Vulcan Steel raises $88m to acquire Roofing Industries

Vulcan Steel's profit fell sharply in 2025.

Dual-listed Vulcan Steel is raising capital to buy New Zealand metal roofing and cladding manufacturer Roofing Industries for $88 million.

The transaction includes Roofing Industries’ interest in three related roofing products businesses and non-wholly owned branch companies, and the purchase price represents an equivalent enterprise value of $99m, Vulcan said.

Established 26 years ago, Roofing Industries is one of the leading suppliers of roll-formed roof and cladding products in New Zealand with a large sales network, the company said.

In the March financial year, Roofing Industries had in excess of $160m in revenue and $25m in earnings before interest, tax, depreciation and amortisation (ebitda).

Vulcan launched a fully underwritten pro rata accelerated renounceable entitlement offer to eligible shareholders to subscribe for one new fully paid share in the company for every nine existing company shares at A$5.95 ($6.59) – a 9.8% discount to the company’s last traded price on the ASX of A$6.50, raising A$87.1m.

Shares in Vulcan last traded on the NZX on Tuesday at $7.20.

The entitlement offer comprises a retail component, which is to be offered to retail shareholders in Australia or New Zealand.

Separately, Vulcan – an Australasian industrial product distributor and value-added processor – reported a 60.6% fall in net profit for the June year of $15.7m.

Ebitda came to $109m, down 26.1%, while operating cashflow fell 37.8% to $105.0m.

Vulcan declared a final dividend of 3.5c a share, taking the total to 6.0c.

Managing director and chief executive Rhys Jones said the performance continued to be shaped by persistent and evolving economic challenges across both the New Zealand and Australian markets.

“The broader trading environment remained difficult, characterised by delayed investment decisions, widespread disruptions to global trade and heightened geopolitical uncertainties,” Jones said.

“These external factors have had a tangible impact on our financial outcomes.”

Looking ahead, Jones said Vulcan had observed encouraging signs of stabilisation in its overall daily sales activity.

“While trading conditions remain subdued, there are early indicators of renewed momentum within select customer segments, contributing to a modest uplift in activity,” he said.

Chief commercial officer Gavin Street said the Roofing Industries acquisition marked a strategic milestone for Vulcan.

“This move not only diversifies Vulcan’s portfolio but also strengthens its position within the broader construction and building materials sector,” Street said.

Roofing Industries operates from 15 locations nationwide, with 10 branches situated in the North Island and five in the South Island.

“These sites will immediately enhance Vulcan’s operational footprint,” Street said.

“A distinct aspect of Roofing Industries’ business model lies in its network of local owner-operators, who manage individual branch companies and whose service mindset and financial interest are aligned through an equity stake in the business,” he said.

Vulcan went into a trading halt while the capital raise takes place.

Trading is expected to resume on Thursday morning.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.