Capral (CAA) investor relations material

Executive summary

• Earnings for the first half of 2025 met or exceeded expectations, with NPAT up 4% to $15.3M and EPS at $0.89, despite a 7% decline in sales volume due to weaker industrial and residential demand, offset by higher aluminium prices and effective cost management.

• Maintained a strong balance sheet with $53M net cash, no debt, and net tangible assets per share of $11.67.

• No interim dividend declared, with capital returns focused on share buy-backs totaling 448,866 shares in H1 2025 at an average price of $10.06 per share.

• Improved safety performance, with a total reportable injury frequency rate of 5.9, down from 7.7 in FY24.

• Sustainability initiatives advanced, including 2030 carbon reduction goals, ASI certification, and enhanced reporting.

Financial highlights

• Sales revenue reached $327M, up 4% year-over-year, driven by higher LME prices, despite a 7% drop in volume to 31,100 tonnes.

• Underlying EBITDA was $27.7M, down 3% from the prior year; underlying EBIT was $16.1M.

• Net profit after tax was $15.3M, including a $2.5M deferred tax asset recognition.

• Free cash outflow of $4.6M due to higher working capital from elevated aluminium prices; operating cash flow was $7.8M.

• Capital expenditure was $4.3M in H1, with $6.5M planned for H2 and $11M for FY25.

Outlook and guidance

• FY25 EBITDA is expected to be broadly in line with the prior year, assuming market improvement and no unforeseen events.

• Residential housing market is forecast to recover in H2 2025, with an 8% increase in commencements expected.

• Industrial and commercial markets remain soft but are expected to be offset by residential growth.

• LME aluminium prices are expected to remain elevated and volatile, with ongoing inflationary pressures.

• Capital returns to shareholders will continue via buy-backs and, if needed, unfranked dividends.