STU - Steel & Tube Holdings

[Shareguy]

What a result compared to Vulcans. Why is the CEO still there. Chair going. And selling off what was once one of the best divisions. Have turned into a generalist supplier and still constantly runs out of top sellers.

https://www.nzx.com/announcements/478526

[Crackity]

Mark says the business is well positioned....

Vulcan must love having such a useless competitor in NZ

[Otago K]

I loved the last paragraph the most where they slipped in what the non-normalised EBIT and EBITDA ( for what they are worth ) were disclosed.

[entrep]

Shocked there is no cap raise announced tbh.

[LoungeLizard]

Steel and Tube are the canary in the coal-mine. Their decline reflects the decline of NZ's building industry generally and a prolonged lack of Government investment in infrastructure. There is no "recovery" on the horizon for STU as far as I can tell, unless we get a Government that is willing to spend to promote recovery.

[winner (n)]

Steel and Tube are the canary in the coal-mine. Their decline reflects the decline of NZ's building industry generally and a prolonged lack of Government investment in infrastructure. There is no "recovery" on the horizon for STU as far as I can tell, unless we get a Government that is willing to spend to promote recovery.

Industry trends are having an impact but STU isn't even keeping up with these trends ... like sales decline more than industry decline etc

Recent acquisitions show 0verall revenues are increasing but underlying business a disaster

And as shareguy implies selling off a few business units really only shows how stuffed they are

[BlackPeter]

Mmh - so they shrinking themselves into shape. Good for people who had too much weight, but was this really true for STU?

Actually - revenue is a bit higher than analysts expected (which may or may not be good), but earnings loss is significant higher. Analysts expected 12 cents loss per share, but they turned that into 33.3 cents loss per share, and sure - revaluing their bookvlues was part of that.

Hey, 33.3 cents loss per share, this is amazing, just wondering why you need to read the fianncials to find that out. They should put that as top liner on their annual statements: "Highest loss ever" maybe coupled with one of these amazing staff photos with staff digging a really deep hole?!

Interesting to read their future statement.

So - what does

"Highly leveraged for domestic market recovery, timing and pace remains uncertain"

really mean?

Does this mean they have lots of debts and not sure, whether the market recovery or the debt collectors might come first?

But hey, not sure about the election uncertainty they talk about. I guess - sure, Labour had 6 years to turn things bad - and National made it in just 3 years still worse. So? Where is the uncertainty? We know exactly whats going to happen in the next term even if we don't know whether it is Labour or National doing it - don't we?

But hey, they said somewhere that one can see the early start of an improvment - so, just lets hope for somebody else to take over the country and lets be positive ...

[LoungeLizard]

Industry trends are having an impact but STU isn't even keeping up with these trends ... like sales decline more than industry decline etc

Recent acquisitions show 0verall revenues are increasing but underlying business a disaster

And as shareguy implies selling off a few business units really only shows how stuffed they are

The building and manufacturing industries are in decline - lot's of layoffs and bankruptcies.

It's margins and profits that are important - not total revenue. It's just very hard for an outfit like STU to cover its increasing cost base, hence the sell-off.

I fear that it is in terminal decline and may go the way of Metro Performance Glass.

[BlackPeter]

The building and manufacturing industries are in decline - lot's of layoffs and bankruptcies.

It's margins and profits that are important - not total revenue. It's just very hard for an outfit like STU to cover its increasing cost base, hence the sell-off.

I fear that it is in terminal decline and may go the way of Metro Performance Glass.

Not positive, but you well might be right.

The "Going Concern" part of the report is quite long and referring to a lot of things nobody knows and assumptions which may or may not come true. Auditors referring to that as well: "Material uncertainty related to going concern".

I guess the SP is sort of a hint - looks less like an investment these days and more like speculation.

[Shareguy]

Steel & Tube posts $61m loss as auditor flags going-concern uncertainty. Not good........

https://www.rnz.co.nz/news/business/1126831/steel-and-tube-posts-61m-loss-as-auditor-flags-going-concern-uncertainty.

Page 77 onwards of Annual report

We draw attention to the Going Concern disclosure on pages 38 and 39 of the Group consolidated financial
statements. The Going Concern disclosure explains that compliance with banking covenants and maintaining
sufficient liquidity are highly sensitive to underlying assumptions relating to volumes and margin in the forecast
and its achievement and there is a material uncertainty concerning the Group's ability to achieve its financial
forecasts and to achieve various initiatives underway. There is also material uncertainty relating to the Group's
ability to maintain its banking relationships and to pursue further mitigants which include alternative sources of
borrowing, asset sales or further working capital management, if financial performance is below expectations.
© 2026 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Steel & Tube Annual Report 2026
77
These events or conditions along with other matters set forth in the Going Concern disclosure, indicate that a
material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty
regarding events or conditions casting significant doubt in the Group's assessment of going concern. This
included:
• Assessing the reasonableness of the FY27 forecast compared to historical performance and results since
year end, considering possible downside scenarios and their impact upon covenant compliance and
liquidity;
• Assessing significant initiatives, cost saving measures and proposed mitigants for feasibility, quantum and
timing. We used our knowledge of the client, its industry and the current status of those initiatives to assess
the level of uncertainty;
• Reading banking facility agreements, amendments and correspondence with existing and potential
financiers to understand the financing options available to the Group to assess the level of uncertainty, and
assess whether the requirements, including covenants, and repayment terms of the existing facility, were
appropriately considered in the financial forecasts;
• Evaluating the Group's going concern disclosures in the financial report by comparing them to our
understanding of the matter, the events or conditions incorporated into the financial forecasts, the Group's
plans to address those events or conditions, and accounting standard requirements. We specifically
focused on the principal matters giving rise to the material uncertainty.

Craigs say

While STU's headline revenue (+14%) and reduced EBIT losses suggest a steady improvement in FY26, Carling notes that the figures are muddied by a 12-month contribution from Perry's (vs. 2-months in the pcp). Stripping Perry's out Carling estimates that revenue for the core business was up only c.7% YoY, with EBIT broadly flat at -$22m.

In my opinion they need a capital raise AND A NEW CEO...