Vulcan Steel Ltd (ASX:VSL) (H1 2026) Earnings Call Highlights: Revenue Growth Amidst Margin …

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Tue, February 24, 2026 at 2:01 PM GMT+9 3 min read

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**Revenue:** $535 million, up 8.6% year-on-year.

**Adjusted EBIT:** Flat at $57 million.

**Gross Profit Margin:** Down 0.2% to 33.9%.

**Interim Dividend:** $0.025 per share, flat with last year.

**EBITDA:** Flat year-on-year at $57 million.

**Cash from Operations:** $39 million generated.

**Free Cash Flow:** $16 million in the first half.

**Capital Expenditure:** Expected between $30 million to $35 million for the full year.

**Net Debt:** $202 million with a net debt-to-EBITDA ratio of 2.9 times.

**Steel Segment EBITDA:** Improved year-on-year.

**Metals Segment EBITDA:** Fell 18% year-on-year to $37 million.

**Number of Sites:** 81 sites across Australia and New Zealand.

**Employee Count:** 1,600 employees.

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Release Date: February 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Revenue increased by 8.6% year-on-year to $535 million, driven by the acquisition of Roofing Industries and improved performance in the Steel division.

The integration of Roofing Industries is on track, with cultural and value alignment between teams being a highlight.

Vulcan Steel Ltd (ASX:VSL) continues to focus on cost management and investment in hybrid sites, enhancing capacity where needed.

The company generated $39 million in cash from operations, with $16 million in free cash flow after capital expenditures.

The interim dividend was maintained at $0.025 per share, fully franked, indicating stable shareholder returns.

Negative Points

Gross profit per tonne decreased by 2.6%, reflecting margin pressure and a challenging mix.

Industry profitability remains a challenge in both Australia and New Zealand, with competitive pressures impacting margins.

The geopolitical environment and subdued steel prices contribute to ongoing economic uncertainty.

A tight labor market in Australia, exacerbated by upcoming Olympic projects, is likely to increase labor costs and inflation.

Net debt stands at $202 million with a net debt-to-EBITDA ratio of 2.9 times, indicating a significant leverage position.

Q & A Highlights

Q: Can you provide guidance on the earnings contribution from Roofing Industries for the second half of FY26 and any updates on CapEx guidance? A: We are still in the early stages of owning Roofing Industries, so it’s too soon to predict exact earnings contributions. The December quarter typically sees higher volumes, so caution is advised in extrapolating those figures. Regarding CapEx, the guidance has increased due to additional investments needed for Roofing Industries.

Story Continues  

Q: What are your thoughts on the productivity commission inquiry into steel dumping and its potential impact? A: The inquiry is ongoing, and we expect results later this year. If safeguard measures are implemented, it could cap offshore fabrication imports and potentially benefit local fabricators by leveling the playing field. However, the exact impact is still uncertain.

Q: Can you update us on competitive pressures in New Zealand and Australia, and any changes in profitability? A: In Australia, we’ve seen some competitors close locations, which initially increased market volume at lower prices but is now stabilizing. In New Zealand, pricing pressure continues due to working capital constraints and a drive for volume at lower margins. We remain focused on customer service and delivery.

Q: How are you managing working capital requirements given your improved net debt performance? A: We focus on having the right stock in the right location at the right time. While material prices are rising, we expect a gradual increase in working capital over the next 12 to 18 months to meet demand as the market recovers.

Q: Has there been any change in the competitive environment or pricing in New Zealand? A: There have been attempts to adjust prices, but execution has been mixed. We are monitoring the situation closely, but it’s too early to comment on potential market consolidation.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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