Steel & Tube - Shareholder Newsletter - December 2025

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"By leveraging our
extensiv e dis trib ut io n
network, we’re geared to
meet a crit ic al customer
prio rit y: speed."
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Shareholder
Newsletter
December 2025
Dear Shareholder
Kia Ora, Tēnā Kout ou
While we cont inue to navigate one of the toughest trading envir onment s in many years, economic indic at ors ar e
improving and we belie ve the cycle floor has pas sed. There ar e signs of new ac tiv it y in the manufactur ing sector,
the labour mar ket is stabil is ing, interest rates have reduc ed by another 25 bas is points to 2. 25%, and the
Governme
nt is progr essing infrastruc tur e and enc ouraging fur ther in vestment s.
Doubling down on customer servic e
We’ve doubled down on customer servic e and dat a- driv en decis io n making to ensur e we remain the supplie r of
choic e as demand retur ns. Over the pas t year , the team has in vested heavil y in gathering and analysing real -time
insights - from customer feedbac k and mar ket sur veys thr ough to onl ine shopping beha
vio ur - giving us a clear
vie w of what our customers val ue most and where we can dif ferent iate vers us our competit io n. All of these
initiativ es support our core goal : to mak e lif e eas ie r for our customers .
One mar ket leading initiativ e is the launch of same-day deliv ery for fasteners natio nwid e, for al l in-stock items
(read more here). B y leveraging our extensiv e dis trib ut io n network,
speed. Ear ly adopt
io n has been strong, confirming that rapid deliv ery is a meaningful advantage for this produc t
line. Bas ed on this suc cess, we’re now as sessing other core cat egorie s where simil ar servic e promis es can be
offered.
Breadth of Range: A Core Competit iv e Advantage
Underpinning these improvement s is one of our strongest competit iv e advantages: the broadest produc t range in
the mar ket. Customers can ac cess spe
cialis t produc ts and servic es in a unified way, simplif ying their procur ement
process and enabling produc t bundling. Since Perry’s joined the gr oup, we’ve seen significant gr owth from Perry’s
customers as they real is e the benefit s of deal ing wit h one company for both their steel produc t supply and
galvanising needs. We’ve seen the same thing wit h Kiwi Pip e & Fit tings where we have been able to both expan
d
the fir e and wat er retic ul at io n range ac ross our Dis trib ut io n business model and al so support Kiwi customers wit h
al l their steel and metal s needs.
Four -mont h trading updat e: improvement expected in
late 2H26
The mar ket condit io ns remain challenging and demand is subdued. We recent ly provid ed a trading updat e for the
financial YTD (Jul y to end-October 2025) reporting softer sal es volumes, in line wit h oth
er industry and sector
par tic ip ants. For the four mont hs to end-October 2025, revenue of $145.2 mil lio n was up 2. 4% on the prio r
comparable perio d, while normal is ed EBIT of $( 7. 2) mil lio n was $2.2 mil lio n lower than the same perio d las t year .
This was a cont inuatio n of the trends seen in the second half of FY25. The ful l announcement can be vie wed here
ht tps://www.nz x.com/announcement s/462982.
Posit io ned for the rebound; initial stages of cyclic al
recovery being seen
We ar e star ting to see the initial stages of cyclic al recovery wit h increas ed ac tiv it y and ear ly signs of mar gin
improvement . We have maintained our focus on customers and a dis cip lined approac h to cas h, in vent ory and
costs (~$7 mil lio n of annualis ed cost savings in FY25 wit h fur ther savings underway in FY26). These efforts ar e
deliv eri
ng increas ed operating leverage and posit io ning our company well.
There ar e some posit iv e themes that shoul d lead to improved ac tiv it y over the next 12 to 18 mont hs including
lower interest rates, government-funded infrastruc tur e projects, manufactur ing sector expansio n and increas ing
commercial and resid ent ial building consent s. In addit io n, in FY26, we wil l have had the benefit of a ful l year
followi
ng the suc cessful Perry Metal Protectio n ac quisit io n which is deliv ering ahead of forecas t, as well as
gr oup-wid e cost out initiativ es implement ed in FY25.
