Metro Performance Glass narrows losses as turnaround gains traction despite weak construction markets

Metro Performance Glass Ltd ( (AU:MPP) ) has issued an update.

Metro Performance Glass says it is moving into the next phase of its turnaround after one of its most challenging periods, marked by a prolonged construction downturn in New Zealand and Australia, takeover-related uncertainty and pressure from its capital structure. Over the past year, it has materially improved New Zealand operations, stabilised service levels at record highs, executed cost-out initiatives, completed an oversubscribed capital raise, and refinanced its banking facilities, cutting debt by about $35 million and strengthening its balance sheet.

Market conditions remain soft, with continued pricing pressure especially in New Zealand’s North Island and New South Wales, although recent months have shown early signs of improved activity in both countries. As a result of lower volumes and pricing pressure, full-year revenue is expected to be about 9% below prior guidance and EBITDA below forecasts, but net profit before tax is now guided to a narrow range between a $2 million loss and a $2 million profit, a substantial improvement on the prior year’s $16.6 million loss before tax.

Management notes that the ongoing downturn will delay the full benefits of the turnaround to later in 2026, even as efficiency measures, the capital raise and bank support help cushion the earnings impact. The company is also watching geopolitical risks and higher fuel prices, though its bulk glass supply chain remains robust, and it maintains an optimistic view on the new financial year and its long-term prospects, with full-year results and outlook to be provided in May.

More about Metro Performance Glass Ltd

Metro Performance Glass Ltd, which trades as Metroglass on the NZX and ASX, operates in the building and construction materials industry, specialising in processing and supplying glass products for the construction sector. The company serves both the New Zealand and Australian markets, with a particular exposure to residential and commercial building activity across regions such as New Zealand’s North Island and New South Wales.

Average Trading Volume: 378

Technical Sentiment Signal: Sell

Current Market Cap: A$27.85M

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