2026 figures comparable). Higher NOPAT, driven by improved earnings, increased ROIC in both refractories and vertical integration, while invested capital increased only marginally.
|
|
Group |
Vertical Integration |
Refractory |
|
ROIC H1 2026 |
8.4% |
4.0% |
9.3% |
|
ROIC H1 2025 |
5.8% |
4.2% |
6.1% |
OPERATIONAL REVIEW
Steel overview
Supplying refractory products and services to the steel industry accounted for approximately 71% of Group revenues in H1 2026 (H1 2025: 68%). Applications span ironmaking, primary steelmaking, secondary metallurgy and casting, with product lifecycles ranging from hours to several years depending on the application. As a result, refractory consumption is typically classified as an operating expense by steel producers and represents approximately 2-3% of steelmaking operating costs.
|
Steel |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
Change |
Change (constant currency) |
|
Revenue (€m) |
1,130 |
1,146 |
1,082 |
(1)% |
5% |
|
Gross profit (€m) |
249 |
237 |
214 |
5% |
17% |
|
Gross margin |
22.0% |
20.7% |
19.7% |
130bps |
230bps |
|
Adjusted EBITA (€m) |
126 |
95 |
75 |
33% |
69% |
|
Adjusted EBITA margin |
11.2% |
8.3% |
6.9% |
290bps |
430bps |
Global steel markets showed encouraging resilience in the first half, despite ongoing macroeconomic headwinds. Two key factors continued to influence the market: soft steel demand and elevated Chinese steel exports. Worldsteel data available for the first half of 2026 showed crude steel production decreasing by 0.7% originating predominantly from softer China and Russia. Several Western countries showed signs of a recovery towards the end of the Period. Broader macroeconomic pressures, including subdued industrial investment, weak consumer confidence and ongoing trade uncertainty, continued to weigh on the market with more upside than downside in the foreseeable future. Chinese steel exports also remained elevated, despite contracting by 5.6% between January and June 2026 compared with the same period last year. Falling Chinese steel exports directly onshore steel production elsewhere, where the Group typically has a higher market share.
Steel revenues declined by 1% to €1,130 million (H1 2025: €1,146 million), while increasing by approximately 5% on a constant currency basis. Shipped steel refractory volumes were down 1%, while average revenue per tonne increased by 6%, reflecting stronger pricing and mix in North America and India. At a regional level, volume growth in India and China & East Asia was insufficient to offset lower shipments in Europe, Latin America and META.
Gross profit increased by 5% to €249 million (H1 2025: €237 million), with gross margin improving to 22.0% (H1 2025: 20.7%). This improvement was mainly driven by stronger performance in North America, Europe, China & East Asia and India, supported by pricing, mix and cost measures. This was partly offset by weaker performance in LATAM, where competitive pressure and softer market conditions reduced gross profit, and in META, where conflict-related lower volumes continued to weigh on profitability.
Industrial overview
RHI Magnesita is a leading supplier of refractory products and services to customers in the Cement & Lime, Non-ferrous metals, Glass, and Industrial Applications (Aluminium, Hydrocarbon Process Industries, Waste to Energy, and others). The Industrial business accounted for approximately 29% of Group revenues in H1 2026.
Industrial customers typically have longer replacement cycles than Steel customers, ranging from one to 20 years. Refractories are generally treated as capital expenditure by Industrial customers and represent between 0.2 and 1.5% of total costs over the life cycle of a facility.
|
Industrial |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
Change |
Change (constant currency) |
|
Revenue (€m) |
423 |
487 |
470 |
(13)% |
(10)% |
|
Gross profit (€m) |
99 |
112 |
109 |
(12)% |
(9)% |
|
Gross margin |
23.4% |
23.0% |
23.2% |
40bps |
20bps |
|
Adjusted EBITA (€m) |
37 |
46 |
44 |
(19)% |
(15)% |
|
Adjusted EBITA margin |
8.8% |
9.3% |
9.3% |
(50)bps |
(50)bps |
Revenue in the Industrial business decreased by 13% to €423 million (H1 2025: €487 million), equivalent to a decline of approximately 10% on a constant currency basis. Industrial refractory volumes declined by 6% despite a weak comparative base, while average revenue per tonne decreased by 7%, reflecting a weaker mix due to lower Industrial Projects sales. The decline was mainly driven by Glass and Industrial Applications.
Gross profit decreased by 12% to €99 million (H1 2025: €112 million), while gross margin improved slightly to 23.4% (H1 2025: 23.0%) thanks to disciplined cost management and fixed-cost reductions delivered through the Network Optimisation programme.
Cement delivered a resilient performance and was broadly flat year on year.
Industrial Projects had a softer first half, although the business continues to benefit from its differentiated capabilities in highly complex, large-scale projects across Non-ferrous, Glass and Industrial Applications. These projects typically combine engineering, process optimisation, installation and complex refractory linings supplied from multiple plants, and RHI Magnesita remains the only global heat management provider with this breadth of capability across all end-use industries. The fundamentals for Industrial Projects remain strong globally despite the weakness in the last quarters. Particularly Non-Ferrous remains key for long-term global mega trends like electrification.
Customers continue to push back investment decisions amid uncertainty stemming from the Middle East war. This has kept the number of Industrial Projects close to the historic low of 2025, particularly in Glass and Industrial Applications, with projects shifting from H1 2026 to H2 2026 and even into 2027/2028.
Non-ferrous metals projects were stable year on year at a low level, with modest growth in projects offset by lower maintenance activity. Glass and Industrial Applications weakened, with lower project and maintenance activity year on year.
More than €50 million of Industrial Projects revenue has been deferred past the end of this year, and several projects were cancelled, partly in connection with the Middle East war. A further €15 million of Industrial Projects revenue has been deferred into H2 2026, some of which may be delayed further.
While the project pipeline in Non-ferrous is improving, Glass remains around the historic low of 2025. The Group's market share, and therefore the number of Industrial Projects in Industrial Applications, remains low, creating an opportunity to improve performance and offset some of the weakness in Glass.
Raw materials
Magnesite and dolomite-based raw material prices remained at low levels in H1 2026, resulting in a stable margin contribution from raw materials of 0.9 ppts of adjusted EBITA. Unfavourable FX movements also impacted the vertical integration margin negatively.
Alumina-based raw material prices were stable in H1 2026 and remained in the lower half of the medium-term price range.
There are encouraging signs in China in the ongoing magnesite industry reform. Output and capacity controls for both raw magnesite and magnesia are strictly enforced, mineral rights continue to be consolidated and legacy polluting capacity being forcefully shut. Although these measures have not yet translated into meaningful price increases in the magnesia grades most relevant for refractories. While such an increase is not expected in the coming quarters, the Group is focused on self-help measures to improve profitability from backward integration. These measures include lower costs like fuel switches to lower-cost fuels and a strategic minerals sales initiative. The focus of the sales initiative is addressing non-refractory markets such as animal feed, construction and hydrometallurgy across all non-China raw material operations, including Brumado (Brazil), Eskisehir (Türkiye) and Breitenau (Austria). Progress is already visible, and higher revenue and earnings are expected in H2 2026.
Raw materials not utilised internally by the Group are sold on the open market and reported under Minerals, generating revenues of €42 million in H1 2026 (H1 2025: €44 million). Revenue from the base business declined slightly due to softer reference prices from China, but this was offset by a one-off legal review with a key customer in Europe. Minerals sales generated approximately €2 million of adjusted EBITA in the Period.
Regional business units
|
Revenue |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
% change (reported) |
% change (constant currency) |
|
North America |
416 |
427 |
397 |
(3)% |
5% |
|
Europe & CIS |
341 |
375 |
375 |
(9)% |
(9)% |
|
Latin America |
278 |
282 |
269 |
(1)% |
4% |
|
India |
199 |
218 |
191 |
(9)% |
4% |
|
China & East Asia |
173 |
182 |
176 |
(5)% |
(2)% |
|
Middle East, Türkiye & Africa |
146 |
149 |
144 |
(2)% |
1% |
|
Minerals |
42 |
44 |
43 |
(5)% |
(2)% |
|
Total |
1,595 |
1,677 |
1,595 |
(5)% |
0% |
|
Gross profit |
H1 2026 |
H1 2025 |
H1 2025 (constant currency) |
% change (reported) |
% change (constant currency) |
|
North America |
118 |
117 |
100 |
1% |
18% |
|
Europe & CIS |
67 |
67 |
71 |
1% |
(4)% |
|
Latin America |
69 |
82 |
76 |
(16)% |
(9)% |
|
India |
32 |
29 |
24 |
11% |
37% |
|
China & East Asia |
32 |
29 |
27 |
8% |
17% |
|
Middle East, Türkiye & Africa |
30 |
25 |
26 |
20% |
15% |
|
Minerals |
6 |
5 |
5 |
27% |
11% |
|
Total |
354 |
354 |
325 |
0% |
9% |
North America
Revenues in North America decreased by 3% to €416 million (H1 2025: €427 million), but increased by 5% in constant currency terms. Average revenue per tonne remained flat on a regional level. In the Steel business, pricing improved as customers showed greater willingness to accept price adaptations aimed at recovering inflationary cost increases across raw materials, freight, energy and labour. These positive effects were partly offset by weaker pricing and lower volumes in the Industrial business.
Gross profit increased slightly to €118 million (H1 2025: €117 million), with gross margin improving to 28.3% (H1 2025: 27.3%). In constant currency terms, gross profit increased by 18% and demonstrating the region's solid underlying profitability. The margin improvement reflected stronger Steel performance, partly offset by weaker fixed-cost absorption from lower volumes and reduced profitability in Industrial.
Steel demand and production in the U.S. remained firm, with worldsteel data showing U.S. steel production for the first half of 2026 approximately 6.3% higher than in the prior year. The Group's volumes also increased but lacked behind market growth because of phasing. Positive price adaptations more than offset the volume weakness and supported above Group average revenue performance in the region. The Group continues to differentiate itself through its focus on 4PRO offering and deep customer integration.
In the Industrial business, performance was affected by the postponement of several large projects amid macroeconomic uncertainty, as well as generally weak demand and an unfavourable sales mix in the Glass sector during H1 2026. Industrial activity remains more exposed to the timing of customer capital expenditure decisions, many of which have been deferred due to heightened geopolitical uncertainty. A recovery in the second half of the year and beyond will depend on improved project conversion, increased customer investment activity and the continued normalisation of operational processes. The Group continues to benefit from the enlarged Resco portfolio, which has expanded its offering in petrochemical and aluminium applications.
The region's main operational focus in H1 2026 was stabilising the business following the ERP rollout in May 2026. The transition created temporary backlogs in shipping, invoicing, accounts payable and reporting, requiring manual workarounds. Management implemented recovery actions, including additional resources, daily progress reviews, process workarounds and automation where possible.
The region continued to advance its recycling business model, with the BPI JV expected to strengthen supply chain resilience through expanded local processing of circular raw materials. Recycling remains a key strategic priority in North America, supported by growing customer demand for lower-carbon solutions and increased use of circular raw materials. The region also continues to benefit from investments in new electric arc furnace and mini-mill capacity, underpinned by the strong earnings of U.S. steel producers and a supportive U.S. trade policy environment.
Europe & CIS
Europe & CIS revenues decreased by 9% to €341 million (H1 2025: €375 million), primarily reflecting a 7% decline in shipped volumes, driven by geopolitical tensions and a subdued customer environment.The reduction was more pronounced in the Industrial business, while the Steel business proved comparatively more resilient.
