Vulcan Steel (VSL) H2 2026 earnings summary

Executive summary

• Revenue reached NZD 1.159 billion, up 22% year-over-year, driven by the Roofing Industries/rollforming acquisition and underlying business growth, especially in the second half.

• Adjusted EBITDA increased 16% to NZD 130.3 million, with adjusted NPAT up 22% to NZD 22 million, reflecting acquisition impact and improved performance.

• Sales volume increased 18% to 252,820 tonnes, marking the first YoY growth since FY22.

• Integration of Roofing Industries/rollforming business completed successfully, supporting growth and exceeding expectations.

• Opened one new site and converted four existing locations into hybrid sites, bringing total sites to 82.

Financial highlights

• Operating cash flow decreased 30% year-over-year to NZD 73 million, reflecting higher working capital needs.

• Net debt at NZD 227 million, net debt to post-rent EBITDA improved to 2.9x from 3.4x.

• Adjusted EPS rose 10.8% to 15.1 cents; reported EPS up 20% to 14.4 cents.

• Gross margin declined 1% to 33.2%, but gross profit per tonne was slightly up.

• Total FY26 dividend of 7.0 NZ cents per share, up 16.7% YoY, with a payout ratio of 47%.

Outlook and guidance

• Signs of recovery in both Australia and New Zealand, with New Zealand showing improved activity and Australia facing high interest rates but positive outlook due to upcoming Olympic build.

• FY27 capex forecasted at NZD 30–35 million, with NZD 14–17 million for growth initiatives.

• Focus remains on organic growth, customer service, margin improvement, and hybrid site expansion.

• Market and business cycle opportunities to be leveraged for higher returns.

• Geopolitical uncertainty and global trade policies remain key risks.