- RHI Magnesita N.V. (DI)
- 31 July 2025 13:00:30
Source: Sharecast
RHI Magnesita highlighted lower profitability amid a persistently weak industrial backdrop in its H1 earnings, with adjusted underlying earnings down 26% year-on-year at €141m, impacted by deferred industrial projects, volume and pricing pressure affecting margins, and FX headwinds.
Berenberg noted that market conditions "remain difficult" and, as with its peer Vesuvius, passing on pricing in very subdued markets was "challenging", while RHI's product and project mix has exacerbated challenges.
"We believe that the initial share price reaction, down 15% on the day, was harsh on the group; however, there are clear industry challenges that have extended well beyond our and the market's expectations," said the German bank. "That said, considering the group's geographic and product breadth, as well as its cash generation, its valuation is inexpensive at 5.9x EV/EBITDA and a 12.7% FCF yield given where we are in the cycle – we keep our 'buy' rating."
Reporting by Iain Gilbert at Sharecast.com