Gross profit remained broadly stable at €68 million (H1 2025: €67 million) despite the lower revenue base, supported by disciplined pricing, operational improvement initiatives and fixed-cost savings from Network Optimisation. These measures largely offset the impact of lower volumes, energy and freight cost inflation, and reduced plant utilisation. This resulted in improved Gross Margin of 19.8% from 17.8% in the prior year. The improvement of Gross Margin together with self-help savings delivered a siginificant improvement in adjusted EBITA.
The Steel business was more resilient than the Industrial business, supported by pricing momentum and a release of delayed customer orders towards the end of the half. While underlying customer demand remained subdued, order intake improved during the period, indicating the early stages of a recovery. According to worldsteel data, steel production volumes declined by 3.5% in H1 2026, less pronounced than the decline in the Group's shipped volumes over the Period. By contrast, German steel production increased by 8.9% year-on-year according to worldsteel data, an encouraging sign, with further upside potential in the coming year supported by German infrastructure investment and EU safeguard measures. The Group is less active in Germany compared to the rest of Europe, thereby avoiding some of the demand decline in recent years, but also missing parts of the recent rebound as well.
The EU Carbon Border Adjustment Mechanism and revised steel tariff-rate quota regime are expected to affect the competitive environment for European steel producers but did not materially impact the Groups H1 2026 performance. The extent of any impact on the region will depend on customer production levels, sourcing decisions and investment plans.
Against this backdrop, near-term performance is expected to be driven by order phasing, price adaptations and ongoing cost mitigation initiatives. In addition, the Group expects to unlock further earnings through its 4PRO offering and value-sharing approach, supporting stronger second-half performance and sequential earnings improvement.
Industrial performance was weaker in H1 2026, reflecting mixed conditions across end markets. Cement remained relatively resilient, supported by stable market conditions, ongoing investment activity and the Group's cost discipline. By contrast, the Glass business remains at historic lows. Weak demand, for example from automotive, limit the need for glass producers to reline their furnaces, and the few furnaces to be relined or repaired are targeted aggressively by Chinese exporters. Encouraging business gains with glass OEMs and special glass manufacturers cannot fully offset the wider industry challenges.
In response to lower capacity utilisation, the Group accelerated fixed-cost and Network Optimisation Programme Europe, including a review of its production footprint in France and Germany. This includes the potential closure of two plants (France, Germany) and the potential conversion of another into a circular economy site (France). These actions will reduce fixed costs, avoid future investment requirements at multiple sites, and support a more efficient, resilient and sustainable production setup in Europe.
Latin America
Revenues in Latin America decreased by 1% to €278 million in H1 2026, compared with €282 million in H1 2025. This reflected softer market conditions, headwinds related to U.S. tariffs and continued pricing pressure from Chinese refractory imports. Average revenue per tonne was broadly stable, although the sales mix remained less favourable, with a lower contribution from higher value products and industrial projects.
Gross profit reduced by 16% to €69 million (H1 2025: €82 million), with gross margin declining to 24.8% (H1 2025: 29.2%). The lower margin reflected reduced sales volumes, weaker product mix, foreign exchange depreciation and higher energy costs linked to geopolitical tensions in the Middle East. Lower plant utilisation also resulted in weaker fixed-cost absorption. These headwinds were partly mitigated by productivity improvements and other self-help initiatives focused on cost optimisation.
Steel remained the larger contributor to regional profitability, but performance was affected by lower customer production, U.S. tariff-related cost pressure and increased competition from imported steel and refractories. According to worldsteel data, regional steel production increased by 2.0% in H1 2026 compared with the prior year Period, in contrast to the Group's decline in shipment volumes in the region. Steel production volumes at certain major regional customers continued to decline, with plant shutdowns and reduced operating rates placing pressure on refractory consumption. Despite these challenges, RHI Magnesita regained market share at several key integrated steel plants in the region and benefited from stronger performance in Mexico and neighbouring countries. The region is expected to recover in H2 2026 as temporary volume shortfalls unwind, supporting an improvement in overall performance.
Industrial revenues remained broadly stable. Higher sales volumes were offset by an unfavourable product mix, as demand shifted from higher-value Non-ferrous metals refractory solutions towards lower-value Cement & Lime products. In Cement, the Group strengthened its position through new long-term agreements with strategic customers, supporting business continuity and the further deployment of the 4PRO model.
The expansion of 4PRO remained a key commercial priority. During the Period, the region renewed multi-year agreements with key customers and continued to grow the performance-based model, reinforcing the importance of a strong and sustainable local value chain.
Operational performance was impacted by lower volumes at sites across Brazil, leading to an increasing focus on manufacturing efficiency, supply reliability and cost reduction. The Group continued to progress strategic initiatives in Brazil to support local refractory production. RHI Magnesita continued to pursue recognition of magnesite as a critical or strategic mineral under Brazil's proposed National Policy for Critical and Strategic Minerals.
The region continued to advance its circular raw materials strategy, with recycling rates expected to improve in 2026. Recycled content in finished goods also increased year to date, supported by the qualification and implementation of additional recycled raw materials.
India
Revenues in India decreased by 9% to €199 million (H1 2025: €218 million), despite stable shipped volumes. The decline reflected ongoing pressure on average revenue per tonne, driven by competitive market conditions and an adverse product mix, alongside the impact of negative foreign exchange effects.
Gross profit increased by 11% to €32 million (H1 2025: €29 million), with the gross margin expanding to 16.2% (H1 2025: 13.3%). While average revenue per tonne declined, targeted price adaptations and cost mitigation initiatives supported gross profit, partly offsetting higher energy costs and broader inflationary pressures. These self-help and operational improvement measures also contributed to higher adjusted EBITA in the region.
The Indian refractories market remained structurally attractive. Steel continued to benefit from strong underlying demand growth in India, although competition from domestic and imported refractory suppliers remained intense. According to worldsteel data, steel production in India increased by 7.1% in the first half of 2026. Steel customers' focus on reducing operating costs continued to put pressure on refractory pricing, although larger integrated steel customers increasingly assessed suppliers on total cost of ownership, campaign life and furnace uptime rather than purchase price alone. The Group made progress in defending and expanding its position through performance-based 4PRO contracts. Price increases were secured with a number of major steel customers, and interest in robotic solutions continued to develop, with selected installations operating at major steel plants and further deployments under evaluation.
Industrial performance was held back by the timing of customer projects, with shipped volumes declining in the Period. However, underlying demand remained healthy across Cement & lime, Non-ferrous metals, Glass and Industrial applications, supported by infrastructure investment and capacity expansions. Price increases were agreed with selected customers, while demand increasingly focused on solutions that help improve reliability, reduce operating costs and support longer-term efficiency, as our customers also face stiff competition.
Operational performance was below expectations, primarily due to lower-than-anticipated production volumes, which resulted in weaker fixed-cost absorption. In addition, selected raw material and energy costs increased, partly reflecting supply disruptions associated with the conflict in the Middle East.
In June 2026, the Group announced a strategic joint venture with Khemka Refractories to establish a refractory recycling facility in Odisha, India. RHI Magnesita will hold a 51% controlling stake and Khemka Refractories will hold the remaining 49%, with the transaction subject to customary closing conditions and expected to close in Q3 2026. The partnership will strengthen the Group's local recycling platform and raw material security in India by combining RHI Magnesita's global recycling expertise with Khemka's regional manufacturing footprint and supplier network, supporting the Group's circularity, CO₂ reduction and 4PRO Solutions strategy.
China & East Asia
Revenues in China & East Asia declined by 5% to €173 million (H1 2025: €182 million). A 4% increase in shipped volumes was offset by lower average revenue per tonne, reflecting competitive market conditions and an unfavourable product mix.
Gross profit increased by 8% to €32 million (H1 2025: €29 million), with gross margin improving to 18.4% from 16.2% in the prior year. The improvement was supported by self-help cost reduction measures and lower raw material costs compared with the prior period.
Steel demand in China remained under pressure from weakness in the property sector and softer infrastructure activity, while broader East Asian markets continued to face oversupply via Chinese steel and refractory exports. Steelmakers remained focused on reducing refractory spend, with multi-supplier tendering and competitor price reductions putting pressure on pricing. Despite this backdrop, the Group maintained steady shipment momentum and broadly retained pricing through its 4PRO offering, outperforming the decline in Chinese steel production, which fell by 3.0% in the first half of 2026 according to worldsteel data.
Vietnam was a notable bright spot in the region. According to worldsteel data, Vietnamese steel production increased by 26.9% in the first six months of 2026, supported by stronger domestic demand and higher production activity. The Group also achieved comparable growth in Vietnam, with higher steel-related shipments supported by its contract business and continued customer engagement.
Industrial markets remained challenging, with weaker construction-related demand affecting Cement and customers continuing to prioritise short-term cost savings. Pricing pressure remained high, particularly in cost-sensitive applications. However, the Group secured new customer wins in Cement & Lime, Non-ferrous metals, Glass and Industrial Applications, supported by new product sales.
Operational and financial performance in Chinese plants was strong. Increasing competition in some markets lead to production shifts from other regions to more competitive Chinese plants which drives their volumes, hence attractive fixed cost absorption and high productivity.
Middle East, Türkiye & Africa
Revenues in the Middle East, Türkiye and Africa decreased by 2% to €146 million (H1 2025: €149 million), driven by significant market headwinds. Geopolitical uncertainty resulted in industry wide supply chain disruptions and increased customer caution. Regional business performance remained encouraging despite this backdrop, with implemented price increases supporting a sequential improvement over the course of the period, particularly towards the end of H1 2026.
Gross profit increased to €30 million (H1 2025: €25 million), with gross margin improving to 20.2% from 16.6% in the prior year. The improvement reflected price adaptations and better commercial discipline, although margin expansion was constrained by higher energy and freight costs.
Steel performance was negatively impacted by lower customer production in the Middle East, where crude steel production declined by 7.3% in H1 2026 compared with H1 2025, according to worldsteel data. Performance was further affected by reduced iron ore availability resulting from logistics disruptions, as well as tighter working capital management by customers. The Group's exposure to North Africa partially offset these headwinds, supported by strong performances in Egypt and Morocco, where crude steel production increased by 13.3% and 5.4%, respectively, during the period, according to worldsteel data.
Industrial performance was more resilient than Steel, supported by Cement, Non-ferrous metals and selected project activity. Cement demand remained robust in Türkiye and Africa, while Non-ferrous metals benefited from ongoing customer investment in Africa. Glass market conditions remained challenging globally; however, demand in Africa and the Middle East was supportive, helping to offset the impact of intense competition from Chinese refractory suppliers. Demand from Aluminium and HPI (Petrochem) remained below average, reflecting slower project execution and cautious customer investment.
Commercial execution remained a key strength, with new customer wins, continued expansion of 4PRO solutions, particularly in cement, and progress in higher-value product development supporting future growth. Recycling initiatives remained on track and continue to contribute to both sustainability objectives and improved raw material efficiency.
Operational performance improved at plant Eskişehir, while plant Sormas remained focused on enhancing cost competitiveness across selected product lines. Higher energy costs and logistics disruption remained the principal cost headwinds during the period. The implementation of S/4HANA has improved operational transparency and cost visibility, supporting ongoing initiatives to optimise inventory, manufacturing performance and strategic product positioning.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group has an established risk management process based on a formally approved framework with standardised risk assessments to systematically identify and assess risks and uncertainties across RHI Magnesita's Regions and Group.
Material risks with potentially significant impacts on the Group, its results or its strategic objectives are discussed with Senior Leaders, the Executive Management Team and reviewed regularly by the Board. The principal risks were presented in the 2025 Annual Report, available on the Group's website.
