Capral (CAA) H1 2025 earnings summary

Executive summary

• Half-year 2025 results met expectations, with NPAT up 4% to $15.3 million and EPS at $0.89, despite a 7% decline in sales volume, supported by higher aluminium prices and cost management.

• Maintained strong balance sheet with $53 million net cash and no debt, enabling continued share buy-backs and flexibility for growth.

• Margins held up well despite inflationary pressures, with improved safety performance (TRIFR 5.9).

• No interim dividend declared; $11 million returned to shareholders via buy-backs in 1H25.

• Sustainability initiatives advanced, including ASI certification and progress on 2030 carbon reduction goals.

Financial highlights

• Sales revenue rose 4% year-over-year to $327 million, with sales volume down 7% to 31,100 tonnes.

• Underlying EBITDA was $27.7 million (down 3% year-over-year); EBIT was $16.1 million.

• Net profit after tax was $15.3 million, including a $2.5 million tax benefit.

• Free cash outflow of $4.6 million due to higher working capital from elevated aluminium prices.

• Capital expenditure for 1H25 was $4.3 million, with $11 million planned for FY25.

Outlook and guidance

• FY25 EBITDA expected to be broadly in line with prior year, assuming market improvement and no unforeseen events.

• Residential housing market forecast to recover in 2H25, offsetting softer industrial and commercial demand.

• Aluminium prices expected to remain volatile and elevated; inflationary pressures persist, especially in energy and wages.

• Capital expenditure for FY25 planned at $11 million.

• Ongoing share buy-backs, with dividends used to top up shareholder returns as needed.