Vulcan Steel reports revenue, earnings drop

Vulcan Steel has reported a decline in revenue and earnings for the September quarter of 2024.

Revenue fell 13% year-on-year to $263.1 million, while earnings before interest, depreciation, and amortisation (ebitda) dropped 30% to $33.1m.

Sales volume also decreased by 10% to approximately 57,800 tonnes.

The company said business conditions in the first quarter of the 2025 financial year remained soft and deteriorated across most market verticals and geographies, particularly in New Zealand.

However, managing director and chief executive, Rhys Jones, said there were encouraging signs for 2025, citing a lift in business confidence and pre-sales activity among customers in New Zealand, following a reduction in the official cash rate by the Reserve Bank.

Vulcan Steel's net debt decreased by $22m to $254m, and it remains in compliance with its banking covenant thresholds.

The company has also entered into an agreement with its lenders to relax the existing banking covenant thresholds for the next 14 months.