• Earnings above top-end of guidance range
• Industrial demand remained solid, residential demand was weaker
• Margins maintained through effective cost management and recovery

Capral Ltd, Australia's leading supplier of aluminium extrusion and rolled products, has reported its FY24 results, which exceeded expectations. The company's earnings were above the top-end of its guidance range, with industrial demand remaining solid while residential demand was weaker due to continued low commencements and reduced pipeline. Capral was able to maintain margins through effective cost management and recovery. The company's FY24 performance highlights include a 5% decrease in volume to 67,800 tonnes, with revenue on par with FY23 at $650 million. EBITDA was $58.3 million, only 2% below the prior year despite inflationary pressures, while NPAT increased 2% to $32.5 million. Earnings per share rose 6% to $1.88.Capral's diversified industry exposure, with 50% of volume in industrial sectors, helped offset the weaker residential market. The company expects industrial and commercial markets to remain firm, while residential building commencements are forecast to recover in the second half of 2025 as interest rates decline.Metal costs increased in 2024 and lifted sharply at the end of the year and in the first quarter of 2025, with the LME price finishing the year at a two-year high of $A4,000 per tonne. Capral's balance sheet remains strong, providing flexibility to manage uncertainty and capital allocation. The company generated $21.5 million in free cash flow and ended the year with net cash of $68.9 million.Capral continues to focus on increasing return on invested capital, improving its competitive position, and growing its presence in aluminium distribution. Key strategic priorities include improving productivity, growing in new market segments, and retaining market share gains. The company is also progressing its ESG initiatives, including targets to reduce emissions and waste.Looking ahead, Capral expects FY25 EBITDA to be broadly in line with the prior year, with industrial and commercial markets expected to remain firm, while residential building is forecast to start recovering in the second half of 2025. The company plans capital expenditure of $11 million and will continue its return to shareholders through on-market share buybacks and unfranked dividends.

FY25 EBITDA is expected to be broadly in line with the prior year. Industrial and commercial markets are expected to remain firm, while residential building commencements are forecast to remain soft with a recovery to start in the second half of 2025. LME prices are volatile and subject to global factors, rising sharply in late 2024 and expected to remain at elevated levels during 2025. Inflationary cost pressures continue to impact the business, especially in areas such as employee, energy, packaging and freight costs. Working capital levels are expected to lift on the back of higher metal costs. Capital expenditure is planned to be $11 million.

Capral expects industrial and commercial markets to remain firm, while residential building commencements are forecast to remain soft with a recovery to start in the second half of 2025. LME prices are volatile and subject to global factors, and inflationary cost pressures continue to impact the business. The company plans to continue its return to shareholders through on-market share buybacks and unfranked dividends.