Vulcan Steel (VSL) H1 2026 earnings summary

Executive summary

• Revenue rose 8.6% year-over-year to NZ$535.4 million, driven by the acquisition of Roofing Industries Limited and higher steel volumes, with integration on track and footprint expanded to 81 sites serving over 25,000 customers.

• Adjusted EBITDA was NZ$57.3 million, up 0.7% year-over-year, while adjusted NPAT rose 1.3% to NZ$9.3 million; statutory NPAT fell 9.7% to NZ$8.3 million.

• Operating cash flow declined 52.1% to NZ$38.7 million due to increased working capital and acquisition-related outflows.

• Net debt reduced by NZ$30.1 million since June 2025, now at NZ$202 million, with a leverage ratio of 2.9x (pre-IFRS 16 basis).

• Interim dividend maintained at NZ 2.5c per share, fully franked/imputed.

Financial highlights

• Gross margin was 33.9%, down slightly from 34.1% year-over-year.

• Sales volume increased 10.8% to 120,988 tonnes, with active trading accounts up 12.6% to 25,456.

• Adjusted cash conversion dropped to 55.6% from 59.6% year-over-year.

• Return on Capital Employed (ROCE) fell to 7.6% from 10.3% year-over-year.

• Net tangible assets per share rose to NZ$1.68 from NZ$1.19 a year earlier.

Outlook and guidance

• Market conditions are stabilizing, with signs of recovery in New Zealand and Australia, though margin pressure and inflation risks persist.

• Australian activity is picking up, but major Olympic project volumes are not expected to impact until FY27 and beyond.

• Working capital requirements are expected to increase over the next 12–18 months due to rising material prices and anticipated demand recovery.