Vulcan Steel (VSL) H2 2025 earnings summary

Executive summary

• Revenue declined 11% year-over-year to NZD 948 million, with adjusted EBITDA down 24% to NZD 112 million and adjusted NPAT down 55% to NZD 18 million.

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

• Net debt reduced to NZD 232 million, and operating cash flow reached NZD 105 million.

• Acquisition of Roofing Industries for NZD 88–99 million, fully funded by an underwritten equity raise, expands into a new vertical.

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

Financial highlights

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

• Operating cash flow: NZD 105 million; Net debt: NZD 232.4 million (-15.7% YoY).

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

• Revenue per ton fell 4.8% due to international pricing pressures.

• Inventory reduced by NZD 27 million over the year.

Outlook and guidance

• Market conditions expected to remain flat in 1H FY26, with recovery momentum anticipated in 2H FY26 and into FY27.

• Gradual improvement seen in both New Zealand and Australia, with Queensland expected to benefit from Olympic-related activity.

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

• Trading update to be provided at the annual meeting in October 2025.