Steel & Tube Holdings (NZX: STU) reported a statutory net loss after tax of $61.2 million for the fiscal year ended June 30, 2026, driven primarily by $51.9 million in impairment charges. Revenue rose 13.9% year-over-year to $438.9 million, supported by a 15.9% increase in volume. The company’s normalized EBITDA improved 376% to $9.9 million, while normalized EBIT narrowed to a $16.5 million loss from $21.4 million in FY25.
The group attributed the statutory loss to $51.9 million in impairment charges and $3.8 million in non-trading adjustments, including restructuring costs, acquisition integration, and strategic reviews. Total adjustments amounted to $55.7 million. Reported EBIT totaled a $72.2 million loss, though second-half normalized EBIT improved 40% compared with the first half.
Product margins expanded by 2.6 percentage points to 30.7%, with margins per tonne increasing 7.3% to $1,167. Operating cash flow rose 22% to $12.7 million, while net debt increased to $48 million following the acquisition of Perry Metal Protection in May 2025. The company’s $80 million ANZ banking facility remains undrawn by $20 million, with a $60 million outstanding balance.
Cost reduction efforts delivered $3.5 million in annualized savings in FY26, with a further $3 million targeted for FY27 as part of a $6 million program. Approximately 60 roles were cut, and SKU rationalization reduced planned product lines from 23,000 to 13,000 over FY24–FY26. Working capital decreased by $18 million, and inventories declined slightly to $111 million.
The Distribution Division, accounting for 55.2% of revenue, reported sales of $242.2 million with a gross margin of 17.0%, while the Processing Division, representing 44.8% of revenue, posted sales of $196.7 million and a gross margin of 22.5%. Manufacturing and non-residential construction segments accounted for 39% and 27% of sales, respectively.
Management described FY26 as progress amid a prolonged downturn in New Zealand’s economy, noting three consecutive recessionary years. The outlook for FY27 remains contingent on domestic market recovery, with timing and pace deemed uncertain.
The company’s shares closed at $0.39, down 3.7% from the prior session, within a 52-week range of $0.325 to $0.73.