As part of its ongoing risk monitoring, the Board reviewed the internal and external risk environment and confirmed that the eleven principal risks reported in the 2025 Annual Report remain relevant for the second half of 2026. Emerging risks were also reviewed.
The risk scoring of three principal risks has changed compared with H2 2025, as summarised in the table below.
Compared with H2 2025, RHI Magnesita's overall risk landscape remains challenging, reflecting the continued focus on the Group's strategic and digital transformation agenda while operating in a volatile external market environment. Macroeconomic and geopolitical developments continue to influence several principal risks, particularly market demand and pricing.
Risks may occur individually or in combination. If they occur in combination, their impact may be reinforced. The Group might be facing other risks that are currently unknown or not considered material. A comprehensive analysis of principal and emerging risks will be included in the 2026 Annual Report.
|
Principal risk |
Change in risk level |
Change description |
|
1 - Macroeconomic environment and geopolitical risk |
Unchanged |
While confidence in the execution of the Raw Material strategy has increased, supported by the progress of the Caustic Calcined Magnesia initiative, the overall Principal Risk remains elevated. This is due to the continued weakness in the macroeconomic environment and sustained pressure on magnesite raw material prices, which continue to limit profit improvement. |
|
2 - Inability to execute key strategic initiatives |
Increased |
The risk level has increased as the Group enters the roll-out phase of its digital transformation agenda, with greater execution complexity and an increased risk of business disruption. Disciplined implementation is required to realise the expected operational and financial benefits. At the same time, continued working capital pressure, driven by elevated inventory levels and overdue receivables, has constrained cash generation and increased pressure on net debt, leverage, and capital efficiency. |
|
3 - Significant changes in the competitive environment or speed of disruptive innovation |
Unchanged |
|
|
4 - Reliability of the end-to-end value chain |
Unchanged |
|
|
5 - Sustainability - Environmental and climate risks |
Unchanged |
|
|
6 - Sustainability Health and safety risks |
Unchanged |
|
|
7 - Regulatory and compliance risks (excluding Trade Compliance) |
Unchanged |
|
|
8 - Cyber and information security risk |
Unchanged |
|
|
9 - Trade Compliance |
Decreased |
The sanctions framework is mature and is supported by established governance, approval gates and internal controls. Combined with the absence of any material risk events, this supports a reduction in both the likelihood and impact assessment. |
|
10 - Organizational capacity to execute strategy, incl. company cultural values |
Decreased |
The residual risk has decreased as organizational capacity to execute strategic priorities has strengthened. Clear governance, regular performance reviews, greater transparency, and stronger cross-functional alignment have improved execution discipline and reduced the likelihood of material organizational misalignment. |
|
11 - Ability to strategically price and deliver price increases |
Unchanged |
|
GOING CONCERN
In considering the appropriateness of adopting the going concern basis in preparing the Interim Financial Statements, the Directors have assessed the potential cash generation of the Group and considered downside scenarios that model different degrees of potential economic downturn, using the same model performed for the viability assessment disclosed in the latest Annual Report. This assessment covers at least 12 months from the date of approval of the Interim Financial Statements.
The scenarios considered by the Directors include a severe but plausible downside and a reverse stress test which determines the level of EBITDA that could breach the debt covenant of the Group's principal borrowing facilities. At present management is increasing prices, reducing fixed costs and SG&A, as well as reducing working capital and capital expenditure to mitigate this risk. Further mitigating actions within management control which would be undertaken in such scenarios, include but are not limited to: deeper focus on the current reduction drivers, seeking a debt covenant waiver and reducing or cancelling the dividend, but these were not incorporated in the downside modelling.
The Directors have also considered the Group's current liquidity, available facilities and debt covenant coverage. As of 30 June 2026, the Condensed Consolidated Statement of Financial Position reflects cash and cash equivalents of €430 million (31 December 2025: €355 million). In addition, the Group has access to a €600 million (31.12.2025: €600 million) Revolving Credit Facility (RCF), which is currently undrawn. In the first half of 2026 and in 2025, the Group complied with the debt covenant of the Group's principal borrowing facilities (refer to Note (13)).
Based on the scenarios assessed and taking into account liquidity, available resources and before the inclusion of all mitigating actions, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing the Interim Financial Statements for the period ended 30 June 2026.
ALTERNATIVE PERFORMANCE MEASURES (APMs)
Definitions of APMs used by the Group are set out below. The purpose and usefulness of each APM and a reconciliation to the nearest IFRS equivalent measure, or a reference to a reconciliation appearing elsewhere in this document. In general, APMs are presented externally to meet investor and analyst requirements for clarity and transparency of the Group's underlying financial performance. APMs are also used internally in the management of the Group's business performance, budgeting and forecasting. APMs are non-IFRS measures which enable investors and other readers to review alternative measurements of financial performance, but they should not be used in isolation from the main financial statements. Commentary within the Annual Report, including the Financial Review, the Consolidated Financial Statements and the accompanying notes, should be referred to fully appreciate all the factors and context affecting the Group's financial performance. Readers are strongly encouraged not to rely on any single financial measure and to carefully review the Group's reporting in its entirety.
Performance APMs
Adjusted EBITDA
Adjusted EBITDA is a key non-IFRS measure that the Executive Management Team (EMT) and Directors use internally to assess the underlying financial performance of the Group and is viewed as relevant to capital intensive industries. The ratio of Net Debt to Adjusted EBITDA is used as a measure of financial gearing.
Adjusted EBITDA is defined as EBIT, as presented in the Condensed Consolidated Statement of Profit or Loss, before amortisation, depreciation, and Excluded Items (see definition below).
Adjusted EBITA
Adjusted EBITA is a key non-IFRS measure that the EMT and Directors use internally to assess the underlying performance of the Group.
Adjusted EBITA is determined consistently with Adjusted EBITDA, but includes depreciation expense of property, plant and equipment to reflect the wear and tear cost and future replacement of productive assets.
Adjusted EPS
Adjusted EPS is a key non-IFRS measure and one of the Group's KPIs. Adjusted EPS is used to assess the Group's underlying operational performance, post-tax and non-controlling interests on a per share basis.
This measure is based on adjusted EBITA after finance income and expenses, taxes, share of profit or loss from associates and joint ventures and non-controlling interest. Share of profit or loss from associates and joint ventures is adjusted to exclude impairments and gains or losses recognised on disposals.
Adjusted EPS excludes finance income and expenses and certain foreign exchange effects, that are not directly related to operational performance. This includes the non-cash present value adjustments for the Oberhausen provision.
Taxes are calculated by applying the effective tax rate normalised for restructuring expenses and impairments.
Excluded items
Items that are excluded (Excluded Items) in arriving at the Group's Adjusted measures of adjusted EBITA, EBITDA and EPS include:
Other income, other expenses and restructuring expenses as reflected on the Consolidated Statement of Profit or Loss as well as gains and losses within interest income, interest expenses and other net financial expenses that are non-recurring in nature and not reflective of the underlying operational performance of the business. Excluded items include restructuring related provisions, costs in relation to corporate transactions, and other non-recurring costs. The tax impacts of the above Excluded Items are also adjusted for.
Cash flow performance measures
Adjusted operating cash flow and Free cash flow
Adjusted operating cash flow is a key non-IFRS measure used by the EMT and the Directors to reflect the operational cash generation capacity of the Group before the cash impacts of Excluded Items (see definition above).
Adjusted operating cash flow is defined as Adjusted EBITDA adjusted for working capital items, changes in other assets and liabilities and capital expenditure and other non-cash items, such as share based payments. This APM is reconciled to Net Cash flow from operating activities as follows:
|
€m |
H1 2026 |
H1 2025 |
|
Adjusted operating cash flow (APM) |
160 |
175 |
|
Capital expenditure1 |
46 |
45 |
|
Income Taxes paid1 |
(20) |
(33) |
|
Other income/expenses and restructuring items2 |
(54) |
(41) |
|
Net cash flow from operating activities1 |
132 |
146 |
1. As reflected in the Condensed Consolidated Statement of Cash Flows
2. Net cash impact of adjusting Other income, Other expenses and Restructuring
Free cash flow is determined from the IFRS measures of Net cash flow from operating activities, net cash used in investing activities and net cash (used in)/provided by financing activities and excludes the cash impacts of purchases and disposals of business and subsidiaries, dividends paid to equity shareholders of the Group, share capital transactions with shareholders, proceeds and repayment of borrowings and current borrowings and repayment of leases.
Free cash flow is reconciled to Cash changes in Net debt in the table in the Cash flow and working capital section. Cash changes in Net debt is reconciled to Change in cash and cash equivalents in the Net Debt APM reconciliation.
Balance sheet
Liquidity
Liquidity comprises cash and cash equivalents, short term marketable securities and undrawn committed credit facilities.
|
€m |
H1 2026 |
H1 2025 |
|
Cash and cash equivalents1 |
430 |
327 |
|
Revolving credit facility |
600 |
600 |
|
Liquidity (APM) |
1,030 |
927 |
1. Cash and cash equivalent for H1 2025 includes €10 million of short term marketable securities as reflected in the Condensed Consolidated Statement of Financial Position.
Net Debt
Net Debt is the excess of current and non-current borrowings, associated debt derivatives for which hedge accounting is applied and lease liabilities over cash and cash equivalents and short-term marketable securities. The Board uses this measure for the purpose of capital management. A reconciliation of Net Debt is included in Note 11 to the Condensed Consolidated Interim Financial Statements.
|
€m |
H1 2026 |
H1 2025 |
|
Cash changes in Net debt |
(6) |
(322) |
|
Proceeds from borrowings1 |
350 |
346 |
|
Repayment of borrowings1 |
(281) |
(240) |
|
Change in current borrowings1 |
15 |
(12) |
|
Repayment of lease obligations1 |
(9) |
(9) |
|
Cash outflow/inflow from financial assets1 |
(2) |
(10) |
|
Change in cash and cash equivalents1 |
67 |
(247) |
1. As reflected in the Condensed Consolidated Statement of Cash Flows
Working capital
Working capital consists of inventories plus trade receivables and other receivables minus trade payables and other payables. Working capital intensity provides a measure of how efficient the Company is in managing operating cash conversion cycles. It is measured as Working capital divided by trailing three-month revenues (annualised) and is expressed as a percentage.
|
€m |
H1 2026 |
H1 2025 |
|
Inventories (Note 11) |
1,012 |
986 |
|
|
|
|
|
Trade receivables (Note 12) |
468 |
449 |
|
Contract assets (Note 12) |
8 |
4 |
|
Contract liabilities (Note 16) |
(38) |
(53) |
|
Accounts receivable |
438 |
400 |
|
|
|
|
|
Trade payables (Note 16) |
(652) |
(586) |
|
|
|
|
|
Total working capital |
798 |
800 |
Return on invested capital (ROIC)
ROIC reflects the annualised return on invested capital of the Group. The Group has amended its definition of ROIC to use Average Invested Capital, being the average of the level of Invested Capital at the beginning and end of the financial year. ROIC is calculated as NOPAT (net operating profit after tax) divided by average invested capital of the year.
|
€m |
H1 2026 |
H1 2025 |
|
Adjusted EBIT1 |
140 |
115 |
|
Income taxes paid2 |
(20) |
(33) |
|
NOPAT |
118 |
82 |
|
NOPAT extrapolated |
239 |
165 |
|
|
|
|
|
€m |
H1 2026 |
H1 2025 |
|
Property, plant and equipment3 |
1,288 |
1,250 |
|
Goodwill3 |
408 |
427 |
|
Other intangible assets3 |
527 |
550 |
|
Investments in joint ventures and associates3 |
7 |
6 |
|
Other non-current assets3 |
32 |
30 |
|
Deferred tax assets3 |
162 |
171 |
|
Income tax receivables3 |
48 |
42 |
|
Inventories3 |
1,012 |
987 |
|
Trade and other current receivables3 |
646 |
591 |
|
Deferred tax liabilities3 |
(85) |
(90) |
|
Income tax liabilities3 |
(27) |
(29) |
|
Trade and other current liabilities3 |
(860) |
(803) |
|
Current provisions3 |
(73) |
(57) |
|
Invested Capital3 |
3,083 |
3,077 |
|
Adjustment4 |
(184) |
(184) |
|
Adj. invested capital |
2,899 |
2,893 |
|
Avg. Invested capital |
2,852 |
2,837 |
|
Return on invested capital5 |
8.4% |
5.8% |
1. Adjusted EBIT is defined as EBIT, as presented in the Condensed Consolidated Statement of Profit or Loss, before Excluded Items as defined in the RNS section (Items excluded from adjusted performance)
2. As reflected in the Condensed Consolidated Statement of Cash Flows
3. As reflected in the Condensed Consolidated Statement of Financial Position
4. Invested capital figures are excluding the €184million non-cash share from the Dalmia acquisition in India (closed in 2023).
