Steel & Tube Holdings Limited · NZX:STU
Steel & Tube — H1 2026 Earnings Presentation
29 slides from Steel & Tube's earnings presentation, Feb 25, 2026
Slide 1: 1H26 Results Presentation
1H26 Results Presentation For 6 months ended 31 December 2025 25 February 2026
Slide 2: 1H26 Outtakes
1H26 Outtakes Primed for upside as the cycle turns • Continued tough economic environment Persistent • Some volume improvement however base business margins squeezed economic • Growth investments have mitigated base declines headwinds • Outperformance from Perry galvanizing acquisition • Working cap
Slide 3: 1H26 Financial Summary
1H26 Financial Summary Growth investments supporting results Volume Normalised Normalised Product Margin Inventory EBITDA OPEX % 54,213t $2.8m $39.1m 31.1% $115.9m 1H25: 48,667t 1H25: $2.0m 1H25: $36.0m 1H25: 28.7% 1H25: $109.6m Revenue Normalised NPAT/NLAT Operating Cash Net Debt/Cash EBIT Flows $2
Slide 4: Cyclical stock; executed three cost out programmes
Revenue ($000s) 1,400 2,200 2,600 2,800 3,000 3,200 2,000 1,200 1,600 1,800 2,400 Jul-2017 Sep-2017 Nov-2017 Jan-2018 Mar-2018 May-2018 Jul-2018 Sep-2018 Nov-2018 Jan-2019 Mar-2019 May-2019 Jul-2019 Sep-2019 Nov-2019 Jan-2020 Mar-2020 May-2020 Jul-2020 Sep-2020 Nov-2020 Jan-2021 Mar-2021 Covid-19 af
Slide 5: Fundamentals driving the business
Fundamentals driving the business Diversified sector exposure, focused on growth markets Long- 1H26 term avg.1 Manufacturing (39% of revenue): improving business confidence and investment in the manufacturing sector Manufacturing 39% 36% Performance of Manufacturing Index (PMI) Non-Residential 27% 3
Slide 6: Long-term construction forecast
Long-term construction forecast Gradual recovery and trend upwards to $65.4b in 2030 Non-residential (27% of revenue): forecast to MBIE National Construction Pipeline Report 2025 recover and rise steadily Residential (19% of revenue): home consents have increased in the past few months and property
Slide 7: Perry Metal Protection
Perry Metal Protection Measured and strategic buy at the bottom of the cycle Revenue Trending • Strong endorsement of strategic initiative to grow into higher value product and services Monthly • Bottom of the cycle purchase, favourable Actual deal structure Business case • Consistent earnings throu
Slide 8: Perry Metal Protection: Initial business case scorecard
Perry Metal Protection Initial business case scorecard Business case expectation Assessment Revenue Exceeding EBIT Exceeding Earnings per share Exceeding Cross-sell synergies Exceeding Cost synergies On track Integration plan Exceeding Health and safety Now aligned with Steel & Tube standards Operat
Slide 9: Actively managing market challenges
Actively managing market challenges Market 1H25 2H25 1H26 Response and Mitigation Challenges • Continuous focus on optimising the cost structure Continuing • Expanding existing customer share of wallet weak economic High High High • Focus on higher value products and services drivers • Diversified b
Slide 10: Revenue
Revenue Economic headwinds persisted, cautious growth outlook Revenue & Tonnes per Trading Day 600 2000 • Volume and revenue increased by 11.3% and 8.1% Revenue $ (000s) 1800 on 1H25 and 6.7% and 11.9% on 2H25 500 Tonnes 1600 • Increase in average selling price reflects 1400 400 diversification into
Slide 11: Product margins
Product Margin ($m) Product margins 91 77 78 Improvement driven by growth investments 65 56 52 66 • Underlying industry margins currently insufficient to provide a fair return on cost of capital • Diversification into Perry galvanizing sector drove 1H23 2H23 1H24 2H24 1H25 2H25 1H26 improvement Prod
Slide 12: 1H26 Financial results
1H26 Financial results 12
Slide 13: Financial performance
Financial performance $m 1H26 2H25 1H25 Group financial summary Revenue 211.9 189.4 196.0 • Strategic growth investments underpinning results Volume (Ktonnes) 54.2 50.8 48.7 • Significant operating leverage - will drive PM$/tonne 1,214 1,024 1,155 profit expansion when broader demand returns EBITDA
