Capral’s Growth Hinges on Fair Trade Fight and Share Buy-Back Strategy

Steady Financial Performance in a Challenging Environment

Capral Limited’s 2024 financial year demonstrated resilience amid a backdrop of softer residential construction activity and global commodity price volatility. The company reported EBITDA of $58.3 million, a modest 5% decline from the previous year, reflecting the impact of a 5% volume reduction offset by a 4% increase in average selling prices driven by higher aluminium prices on the London Metal Exchange (LME).

Net profit after tax (NPAT) rose slightly to $32.5 million, supported by a $3.6 million tax benefit from increased recognition of deferred tax assets. Revenues remained steady at $650 million, underscoring Capral’s ability to maintain sales despite market headwinds.

Capital Management and Shareholder Returns

Capral continued its disciplined capital management approach, balancing growth investments with shareholder returns. The company paid an unfranked final dividend of 40 cents per share in March 2025, following the exhaustion of franking credits in 2023. Complementing dividends, Capral executed an on-market share buy-back program, returning an equivalent of 36 cents per share in FY24, and has since commenced a further buy-back of up to 10% of issued shares in 2025.

This combination of dividends and buy-backs resulted in total shareholder distributions of 76 cents per share for FY24, slightly up from 72.5 cents in FY23, signaling Capral’s commitment to delivering value even in a subdued market.

Strategic Growth and Operational Efficiency

Capral’s strategy to diversify its channels and expand its distribution footprint bore fruit with two acquisitions of Aluminium Trade Centres in Melbourne and Brisbane, enhancing its direct-to-market presence. Operationally, the company focused on upgrading key extrusion plants, including ongoing improvements at Smithfield and the second stage of the Penrith plant upgrade.

Despite a slowdown in residential construction, which accounts for about 40% of Capral’s volume, industrial sectors such as transport and infrastructure remained robust, helping to sustain plant utilisation and profitability.

Sustainability and Fair Trade Initiatives

Capral reaffirmed its commitment to sustainability, targeting net zero emissions by 2050 with interim goals of a 20% reduction by 2030. The company’s LocAl® lower carbon aluminium brand saw volumes nearly quadruple in 2024, reflecting growing market demand for sustainable products. Recycling initiatives, including trials with Rio Tinto’s Boyne smelter, further demonstrate Capral’s environmental focus.

On the trade front, Capral continues to advocate for fair competition, actively pursuing anti-dumping measures against aluminium imports, particularly from China, Malaysia, and Vietnam. The company welcomed the Australian government’s increased funding to the anti-dumping commission, emphasizing the importance of protecting local manufacturing jobs.

Governance and Outlook

Board changes were announced with the resignation of Non-Executive Director Kathy Ostin and the appointment of Laurie Lefcourt, who will chair the Audit and Risk Committee. Existing director Bryan Tisher is standing for re-election.

Looking ahead, Capral expects a recovery in the detached housing market in the second half of 2025, steady industrial demand, and continued volatility in commodity prices. The company anticipates FY25 earnings to be broadly in line with 2024, supported by operational efficiencies, growth from recent acquisitions, and ongoing capital returns to shareholders.