Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — FY2026 Earnings Presentation
34 slides from Steel & Tube's earnings presentation, Aug 26, 2026
Slide 1: FY26 Results Presentation
FY26 Results Presentation For 12 months ended 30 June 2026 26 August 2026
Slide 2: FY26 Outtakes
FY26 Outtakes Progress made despite disrupted market recovery • Normalised results improved on prior year, however unforeseen continuing market weakness and increased costs (primarily wages and energy) have Strongly leveraged to delayed the return to profitability market recovery • Positive revenue
Slide 3: FY26 Financial Summary
FY26 Financial Summary Operating leverage supporting earnings growth off bottom of cycle Volume Normalised Normalised Product Margin Inventory EBITDA OPEX % ▲115,261t ▲$9.9m ▲$76.3m ▲30.7% ▼$111.0m Up 15.9% Up $7.7m Increase 9.1% Increase 2.6 pp Reduced by 2.3% Revenue Normalised NLAT Operating Cash
Slide 4: Operating Performance
Operating Performance 4
Slide 5: Cycle turning but uneven through FY26
Cycle turning but uneven through FY26 Positive revenue and volume trends through to Q3; slowed by Middle East conflict, cost inflation and pre-election caution in Q4 Covid-19 Indicator YOY Trend As at YE 2026 Customer Enquiries ⚫ Quotes Issued ⚫ Middle East Order Conversion conflict ⚫ Inventory Turn
Slide 6: Significant earnings improvement as market recovered
Significant earnings improvement as market recovered Normalised EBITDA and Normalised EBIT Normalised EBITDA • Strong improvement YoY 12,000 • Continuing momentum 1H26 to 2H26 10,000 9,858 8,000 Normalised Normalised 7,048 EBITDA EBIT $000s 6,000 FY25: FY26 +376% +23% 4,000 2,810 1H25: 1H26 +40% (9)
Slide 7: Broad exposure across key end markets
Broad exposure across key end markets Leveraging recovery across multiple sectors % of sales Long- FY26 term avg.1 • Manufacturing: clear signs of emerging recovery – moved Manufacturing 39% 36% from stagnation to expansion but with month-to-month volatility Non-Residential • Commercial: remained su
Slide 8: FY26 priorities and progress – lookback
FY26 priorities and progress – lookback Sustainable • Broadening exposure across multiple market sectors and product offerings earnings through • Reducing reliance on construction – although will always be an important sector the cycle • Acquisition strategy proving itself – outperformance from Perr
Slide 9: Investment into higher value products and services
Investment into higher value products and services Recent acquisitions and investments providing strategic PMP Revenue Trending benefit • Kiwi Pipe & Fittings, Aluminium, Fasteners, Freight, expanded Purlin capacity Actual • Plate processing returns below investment criteria – Business case planned
Slide 10: Strengthening the core through the cycle
Strengthening the core through the cycle Leaner, stronger and more efficient business Strategic Focus Measurement Best in class customer service • NPS 40 – in line with prior year • Recognised for specialist capability and technical expertise Cross sell products and services • 72% of customers buyin
Slide 11: Portfolio Review
Portfolio Review 11
Slide 12: Comprehensive portfolio review
Comprehensive portfolio review Directing capital to the highest-value opportunities • Assessment of product and service portfolio against investment Assessment criteria criteria Financial returns • Priority focus on enhancing capital allocation and returns Sector attractiveness • Accelerate strategy
Slide 13: FY26 Financial Results
FY26 Financial Results 13
Slide 14: Financial performance
Financial performance $m FY26 FY25 Var Group financial summary Revenue 438.9 385.4 13.9% ▲ • Relentless focus on financial discipline delivering Volume (Ktonnes) 115.3 99.5 15.9% ▲ measurable improvement • Significant operating leverage supporting PM$/tonne 1,167 1,088 7.3% ▲ earnings growth ahead o
Slide 15: Revenue
Revenue Increasing demand as recovery gained momentum Q1 to Q3 Revenue & Tonnes per Trading Day • Improving quarterly trend Q1 to Q3, tempered by 2,000 600 impact of Middle East conflict and pre-election Revenue $ (000s) caution in Q4 1,800 500 Tonnes 1,600 • 1H26 vs pcp: increase in revenue and ton
Slide 16: Product margins
Product margins Product Margin % and $/tonne1 Operating leverage coming into play – 29.5% 28.4% 29.8% 28.1% 30.7% earnings will recover faster than revenue 1,238 1,142 1,167 1,057 1,088 • Product margin % up 2.6pp YoY • Product margin $/tonne increased 15.8% YoY FY22 FY23 FY24 FY25 FY26 • GM$/Tonne
Slide 17: Normalised operating expenses
Normalised operating expenses Third wave of cost out programme underway Normalised OPEX Bridge: FY25 to FY26 95 • Accelerated cost savings needed to combat inflationary pressures 85 • 7% of FY26 normalised OPEX relates to 4.9 1.0 75.7 2.9 76.3 the Galvanizing division 75 69.9 (2.3) • Excluding Perry
