Vulcan Steel (VSL) H1 2026 earnings summary

Executive summary

• Revenue rose 8.6% year-over-year to NZ$535.4 million, driven by the acquisition of Roofing Industries Limited and higher steel volumes.

• Adjusted EBITDA was NZ$57.3 million, up 0.7% year-over-year, while adjusted NPAT rose 1.3% to NZ$9.3 million.

• Operating cash flow declined 52.1% to NZ$38.7 million due to increased working capital and acquisition-related outflows.

• Net debt reduced by NZ$30 million since June 2025, now at NZ$202 million, with improved net debt cover at 2.9x.

• Interim dividend maintained at NZ 2.5c per share, fully franked and imputed.

Financial highlights

• Gross margin was 33.9%, down slightly from 34.1% year-over-year.

• Sales volume increased 10.8% to 120,988 tonnes, with active trading accounts up 12.6%.

• Customer base expanded 12.6% to 25,456 transacting customers.

• Adjusted cash conversion dropped to 55.6% from 59.6% year-over-year.

• Net tangible assets per share rose to NZ$1.68 from NZ$1.19 a year earlier.

Outlook and guidance

• Gradual recovery expected in both Australia and New Zealand, with volume improvements anticipated in the second half.

• Steel segment outlook is positive, while metals segment faces mixed prospects.

• Working capital requirements are expected to increase over the next 12–18 months due to rising material prices and anticipated demand recovery.

• Demand is expected to improve gradually through FY26, but inflation and potential interest rate hikes remain risks.

• Focus remains on integrating rollforming, capitalising on emerging recovery, and exploring further growth opportunities.