Metro Performance Glass (ASX:MPP), a leading provider of glass solutions for residential and commercial buildings, has released a market update addressing the challenges and progress made in its turnaround strategy. The company has navigated a prolonged downturn in the New Zealand and Australian construction markets, along with uncertainty from a takeover offer and its capital structure. Despite these headwinds, Metro Performance Glass has made substantial operational improvements in New Zealand, stabilising service levels and achieving desired results from cost-out initiatives. A successfully oversubscribed capital raise in September 2025 reduced debt by approximately $35 million and established new banking arrangements, strengthening the company’s balance sheet.
While the construction market has not significantly improved since the half-year update, with continued downward price pressure, the new year has shown signs of improvement, particularly in New Zealand during February and March. Australia is also experiencing increased activity in March. Metro Performance Glass anticipates its year-end net debt will be close to the September 2025 level, demonstrating the resilience of its balance sheet.
Despite operational progress and cost-cutting initiatives, Metro Performance Glass expects revenue to be approximately 9% below September indications due to lower volumes and pricing pressures. However, the long-term outlook for the business remains largely unchanged, although the full benefits of the turnaround may be delayed until later in 2026.
Although lower revenue will impact earnings, this will be partially offset by efficiency measures implemented in FY26, the capital raise, and secured bank accommodation. The company anticipates a net profit before tax in the range of a $2 million loss to a $2 million profit, significantly improved from the FY25 loss of $16.6 million. The company is monitoring geopolitical events and their potential impact on fuel prices, while its bulk glass supply chain remains robust. Metroglass will announce full-year results and its outlook toward the end of May.
