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Highlights

  • STU reported 1H25 revenue of NZD 196.0 million driven by reduced customer demand across all segments and product categories.
  • The company recorded a net loss after tax of NZD 10.4 million for the period.
  • STU finalised the acquisition of Perry Metal Protection, Perry Grating, and Waikato Sand Blasting for NZD 43.3 million.

Steel & Tube Holdings (NZX: STU), founded in 1953, is a New Zealand based steel solutions provider serving the construction, manufacturing, and rural sectors through its national network and two core divisions Distribution and Infrastructure.

In the first half of financial year 2025 (1H25), the revenue fell to NZD 196.0 million, comparing to NZD 261.8 million in 1H24, driven by reduced customer demand across all segments and product categories. Steel volumes dropped to 48.7 K tonnes in 1H25 from 62.6 Ktonnes in 1HFY24, due to increased competitor pricing pressure.

During the reported period, normalised EBITDA declined sharply to NZD 2.0 million, compared to NZD 21.9 million in 1H24. Meanwhile, normalised EBIT swung to a loss of NZD 9.5 million in 1H25, down from a NZD 11.3 million in 1H24.

The company reported a net loss after tax of NZD 10.4 million in 1H25, a significant drop from a NZD 5.3 million profit in 1H24. No interim dividend was declared for 1H25, compared to 4.0 cps a year ago.

Recent Business Update

On 1 May 2025, Steel & Tube Holdings confirmed that it has completed the acquisition of Perry Metal Protection, Perry Grating, and Waikato Sand Blasting for NZD 43.3 million, with a potential earn-out of up to NZD 6 million based on future performance. The acquisition was funded with 70% cash (bank borrowing) and 30% equity, issuing 15.48 million shares.

Company Outlook

CEO Mark Malpass acknowledged ongoing short-term challenges but believes the market has likely bottomed out. The company is seeing rise in customer enquiries and tender activity, improving business confidence. With momentum expected to build from mid-2025, Steel & Tube is focused on navigating the current weaker cycle and benefit from the recovery of the market activity.

Share performance of STU

STU shares closed 2.94% lower at NZD 0.66 per share on 26 May 2025. Over the past year, STU’s share price has dropped by almost 30.21% and in the last three months, it has decreased by 21.18%.

52-week high of STU is NZD 1.08, recorded on 19 August 2024 and 52-week low is NZD 0.66, recorded on 26 May 2025.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 26 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.