Key points
- FY26 revenue increased by 22.2% YoY to $1,159m
- Adjusted EBITDA grew 16.2% YoY to $130m
- Rollforming contributed significantly to revenue and volume growth
- Operating cash flow decreased by 30.4% YoY
- Net debt reduced by NZ$5m to NZ$227m
Full summary
Vulcan Steel Ltd's FY26 results show a 22.2% increase in revenue to $1,159m, driven by a $135m contribution from rollforming and a $75m increase in underlying business. Volume grew 18.2% YoY, with rollforming and underlying businesses contributing significantly. Underlying business gross margin remained steady, while gross profit per tonne increased by 0.4%. Adjusted EBITDA rose 16.2% YoY to $130m, driven by rollforming and underlying business improvement. Operating cash flow decreased by 30.4% YoY due to a significant reduction in working capital in FY25. Return on capital employed declined to 7.5% in FY26 from 8.8% in FY25. Net debt reduced by NZ$5m to NZ$227m, and the debt cover improved to 2.9x at the end of FY26 from 3.4x in FY25.
Guidance
FY26 revenue: $1,159m (up 22.2% YoY); Adjusted EBITDA: $130m (up 16.2% YoY); Operating cash flow: $73m (down 30.4% YoY)
Outlook
Vulcan Steel Ltd remains cautiously optimistic about the economic environment, with continued focus on efficiency gains, expansion of geographic and product footprint, and lifting customer engagement and volumes.