Victoria’s (VCP’s) above-consensus FY25 results show management’s self-help initiatives to drive cost savings and operating efficiencies are improving profit margins in still-challenging markets. With more initiatives to come, management expects a quick recovery in profitability in the absence of a market recovery. Of great significance is the accompanying announcement that VCP’s 2026 senior secured debt has been refinanced, with the near-unanimous support of bondholders extending the maturity to 2029 at a higher coupon rate following the recent extension of the revolving credit facility (RCF). These indicate debt providers are confident in VCP’s recovery potential and remove any near-term liquidity concerns. Management’s expected improvement in profitability and the removal of liquidity concerns are significant for VCP’s equity valuation, which sits at depressed levels on cyclically low financials.