Steel & Tube Holdings Limited has announced its results for the six months ended December 31, 2024 (1H25), as it continues to steadily navigate a weak economy and position itself for a return in demand. Chief executive, Mark Malpass, said: “Steel & Tube is a cyclical business and our 1H25 results are reflective of the recessionary environment. Demand for steel remains at the lowest levels since the 1990s. Our team continues to deliver excellent service to our customers with a focus on maintaining market share.”

Revenue of $196.0 million was reflective of weaker customer demand across all sectors and products. Normalised earnings were down year on year, with Normalised EBITDA of $2.0 million. The company reported a net loss after tax of $10.4 million. Steel & Tube ended the half year with no bank debt and a positive cash balance of $17.5 million, representing about a $9 million improvement on June 30, 2024, with an undrawn $100 million bank facility in place to support growth. 

Steel & Tube´s Chair, Susan Paterson, commented “We are well placed to deliver material earnings growth as economic conditions improve. Our focus on higher value products and lower costs is driving a continuing improvement in our operating leverage which will expand our earnings growth when volumes return. Growth and merger and acquisition (M&A) investments to date are adding value and we have a strong balance sheet providing optionality. Current market conditions are presenting new M&A opportunities and today we have announced the acquisition of the assets and business of Perry Metal Protection, Perry Grating and Waikato Sand Blasting.” Perry Metal Protections is New Zealand’s largest and only ISO certified hot dip galvanising business. The total acquisition price was $43.5 million, with a potential additional, up to, $6 million payment based on the financial performance of the assets over a 2-to-3-year period, post-acquisition.

Regarding the outlook for Steel & Tube, Mark Malpass commented: “While we expect the market to remain challenged for the next few months, the cycle appears to have bottomed out, and we are seeing increased customer enquiries and tenders as business confidence starts to improve. Activity is expected to start building momentum from mid-2025 (1H26) and we are well-positioned to navigate the current weaker cycle and achieve material earnings growth as market activity returns. There is a substantial pipeline of work ahead and Steel & Tube is well positioned to capitalise on this.”