Slide 18: Normalised EBITDA
Normalised EBITDA Growth investments and opex savings supporting increased earnings Normalised EBITDA Bridge FY25 to FY26 • 376% improvement from $2.1m to $9.9m 35 • Positive contribution from new growth 30 investments and strategic focus on 17.5 higher value products and services 25 20 • Base busin
Slide 19: Balance sheet summary
Balance sheet summary $m FY26 FY25 Var Capital management remains priority, focus on rebuilding balance sheet Trade and other receivables 67.2 63.2 4.0 capacity Inventories 111.0 113.6 (2.6) Trade and other payables (81.0) (61.7) (19.3) • Borrowings reflect Perry’s acquisition in May 2025 Working Ca
Slide 20: Cashflow and Net Debt
Cashflow and Net Debt Staying the course, disciplined cashflow management Cash Flow Bridge: FY25 to FY26 • Net operating cash $12.7m 0 • Focus on cash conversion and margin (10) discipline (20) • Tight working capital management – 6.1 inventory, receivables, payables (30) $m • Cashflow initiatives t
Slide 21: Inventory
Inventory Number of planned SKUs 25,000 • Investment in high-quality, high margin 20,000 inventory items • Reduced from 23k to ~13k planned SKUs over 15,000 two year period (FY24 to FY26) 10,000 • Actively managing discontinued inventory 5,000 lines - • Reduced slow-moving and obsolete inventory FY2
Slide 22: Moving forward
Moving forward 22
Slide 23: Market Drivers FY27 Outlook
Market Drivers FY27 Outlook Highly leveraged for domestic market recovery, timing and pace Positive momentum, but volatile and remains uncertain Manufacturing exposed to input-cost pressures • Q2 & Q3 FY26 showed ability to deliver when market conditions Non-Residential Limited near-term visibility
Slide 24: Key Priorities
Key Priorities Implemented Short term Medium term Disciplined control Optimise the recovery Return to growth Customer share of wallet growth Portfolio and business reset – exit o Benefit realisation from embedded loss making operations growth initiatives: Tight focus on customer value o M&A (differe
Slide 25: Key strengths
Key strengths One of New Zealand’s largest and leading providers of steel solutions, operating in market with strong long-term drivers Outlook improving • Signs of an improving outlook are beginning to emerge • Diversified exposure to end markets • Broad range of in-demand steel products and solutio
Slide 26: Discussion
Discussion
Slide 27: Appendix
Appendix 27
Slide 28: Non-GAAP financial information
Non-GAAP financial information Period ended 30 June EBITDA EBIT $000s FY26 FY25 FY26 FY25 Reported (45,815) (2,496) (72,201) (25,953) Palletised warehouse project costs - 1,364 - 1,364 Business restructuring costs 1,379 699 1,379 699 Acquisition and integration expenses 296 903 296 903 Software as a
Slide 29: Strategic pathways
Strategic pathways Overall goal to deliver gross margin improvement Grow High Value Products and Continue to Strengthen the Core Services • Best-in-class customer experience • High value products, diversified materials and value-added services • Cross sell products and services • Diversify customer
Slide 30: Customer, employee and sustainability update
Customer, employee and sustainability update • Customer satisfaction remains at high Customer Satisfaction (NPS2) Employee Safety Measure (TRIFR1) levels due to our focus on making life 60 50 5 easy for customers, offering best-in-class 40 42 42 40 4 3.5 3.43 40 customer experience and solutions 3 2
Slide 31: Our business divisions
Our business divisions Distribution Processing (including Galvanizing) Products sourced from preferred steel Products processed before sale, typically on a contract mills and distributed through our or project basis, including onsite installation services national network Steel Piping Systems Chain
Slide 32: Business performance
Business performance Distribution FY26 FY25 Processing** FY26 FY25 % of Group revenue 55.2% 59.4% % of Group revenue 44.8% 40.6% Revenue ($m) 242.2 228.9 Revenue ($m) 196.7 156.5 Gross Margin* 17.0% 17.4% Gross Margin* 22.5% 20.1% Gross Margin $/tonne 600 653 Gross Margin $/tonne 955 820 • Subdued d
Slide 33: Glossary of terms
Glossary of terms EBIT: Earnings / (Loss) before the deduction of interest and Tonnes: Represents tonnes sold by Distribution, tax. This is calculated as profit for the period before net Rollforming and Reinforcing and zinc tonnes consumed in interest costs and tax the galvanizing process EBITDA: Ea
Slide 34: Disclaimer
Disclaimer • This presentation has been prepared by Steel & Tube Holdings operations and business, and business strategy of STU. Information Limited (“STU”). The information in this presentation is of a general about the future, by its nature, involves inherent risks and nature only. It is not a com