Highlights

· Vulcan Steel reported FY2026 Revenue of NZ$1.159 billion, up 22% year-on-year.

· Adjusted EBITDA rose 16% to NZ$130 million, with a 27.3% margin.

· Steel volumes grew approximately 20% in the second half, with management citing building momentum in Queensland and along the east coast.

· The full-year Dividend was lifted 16% to NZ$0.07 per share, with net Debt improving to 2.9 times post-rent EBITDA from 3.4 times.

Vulcan Steel (ASX:VSL) released its FY2026 financial results on 25 August 2026, reporting strong revenue growth and an improving Balance Sheet despite a subdued construction backdrop across Australia and New Zealand.

The Australasian industrial products distributor and value-added processor cited building momentum in the second half, particularly in Queensland and along the eastern seaboard.

FY2026 Revenue and Earnings Rise

Vulcan Steel posted revenue of NZ$1.159 billion for FY2026, up 22% year-on-year. Adjusted EBITDA rose 16% to NZ$130 million at a 27.3% margin, while Operating Cash Flow came in at NZ$73 million and Capital Expenditure at NZ$26 million.

Gross Margin eased approximately one percentage point to 33.2%. The full-year dividend was declared at NZ$0.07 per share, up 16%, following an Interim Dividend of NZ$0.045 per share.

Roofing Industries Drives Top-Line Growth

A meaningful contributor to revenue growth was the Roofing Industries business, which contributed NZ$155 million over nine months. Management highlighted that steel volumes grew approximately 20% in the second half of the year, with momentum building in Queensland and along the east coast.

Net debt stood at NZ$227 million at year-end, equivalent to 2.9 times post-rent EBITDA, an improvement from 3.4 times a year earlier, reflecting improved cash conversion across the expanded group.

Scale and Network Across Australasia

Founded in 1995, Vulcan Steel operates approximately 82 logistics and processing facilities across Australia and New Zealand, serving more than 26,000 customers. Its Steel and Metals divisions combine distribution scale with value-added processing, providing exposure to construction, Manufacturing and infrastructure activity across both countries.

Management has guided to capital expenditure of NZ$30 million to NZ$35 million for the coming year as it adds hybrid processing sites to the network.

What Could Come Next for Vulcan Steel (ASX:VSL)?

The near-term focus is whether the second-half momentum carries into FY2027, with a full twelve-month contribution from Roofing Industries expected to support the top line. Continued deleveraging toward and below 2.9 times EBITDA would give the company additional financial flexibility.

Investors may also monitor construction and industrial Demand indicators across Australia and New Zealand, the pace of new hybrid site additions, and margins as steel pricing and operating costs evolve.

Disclaimer: This article is for general information purposes only and does not constitute financial advice, an offer or recommendation to buy or sell any security. Investors should conduct their own research and consider their personal circumstances before making Investment decisions.