5. NOPAT divided by average invested capital of the year.
GLOSSARY
|
BPI |
Recycling joint venture in the US |
|
CIS |
Commonwealth Of Independent States |
|
CO2 |
Carbon dioxide |
|
CoGS |
Cost of Goods Sold |
|
DBM |
Dead Burned Magnesia |
|
Adjusted EBITA |
Adjusted EBIT before amortisation of intangible assets and excluded items. Excluded items are other income, other expenses and net restructuring expenses |
|
Adjusted EBITDA |
Adjusted EBITA, except for depreciation of property, plant and equipment |
|
EMT |
Executive Management Team |
|
EPS |
Earnings Per Share |
|
ERP |
Enterprise Resource Planning |
|
EU |
European Union |
|
FTSE 100 |
Financial Times Stock Exchange 100 Index |
|
FX |
Foreign Exchange |
|
IFRS |
IFRS Accounting Standards |
|
ISO |
International Organization for Standardization |
|
LATAM |
Latin America |
|
LTIF |
Lost Time Injury Frequency |
|
LTIP |
Long-Term Incentive Plan |
|
M&A |
Mergers & Acquisitions |
|
META |
Middle East, Türkiye and Africa |
|
MWh |
Megawatt-hour |
|
N.V. |
Naamloze Vennootschap (public limited liability company) |
|
NAM |
North America |
|
NFM |
Non-ferrous metals |
|
NOPAT |
Net Operating Profit After Tax |
|
NWC |
Net Working Capital |
|
OEKB |
Oesterreichische Kontrollbank |
|
OIE |
Other Income and Expenses |
|
ppts |
Percentage points |
|
Resco |
A group of companies carrying out the manufacturing and sale of refractory products in the US, UK and Canada, previously owned by Balmoral Refractories Holdings, Inc. |
|
ROIC |
Return On Invested Capital |
|
SAM |
South America |
|
SG&A |
Selling, General and Administrative Expenses |
|
SMS |
Safety Management System |
|
TRIF |
Total Recordable Injury Frequency |
|
UK |
United Kingdom |
|
U.S. |
United States |
Condensed Consolidated Interim Financial Statements as at 30.06.2026 |
Condensed Consolidated Statement of Profit or Loss
for the six months ended 30 June 2026
|
in € million for the six months ended 30 June |
Note |
2026 |
20251) |
|
Revenue |
(5) |
1,595 |
1,677 |
|
Cost of sales1) |
|
(1,241) |
(1,323) |
|
Gross profit1) |
|
354 |
354 |
|
Selling, general & administrative expenses1) |
|
(171) |
(192) |
|
Research & development expenses1) |
|
(18) |
(21) |
|
Adjusted EBITA2) |
|
165 |
141 |
|
Amortisation of intangible assets1) |
|
(25) |
(25) |
|
Net restructuring expenses |
|
(24) |
(30) |
|
Other income1) |
|
10 |
16 |
|
Other expenses1) |
|
(28) |
(41) |
|
EBIT2) |
|
98 |
61 |
|
Interest income |
|
6 |
7 |
|
Interest expenses on borrowings |
|
(35) |
(29) |
|
Net expense on foreign exchange effects |
(6) |
(3) |
(13) |
|
Other net financial expenses |
(7) |
(19) |
(12) |
|
Net finance costs |
|
(51) |
(47) |
|
Profit before income tax |
|
47 |
14 |
|
Income tax |
(8) |
(11) |
(3) |
|
Profit after income tax |
|
36 |
11 |
|
RHI Magnesita N.V. shareholders |
|
32 |
7 |
|
Non-controlling interests |
|
4 |
4 |
|
|
|
|
|
|
|
|
|
|
|
in € |
|
|
|
|
Earnings per share - basic |
|
0.68 |
0.15 |
|
Earnings per share - diluted |
|
0.65 |
0.14 |
1) Restated due to accounting policy changes (see Note (3)).
2) Adjusted EBITA and EBIT are non-IFRS measures and are defined in Note (4).
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2026
|
in € million for the six months ended 30 June |
Note |
2026 |
2025 |
|
Profit after income tax |
|
36 |
11 |
|
|
|
|
|
|
Currency translation differences |
|
|
|
|
Unrealised results from currency translation |
|
95 |
(162) |
|
Deferred taxes thereon |
|
(6) |
(1) |
|
Reclassification to profit or loss |
|
(2) |
0 |
|
Cash flow hedges and costs of hedging |
|
|
|
|
Unrealised fair value changes |
|
19 |
(21) |
|
Reclassification to profit or loss |
|
0 |
(4) |
|
Deferred taxes thereon |
|
(4) |
6 |
|
Items that may be reclassified to profit or loss in later periods |
|
102 |
(182) |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) after income tax |
|
102 |
(182) |
|
|
|
|
|
|
Total comprehensive (loss)/income |
|
138 |
(171) |
|
RHI Magnesita N.V. shareholders |
|
136 |
(155) |
|
Non-controlling interests |
|
2 |
(16) |
Condensed Consolidated Statement of Financial Position
as at 30 June 2026
|
in € million |
Note |
30.06.2026 |
31.12.2025 |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Goodwill |
(20) |
408 |
403 |
|
Intangible assets |
|
527 |
540 |
|
Property, plant and equipment |
(10) |
1,288 |
1,246 |
|
Investments in joint ventures and associates |
|
6 |
6 |
|
Other financial assets |
|
39 |
36 |
|
Other assets |
|
32 |
29 |
|
Deferred tax assets |
|
162 |
163 |
|
|
|
2,462 |
2,423 |
|
Current assets |
|
|
|
|
Inventories |
(11) |
1,012 |
932 |
|
Trade and other receivables |
(12) |
646 |
576 |
|
Income tax receivables |
|
48 |
49 |
|
Other financial assets |
|
8 |
9 |
|
Cash and cash equivalents |
|
430 |
355 |
|
Assets held for sale |
|
4 |
4 |
|
|
|
2,148 |
1,925 |
|
|
|
4,610 |
4,348 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
50 |
50 |
|
Group reserves |
|
1,054 |
975 |
|
Equity attributable to shareholders of RHI Magnesita N.V. |
|
1,104 |
1,025 |
|
Non-controlling interests |
|
147 |
145 |
|
|
|
1,251 |
1,170 |
|
Non-current liabilities |
|
|
|
|
Borrowings |
(13) |
1,408 |
1,362 |
|
Other financial liabilities |
|
116 |
100 |
|
Deferred tax liabilities |
|
85 |
91 |
|
Net employee defined benefit liabilities |
(14) |
229 |
232 |
|
Provisions |
(15) |
63 |
63 |
|
Other liabilities |
|
6 |
7 |
|
|
|
1,907 |
1,855 |
|
Current liabilities |
|
|
|
|
Borrowings |
(13) |
464 |
424 |
|
Other financial liabilities |
|
26 |
33 |
|
Trade payables and other liabilities |
(16) |
860 |
757 |
|
Income tax liabilities |
|
27 |
29 |
|
Provisions |
(15) |
75 |
80 |
|
|
|
1,452 |
1,323 |
|
|
|
4,610 |
4,348 |
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2026
|
in € million for the six months ended 30 June |
Note |
2026 |
2025 |
|
Cash generated from operations |
(17) |
152 |
179 |
|
Income tax paid less refunds |
|
(20) |
(33) |
|
Net cash flow from operating activities |
|
132 |
146 |
|
Investments in property, plant and equipment and intangible assets |
|
(46) |
(45) |
|
Investments in subsidiaries net of cash acquired |
|
0 |
(346) |
|
Cash inflow from matured derivative financial instruments |
|
0 |
13 |
|
Cash inflows from the sale of property, plant and equipment |
|
3 |
4 |
|
Cash outflows from investments in financial assets |
|
(2) |
(10) |
|
Interest received |
|
7 |
6 |
|
Net cash used in investing activities |
|
(38) |
(378) |
|
Acquisition of non-controlling interests |
|
0 |
(2) |
|
Dividends paid to RHI Magnesita N.V. shareholders |
|
(57) |
(57) |
|
Proceeds from long-term financing |
|
350 |
346 |
|
Repayments of long-term financing |
|
(281) |
(240) |
|
Changes in current borrowings and financial liabilities to associates |
|
15 |
(12) |
|
Interest payments |
|
(43) |
(43) |
|
Repayment of lease obligations |
|
(9) |
(9) |
|
Interest payments from lease obligations |
|
(2) |
(2) |
|
Cash inflow from matured derivative financial instruments |
|
0 |
4 |
|
Net cash used in financing activities |
|
(27) |
(15) |
|
Change in cash and cash equivalents |
|
67 |
(247) |
|
Cash and cash equivalents at beginning of period |
|
355 |
576 |
|
Foreign exchange impact |
|
8 |
(12) |
|
Cash and cash equivalents at end of period |
|
430 |
317 |
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2026
|
|
|
Group reserves |
|
|
|||||||
|
|
|
|
|
|
|
Accumulated other comprehensive income |
|
|
|||
|
in € million |
Share |
Treasury shares |
Additional |
Mandatory reserve |
Retained earnings |
Cash flow hedges and costs of hedging |
Defined |
Currency translation |
Equity attributable |
Non-controlling interests |
Total equity |
|
Note |
|
|
|
|
|
|
|
|
|
|
|
|
31.12.2025 |
50 |
(103) |
361 |
289 |
932 |
(9) |
(75) |
(420) |
1,025 |
145 |
1,170 |
|
Profit after income tax |
- |
- |
- |
- |
32 |
- |
- |
- |
32 |
4 |
36 |
|
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
89 |
89 |
(2) |
87 |
|
Cash flow hedges and costs of hedging |
- |
- |
- |
- |
- |
15 |
- |
- |
15 |
- |
15 |
|
Other comprehensive income after income tax |
- |
- |
- |
- |
- |
15 |
- |
89 |
104 |
(2) |
102 |
|
Total comprehensive income |
- |
- |
- |
- |
32 |
15 |
- |
89 |
136 |
2 |
138 |
|
Dividends |
- |
- |
- |
- |
(57) |
- |
- |
- |
(57) |
- |
(57) |
|
Share transfer/vested LTIP |
- |
3 |
- |
- |
(3) |
- |
- |
- |
- |
- |
- |
|
Share-based payment expenses |
- |
- |
- |
- |
3 |
- |
- |
- |
3 |
- |
3 |
|
Hedging gains and losses included in the initial cost of inventory purchased in the reporting period |
- |
- |
- |
- |
- |
(3) |
- |
- |
(3) |
- |
(3) |
|
|
- |
3 |
- |
- |
(57) |
(3) |
- |
- |
(57) |
- |
(57) |
|
30.06.2026 |
50 |
(100) |
361 |
289 |
907 |
3 |
(75) |
(331) |
1,104 |
147 |
1,251 |
|
|
|
Group reserves |
|
|
|||||||
|
|
|
|
|
|
|
Accumulated other comprehensive income |
|
|
|||
|
in € million |
Share |
Treasury shares |
Additional |
Mandatory reserve |
Retained earnings |
Cash flow hedges and costs of hedging |
Defined |
Currency translation |
Equity attributable |
Non-controlling interests |
Total equity |
|
Note |
|
|
|
|
|
|
|
|
|
|
|
|
31.12.2024 |
50 |
(108) |
361 |
289 |
938 |
12 |
(86) |
(254) |
1,202 |
170 |
1,372 |
|
Profit after income tax |
- |
- |
- |
- |
7 |
- |
- |
- |
7 |
4 |
11 |
|
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
(143) |
(143) |
(20) |
(163) |
|
Cash flow hedges and costs of hedging |
- |
- |
- |
- |
- |
(19) |
- |
- |
(19) |
- |
(19) |
|
Defined benefit plans |
- |
- |
- |
- |
- |
- |
|
- |
- |
- |
- |
|
Other comprehensive income after income tax |
- |
- |
- |
- |
- |
(19) |
- |
(143) |
(162) |
(20) |
(182) |
|
Total comprehensive income |
- |
- |
- |
- |
7 |
(19) |
- |
(143) |
(155) |
(16) |
(171) |
|
Dividends |
- |
- |
- |
- |
(57) |
- |
- |
- |
(57) |
|
(57) |
|
Share transfer/vested LTIP |
- |
5 |
- |
- |
(5) |
- |
- |
- |
- |
- |
- |
|
Other changes |
- |
- |
- |
- |
1 |
- |
- |
- |
1 |
(2) |
(1) |
|
Share-based payment expenses |
- |
- |
- |
- |
1 |
- |
- |
- |
1 |
- |
1 |
|
Hedging gains and losses included in the initial cost of inventory purchased in the reporting period |
- |
- |
- |
- |
- |
(1) |
- |
- |
(1) |
- |
(1) |
|
|
- |
5 |
- |
- |
(60) |
(1) |
- |
- |
(56) |
(2) |
(58) |
|
30.06.2025 |
50 |
(103) |
361 |
289 |
885 |
(8) |
(86) |
(397) |
991 |
152 |
1,143 |
Notes to the Condensed Consolidated Interim
|
1. General
RHI Magnesita N.V. (the "Company"), is a public limited company incorporated under the laws of the Netherlands (naamloze vennootschap), having its official seat (statutaire zetel) in Arnhem, the Netherlands, and its office at Kranichberggasse 6, 1120 Vienna, Austria. It is registered with the Dutch Trade Register under number 68991665 and listed on the London Stock Exchange, with a secondary listing on the Vienna Stock Exchange (Wiener Börse).
