Metro Performance Glass warns annual earnings will miss its forecast guidance

Metro Performance Glass has downgraded its earnings forecast. Photo / NZME

Metro Performance Glass expects its annual operating earnings to be below its forecast because of a “prolonged and continuing” downturn in New Zealand and Australia.

The company said its March 31 earnings before interest, tax, depreciation and amortisation (ebitda) will be below forecast.

The Australasian glass manufacturer said it expects its net profit to be in a range of a loss of $2 million to a profit of $2m in the year – compared with its 2025 pre-tax loss of $16.6m.

In an update, the company said it was entering the next phase of its turnaround, “having navigated one of the most challenging periods in its recent history”.

“A prolonged and continuing downturn in the New Zealand and latterly Australian construction market, the uncertainty created by a takeover offer by a competitor, and our capital structure all created significant pressure on our business,” the company said.

Metroglass said its operational performance in New Zealand had improved materially.

In late September, the company completed an oversubscribed capital raise and entered into new banking arrangements, reducing debt by about $35m.

The initiatives have delivered Metroglass a more resilient balance sheet and a platform to deliver growth when markets recover, it said.

“The construction market has not markedly improved since our half-year update and downward price pressure continued on our products, particularly in NZ North Island and in New South Wales,” it said.

The new year had shown some improvement.

“At year end we expect to report better progress on our turnaround in terms of operational progress and cost out initiatives.”

However, the company expected that revenue will be about 9% below what it had indicated in September.

“Our long-term outlook for the business has not substantively changed, however the impact of the continued downturn will push out the full benefits of the turnaround to later in 2026,” it said.

The company said it was monitoring the impact of the Iran war.

“We are monitoring geopolitical events and expect the impact of increased fuel prices to impact our business and the broader economy but to what extent is not yet known.”

Metroglass’ result is due at the end of May.

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