Aluminium products company Capral (ASX: CAA) has posted higher earnings for FY25, positioning itself for further growth as early signs of a recovery in new home construction begin to flow through to demand for aluminium products.
Australia’s largest extruder and distributor of aluminium reported revenue of $686 million for the 12 months to 31 December 2025, up 6% on the prior year. The increase was driven by higher average London Metal Exchange (LME) prices and an improved sales mix, despite volumes declining 4% to 65,000 tonnes.
Underlying EBITDA rose 2% to $59.6 million, while underlying EBIT increased 4% to $35.8 million. Reported net profit after tax climbed 10% to $35.6 million, supported by the resolution of a long-standing insurance claim worth $3.0 million and a $2.5 million tax benefit linked to additional deferred tax assets. Basic earnings per share lifted 14 per cent to $2.15.
The result comes after a challenging period for Australia’s construction sector, where elevated interest rates and cost pressures have dampened residential building activity. Residential construction accounts for roughly 40% of Capral’s sales volume and remained subdued for much of FY25. However, the company says it is now seeing signs of improvement in building approvals and housing commencements, a leading indicator for aluminium demand in windows, doors, framing systems and other building applications.
Managing Director and CEO Tony Dragicevich said Capral’s diversified exposure had underpinned performance during the downturn.
“Capral has again delivered a strong result in 2025, particularly given the slower than expected recovery in residential construction and the challenges that persisted in the external operating environment.”
“Our diversified business model and disciplined operational focus has protected our margins and lifted underlying earnings despite lower volumes.”
While housing activity showed early signs of stabilising, industrial demand softened across transport, infrastructure and general manufacturing sectors. Marine and cladding markets, however, remained steady. The moderation in industrial volumes reflects a broader cooling in large-scale projects and capital expenditure following the post-pandemic surge.
Capral’s strategy has centred on disciplined cost management, operational efficiency and protecting market share against imported aluminium products. The company has also continued to progress its lower-carbon aluminium offerings, responding to growing demand from builders and manufacturers seeking to reduce embodied emissions in construction materials.
Chair Mark White said the company’s consistent performance highlighted the resilience of its operating model.
“Capral’s consistent earnings through cycles demonstrates the resilience of the business and capacity for future growth,” White said.
The balance sheet strengthened over the year, with net tangible assets per share rising 13% to $12.72. In line with its capital management framework, the board declared a final unfranked dividend of 30 cents per share, bringing total shareholder distributions — including a buy-back equivalent — to 85 cents per share for the year, up 12%.
Looking ahead, Capral expects FY26 earnings to be slightly above FY25, with performance weighted to the second half as residential construction activity is forecast to improve through 2026. Industry projections point to rising commencements supported by higher approvals, which could translate into stronger aluminium demand across detached housing and medium-density developments.
With its broad exposure across residential, commercial and industrial markets, Capral appears positioned to benefit as Australia’s building cycle gradually turns upward, reinforcing aluminium’s critical role in the nation’s construction and manufacturing supply chains.
Mitch Korver is a Business Writer focused on high-growth companies listed on the ASX in the small and medium cap space.
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