We ar e confident in Steel & Tube’s abil it y to capit al is e on increas ing demand as the New Zeal and economy
improves.
Sus an Paterson Chair
Mark Malpass Chief Execut iv e Offic er 
Where qualit y steel meets
qualit y servic e
Our team of over 100 dedicated account managers, 65
customer experience special ists and dedicated technical
exper ts are at the hear t of del ivering exceptional ser vice
at Steel & Tube.
By ac tiv ely meas ur ing and responding to customer feedbac k, provid ing expert technical
support — inc luding mar ket- leading BIM-spec provis io n — and embracing a cul tur e of
cont inuous improvement , we ensur e our customers receiv e not just qualit y steel, but a
seamless a
nd responsiv e servic e experie nc e every time.
Steel & Tube’s technical Roofing Team ar e just one example of the expertis e on offer,
wit h many customers having them on speed dial al ready.
Raising the bar on roofing 
Our goal is simpl e: to del iver the right roofing products, on time, with great ser vice. Our roofing and cl adding product
range covers the needs of commercial , residential , and rural customers. Products incl ude the ever-popul ar corrugate
profil e, trapezoidal and fl at tray profil es as wel l as our newl y rel eased BRANZ-appraised QBT450 ventil ated tray system.
Recent initiativ es ar e making it eas ie r than ever for customers to work wit h us:
Project Coordinators – dedic at ed coordinators ar e being appointed to manage and
coordinate al l as pects of lar ge key projects, as well as tie r-1 customers , ensur ing a
single point of cont ac t and smoother project deliv ery.
Daily flas hing deliv ery servic e – we know deliv ery speed is important so we’re
trialling a daily deliv ery to key merchants in the Northl and ar ea to meet the crit ic al
timing needs of the projects they ar e supplying.
We’ve al so made significant operatio nal improvement s to enhance our offer including
upgrading key plant and equipment , wit h a new folder in Auc kland and a new ful ly
automat ed Pur lin line increas in
g produc tiv it y, improving qualit y, and provid ing more
customis at io n. Owning our own truc ks ac ross al l North Is land Roofing branches al so
helps to get closer to our customers and improve deliv ery reliabil it y. We provid e regular
technical training for CX and sal es teams, to boost produc t knowledge and ensur e the
right solut io ns ar e recommended every time.
Thr ough these initiativ es, we cont inue to mak e it e
as ie r for our customers to do business
wit h us, building stronger par tners hips and deliv ering real val ue on every project.
A behind-the-scenes look at New Zeal and's steel produc tio n
Recentl y, teams from New Zeal and Steel , Pacific Steel , and Steel & Tube had the pl easure of wel coming customers to the
Gl enbrook mil l to see the El ectric Arc Furnace (EAF) project in action.
Guests had the chance to see firsthand how sand is transformed into steel — a vit al par t
of our local supply chain — and lear n about New Zeal and’s progr ess towar d lower-
emis sio n, local ly produc ed steel. They al so wit nessed where steel bil let is manufactur ed
from 1600-degr ee molten steel, ready for fut ur e processing into reinforcing steel and
COLORSTEEL™.
A highlight of the day was a pers onal moment : taking customer Brett Russell bac k to
the v
ery plac e where he completed his apprent ic eship in the 1980s as a bric klayer for
his father’s business — a ful l-cir cle experie nc e that brought the industry’s history and it s
fut ur e together.
The vis it highlighted the val ue we deliv er to customers — from technical insights and
sustainabil it y innovat io ns to seeing the processes that underpin our ful l range of
produc ts.
Steel & Tube supplie s a lar ge number of p
roduc ts to help customers meet their
sustainabil it y goal s. wit h Envir onment al Produc t Declaratio ns (EPDs), as well as low-
car bon reinforcing steel (ARCS ac credit ed wit h a GWP below 0. 5 and 1. 0) .
