Steel & Tube Holdings reported a 13.9% increase in revenue to $438.9 million for the fiscal year ended June 30, 2026, driven by a 15.9% rise in volume. The New Zealand-based steel distributor and processor, however, recorded a statutory net loss after tax of $61.2 million, primarily reflecting $51.9 million in impairment charges.
Normalized EBITDA rose 376% to $9.9 million from $2.1 million in FY25, while normalized EBIT improved 23% to a loss of $16.5 million compared with a $21.4 million loss the prior year. Reported EBIT totaled a negative $72.2 million, with adjustments including $51.9 million in impairments and $3.8 million in non-trading items.
Product margins expanded by 2.6 percentage points to 30.7%, with margin per tonne increasing 7.3% to $1,167. Operating cash flow grew 22% year-over-year to $12.7 million, though net debt rose to $48 million from $36.3 million. The company borrowed $60 million against an $80 million facility, leaving $20 million undrawn. Working capital declined by $18 million, while inventory was reduced by $2.6 million to $111 million, with slow-moving stock down $3.9 million.
Cost reductions delivered $3.5 million in benefits during FY26, with an annualized $6 million program targeting $3 million in annualized operating expense savings for FY27. Approximately 60 roles were reduced as part of restructuring efforts, alongside a SKU rationalization program that cut planned SKUs from 23,000 to 13,000 over FY24–FY26.
The Distribution Division, accounting for 55.2% of group revenue, reported sales of $242.2 million, though gross margin per tonne declined to $600. The Processing Division, including galvanizing and comprising 44.8% of revenue, posted sales of $196.7 million with gross margin per tonne improving to $955. The Perry Metal Protection acquisition, completed in May 2025, exceeded its business case by about 30% on EBIT, with FY EBIT surpassing the prior year by $1.1 million.
Management described the FY26 results as progress amid a prolonged market downturn, noting cautious expectations for FY27 given uncertainty around the pace of domestic recovery. The company’s share price closed at $0.39, near the lower end of its 52-week range of $0.325 to $0.73.
