Vulcan Steel reports significant financial decline

Vulcan Steel has reported a decline in its financial performance for the first half of the 2025 financial year.

The industrial product distributor and value-added processor announced an ebitda of $56.9 million, down 30.5% from $81.8m in the same period last year.

Net profit after tax also dropped 64.8% to $9.2m.

Operating cash flow was down 23.4% to $80.7m.

The company declared an interim dividend of 2.5 cents per share, which will be 100% franked and 20% imputed.

Vulcan said the challenging economic conditions in Australia and New Zealand, particularly in the steel division, impacted its results.

However, it achieved a 10% return on capital employed and reduced its net bank debt by $34.3m.

Looking ahead, Vulcan said the lowering of interest rates in NZ has boosted confidence, and there are signs of stabilisation and recovery in some segments and regions.

In Australia, the metals segment is expected to remain steady, while the steel segment may face challenges due to economic conditions and disruptive market dynamics.