Capral Limited reported a 14% year-over-year increase in revenue to AUD 372.1 million for the first half of 2026, driven by higher aluminum prices and expanded industrial demand. Underlying earnings before interest and tax rose 4% to AUD 16.7 million, while underlying EBITDA increased 5% to AUD 29 million.
Net profit after tax for the period totaled AUD 15.9 million, up 4% from the prior year, supported by a positive London Metal Exchange revaluation. Earnings per share climbed 9.5% to AUD 0.994, and operating cash flow surged to AUD 28.2 million from AUD 7.8 million a year earlier. Free cash flow turned positive at AUD 10.3 million, compared with an outflow of AUD 4.6 million in the prior corresponding half.
The company maintained a gross profit margin of 53% over the trailing twelve months, with return on equity reaching 8%. Cash and cash equivalents stood at AUD 62.1 million, while net tangible assets per share increased 6% to AUD 13.43. Capital expenditure for 2027 is expected to total around AUD 10 million.
Industrial volumes now account for 50% of total output, up from 41% in 2017, reducing earnings cyclicality tied to residential construction cycles. Total volume rose 4% to 32,500 tons, with aluminum prices averaging 17% higher year-over-year and regional premiums up 22%. Capral holds approximately 27% of Australia's downstream aluminum market.
CEO Tony Dragicevich described the half-year as solid despite supply chain disruptions from the Middle East conflict, noting that industrial diversification had broadened demand beyond building cycles. CFO Tertius Campbell reported that inflationary cost pressures were fully offset, with price and mix contributing AUD 5.6 million and productivity savings adding AUD 1.3 million.
Shares in Capral edged 1.03% higher to AUD 11.80, remaining 10.7% below the 52-week high of AUD 13.22 and 14.5% above the 52-week low of AUD 10.31. The company executed on-market buybacks equivalent to AUD 0.23 per share in H1 2026, down from AUD 0.27 per share in the prior year. No interim dividend was declared.
