Can Metro Performance Glass Turn Around After FY25 Loss and Market Headwinds?

Challenging Year for Metro Performance Glass

Metro Performance Glass Limited (ASX: MPP) has released its audited financial results for the year ended 31 March 2025, revealing a tough operating environment in both New Zealand and Australia. The company reported a 10.6% decline in revenue to NZ$213.9 million and a net loss after tax of NZ$(13.5) million, reflecting ongoing market weakness and operational pressures.

EBITDA before significant items and pre-IFRS 16 adjustments fell sharply to NZ$5.6 million, down from NZ$12.3 million in the prior year. The company’s earnings before interest and tax (EBIT) also slipped into negative territory at NZ$(0.6) million, underscoring the financial strain experienced during the period.

Strategic Leadership and Operational Changes

In response to these challenges, Metro Performance Glass undertook significant leadership changes in 2024, including a refreshed and trimmed Board and new business leadership appointed in May 2024. These moves have been accompanied by a focus on improving customer experience and operational efficiency, with delivery in full on time (DIFOT) rates reaching 96% in Australia and 97% in New Zealand by the end of FY25.

Cost reduction initiatives have been implemented across the business, with the company signalling that the full benefits of these measures are expected to flow through in FY26. Despite the unsatisfactory financial results, management remains confident that these changes have stabilised the business and positioned it for a gradual recovery.

Outlook and Capital Structure Plans

Looking ahead, Metro Performance Glass has provided guidance for FY26, forecasting an 8% increase in revenue to approximately NZ$232 million. EBITDA before significant items and pre-IFRS 16 adjustments is expected to improve to around NZ$18 million, with EBIT rising to approximately NZ$8.5 million. The company also anticipates generating about NZ$5 million in cash after normal capital expenditure and interest payments.

Further growth is projected for FY27 and FY28, with revenues forecast to reach NZ$243 million and NZ$254 million respectively, alongside continued EBITDA expansion. The company expects to benefit from regulatory changes such as the delayed implementation of the Energy Efficiency section of the National Construction Code in Victoria, which has already positively impacted New South Wales.

To support this recovery and strengthen its balance sheet, the Board is actively pursuing an equity raise. This capital injection aims to provide certainty, improve the company’s capital structure, and create a platform for sustainable growth. Net debt currently stands at NZ$60.5 million, and management expects the operating improvements underway to contribute to debt reduction regardless of the equity raise outcome.

Navigating a Flat Market with Focused Execution

While the New Zealand market is expected to remain flat through FY26, Metro Performance Glass is positioning itself to operate efficiently and cost-effectively, ready to capitalise on growth opportunities when conditions improve. The company’s emphasis on customer satisfaction and quality, demonstrated by improved rework percentages, is central to its strategy for regaining profitability in a challenging environment.