Australian aluminium extruder Capral Limited (ASX: CAA) reported a 14% increase in revenue to $373 million in the first half of 2026, driven primarily by higher global metal prices rather than volume expansion. Sales volume rose 4% to 32,500 tonnes, while underlying earnings before interest and tax (EBIT) increased 4% to $16.7 million.
The company’s net profit after tax reached $15.9 million, up 4% from $15.3 million in the same period last year, though the prior-year figure included a $2.5 million tax benefit. Earnings per share climbed 9% to 99.4 cents. Operating cash flow surged to $28.2 million from $7.8 million in 1H25, while free cash flow turned positive at $10.3 million, reversing a $4.6 million outflow in the prior period.
Capral maintained a strong balance sheet, ending the half with $62.1 million in net cash and no operational borrowings. Capital expenditure totaled $8.7 million, with an additional $7.3 million in contracted commitments at June 30. Working capital remained broadly flat at $125.4 million, improving the working capital-to-sales ratio to 17% on a trailing-twelve-month basis.
Revenue growth was supported by a 17% increase in the average London Metal Exchange aluminium price and a 22% rise in regional premiums, with the combined LME-plus-premium reaching $5.61 per kilogram at June 2026, up from $4.09 a year earlier. The company offset $6.2 million in inflationary costs through pricing adjustments and productivity gains, including $5.6 million from pricing and mix improvements.
Capral’s market share remained around 27%, supported by a national network of six manufacturing plants, nine distribution centres, and 15 trade centres. Industrial markets accounted for 50% of total volume, up from 41% in 2017, while direct mill sales comprised 52% of volume and distribution channels the remainder.
The company highlighted a 12% recovery in Australian housing commencements to 179,000 units in 2025, with 2026 expected to reach 202,000 units. High-rise commencements are projected to lead the recovery at 30% year-on-year growth, followed by low-rise at 15% and detached housing at 7%.
Safety performance improved, with the Total Recordable Injury Frequency Rate (TRIFR) declining to 3.1 from 5.9 at June 2025. Capral also remains Australia’s only aluminium extruder certified under both the Aluminium Stewardship Initiative’s Performance and Chain of Custody standards.
CEO Tony Dragicevich described the half as "a solid first half despite challenging market and supply chain conditions," attributing the revenue growth to higher metal prices. CFO Tertius Campbell noted that earnings remained resilient despite cost pressures, with working capital held flat and disciplined cost management continuing.
