Hulamin returns to growth with R395.4m as rolling operations regain momentum

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South African aluminium rolled products producer Hulamin reported a stronger first-half performance for 2026 as operational stability returned following last year's production disruptions, with higher rolled product volumes, improved plant utilisation and portfolio optimisation helping lift earnings despite ongoing pricing pressures in parts of the business.

The company said most of the operational challenges experienced during the second half of 2025 have now been resolved, allowing its core rolling operations to stabilise and progressively ramp up towards the upgraded plant's design capacity.

Rolled product volumes reached 85,000 tonnes during the six months ended June 30, reflecting the continued operational recovery.

Operational recovery supports stronger earnings

Hulamin reported operating profit from continuing operations of ZAR395.4 million (USD 23.96 million), more than doubling from ZAR164.5 million (USD 9.97 million) recorded a year earlier.

Headline earnings per share (HEPS) increased to 79 cents from 14 cents, supported by stronger operational performance and higher aluminium prices.

The company said the successful commercialisation of its wide-canbody expansion across its customer base has strengthened its product portfolio while supporting production growth as the upgraded rolling facility continues to ramp up.

"The successful commercialisation of our wide-canbody expansion across our customer base, together with the continued execution of our portfolio optimisation strategy through the disposal of our non-core businesses, positions the group well for the future," Hulamin said.

Asset disposals strengthen balance sheet

Alongside operational improvements, Hulamin continued implementing its portfolio optimisation strategy through the disposal of non-core businesses.

The company said the disposals have released approximately ZAR100 million (USD 6.06 million) in working capital, with proceeds being used to reduce debt and strengthen the balance sheet.

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The disposal of Hulamin Containers' operating assets has been completed, with payment received for the equipment, while the transfer of the associated land and buildings remains in progress. 

Hulamin also confirmed that the disposal of another non-core operation is substantially complete. The company has already received ZAR10 million (USD 606,160) in cash proceeds, while a consignment stock agreement worth up to ZAR100 million (USD 6.06 million) remains in place. The remaining proceeds are expected to be realised during the second half of 2026.

Currency and pricing pressures weigh on normalised earnings

Despite the stronger operational performance, Hulamin reported normalised headline earnings of ZAR30 million (USD 1.82 million), representing a 62 per cent decline from the previous year.

The company attributed the decrease primarily to the stronger South African rand against the US dollar, an unfavourable sales mix as can-end volumes remained operationally constrained during the first quarter, and continued pressure on domestic can-end pricing.

These challenges were partly offset by tighter cost control and improved trading conditions in the company's core canbody and heat-treatable plate product segments.

Overall headline earnings increased to ZAR245 million (USD 13.5 million) from ZAR43 million (USD 2.4 million) a year earlier, benefiting from higher metal-price-lag gains linked to rising London Metal Exchange (LME) aluminium prices, partially offset by one-off restructuring costs associated with operational improvements.

Recovery expected to support future performance

Hulamin did not declare an interim dividend for the reporting period.

Looking ahead, the company said the significant operational improvement achieved since the second half of 2025 provides a stronger platform for future financial performance as production continues to move towards the upgraded plant's targeted operating rate.

"While first-half earnings remain below the comparative period, the substantial improvement in operational performance from the second half of 2025 provides a solid foundation for improved financial performance in the periods ahead," the company said.

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