Shares in RHI Magnesita NV (LSE:RHIM) surged 15.3% to 2,300p after the refractory product specialist reported improved profitability for the four months to October.
The FTSE 250-listed group reported an adjusted EBITA of €136 million at a margin of 12.7%, up from 8.4% in the first half.
CEO Stefan Borgas said the performance was driven by cost-cutting, plant closures and early gains from the Resco acquisition "despite subdued demand conditions".
Steel demand remained weak, particularly in Western markets, but growth in India and the META region helped offset declines in Europe. Market share in India was re-established as expected.
The group reaffirmed full-year EBITA guidance of €370-390 million, despite ongoing pricing pressure and currency headwinds. A temporary rise in working capital is expected to reverse in Q4 as deliveries peak.
"Market share in India has been re-established, and modest pricing discipline has supported results despite intense competition," said Borges.
Analysts at Jefferies said the update "should come as a relief" to investors, showing trading was "resilient... in a very tough backdrop, particularly when we look to the strong sequential margin improvement".
"Reiterated guidance is helpful given risk from the large 2H weighting (as we outlined here) and recent share price weakness, and it is positive to see momentum in the Industrial order book (and re-established market share in India in the Steel segment), which is supportive for 1H26F."