Capral (CAA) H1 2026 earnings summary

Executive summary

• Revenue rose 14% year-over-year to $373 million, with sales volume up 4% to 32,500 tonnes, driven by higher aluminium prices and regional premiums despite challenging market and supply chain conditions.

• Underlying EBIT increased 4% to $16.7 million, underlying EBITDA grew up to $30.3 million, and net profit after tax was $15.9 million, with EPS up 9% to 99.4 cents per share.

• Maintained a strong net cash position of $62.1 million, supported by robust operating cash flow and record-low debtor days.

• No interim dividend declared; share buybacks continued, with 307,173 shares repurchased at an average price of $11.77.

• Safety performance improved, with total reportable injury frequency rate reduced to 3.1 from 5.9 year-over-year.

Financial highlights

• Operating cash flow surged to $28.2 million from $7.8 million in the prior half.

• Net tangible assets per share increased 6% to $13.43.

• Free cash flow was $10.3 million after lease payments, compared to an outflow of $4.6 million in the prior half.

• Final dividend of 30 cents per share (unfranked) paid in March 2026 for the prior year.

• EBITDA margin improved, with underlying EBITDA at $29.0 million (up from $27.7 million); underlying EBIT margin approximately 4.5%.

Outlook and guidance

• Full-year earnings expected to be broadly in line with the prior year, contingent on residential housing market recovery.

• Demand from residential construction forecast to lift in 2H26; industrial demand to remain stable.

• Metal cost volatility, freight costs, and residential commencements are key sensitivities.

• Focus for 2H26 on growth in distribution, pricing management, and ongoing productivity investments.

• On-market share buyback of up to 10% of issued shares to continue through 2026.