Greater Noida (Business Desk): RHI Magnesita, the leading global supplier of high-grade refractory products, systems and solutions, has announced its final results for the year ended 31 December 2024.
Despite very difficult market conditions, which put pressure on sales volumes (down 1% in the base business), and pricing (down 6%), RHI Magnesita delivered a strong operational and financial performance thanks to its sustained focus on operational efficiency and cost discipline. Despite the falling price environment, the company delivered stable Adjusted EBITA of €407 million (2023: €409 million) and improved its Adjusted EBITA margin to 11.7% (2023: 11.4%). Adjusted EPS increased to €5.32 (2023: €4.98) and strong cash generation of 103% contributed to a €52 million reduction in net debt to €1,251 million. Gearing remained stable at 2.3x (2023: 2.3x), in line with the company’s target range.
Strategic Acquisitions Delivering Value
M&A delivered a strong contribution to overall financial performance in 2024, with the six acquisitions completed in 2023 generating €77 million in Adjusted EBITDA, in line with the company’s guidance of c.€80 million.
In 2024, the company further expanded its recycling capabilities in Europe with the €5 million acquisition of Refrattari Trezzi. The acquired business has been integrated into RHI Magnesita’s MIRECO joint venture, increasing the Group’s share in MIRECO to 55% (2023: 51%).
In January 2025, RHI Magnesita successfully completed the €391 million acquisition of US-based Resco Group, bringing the total value of M&A transactions since December 2021 to €1.2 billion. This acquisition marks a major step in expanding the company’s presence in the high value North American market and advancing its ‘local for local’ production strategy, with significant production now being transferred to the US.
RHI Magnesita remains committed to M&A as a long-term growth driver but in 2025 the Group’s focus will primarily be on integrating the current acquisition and gradually reducing gearing levels.
Stefan Borgas, Chief Executive Officer of RHI Magnesita, said:
“RHI Magnesita has delivered another resilient financial performance despite very weak market demand in most markets around the world. At €407 million, Adjusted EBITA was within our guidance range of €400-€410 million, reflecting the expected strong performance in the fourth quarter. We continue to prioritise safety above all and this is a core value for us.
We have now completed the Resco transaction, the largest single acquisition we have undertaken since the combination of RHI and Magnesita in 2017. In our US business we can finally fulfil our customers’ requests for significantly higher local production. Investments into the enlarged production network are being prepared in detail by our merged team in the USA. Total restructuring costs of €60 million and capital expenditure of €40 million are planned over the period 2025-27, to deliver €10 million of EBITA benefit in 2025, €20 million in 2026 and €30 million per annum thereafter. Our strategy to grow through acquisition in the fragmented refractory industry, building on our strengths as a technology and sustainability leader, is proving to be the best approach to generating value for shareholders. We will continue to manage the business conservatively throughout the ongoing downturn in demand whilst delivering on our strategic objectives to generate long term value.”
Outlook for 2025
The global refractory industry remains in flux, with no signs of immediate recovery in end markets. China’s economic transition continues to impact supply chains and pricing dynamics. Growth in India and East Asia is healthy, and demand for future-oriented materials like copper, aluminum, and glass remains robust in the long term. At the same time, market reduction in the western economies seems structural and possibly permanent.
RHI Magnesita is expecting another year of decline accentuated by pricing and cost pressure. Despite the challenging macro environment, the company will defend its position as market leader by leveraging its operational efficiency, vertical integration, and expanded customer base.
