Hulamin (HLM) H1 2026 earnings summary

Executive summary

• Achieved a strong operational recovery in H1 2026, resolving most challenges from H2 2025 and stabilizing core operations, with production ramping toward design run-rates and a return to normalized profitability.

• Completed disposals of non-core extrusions and containers businesses, supporting debt reduction and renewed focus on core operations.

• Organizational restructure and specialist appointments completed, driving operational improvements and reliability.

• Safety performance improved, driven by a proactive culture and focus on leading indicators.

Financial highlights

• Group revenue rose 2% to R7.2 billion, driven by higher LME aluminium prices and improved product mix, despite lower sales volumes.

• Normalised trading profit declined 53% to R102 million, mainly due to a stronger rand and lingering operational constraints.

• EBITDA more than doubled to R470 million, benefiting from favorable metal price lag.

• Net debt increased to R1.7 billion, mainly due to higher working capital from increased LME prices, but remained within all funding covenants.

• Positive operating cash flow before capex of R96 million, up from R16 million in the prior period; free cash flow improved to negative R59 million from negative R258 million in H1 2025.

Outlook and guidance

• Focus for H2 2026 is on reducing net debt, improving liquidity, and converting operational recovery into cash.

• Targeting R100 million from extrusions disposal, R13 million from containers property, and further optimization of inventory and debtors.

• Ramp-up to 550 tonnes per day production expected by end of Q4 2026, with further improvement anticipated.

• Anticipated margin support from higher global can end pricing, cost reduction, and commercialized Wide Can Body investment.

• Cost reduction programme aims for an additional R100 million in H2 2026 and increased scrap utilisation above 27%.