Metroglass Reports 5% Revenue Drop but Cuts Net Debt by More Than Half
Metroglass has reported a 5% revenue decline in its half-year results but achieved a significant reduction in net debt and improved profitability, signaling progress in its turnaround strategy amid challenging market conditions.
- Revenue down 5% to $108 million for H1 2025
- Net debt halved from $60.5 million to $27.4 million after capital raise
- Profit before significant items rose to $964,000 from $349,000
- Cost reduction initiatives including factory closures delivering savings
- Market softness persists, especially in Australia, but New Zealand shows signs of recovery
Metroglass Navigates Market Headwinds
Metroglass, a leading glass processing company operating across New Zealand and Australia, has released its unaudited half-year results for the six months ending 30 September 2025. The company reported a 5% decline in revenue to $108 million, reflecting ongoing softness in the markets it serves. Despite this, Metroglass managed to improve its profitability and significantly reduce its net debt, underscoring the effectiveness of its recent strategic initiatives.
Financial Performance and Debt Reduction
Profit before significant items increased to $964,000, nearly tripling from $349,000 in the prior period. More notably, Metroglass successfully completed a capital raise in September, which enabled the company to slash its net debt from $60.5 million at the end of March 2025 to $27.4 million by the end of the half-year. This substantial deleveraging positions Metroglass with a more sustainable financial footing amid the current economic cycle.
Operational Efficiency and Cost Management
The company has been actively pursuing cost reduction and efficiency improvements as part of its turnaround plan. This includes the closure of two larger processing factories, consolidation into a smaller operational footprint, and re-leasing of surplus space. These measures have already yielded approximately $3 million in cost savings during FY25, with a further $3 million targeted by the end of FY26. Metroglass emphasizes maintaining high service levels, with delivery in full and on time consistently above 90-95%, to defend its market share despite competitive pressures.
Market Outlook and Regional Dynamics
While the company acknowledges ongoing market softness, particularly in Australia where economic conditions in Victoria have delayed growth, it remains optimistic about the near-term outlook in New Zealand. Positive signs are emerging ahead of the Christmas season, especially in Auckland and the South Island, suggesting a potential rebound in volumes. Metroglass also highlights regulatory changes, such as the National Construction Code updates promoting double glazing, as longer-term growth drivers in the Australian market.
Leadership and Future Focus
Managing Director Simon Bennett praised the dedication of Metroglass’s workforce, noting their sacrifices and hard work during challenging times. The company’s focus remains on building a predictable and profitable business by continuing to reduce costs, improve productivity, and deliver quality products with superior service. As Metroglass moves forward, the balance between managing subdued market conditions and positioning for future growth will be critical.
Bottom Line?
Metroglass’s half-year results reveal a company stabilizing its finances and operations, but the path to sustained growth hinges on navigating ongoing market softness and executing its cost-saving strategies.
Questions in the middle?
- Will Metroglass’s cost reduction initiatives sustain profitability if market softness persists?
- How will the Australian market conditions evolve, particularly with regulatory changes impacting demand?
- What impact will the reduced debt load have on Metroglass’s capacity for future investment or expansion?