The Condensed Consolidated Interim Financial Statements ("Interim Financial Statements") of RHI Magnesita N.V. ("the Company") and its subsidiaries (collectively referred to as "RHI Magnesita" or "the Group") for the six months ended 30 June 2026 have been prepared in accordance with the International Accounting Standard 34, 'Interim financial reporting' as adopted by the European Union. On 30 July 2026, the Interim Financial Statements were authorised for issue by the Board of Directors.
The Interim Financial Statements do not include all information and disclosures required in the Consolidated Financial Statements and should therefore be read in conjunction with RHI Magnesita's Consolidated Financial Statements as of 31 December 2025. The Interim Financial Statements are presented in Euros, and all values are rounded to the nearest € million, except where otherwise indicated.
The Interim Financial Statements as of 30 June 2026 were not audited but reviewed by KPMG Accountants N.V..
Going concern
In considering the appropriateness of adopting the going concern basis in preparing the Interim Financial Statements, the Directors have assessed the potential cash generation of the Group and considered downside scenarios that model different degrees of potential economic downturn, using the same model performed for the viability assessment disclosed in the latest Annual Report. This assessment covers at least 12 months from the date of approval of the Interim Financial Statements.
The scenarios considered by the Directors include a severe but plausible downside and a reverse stress test which determines the level of EBITDA that could breach the debt covenant of the Group's principal borrowing facilities. At present management is increasing prices, reducing fixed costs and SG&A, as well as reducing working capital and capital expenditure to mitigate this risk. Further mitigating actions within management control which would be undertaken in such scenarios, include but are not limited to: deeper focus on the current reduction drivers, seeking a debt covenant waiver and reducing or cancelling the dividend, but these were not incorporated in the downside modelling.
The Directors have also considered the Group's current liquidity, available facilities and debt covenant coverage. As of 30 June 2026, the Condensed Consolidated Statement of Financial Position reflects cash and cash equivalents of €430 million (31.12.2025: €355 million). In addition, the Group has access to a €600 million (31.12.2025: €600 million) Revolving Credit Facility (RCF), which is currently undrawn. In the first half of 2026 and in 2025, the Group complied with the debt covenant of the Group's principal borrowing facilities (refer to Note (13)).
Based on the scenarios assessed and taking into account liquidity, available resources and before the inclusion of all mitigating actions, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing the Interim Financial Statements for the six months period ended 30 June 2026.
2. Impact of new financial reporting standards and interpretations
Management performed an impact analysis related to the amendments on the existing and new accounting standards effective in 2026 and concluded that their impact on the Interim Financial Statements has not been material.
Furthermore, management has assessed the impact of new or amended IFRS Accounting Standards issued by the IASB that have not yet become effective. No new or amended IFRS Accounting Standards have been adopted early. Except for IFRS 18, whose known-to-date impact is disclosed below, management does not anticipate any significant impact on the Interim Financial Statements in the period of initial application after the adoption of these amendments.
IFRS 18 'Presentation and Disclosure of Financial Statements' was published in April 2024 with the aim to enhance comparability of financial statements. IFRS 18 will replace existing guidance in IAS 1 'Presentation of Financial Statements' and some of the guidance in IAS 7 'Statement of Cash Flows'. IFRS 18 becomes effective for financial years beginning on or after January 1, 2027. In 2027, being the first year of applying IFRS 18, the respective comparative figures will need to be restated. The European Commission has already endorsed IFRS 18 for use in the EU. The Group's assessment of IFRS 18 is ongoing and the final impact may change as implementation progresses or new interpretations or amendments of IFRS 18 are issued.
IFRS 18 introduces a defined structure for the Statement of Profit or Loss including five categories, namely operating, investing, financing, income tax and discontinued operations. Entities are required to classify their income and expenses to these categories mainly depending on the main business activities of an entity and additional guidance provided by IFRS 18. Based on the assessment performed to date, the principal changes relate to the presentation of the Statement of Profit or Loss, including the introduction of mandatory subtotals for operating profit or loss and profit or loss before financing and income taxes. Operating profit or loss comprising all income and expenses classified in the operating category will replace the current EBIT subtotal and its composition will differ compared to the composition of current EBIT.
The most significant presentation changes are as follows. They are based on the assessment that the Group does not engage in any of the specified main business activities of investing in particular assets and/or providing financing to customers.
• Transactional foreign exchange gains or losses are currently presented in net finance costs. Under IFRS 18, such foreign exchange gains or losses are required to be presented in the same category as the income and expenses from the items that give rise to the foreign exchange gains or losses. Applying this classification requirement, the majority of RHIM's foreign exchange gains or losses, including those arising from intercompany transactions, is to be presented within operating profit.
• The hedging gains or losses arising from forward exchange contracts used to hedge RHIM's transactional foreign exchange exposure are currently presented in net finance costs. Under IFRS 18, such hedging gains or losses are required to be presented in the same category as the income and expenses affected by the hedged risks. Considering its portfolio hedging strategy, the Group has determined that all hedging gains or losses arising from foreign exchange contracts are to be presented within operating profit consistent with the classification of the majority of the hedged foreign exchange gains or losses.
• The Group is party to a number of non-recourse factoring arrangements under which RHIM transfers trade receivables to financial institutions in exchange for cash. Certain factoring expenses (including pre-financing costs) are incurred in connection with these arrangements which are currently presented in net finance costs. Under IFRS 18, these are to be presented within operating profit.
• Interest income and expenses are generally included in interest income, interest expenses on borrowings and other net financial expenses under RHIM's current accounting policy and presented in net finance costs. Under IFRS 18, they will generally be classified in either the investing or the financing category, except for those income and expenses that will impact operating profit.
Under IFRS 18, operating expenses are classified and presented by nature, function or using a mixed presentation. The Group already determined to continue with a mixed presentation of its Statement of Profit or Loss, whereby some line items comprise expenses by function and other line items comprise expenses by nature. In addition, the composition of certain line items in the Statement of Profit or Loss may be revised and new line items may be included.
Furthermore, IFRS 18 stipulates new disclosure requirements for management-defined performance measures (MPMs). MPMs are defined as subtotals of income and expenses used in public communications outside the financial statements that communicate to users management's view of an aspect of the financial performance of the reporting entity as a whole. The IASB recently decided to extend the definition of MPMs to include certain cash flow measures. The Group has reviewed its current performance measures disclosed in the Interim Financial Statements and other external publications and, based on the assessment performed to date, identified four that meet the definition of management-defined performance measures, namely Net operating profit after income taxes (short: NOPAT), Adjusted EBITA, Adjusted EBITDA and Adjusted profit after income taxes. Their composition and labelling are currently being reassessed. In addition, the identification of cash flow measures that meet the definition of an MPM, is still in progress.
The consequential amendments to IAS 7 are not expected to have a significant impact on the Group, as interest and dividends are already presented consistently with the amended requirements.
3. Material accounting policies, significant judgements and estimates
Principles of accounting and measurement
Except as described below, the accounting policies and methods of measurement applied in these Interim Financial Statements are consistent with those applied in the Consolidated Financial Statements as of 31 December 2025.
From 2026, gains or losses from the disposal of property, plant and equipment or intangible assets are included in cost of sales, as presented in the Condensed Consolidated Statement of Profit or Loss. Previously, these were presented as part of other income or other expenses, respectively. The comparative figures were revised accordingly whereby the impact on the comparative figures was not material. Management believes this presentation better reflects the Group's internal performance reporting.
Moreover, certain comparative figures have been revised to conform to the following changes in presentation that were already reflected in the Consolidated Financial Statements as of 31 December 2025.
• Amortisation of intangible assets has been presented in a separate line item in the Consolidated Statement of Profit or Loss. Previously, amortisation was included in three line items, being cost of sales, selling and marketing expenses as well as general and administrative expenses, based on the internal allocation of amortisation to the functional expense categories. As a result, gross profit for the comparative period increased by €5 million, while selling, general and administrative expenses and cost of sales for the comparative period decreased by €20 million, respectively €5 million, resulting in an amortisation of intangible assets of €25 million for the comparative period.
• Selling, general and administrative expenses have been presented in a new line item in the Consolidated Statement of Profit or Loss. This line item combines the previous line items selling and marketing expenses as well as general and administrative expenses.
• Research and development expenses have been presented in a separate line item in the Consolidated Statement of Profit or Loss. Previously, they were included in the former line item general and administrative expenses.
