Vulcan Steel (VSL) H2 2025 earnings summary

Executive summary

• Revenue declined 11% year-over-year to NZ$948 million, with adjusted EBITDA down 24% to NZ$112 million and adjusted NPAT down 55% to NZ$17.9 million; NPAT for FY25 was NZ$15.7 million, a 60.6% decrease year-over-year.

• Gross margin improved to 34.2%, but gross profit per ton fell 4% year-over-year.

• Net debt reduced to NZ$232 million, with a final dividend of 3.5 NZ cents per share declared.

• Acquisition of Roofing Industries for NZ$88–99 million, fully funded by an equity raise, expands into a new vertical and is expected to be EPS accretive.

• Seven additional hybrid sites were commissioned or converted, advancing long-term strategy.

Financial highlights

• Revenue: NZ$948.1 million (-10.9% YoY); Adjusted EBITDA: NZ$112.1 million (-24.1% YoY); Adjusted NPAT: NZ$17.9 million (-55.2% YoY).

• Operating cash flow reached NZ$105 million, a 37.8% decrease from FY24.

• Dividend payout of 3.5 NZ cents per share, representing a 44% payout ratio.

• Inventory reduced by NZ$27 million over the year.

• Volume decreased 6.4% overall, with steel down 5.7% and metals down 8%.

Outlook and guidance

• Market conditions expected to remain flat in H1 FY26, with gradual improvement and recovery momentum anticipated in H2 FY26 and into FY27.

• New Zealand construction recovery is delayed, with gradual uplift expected; Australia shows mixed outlook by state.

• FY26 capex expected at NZ$25–30 million, with NZ$7–12 million for growth initiatives.

• Update on trading to be provided at the annual meeting in October 2025.

• Early signs of sales stabilisation are emerging, with recovery in key customer segments expected.