Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — FY2025 Earnings Presentation
34 slides from Steel & Tube's earnings presentation, Aug 25, 2025
Slide 1: FY25 Results Presentation
FY25 Results Presentation For 12 months ended 30 June 2025 25 August 2025
Slide 2: Disciplined execution of strategy in challenging market
Disciplined execution of strategy in challenging market Growth strategy • Capital allocation discipline has allowed acquisition of quality businesses at bottom of cycle delivering value • Perry Metal Protection integration plan on track, delivering ahead of expectations Customer service • Organisati
Slide 3: Results at a glance
Results at a glance Cyclical business - impacted by recessionary economy; normalised EBITDA remained positive at bottom of cycle Volume Normalised EBITDA Normalised Product Margin % Inventory OPEX 101,716t $2.1m $69.9m 28.1% $113.6m FY24: 115,535t FY24: 35.8m FY24: $70.1m FY24: 29.8% FY24: $121.3m R
Slide 4: Operating Backdrop & Business Strategy
Operating Backdrop & Business Strategy
Slide 5: Recessionary conditions impacting across sectors
Recessionary conditions impacting across sectors Steel & Tube has diversified sector exposure, focused on growth markets BU Sector Split FY25 Recessionary conditions, expect to see cyclical recovery later in 100% 8% FY26. Steel & Tube product diversity and broad sector exposures 9% 11% offer opportu
Slide 6: Economic recovery on the way, albeit at slower pace
Economic recovery on the way, albeit at slower pace Steel & Tube lean and ready for cyclical upswing Upswing will be driven by: • Lowering interest rates • Government investment in infrastructure • Improved business confidence and investment • Recovery in consumer spending and the housing market Com
Slide 7: 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 8: Growth investments adding value
Growth investments adding value Added Value from Strategic Investments Recent growth initiatives and M&A 25.0 Fasteners NZ High quality, strong ongoing demand, continuing to expand range Acquisitions 20.0 Kiwi Pipe & Fittings Strong earnings growth, continuing to successfully expand ex-Auckland 15.0
Slide 9: Perry Metal Protection
Perry Metal Protection Integration plan on track; performing ahead of expectations Revenue • Acquired May 2025 for $46.4m1; 3-year average EBITDA multiple of 5x Revenue Average Selling Price 35.8 • Immediately earnings accretive, high value services 33.3 34.6 33.7 32.5 $ Millions • Performing ahead
Slide 10: FY25 Financial results
FY25 Financial results 10
Slide 11: Financial performance
Financial $m FY25 FY24 Var performance Revenue 385.4 479.1 (93.7) Group financial summary Volume (Ktonnes) 101.7 115.5 (13.8) • Challenging economic backdrop impacting GM$/tonne 688 901 (213) volumes and revenue • Gross margin reflects lower volumes and more EBITDA (2.5) 31.4 (33.9) competitive pres
Slide 12: Balance sheet summary
Balance sheet summary Funds to invest in growth opportunities $m FY25 FY24 Var • Capital discipline focus on the right acquisitions at Trade and other receivables 63.2 68.5 (5.3) the bottom of the cycle Inventories 113.6 121.3 (7.9) • Prudent management of working capital in tough Trade and other pa
Slide 13: Revenue
Revenue Maintaining share in competitive market; volume and revenue improvements in 2H25 Revenue & Tonnes per Trading Day • YoY volume down by 12% and revenue down 20% as 2000 600 result of continuing economic headwinds – 1800 Revenue $ (000s) improvement in volume and sales 2H25 500 Tonnes 1600 • R
Slide 14: Margins
Margins 1,200 Margin $/tonne Margin pressure in downturn; recovery will bring upside leverage 800 • Economic slowdown and heightened competition 400 compressed margins - • Supporting margins through strategic focus on FY21 FY22 FY23 FY24 FY25 higher value products and services, cross-selling, Gross
Slide 15: Normalised operating expenses
Normalised operating expenses Continued cost out programme with savings more than offsetting inflationary pressures • 3% of FY25 normalised OPEX relates to growth investments • Normalised OPEX, excluding growth investments, down by 2% • Cost initiatives focussed on back-office functions, site consol
Slide 16: Normalised EBITDA
Normalised EBITDA Volume and pricing impacts partially offset by new investments and OPEX savings • Positive contribution from new investments and strategic focus on higher value products and services • Volume decline consistent with recessionary environment • Increased competition for lower volumes
Slide 17: Inventory management
