Steel & Tube - Earning Guidance FY22

Steel & Tube Holdings Limited (NZX:STU) has provided earnings guidance for the financial year ending 30 June 2022 (FY22).

The company expects FY22 normalised EBIT of not less than $45m and normalised EBITDA of not less than $64m.

For the 10 months to end-April 2022, Steel & Tube’s revenue was up 25% on the prior comparative period to $479.3m and volumes increased by 8%.

EBITDA was up 81.6% on pcp to $53.6m, and EBIT increased to $37.9m, up 157% on pcp.

Normalised EBITDA was up 89% on pcp to $54.0m, while normalised EBIT was up 178% on pcp to $38.3m.

CEO Mark Malpass said the company has benefited from diligent price and margin management, structural cost savings and supply chain capability.

Chair Susan Paterson acknowledged the leadership and support the management team has provided over the COVID-19 period.

The company expects its strong business performance to be sustained as it continues to strengthen its core business and builds on higher value segments.