Built on foundat io ns of steel
A state -of-the -ar t 10,000m² hangar, suppor ted by 5,000m²
of workshops and engineering spaces, is the l atest addition
to Air New Zeal and’s maintenance base.
Steel & Tube was proud to par tner wit h NZ Strong on this mil estone project, supplying
485 tonnes of high-qualit y reinforcing steel. Steel & Tube leveraged the Tekla Struc tur es
plat form, a world-clas s 3D modelling tool, to ensur e precis io n and coordinatio n
thr oughout the project wit h ac curate detailing, clas h detectio n, design val id at io n and
seamless collaboratio n between the clie nt , engineers , project managers and sit e teams.
T
his al lowed for ac curate detailing, minimis ed errors and optimiz ed mat erial usage
which reduc ed was te and cost.
Our produc ts and servic e played a cruc ial role in deliv ering the hangar’s design
requirement s, increas ed effic ie ncy in supply and instal lat io n, long-term durabil it y and
seis mic resil ie nc e.
Thr oughout the project, our team worked closely wit h NZ Strong, Aur econ and KP
Reinforcing to ensur e smooth
deliv ery timelines and technical support. The resul t is a
world-clas s engineering facil it y built to wit hstand New Zeal and condit io ns and meet the
demanding needs of modern aircraft maintenance.
This project is a strong example of Steel & Tube’s commit ment to supporting natio nal
infrastruc tur e wit h reliable supply, expert servic e and innovat iv e steel solut io ns. We’re
proud to have cont rib ut ed to a deve
lopment that wil l help keep New Zeal and connected
for decades to come.
David Welsh: Focused on customers , gr owth and “getting things
done”
David Welsh joined Steel & Tube in ear ly 2025, taking on the role of GM Dis trib ut io n and bringing wit h him decades of
experie nc e ac ross sal es, mar keting, operatio ns and leaders hip. He began his car eer in shipping customer servic es and
progr essed thr ough FMCG roles befo
re moving into general management 17 years ago - including thr ee years in the
UK. The pas t 11 years have been fir mly rooted in the building industry, wit h leaders hip roles in steel roofing,
aggregates, cement , conc rete and now steel dis trib ut io n.
What driv es him is simple: helping customers suc ceed. He thr iv es on customer cont ac t and enc ourages the team to
deliv er practic al , problem-solving solut io ns.
Hi
s move to Steel & Tube was driv en by the strength of the company’s offer - natio nal reac h, a wid e produc t range and
specialis t servic es suc h as chain and rigging and plat e processing, al l bac ked by gr eat people.
Since joining, he has sharpened the sal es focus on winning new customers while cont inuing to support exis ting ones,
expanded our one-stop-shop offering to save customers time, and helped simp
lif y par ts of the business to mak e lif e
eas ie r for those we serve — from servic e level improvement s to SKU reduc tio n and more streamlined freight. Cur rent ly,
he’s looking forwar d to seeing New Zeal and move bac k int o gr owth, and is focused on lif ting retur ns thr ough mar gin
mix , cost cont rol and mar ket share gains.
Bas ed in Auc kland, originally from Wellington, he and his wif e Anna have two daughters and love
anything in volving
the beac h or wat er. And a fun fact: he onc e met Har ris on Ford dur ing his time liv ing in the USA.
November 2025 Procur ement Updat e
Steel & Tube prepar es a regular Procur ement Updat e, provid ing insights into the gl obal
steel mar ket and what this means for Steel & Tube and our customers . The November
2025 edit io n highlights how gl obal feedstock, freight, and cur rency dynamic s ar e
conver
ging to form a cost floor ac ross maj or metal cat egorie s — wit h mul tip le indic at ors
pointing to at leas t a 5% increas e thr ough 2026.
Steel & Tube’s combination of a broad product range, convenience and service responsiveness - backed by a
great team with deep sector knowledge - positions us strongly for the next phase of growth, ensuring that as
the market turns, we are already the preferred partner in our sector.
we’re geared to meet a critical customer priority: