Highlights

  • Steel & Tube reported improving Revenue, volumes, and positive EBIT during early 2026.
  • Rising Middle East tensions have weakened Business confidence and softened steel Demand.
  • Diversified operations, Supply chains, and customer sectors are helping strengthen resilience.

Overview

Steel & Tube Holdings Limited (NZX:STU) has highlighted both encouraging progress and emerging challenges in its latest Shareholder newsletter. The company experienced improving trading conditions through late 2025 and early 2026, supported by stronger enquiry levels, rising forward orders, and a return to positive normalised Earnings. However, escalating conflict in the Middle East has introduced fresh uncertainty, affecting business confidence and slowing demand in some sectors, particularly construction. Despite these headwinds, Steel & Tube remains focused on maintaining sustainable earnings, strengthening its Balance Sheet, and leveraging its diversified customer base, supply chain network, and operational capabilities to navigate changing market conditions.

How Did Steel & Tube's Recovery Gain Momentum in Early 2026?

After a prolonged period of economic weakness, Steel & Tube began seeing signs of recovery in late 2025. Customer enquiries increased, forward orders strengthened, and sentiment improved across several sectors. This momentum carried into the first quarter of 2026, helping the company achieve higher revenue and sales volumes while returning to positive normalised EBIT. Operational efficiencies, disciplined cost management, and a greater focus on higher-value products and services also contributed to improved gross margins and stronger overall performance.

Why Is Supply Chain Diversity Becoming a Key Competitive Advantage?

Steel & Tube believes its diversified supply chain has become a major strength amid ongoing global disruptions. By sourcing products from multiple suppliers across New Zealand, Australia, and international markets, the company has maintained reliable inventory levels despite geopolitical tensions and shipping challenges. The business has also expanded its trucking fleet, increasing control over Auckland deliveries and enhancing Customer Service. Combined with a broad customer base and exposure to multiple sectors, this Diversification helps reduce risk and improve operational resilience.