Significant accounting judgements and estimates
The significant accounting judgements, estimates and assumptions applied in preparing these Interim Financial Statements are consistent with those described in the Consolidated Financial Statements as of 31 December 2025, except as noted below.
In the first six months period ended 30 June 2026, some of the inputs and assumptions used in the net realisable value calculation in relation to spare parts inventories were revised resulting in a decrease of the allowance for obsolete spare parts inventories. This constitutes a change in an accounting estimate that led to a reduction in the cost of sales of €6 million and a corresponding increase in inventories compared to the previous calculation.
4. Alternative performance measures
The Group uses alternative performance measures (APMs) to supplement the information presented in accordance with IFRS. These measures should not be considered as a substitute for IFRS measures. The APMs used in the Interim Financial Statements are Adjusted EBITA, Adjusted EBITDA and Pro Forma Adjusted EBITDA. They are all derived from EBIT, a non-IFRS measure that is presented as a subtotal in the Condensed Consolidated Statement of Profit or Loss and is defined as Profit after income tax adjusted for Income tax and Net finance costs. The definitions of EBIT, Adjusted EBITA, Adjusted EBITDA and Pro Forma Adjusted EBITDA are consistent with the definitions included in the section Alternative Performance Measures of RHIM's Annual Report and Accounts 2025.
The Executive Management Team and Directors use Adjusted EBITA and Adjusted EBITDA internally to assess the underlying performance of the Group. Adjusted EBITA is presented as a new subtotal in the Condensed Consolidated Statement of Profit or Loss and is defined as EBIT before amortisation of intangible assets and excluded items. Excluded items are other income, other expenses and net restructuring expenses as reflected in the Condensed Consolidated Statement of Profit or Loss, which are not reflective of the underlying operational performance of the business. Adjusted EBITDA is determined consistently with Adjusted EBITA, except for depreciation of property, plant and equipment which is excluded from Adjusted EBITDA.
Pro Forma Adjusted EBITDA is a variable in the calculation of the debt covenant of the Group's principal borrowing facilities and is defined as trailing twelve months Adjusted EBITDA plus the corresponding contribution of refractory businesses acquired in the twelve months period ended 30.06.2026 and 30.06.2025 before they were controlled by the Group. This contribution represents the part that completes the trailing twelve months Adjusted EBITDA of the acquired refractory business.
A reconciliation of Pro Forma Adjusted EBITDA is included in Note (13).
5. Segment reporting
In 2025, the Group underwent a reassessment of its operating segments which also led to changes in the composition and number of RHIM's cash generating units for impairment testing of property, plant and equipment, intangible assets and goodwill. These changes are described in the Consolidated Financial Statements as of 31 December 2025.
The following tables show the key financial information for the reportable segments for the first half of 2026 and the first half of 2025:
|
in € million for the six months ended 30 June |
Europe & CIS |
North America |
Latin America |
China & East Asia |
India |
Middle East, Türkiye and Africa |
Minerals |
Group 2026 |
|
Revenue |
341 |
416 |
278 |
173 |
199 |
146 |
42 |
1,595 |
|
Cost of sales1) |
(274) |
(298) |
(209) |
(141) |
(167) |
(116) |
(36) |
(1,241) |
|
Gross profit |
67 |
118 |
69 |
32 |
32 |
30 |
6 |
354 |
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
98 |
|
Net finance costs |
|
|
|
|
|
|
|
(51) |
|
Profit before income tax |
|
|
|
|
|
|
|
47 |
1) During the six-month period ended 30 June 2026, the Group recognised €15 million of tariff refunds from U.S. customs authorities. The refunds, received in cash, have been recognised as a reduction of cost of sales as they recover import duties previously included in inventory costs and subsequently recognised in cost of sales.
|
in € million for the six months ended 30 June |
Europe & CIS |
North America |
Latin America |
China & East Asia |
India |
Middle East, Türkiye and Africa |
Minerals |
Group 20251) |
|
Revenue |
375 |
427 |
282 |
182 |
218 |
149 |
44 |
1,677 |
|
Cost of sales |
(308) |
(310) |
(200) |
(152) |
(189) |
(124) |
(40) |
(1,323) |
|
Gross profit |
67 |
117 |
82 |
30 |
29 |
25 |
4 |
354 |
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
|
|
|
|
|
|
61 |
|
Net finance costs |
|
|
|
|
|
|
|
(47) |
|
Profit before income tax |
|
|
|
|
|
|
|
14 |
1) Comparative information has been restated due to a change of operating segments, as reflected in the Consolidated Financial Statements for the year ended 2025, and due to an accounting policy change (see Note (3)).
Revenue in the first half of 2026 and in the first half of 2025 is classified by product groups as follows:
|
in € million for the six months ended 30 June |
2026 |
20251) |
|
Shaped refractory products |
706 |
772 |
|
Unshaped refractory products |
400 |
428 |
|
Functional refractory products |
260 |
263 |
|
Services |
66 |
69 |
|
Other products |
163 |
145 |
|
Revenue |
1,595 |
1,677 |
1) Comparative information has been restated in line with the Consolidated Financial Statements for the year ended 2025.
Revenue in the first half of 2026 and in the first half of 2025 is classified by customer sites as follows:
|
in € million for the six months ended 30 June |
2026 |
2025 |
|
The Netherlands |
5 |
5 |
|
USA |
271 |
372 |
|
India |
197 |
217 |
|
Brazil |
169 |
175 |
|
China |
105 |
117 |
|
Other countries |
848 |
791 |
|
Revenue |
1,595 |
1,677 |
6. Net expense on foreign exchange effects
The net expense comprises the foreign exchange effects from translating foreign currency balances into the functional currency, the results from derivative financial instruments, such as forward exchange contracts and derivatives in open orders, as well as the gain on the net monetary position related to hyperinflation accounting and can be detailed as follows:
|
in € million for the six months ended 30 June |
2026 |
2025 |
|
Foreign exchange losses |
(6) |
(29) |
|
Gains on forward exchange contracts and derivatives in open orders |
2 |
14 |
|
Gain on net monetary position |
1 |
2 |
|
Net expense on foreign exchange effects |
(3) |
(13) |
The foreign exchange losses in the current reporting period mainly result from the appreciation of the functional currencies of subsidiaries with a net asset foreign currency exposure against USD and the depreciation of the functional currencies of subsidiaries with a net liability foreign currency exposure against USD.
7. Other net financial expenses
Other net financial expenses consist of the following items:
|
in € million for the six months ended 30 June |
2026 |
20251) |
|
Net interest expense relating to net employee defined benefit liabilities |
(5) |
(5) |
|
Costs related to the trade receivables factoring program |
(7) |
(5) |
|
Unwinding of discount of provisions and payables |
(3) |
(3) |
|
Interest expense on supplier finance arrangements and transaction costs |
(1) |
(1) |
|
Interest expense on liabilities related to fixed-term or puttable non-controlling interests |
(2) |
(2) |
|
Interest expense on lease liabilities |
(2) |
(2) |
|
Remeasurement gains on liabilities related to fixed-term or puttable non-controlling interests |
1 |
7 |
|
Other interest and similar expenses and income |
0 |
(1) |
|
Other net financial expenses |
(19) |
(12) |
1) Comparative information has been restated to align with the presentation applied in the Consolidated Financial Statements for the year ended 2025.
8. Income tax
The tax charge for the period has been calculated by applying the effective corporate tax rate (ETR) which is expected to apply to the Group for the year ending 31 December 2026, using rates substantively enacted by 30 June 2026. The ETR is 23.4% (30.06.2025: 22.7%).
Total tax charge for the first half of 2026 in the Condensed Consolidated Statement of Profit or Loss amounted to €11 million (30.06.2025: €3 million), which includes tax income for prior years of €5 million (30.06.2025: tax income for prior years of €1 million).
The Group is subject to Pillar Two legislation (i.e., OECD Global Minimum Tax). The temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12 was applied and accordingly there were no deferred tax assets and liabilities recognised or disclosed. The Group has performed preliminary calculations for Pillar Two purposes based on financial data for the first half of 2026. Based on these calculations, most of the jurisdictions where the Group operates would fall under the "Transitional CbCR Safe Harbours" (i.e., top-up tax deemed to be zero). In the few instances where that was not the case, either there was no top up tax to be considered, or it was immaterial.
9. Dividend payments and proposed dividend
Based on a resolution adopted by the Annual General Meeting of RHI Magnesita N.V. in May 2026, the final dividend for 2025 amounted to €1.20 per share for the shareholders of RHI Magnesita N.V. The dividend was paid out in June 2026, amounting to €57 million.
In line with the Group's dividend policy, the Board declared an interim dividend of €0.60 per share for the first half of 2026 to be paid out in September 2026.
10. Property, plant and equipment
In the first half of 2026 additions to property, plant and equipment amounted to €69 million (30.06.2025: €78 million).
As of 30 June 2026, the Group has commitments for the purchase of property, plant and equipment in the amount of €39 million (31.12.2025: €4 million).
11. Inventories
Inventories as presented in the Condensed Consolidated Statement of Financial Position consist of the following items:
|
in € million |
30.06.2026 |
31.12.2025 |
|
Raw materials and supplies |
300 |
255 |
|
Work in progress |
207 |
208 |
|
Finished products and goods |
494 |
460 |
|
Prepayments made |
8 |
8 |
|
Emission rights |
3 |
1 |
|
Inventories |
1,012 |
932 |
Net write-down gains on inventories amount to €7 million in the first half of 2026 (30.06.2025: expenses of €1 million). Refer to Note (3) for details on the change in accounting estimates arising from the revision of assumptions used in the net realisable value assessment of spare parts, which resulted in a decrease in the allowance for obsolete inventories.
12. Trade and other receivables
Trade and other receivables as presented in the Condensed Consolidated Statement of Financial Position are classified as follows:
|
in € million |
30.06.2026 |
31.12.2025 |
|
Trade receivables |
468 |
445 |
|
Contract assets |
8 |
6 |
|
Other tax receivables |
97 |
85 |
|
Prepaid expenses |
12 |
11 |
|
Other receivables |
61 |
29 |
|
Trade and other receivables |
646 |
576 |
|
thereof financial assets |
476 |
451 |
|
thereof non-financial assets |
170 |
125 |
The Group enters into factoring agreements and sells trade receivables to financial institutions. Trade receivables sold as of 30 June 2026 was €272 million (31.12.2025: €254 million). These have been derecognised from the balance sheet as substantially all risks and rewards, as well as control, have been transferred. Payments received from customers following the sale are recognised in borrowings until repaid to the factorer.
Other tax receivables mainly include VAT receivables.
Other receivables mainly relate to prepayments for insurance, IT services, and customs and import-related services and costs.
13. Borrowings
Borrowings include all interest-bearing liabilities due to financial institutions and other lenders.
In May 2026, the Group successfully entered into a €350 million OeKB-backed term loan with final maturity in April 2031. The proceeds were used to refinance existing debt, including the full repayment of a €232 million OeKB-backed term loan previously due in May 2027. The remaining proceeds will continue to be applied towards refinancing other existing debt maturities.
The transaction strengthens the Group's funding structure and maturity profile.
Shortly after the reporting date the Group signed a €450m Bonded Loan ("Schuldscheindarlehen"). For further details please refer to Note 22.
RHI Magnesita aligns parts of its funding structure with sustainability objectives, including the use of ESG-linked loan instruments. As of June 2026, the Group's EcoVadis sustainability rating was updated, achieving an overall score of 81 out of 100, placing the Group in the 95th percentile of all companies rated globally. At the reporting date, the Group's ESG-linked drawn and undrawn borrowing facilities amounted to €1,423million (31.12.2025: €1,702 million).