Slide 14: Normalised operating expenses
Normalised operating expenses Third wave of cost out programme underway: $3m annualised OPEX benefit from FY27 • 9.3% of 1H26 normalised OPEX relates to growth investments • Normalised OPEX, excluding growth investments, maintained in line with 1H25 • Cost initiatives focused on back-office function
Slide 15: Normalised EBITDA
Normalised EBITDA Growth investments and opex savings partially offsetting margin impacts • Positive contribution from new investments and strategic focus on higher value products and services • Volume increase offset by base business margin decline driven by intense market competition and product m
Slide 16: Balance sheet summary
Balance sheet summary $m 1H26 2H25 1H25 Disciplined capital management Trade and other receivables 57.1 63.2 51.4 • Prudent management of working capital in Inventories 115.9 113.6 109.6 tough economic conditions Trade and other payables (73.1) (61.7) (54.0) • YOY increase in Net Debt due to funding
Slide 17: Cashflow and Net Debt
Cashflow and Net Debt Staying the course, disciplined cashflow management • Focus on cash conversion and margin discipline • Tight working capital management – inventory, receivables, payables • 1H26 net cash outflow improved on 2H25 excluding Perry’s drawdown ($30.2m, May 2025) • Cashflow initiativ
Slide 18: Inventory
Inventory Number of active SKUs 25,000 23,000 21,000 • Focused on investing in a high-quality range 19,000 17,000 • Reduced from 23k to 15k active SKUs from 15,000 1H25 13,000 11,000 • Inventory value up as we invest in availability 9,000 7,000 of key inventory lines 5,000 1H24 2H24 1H25 2H25 1H26 •
Slide 19: Moving forward
Moving forward 19
Slide 20: 2H26 Market Outlook
2H26 Market Outlook • Economy expected to firm over CY 2026, although recovery uneven • Planned construction work is increasing - will take time to filter through to spades in the ground • Manufacturing demand on the rise, driven by export market • Lower interest rates should lead to improved activi
Slide 21: Key Priorities
Key Priorities Implemented Short term Medium term Disciplined control Optimise the recovery Return to growth Customer share of wallet growth o Building on strategic customer o Benefit realisation from growth embedded alliances and share of wallet initiatives: Tight focus on customer value o Ongoing
Slide 22: Discussion
Discussion
Slide 23: Appendix
Appendix 23
Slide 24: Non-GAAP financial information
Non-GAAP financial information 6-month period EBITDA EBIT $000s 1H26 2H25 1H25 1H26 2H25 1H25 Reported 1,240 (3,056) 561 (11,893) (15,031) (10,922) Palletised warehouse project costs - 458 906 - 458 906 Business restructuring costs 240 472 227 240 472 227 Acquisition and integration costs 170 903 -
Slide 25: Customer, employee and sustainability update
Customer, employee and sustainability update • Customer satisfaction remains at high Customer Satisfaction (NPS2) Employee Safety Measure (TRIFR1) levels due to our focus on making life 60 50 5.00 48 easy for customers, offering best-in-class 42 42 4.00 3.5 40 2.76 customer experience and solutions
Slide 26: Our business divisions
Our business divisions Distribution Processing Products sourced from preferred steel Products processed before sale, typically mills and distributed through our on a contract or project basis, including national network onsite installation services Steel Piping Systems Chain & Rigging Roofing Coil P
Slide 27: Business performance
Business performance Distribution 1H26 1H25 Processing** 1H26 1H25 % of Group revenue 54.9% 58.5% % of Group revenue 45.1% 41.5% Revenue ($m) 116.4 114.7 Revenue ($m) 95.5 81.4 Product Margin* 23.9% 26.5% Product Margin* 37.2% 29.9% Product Margin $/tonne 873 1,058 Product Margin $/tonne 1,591 1,223
Slide 28: 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 29: 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
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