The company reported FY25 revenue of NZ$948 million, down 10.9%
SYDNEY: Vulcan Steel Ltd (ASX/NZX: VSL) said on Tuesday it will acquire New Zealand-based Roofing Industries Ltd for NZ$88 million, marking its twelfth acquisition since 1995 and expanding its footprint into the steel roofing and cladding segment.
The deal, which includes associated businesses Ribline Steel, Bracket Machines, and Roofing Accessories, will be funded through a fully underwritten pro rata accelerated renounceable entitlement offer (AREO) to raise approximately NZ$96.3 million. Vulcan said the acquisition is expected to be earnings-per-share accretive, even after accounting for the equity raise.
Roofing Industries operates across 15 locations in New Zealand and generated NZ$162 million in revenue and NZ$21 million in pre-NZ IFRS 16 EBITDA for the year ended March 2025. Vulcan noted the acquisition aligns with its strategy to diversify product offerings and leverage cross-selling opportunities across its Australasian network.
The company reported FY25 revenue of NZ$948 million, down 10.9% year-on-year, with adjusted EBITDA falling 24.1% to NZ$112.1 million. Net debt declined to NZ$232 million from NZ$276 million a year earlier, supported by strong operating cash flow and disciplined cost management.
Vulcan said the Roofing Industries transaction is expected to close in Q2 FY26, subject to customary conditions including restructuring steps and regulatory approvals.
The final dividend for FY25 was declared at 3.5 NZ cents per share, fully franked and imputed, bringing the total payout to 44% of adjusted NPAT.
A shareholder meeting in October will provide further details on the integration strategy and trading outlook.