Capral’s FY25: 6% Revenue Growth, $35.8M EBIT, and 30c Dividend Declared
Capral Limited reported a resilient FY25 with earnings growth despite market headwinds, declaring a 30-cent dividend and reinforcing its commitment to sustainability with a 20% emissions reduction target by 2030.
- Revenue up 6% to $686 million amid lower volumes
- Underlying EBIT rises 4% to $35.8 million
- Unfranked final dividend of 30 cents declared
- Continued on-market share buy-back program
- 20% emissions reduction target by 2030, net zero ambition by 2050
Robust Financial Performance Amid Challenging Market
Capral Limited (ASX: CAA), Australia's largest aluminium extruder and distributor, has delivered a solid financial performance for the year ended 31 December 2025. Despite a subdued residential construction sector and softer industrial demand, the company posted a 6% increase in revenue to $686 million, driven by higher aluminium prices and an improved sales mix. Volumes declined slightly by 4% to 65,000 tonnes, reflecting ongoing market softness.
Underlying earnings before interest and tax (EBIT) rose 4% to $35.8 million, supported by disciplined cost management and operational efficiencies. Reported net profit after tax (NPAT) reached $35.6 million, bolstered by a $3 million insurance claim resolution and a $2.5 million tax benefit. Basic earnings per share improved to $2.15 from $1.88 the previous year.
Shareholder Returns and Capital Management
Capral declared an unfranked final dividend of 30 cents per share, payable on 26 March 2026, complementing the ongoing on-market share buy-back program which returned an equivalent of 55 cents per share in FY25. This brings total shareholder distributions to 85 cents per share, reflecting a balanced capital management approach that considers earnings, balance sheet strength, and future investment needs.
The company ended the year with a strong net cash position of $60.5 million, maintaining financial flexibility to support organic growth, acquisitions, and shareholder returns.
Strategic Acquisitions and Operational Enhancements
During the year, Capral expanded its footprint through acquisitions including Comsupply Pty Ltd in Western Australia and smaller aluminium sales businesses in Sydney and Victoria. These bolt-on acquisitions enhance Capral’s distribution capabilities and market presence in key regions.
Operationally, Capral invested in upgrading its extrusion facilities at Smithfield and Penrith, focusing on equipment reliability and productivity improvements. The company’s diversified exposure across residential, commercial, and industrial markets continues to provide resilience through economic cycles.
Sustainability and Climate Commitments
Capral has embedded sustainability at the core of its strategy, setting a target to reduce Scope 1 and Scope 2 greenhouse gas emissions by 20% by 2030, relative to a 2022 baseline, with a longer-term ambition to achieve net zero emissions by 2050. The company’s climate disclosures comply with the Australian Sustainability Reporting Standard AASB S2, reflecting a transparent approach to climate-related financial risks and opportunities.
Key initiatives include energy efficiency improvements, increased procurement of lower-carbon aluminium, and operational waste reduction. Capral maintains Aluminium Stewardship Initiative (ASI) certification and continues to grow demand for its LocAl® low-carbon aluminium product range.
Governance and Board Developments
The Board welcomed Ms. Laurie Lefcourt as Chair of the Audit and Risk Committee in 2025, bringing extensive financial and risk management expertise. The Board continues to oversee climate risk integration, capital allocation, and remuneration frameworks that include climate-related performance metrics.
Outlook
Looking ahead, Capral anticipates a modest recovery in residential construction activity in 2026, supported by improved housing approvals, with industrial demand expected to remain stable. The company expects FY26 earnings to be slightly above FY25, with performance weighted to the second half of the year in line with seasonal patterns and anticipated market recovery.
Capral remains vigilant to the volatility of global aluminium prices, inflationary pressures, and evolving regulatory landscapes, particularly regarding carbon pricing and sustainability standards.
Bottom Line?
Capral’s FY25 results underscore its resilience and strategic agility, but investors should watch closely how evolving market and regulatory dynamics shape its growth and sustainability trajectory.
Questions in the middle?
- How will Capral manage potential cost pressures if carbon pricing mechanisms expand to include Scope 3 emissions?
- What impact will the anticipated recovery in residential construction have on volume growth and margins in FY26?
- How effectively will recent acquisitions integrate and contribute to Capral’s earnings and market share?
