Capral reports higher first-half earnings despite soft housing demand

Australian aluminium extruder and distributor Capral has reported higher earnings for the first half of 2026, with sales volumes and revenue increasing despite softer residential construction demand and higher costs linked to supply disruptions.

For the six months to June 30, Capral recorded sales volumes of 32,500 tonnes, up 4 per cent from the prior corresponding period, while revenue rose 14 per cent to $372.8 million. Underlying EBIT increased to $16.7 million from $16.1 million, while net profit after tax reached $15.9 million, compared with $15.3 million in the first half of 2025.

Capral chairman Mark White described the result as “a solid first half result in challenging market and supply chain conditions”, saying the company had responded to supply disruptions and cost increases associated with the conflict in the Middle East.

Managing director and CEO Tony Dragicevich said the result was “in line with expectation”, with growth recorded through the company’s distribution channel across building systems and industrial markets. However, demand from major window fabricators and resellers remained soft.

“There is no lift yet from the residential housing market,” Dragicevich said, citing uncertainty around geopolitical conflict, higher interest rates and taxation changes as factors weighing on new residential construction.

Capral said residential and commercial building systems sales were ahead of plan, supported by a healthy commercial pipeline and new product ranges. Within its industrial markets, marine demand remained strong, while transport and infrastructure volumes were broadly steady. Data centre projects also emerged as a growth opportunity during the period.

At the same time, higher aluminium prices and regional premiums increased input costs, while freight costs were materially affected by the Middle East conflict, resulting in an unplanned $1 million under-recovery. Capral said cost control and productivity improvements across its extrusion plants helped support earnings.

The company ended the half with $62.1 million in cash and said full-year earnings are expected to be broadly in line with the previous year, subject to some recovery in residential housing activity. Its priorities for the second half include growth in distribution, pricing management, cost control and continued investment in extrusion plant productivity.

Capral also reported progress on its sustainability targets, saying it remains on track for its 2030 carbon emission reduction goals and now has Environmental Product Declarations for its lower-carbon aluminium products.