Vulcan Steel Limited reported a 22% year-over-year increase in revenue to NZD 1.159 billion for the fiscal year ended FY2026, driven by the nine-month contribution of its Roofing Industries acquisition and underlying volume growth. Adjusted EBITDA rose 16% to NZD 130 million, while gross margin contracted by 1 percentage point to 33.2%.
The acquisition of Roofing Industries, completed on October 1 with final payment finalized in January 2026, contributed NZD 155 million in revenue over the nine-month period and generated an annualized net profit after tax of approximately NZD 10 million. Underlying steel volumes grew about 20% in the second half of FY2026, with total steel sales across Australia and New Zealand posting double-digit growth.
Net debt stood at NZD 227 million, with net debt leverage improving to 2.9 times post-rent EBITDA from 3.4 times a year earlier. Operating cash flow declined 30% to NZD 73 million, while capital expenditure totaled NZD 26 million. Lease liability repayments amounted to NZD 31 million, and the company maintained a dividend payout ratio within its target range of 40% to 80% of net profit after tax, increasing the full-year dividend by 16% to NZD 0.07 per share.
Management highlighted the addition of a new site in Toowoomba, Queensland, bringing the company’s total footprint to 82 locations across Australia and New Zealand. The group serves over 26,000 customers with a workforce of more than 1,660 employees, with New Zealand accounting for 40% of sales and Australia for 60%, including Queensland’s 23% share of total group revenue.
For FY2027, Vulcan Steel guided capital expenditure to rise to between NZD 30 million and NZD 35 million, including further investments in Roofing Industries and ongoing projects. The company plans to add a couple of new hybrid sites, following the conversion of four sites and the opening of the Toowoomba location in FY2026. Analysts noted the potential impact of anticipated safeguard measures by the Australian government on imported fabricated steel, with an interim report from the Productivity Commission due in September.
The company’s shares last traded at NZD 5.46, up 4% on the day, with a 52-week range of NZD 4.59 to NZD 7.98.
