Capral (CAA) H2 2025 earnings summary

Executive summary

• Full-year earnings and revenue exceeded prior year and met guidance, with strong cost management and improved sales mix offsetting lower volumes and inflationary pressures.

• Maintained robust performance and resilience through diversification across market segments, despite subdued residential and softer industrial demand.

• Continued strategic focus on distribution growth, operational efficiency, and sustainability initiatives.

Financial highlights

• Revenue rose 6% year-over-year to $686 million, driven by higher LME prices and favorable sales mix, despite a 4% decline in volumes to 65,000 tonnes.

• Underlying EBIT increased 4% to $35.8 million; underlying EBITDA up 2% to $59.6 million.

• Net profit after tax grew 10% to $35.6 million, including a $3 million insurance claim and $2.5 million deferred tax benefit.

• Basic earnings per share rose 14% to $2.15; underlying EPS up 19% to $2.00.

• Total shareholder distribution of $0.85 per share (43% of NPAT), including $0.55 via buy-back and $0.30 unfranked dividend.

Outlook and guidance

• FY26 earnings expected to be slightly above FY25, with performance weighted to the second half due to anticipated residential recovery.

• Residential construction demand forecast to recover from mid-2026, with improvement expected to flow into 2027.

• Industrial demand expected to remain stable but below recent highs; marine and cladding sectors remain robust.

• Continued operational focus on productivity, cost control, and disciplined capital expenditure.

• Capital returns to shareholders to continue via dividends and share buy-backs, subject to market conditions.