Steel & Tube Holdings Ltd. posted a statutory after-tax loss of NZD 61.2 million for the fiscal year ended June 30, 2026, as impairments and non-trading charges outweighed revenue growth and improved profitability measures.
The company reported a 13.9% year-on-year increase in revenue to NZD 550.1 million, alongside a 15.9% rise in volumes. Normalized earnings before interest and tax (EBIT) grew 23.7% to NZD 9.9 million, while normalized EBITDA surged 376% to NZD 9.9 million, up from NZD 2.1 million in the prior year. Second-half earnings improved 40% compared with the first half.
Impairments totaling NZD 51.9 million—primarily related to write-downs of business unit carrying values—along with NZD 3.8 million in other non-trading adjustments, drove the statutory loss. Net operating cash flow reached NZD 12.7 million, while capital expenditure amounted to NZD 7 million, with roughly two-thirds allocated to maintenance.
Steel & Tube’s net debt stood at approximately NZD 48 million at year-end, with inventory valued at NZD 111 million. The company reduced its stock-keeping units from 23,000 to around 13,000, reflecting ongoing operational streamlining. Asset sales and inventory realization from its reinforcing and wire business are expected to generate NZD 11 million to NZD 12 million, excluding costs.
The reinforcing and wire business contributed a normalized EBIT loss of about NZD 7.5 million for FY26, including its share of corporate levy. Site consolidations will yield net cash savings of NZD 2 million once fully implemented by the end of 2027, with seven smaller sites slated for exit over the next 12 months.
Chief Executive Mark Malpass cited three consecutive years of recession in New Zealand, noting that the downturn has persisted longer than anticipated. The company has paused mergers and acquisitions, imposed capital expenditure restrictions, and suspended dividend payments. Banking facilities with ANZ were extended until September 2027.
FY27 outlook remains uneven, with gradual improvement expected in the second half, while macro volumes are projected to strengthen in calendar year 2027.