The principal borrowing facilities, including the Syndicated & Term Loan as well as the Bonded Loans ("Schuldscheindarlehen"), are subject to a debt covenant, being the leverage ratio of net debt excluding lease liabilities to Pro Forma Adjusted EBITDA of a maximum of 3.5 times. Compliance with the debt covenant is measured on a semi-annual basis. If the debt covenant of the Syndicated & Term Loans is breached, the lenders have the right to immediate loan repayment. If repayment of the Syndicated & Term Loans is demanded, the Bonded Loans will also become due. If the Syndicated & Term Loans' debt covenant is breached but the full repayment is waived, the Bonded Loans interest margin payable will increase.
The Group complied with the debt covenant in 2025 and the first half of 2026.
The calculation of the leverage ratios is presented in the following table.
|
in € million |
30.06.20261) |
30.06.20251)2) |
|
EBIT |
260 |
149 |
|
Amortisation of intangible assets |
51 |
46 |
|
Net restructuring expenses |
37 |
56 |
|
Other income and expenses |
48 |
107 |
|
Depreciation |
128 |
138 |
|
Pro Forma contributions from business combinations |
1 |
21 |
|
Pro Forma Adjusted EBITDA |
525 |
517 |
|
|
|
|
|
Total borrowings |
1,872 |
1,841 |
|
Lease liabilities |
86 |
69 |
|
Less: Cash and cash equivalents |
430 |
317 |
|
Less: Marketable securities |
0 |
10 |
|
Net debt |
1,528 |
1,583 |
|
|
|
|
|
Net debt excluding IFRS 16 lease liabilities |
1,442 |
1,514 |
|
|
|
|
|
Net debt excluding lease liabilities to Pro Forma Adjusted EBITDA |
2.7x |
2.9x |
|
Net debt to Pro Forma Adjusted EBITDA |
2.9x |
3.1x |
1) Amounts are calculated on a trailing twelve-month basis.
2) Restated due to an accounting policy change (see Note (3)).
14. Net employee defined benefit liabilities
For interim periods, provisions for pensions are determined based on a forecast for the entire year prepared by an actuary. If there are significant changes in the actuarial assumptions during the year, a remeasurement of the post-employment defined benefit liabilities is recognised.
As of 30 June 2026, there are no significant changes in actuarial assumptions compared to 31 December 2025. The actuarial interest rates are: 12.4% (31.12.2025: 11.8 %) in Brazil, 9.6% (31.12.2025: 9.6 %) in Mexico, 5.5% (31.12.2025: 5.3 %) in the US and 4.0 % (31.12.2025: 4.0 %) in the Euro zone.
15. Provisions
Provisions for contract obligations of €34 million (31.12.2025: €39 million) mainly include the Oberhausen contract obligation. The non-current portion of this contract obligation amounts to €22 million (31.12.2025: €24 million) and the current portion to €10 million (31.12.2025: €10 million). In addition, provisions for other unfavourable contracts amount to €2 million (31.12.2025: €5 million), mainly in the USA.
The provision for labour, tax and civil contingencies amounts to €10 million (31.12.2025: €7 million) and relates mainly to legal proceedings in Brazil.
The provision for demolition and disposal costs and environmental damages amounts to €33 million (31.12.2025: €31 million) and primarily relates to the estimated costs of mining site restoration, including €6 million for several mines in Brazil (31.12.2025: €5 million), €9 million for various sites in Europe (31.12.2025: €9 million) and €9 million for sites in the USA (31.12.2025: €8 million).
Provisions for restructuring costs of €15 million (31.12.2025: €16 million) primarily comprise estimated employee benefit obligations arising from termination of employment and dismantling costs. Of the total provision, €2 million (31.12.2025: €8 million) relates to the plant closure in Wetro, Germany; €8 million (31.12.2025: €3 million) relates to the plant closure in Trieben, Austria; and €3 million (31.12.2025: €0 million) relates to the plant closure in Bochum, Germany.
The provision for emission certificates of €43 million (31.12.2025: €43 million) represents the EUR equivalent of the expected deficit of emission certificates at the reporting date.
Other provisions consist mainly of claims arising from warranties and other similar obligations from the sale of refractory products.
16. Trade payables and other liabilities
Trade payables and other liabilities included in the Condensed Consolidated Statement of Financial Position consist of the following items:
|
in € million |
30.06.2026 |
31.12.2025 |
|
Trade payables |
498 |
440 |
|
Payables subject to supplier finance arrangements |
154 |
137 |
|
Contract liabilities |
38 |
36 |
|
Liabilities to employees |
82 |
57 |
|
Taxes other than income tax |
38 |
30 |
|
Capital expenditure payable |
9 |
18 |
|
Payables from commissions |
7 |
7 |
|
Other liabilities |
34 |
32 |
|
Trade payables and other liabilities |
860 |
757 |
|
thereof financial liabilities |
686 |
615 |
|
thereof non-financial liabilities |
174 |
142 |
Other liabilities include liabilities from accrued interest amounting to €14 million (31.12.2025: €13 million) as well as deferred income amounting to €6 million (31.12.2025: €10 million).
17. Cash generated from operations
|
in € million for the six months ended 30 June |
|
2026 |
2025 |
|
Profit after income tax |
|
36 |
11 |
|
Adjustments for |
|
|
|
|
income tax |
|
11 |
3 |
|
depreciation |
|
65 |
70 |
|
amortisation |
|
25 |
25 |
|
impairment of property, plant and equipment and intangible assets |
|
3 |
0 |
|
income from financial assets excluding trade and other receivables |
|
(1) |
0 |
|
losses from the disposal of property, plant and equipment |
|
2 |
0 |
|
(gains) / losses from the disposal of subsidiaries/foreign operations |
|
(1) |
2 |
|
net interest expense, interest rate derivatives and remeasurement of liabilities related to fixed-term or puttable non-controlling interests |
|
43 |
29 |
|
other non-cash changes |
|
3 |
27 |
|
Changes in working capital |
|
|
|
|
inventories |
|
(45) |
(29) |
|
trade receivables |
|
(10) |
74 |
|
contract assets |
|
(2) |
0 |
|
trade payables |
|
59 |
18 |
|
contract liabilities |
|
2 |
(6) |
|
Changes in other assets and liabilities |
|
|
|
|
other receivables and assets |
|
(40) |
(11) |
|
provisions |
|
(24) |
(3) |
|
other liabilities |
|
26 |
(31) |
|
Cash generated from operations |
|
152 |
179 |
|
Income tax paid less refunds |
|
(20) |
(33) |
|
Net cashflow from operating activities |
|
132 |
146 |
18. Additional disclosures on financial instruments
The following tables show the carrying amounts and fair values per class of financial assets and liabilities as well as the allocation of the carrying amounts to the relevant measurement category.
|
in € million |
Cash flow hedge |
At fair value through profit or loss |
At fair value through OCI |
At amortised cost |
Not a financial instrument |
Book value as of 30.06.2026 |
Fair value as of 30.06.2026 |
|
Financial assets |
|
|
|
|
|
|
|
|
Trade and other receivables |
0 |
0 |
45 |
431 |
170 |
646 |
646 |
|
Cash and cash equivalents |
0 |
0 |
0 |
430 |
0 |
430 |
430 |
|
Other financial assets |
12 |
22 |
9 |
4 |
0 |
47 |
47 |
|
|
12 |
22 |
54 |
865 |
170 |
1,123 |
1,123 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
Trade payables and other liabilities |
0 |
0 |
0 |
686 |
174 |
860 |
860 |
|
Borrowings |
0 |
0 |
0 |
1,872 |
0 |
1,872 |
1,861 |
|
Lease liabilities |
0 |
0 |
0 |
85 |
0 |
85 |
85 |
|
Other financial liabilities (excl. lease liabilities) |
7 |
38 |
0 |
12 |
0 |
57 |
57 |
|
|
7 |
38 |
0 |
2,655 |
174 |
2,874 |
2,863 |
|
in € million |
Cash flow hedge |
At fair value through profit or loss |
At fair value through OCI |
At amortised cost |
Not a financial instrument |
Book value as of 31.12.2025 |
Fair value as of 31.12.2025 |
|
Financial assets |
|
|
|
|
|
|
|
|
Trade and other receivables |
0 |
0 |
20 |
431 |
125 |
576 |
576 |
|
Cash and cash equivalents |
0 |
0 |
0 |
355 |
0 |
355 |
355 |
|
Other financial assets |
7 |
26 |
8 |
4 |
0 |
45 |
45 |
|
|
7 |
26 |
28 |
790 |
125 |
976 |
976 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
Trade payables and other liabilities |
0 |
0 |
0 |
615 |
142 |
757 |
757 |
|
Borrowings |
0 |
0 |
0 |
1,786 |
0 |
1,786 |
1,778 |
|
Lease liabilities |
0 |
0 |
0 |
65 |
0 |
65 |
65 |
|
Other financial liabilities (excl. lease liabilities) |
18 |
40 |
0 |
10 |
0 |
68 |
68 |
|
|
18 |
40 |
0 |
2,476 |
142 |
2,676 |
2,668 |
Other financial assets comprise marketable securities, derivative financial assets, shares and other interests. Marketable securities, derivative financial assets and shares are recognised at fair value.
Borrowings and lease liabilities are carried at amortised cost. Other financial liabilities (excl. lease liabilities) comprise derivative financial liabilities and liabilities related to fixed-term or puttable non-controlling interests. Derivative financial liabilities are recognised at fair value. Liabilities related to fixed-term or puttable non-controlling interests based on a fixed consideration are recognised at amortised cost whereas those liabilities based on a variable consideration are recognised at fair value.
The carrying amount of lease liabilities and other financial liabilities (excl. lease liabilities) recognised at amortised cost approximate their fair value at the reporting date. Trade and other receivables, trade payables and other liabilities as well as cash and cash equivalents are predominantly short-term. Therefore, the carrying amounts of these items approximate their fair value at the reporting date.
Fair value is defined as the amount for which an asset could be exchanged, or a liability settled, between market participants in an arm's length transaction on the day of measurement. When the fair value is determined it is assumed that the transaction in which the asset is sold or the liability is transferred takes place either in the main market for the asset or liability, or in the most favourable market if there is no main market. RHI Magnesita considers the characteristics of the asset or liability to be measured which a market participant would consider in pricing. It is assumed that market participants act in their best economic interest.
The Group takes into account the availability of observable market prices in an active market and uses the following hierarchy to determine fair value:
|
Level 1: |
Prices quoted in active markets for identical financial instruments. |
|
Level 2: |
Measurement techniques in which all important data used are based on observable market data. |
|
Level 3: |
Measurement techniques in which at least one significant parameter is based on non-observable market data. |
The table below analyses the fair value of financial instruments held by the Group by measurement technique:
|
|
30.06.2026 |
31.12.2025 |
||||||
|
in € million |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
Other financial assets |
12 |
19 |
0 |
31 |
12 |
19 |
0 |
31 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
Borrowings |
0 |
1,861 |
0 |
1,861 |
0 |
1,778 |
0 |
1,778 |
|
Other financial liabilities (excl. lease liabilities) |
0 |
8 |
49 |
57 |
0 |
20 |
48 |
68 |
The fair value of marketable securities and shares is based on price quotations at the reporting date (Level 1), where such quotations exist. In other cases, a valuation model (Level 3) would be used for such instruments, with the exception being where such instruments are immaterial to the Group, in which case cost serves as an approximation of fair value.
The fair value of interest rate derivatives is determined by calculating the present value of future cash flows based on current yield curves, taking into account the corresponding terms (Level 2).