Inventory management Prudent management to ensure best use of working capital • FY25 inventory matched to activity, coupled with further optimisation • $14.7m (13%) of FY25 year end inventory is related to growth investments (fasteners, Kiwi Pipe & Fittings, aluminium, galvanizing) • Active stewards
Slide 18: Cashflow
Cashflow • Cash collections remain high in a softened operating environment • Careful inventory management and supply chain optimisation • Dividends of $3.1m paid during FY25, relating to FY24 dividends • Lease payments have increased by $1.1m in FY25, $0.6m of the increase relates to growth investm
Slide 19: Capital expenditure
Capital expenditure Disciplined capital management in a challenging environment • FY25 capex of $6.8m (FY24: $9.5m) Capital Expenditure 10 10 • Priority capital allocation to strategic investments (52.6%) and maintenance spend (31.5%) 8 8 • Growth investments include new purlins machine in 6 6 Auckl
Slide 20: Moving forward
Moving forward 20
Slide 21: Medium term economic driver and trends
Medium term economic driver and trends Market fundamentals remain strong, diversified product portfolio well positioned to capture upside Attractive, stable and significant sector, supported by recovery of export, Manufacturing agricultural, construction markets and domestic demand Commercial Intere
Slide 22: Market outlook
Market outlook • Economic headwinds expected to ease in FY26 resulting in improved activity, although timing and speed of recovery remain uncertain • Infrastructure activity to increase following fast track legislation and Government investment, with commercial projects and housing to follow as fund
Slide 23: FY26 focus and priorities
FY26 focus and priorities • Reinforce market position through continued strengthening of customer relationships and customer-first mindset across the business • Support margins through new higher value products and services, and cross sell opportunities • Continue cost discipline, tight inventory co
Slide 24: Summary
Summary • One of New Zealand’s largest and leading providers of steel solutions, with product diversity and broad sector exposures that differ from listed peers • Strong customer trust and loyalty remain key in tighter market; engaged and committed workforce • Economic head winds expected to ease in
Slide 25: Discussion
Discussion
Slide 26: Appendix
Appendix 26
Slide 27: Non-GAAP financial information
Non-GAAP financial information Period ended 30 June EBITDA EBIT $000s FY25 FY24 FY25 FY24 Reported (2,496) 31,415 (25,964) 9,569 Palletised warehouse project costs 1,364 2,701 1,364 3,192 Business restructuring costs 699 550 699 550 Acquisition and integration costs 903 - 903 - Software as a Service
Slide 28: Customer, employee and sustainability update
Customer, employee and sustainability update • Customer satisfaction remains at high Customer Satisfaction (NPS2) Employee Safety Measure (TRIFR1) levels due to our focus on making life 60 50 5 easy for customers, offering best-in-class 40 42 42 4 3.5 40 customer experience and solutions 3 20 2 1.13
Slide 29: Our business divisions
Our business divisions Distribution Processing Products sourced from preferred steel Products processed before sale, typically mills and distributed through our on a contract or project basis, including national network onsite installation services Steel Piping Systems Chain & Rigging Roofing Coil P
Slide 30: Business performance
Business performance Distribution FY25 FY24 Processing** FY25 FY24 % of Group revenue 59.4% 57.8% % of Group revenue 40.6% 42.2% Revenue ($m) 228.9 276.9 Revenue ($m) 156.5 202.3 Gross Margin* 17.4% 20.8% Gross Margin* 20.1% 20.6% Gross Margin $/tonne 653 852 Gross Margin $/tonne 775 1,010 *Gross Ma
Slide 31: Steel & Tube
Steel & Tube Our purpose is to make life easier for customers needing steel solutions • A proud New Zealand company, trading for over 70 years • We offer New Zealand’s most comprehensive range of steel products, services and solutions • Our stable of best-in-class businesses are some of this country
Slide 32: Extensive range of products and solutions
Extensive range of products and solutions Engineering distribution Galvanizing Reinforcing processing processing Fasteners Primary product and service Stainless Roofing offering by participants Plate Steel Wire steel steel steel Coil Steel & Tube ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 ✓5 Fletcher Steel ✓j ✓5 ✓5
Slide 33: Glossary of terms
Glossary of terms EBIT: Earnings / (Loss) before the deduction of interest and NPS: Net Promoter Score – assists in measuring customer tax. This is calculated as profit for the period before net satisfaction and loyalty interest costs and tax Normalised EBIT/EBITDA: This means EBIT and EBITDA EBITDA
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