Vulcan Steel (VSL) H1 2026 earnings summary

Executive summary

• Revenue rose 8.6% year-over-year to NZ$535.4 million for 1H FY26, 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; statutory NPAT fell 9.7% to NZ$8.3 million.

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

• Roofing Industries acquisition completed and integrated, contributing NZ$41.4 million in revenue and NZ$3.2 million in NPAT for the period.

• Interim dividend of NZ 2.5 cents per share declared, 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%.

• Net debt reduced by NZ$30.1 million since June 2025, now at NZ$202.3 million, with a 2.9x leverage ratio.

• Operating profit before financing costs was NZ$28.8 million, down from NZ$32.0 million.

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

Outlook and guidance

• Market stabilisation and early recovery signs in both New Zealand and Australia, with steel segment outlook positive and metals segment mixed.

• Gradual demand improvement expected through FY26, but margin pressure, inflation, and interest rate risks persist.

• Olympic-related projects in Australia unlikely to impact results until FY27 or later.

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