The fair value of foreign currency derivatives corresponds to the market value of the forward exchange contracts and the embedded derivatives in open orders denominated in a currency other than the functional currency. These derivatives are measured using quoted forward rates that are currently observable (Level 2).
The fair value of commodity swaps for natural gas reflects the difference between the fixed contract price and the closing quotation of the natural gas price (EEX Base) as of the respective due date of the transaction. The closing price on the stock exchange is used as the input (Level 2).
The fair value of liabilities related to fixed-term or puttable non-controlling interests based on a variable consideration is measured at the present value of the expected redemption amount based on the relevant profit measure and the current business plan of the respective company which is not observable (Level 3). The fair value of borrowings is only disclosed and corresponds to the present value of the discounted future cash flows using yield curves that are currently observable (Level 2).
No contractual netting agreement of financial assets and liabilities were in place as at 30 June 2026 and 31 December 2025.
The following table shows the reconciliation from the opening balances to the closing balances of the liabilities related to fixed-term or puttable non-controlling interests:
|
in € million |
30.06.2026 |
31.12.2025 |
|
Liabilities at beginning of the year |
48 |
52 |
|
Currency translation1) |
2 |
(4) |
|
Interest accrued2) |
1 |
2 |
|
Remeasurement gains2) |
(1) |
(10) |
|
Dividends paid |
0 |
(4) |
|
Additions from initial consolidation |
0 |
20 |
|
Working capital adjustment related to Jinan New Emei Industries Co. Ltd. |
(2) |
(6) |
|
Other changes |
0 |
(2) |
|
Liabilities at period-end |
48 |
48 |
1) Recognised in OCI.
2) Recognised in profit or loss as other net financial expenses.
Sensitivities in respect of the significant non-observable inputs used to measure the fair value of the liabilities related to fixed-term or puttable non-controlling interests are presented below. These sensitivities show the hypothetical impact of a change in each of the listed inputs in isolation.
|
in € million |
Financial liabilities increase by |
Financial liabilities decrease by |
|
Profit measure increases by 15% |
6 |
|
|
Profit measure decreases by 15% |
|
6 |
19. Contingent liabilities
Contingent liabilities from warranties, performance guarantees and other guarantees amounted to €76 million as of 30 June 2026 (31.12.2025: €72 million) and have a remaining term of between one and five years.
Uncertain tax treatments
The calculation of income taxes is based on the tax laws applicable in the individual countries in which the Group operates. Due to their complexity, the local finance authorities may interpret tax cases differently than management. Different interpretations may affect the expected timing and amount of the tax related contingent liabilities disclosed below.
The Group is continually adapting its global presence to improve customer service and maintain its competitive advantage; accordingly, it leads open discussions with tax authorities about, e.g., transfer of functions and related profit between related parties and potentially exit taxation. In this regard, disputes may arise, in cases where management's understanding differs from the positions of the local authorities. In such cases, where an appeal is available, management's judgements are based on a likely outcome approach, taking into consideration advice from professional firms and previous experience when assessing the risks.
There were no significant changes during the six-month period ended 30 June 2026 compared to 31 December 2025 in respect of the Group's ongoing tax litigation and court proceedings.
The Group is party to several tax proceedings in Brazil which involve estimated contingent liabilities amounting to €163 million (31.12.2025: €143 million) with a remaining term of at least five years. These tax proceedings are as follows:
Income tax relating to historical corporate transactions
There are three proceedings in which Brazilian Federal Tax Authorities issued tax assessments which rejected the deduction of goodwill generated in two corporate transactions that were undertaken in 2007 and 2008, for Corporate Income Taxes. The tax authorities issued assessments arguing that such transactions cannot generate deductions as they do not fulfil the requirements provided by law. Those three proceedings ended in the administrative courts in 2024. The Group is challenging the remaining amounts at the judicial courts level. The proceedings are expected to last at least five years. The tax cash exposure as of 30 June 2026 is €41 million (31.12.2025: €36 million). Such exposure is limited to the fiscal tax years up to 2018, at which stage all available goodwill tax deductions had been made.
Corporate income and other taxes
There are several tax assessments in Brazil mainly relating to the offsetting federal tax payables and receivables, social security contributions, and the offsetting of certain federal tax debts with corporate income tax credits. In addition, the Company is subject to an administrative review by the Brazilian Federal Revenue Service regarding the offsetting of PIS and COFINS (social security contributions) credits related to prior periods. The maximum potential exposure related to this matter is €18 million (31.12.2025: €16 million). The potential risks associated with all the tax assessments described above amount to €89 million (31.12.2025: €78 million).
Royalties
The Group is party to 38 proceedings where the Brazilian Mining Authorities ("ANM") challenged the criteria used for calculating and paying the Financial Compensation for Exploration of Mineral Resources ("CFEM"), which are mining royalties payable by every mining company. The authorities disputed the basis of production costs estimates used in the determination of the royalties that are payable. The claims relate to fiscal years up to 2017, following which the legislation for royalties was changed. The Group continues to challenge ANM assessments. Most of the procedures are ongoing within the ANM administrative courts. Final decisions of the first cases are expected within four to five years. As of 30 June 2026, the potential risk amounts to €33 million, including interest and penalties (31.12.2025: €29 million).
20. Business combination and goodwill
Acquisitions completed in 2025
In 2025 the Group acquired a controlling stake of 51% of the equity shares in BPI RHIM LLC. The preliminary purchase price allocation and initial accounting for this acquisition, as reflected in the Consolidated Financial Statements as of 31 December 2025, have not changed in the first six months period ended 30 June 2026 and will be completed in the second half of 2026. The outstanding measurement considerations mainly relate to property, plant and equipment as well as the identified intangible assets, being customer relationships.
Reconciliation of goodwill
A reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period is presented below:
|
in € million |
30.06.2026 |
31.12.2025 |
|
Carrying amount at beginning of year |
403 |
342 |
|
Business combinations and PPA finalisation |
0 |
103 |
|
Currency translation |
4 |
(43) |
|
Hyperinflation adjustment |
1 |
1 |
|
Carrying amount at period end |
408 |
403 |
21. Disclosures on related parties
The nature of related party transactions as of 30 June 2026 is in line with the transactions disclosed in Note (41) of the Consolidated Financial Statements as of 31 December 2025. All transactions with related parties are conducted in accordance with normal business terms and market conditions.
No material transactions took place between the Group and related parties.
22. Material events after the reporting date
After the reporting date on 30 June 2026, there were no adjusting events of significance which may have a material impact on the financial position and performance of the Group.
On 3 July 2026, the Group signed a €450m Bonded Loan ("Schuldscheindarlehen") with an average tenor of 4.4 years. By the time the Interim Financial Statements were authorised for issue, the Group has received the cash proceeds to be used for refinancing Bonded Loans with maturities in 2026 and 2027. This transaction is considered a non-adjusting event which did not impact the Group's financial position and performance of the first six months period ended 30 June 2026.
Statement of the Board of Directors
Statement pursuant to Article 5:25d, paragraph 2, subsection c. of the Dutch Financial Markets Supervision Act ("Wet op het financieel toezicht").
The Interim Financial Statements for the six months period ended 30 June 2026, have been prepared in accordance with the International Accounting Standard 34, 'Interim financial reporting' as adopted by the European Union.
To our knowledge,
- The Interim Financial Statements referred to above give a true and fair view of the assets, liabilities, financial position, and profit of RHI Magnesita N.V. and the undertakings included in the consolidation as a whole; and
- The management report for the six months period ended 30 June 2026 as presented in the half-year report includes a fair view of the information required pursuant to article 5:25d paragraphs 8 and 9 of the Dutch Financial Markets Supervision Act ("Wet op het financieel toezicht").
Vienna, 30 July 2026
|
Executive Directors |
|
|
Stefan Borgas |
Ian Botha |
|
Non-Executive Directors |
|
|
Herbert Cordt |
John Ramsay |
|
Janet Ashdown |
David Schlaff |
|
Stanislaus Prinz zu Sayn-Wittgenstein Berleburg |
Franz-Ferdinand Buerstedde |
|
Janice Brown |
Karl Sevelda |
|
Marie-Hélène Ametsreiter |
Wolfgang Ruttenstorfer |
|
A. Katarina Lindström
|
|
|
Employee Representative Directors |
|
|
Yasmin-Sarah Solmazer |
Martin Kowatsch |
Independent auditor's review report
To: the board of directors of RHI Magnesita N.V.
Our conclusion
We have reviewed the accompanying condensed consolidated interim financial statements for the six-month period ended 30 June 2026 of RHI Magnesita N.V.(or hereafter: the "Company") based in Arnhem. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34 'Interim Financial Reporting' as endorsed by the European Union.
The condensed consolidated interim financial statements comprise:
1 the condensed consolidated statement of financial position as at 30 June 2026;
2 the following statements for six-month period ended 30 June 2026: the condensed consolidated statement of profit or loss, the condensed consolidated statements of comprehensive income, changes in equity and cash flows; and
3 the notes to the condensed consolidated interim financial statements comprising material accounting policy information and other explanatory information.
Basis for our conclusion
We conducted our review in accordance with Dutch law, including the Dutch Standard 2410, 'Het beoordelen van tussentijdse financiële informatie door de accountant van de entiteit' (Review of interim financial information performed by the independent auditor of the entity). A review of interim financial information in accordance with the Dutch Standard 2410 is a limited assurance engagement. Our responsibilities under this standard are further described in the 'Our responsibilities for the review of the interim financial information' section of our report.
We are independent of RHI Magnesita N.V. in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).
We believe the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Responsibilities of the board of directors for the condensed consolidated interim financial statements
The Board of Directors is responsible for the preparation and presentation of the condensed consolidated interim financial statements in accordance with IAS 34 'Interim Financial Reporting' as endorsed by the European Union. Furthermore, the Board of Directors is responsible for such internal control as it determines is necessary to enable the preparation of the condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibilities for the review of the condensed consolidated interim financial statements
Our responsibility is to plan and perform the review in a manner that allows us to obtain sufficient and appropriate assurance evidence for our conclusion.
The level of assurance obtained in a review engagement is substantially less than the level of assurance obtained in an audit conducted in accordance with the Dutch Standards on Auditing. Accordingly, we do not express an audit opinion.
We have exercised professional judgement and have maintained professional scepticism throughout the review, in accordance with Dutch Standard 2410.
Our review included among others:
· Obtaining our understanding of Company and its environment, including its internal control, and the applicable financial reporting framework, in order to identify areas in the condensed consolidated interim financial statements where material misstatements are likely to arise due to fraud or error, designing and performing procedures to address those areas, and obtaining assurance evidence that is sufficient and appropriate to provide a basis for our conclusion;
· Obtaining an understanding in the internal control, as it relates to the preparation of the condensed consolidated interim financial statements;
· Making inquiries of the Board of Directors and others within Company;
· Applying analytical procedures with respect to information included in the condensed consolidated interim financial statements;
· Obtaining assurance evidence that the condensed consolidated interim financial statements agree with, or reconcile to Company's underlying accounting records;
· Evaluating the assurance evidence obtained;
· Considering whether there have been any changes in accounting principles or in the methods of applying them and whether any new transactions have necessitated the application of a new accounting principle;
· Considering whether the Board of Directors has identified all events that may require adjustment to or disclosure in the condensed consolidated interim financial statements; and
· Considering whether the condensed consolidated interim financial statements and the related disclosures represent the underlying transactions and events in a manner that gives a true and fair view.
Amstelveen, 30 July 2026
KPMG Accountants N.V.
P.J. Groenland - van der Linden RA
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