New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>We downgrade Steel &amp; Tube (STU) from NEUTRAL to UNDERPERFORM.</li><li>It has been a tough 18 months for STU, delivering a -NZ$21m EBIT loss in FY25, followed by a -NZ$7m EBIT loss through the first four months of FY26.</li><li>We expect losses to continue in the coming months, with breakeven EBIT unlikely until at least February/March 2026 given low trading days in December and January.</li></ul>

We downgrade Steel &amp; Tube (STU) from NEUTRAL to UNDERPERFORM.It has been a tough 18 months for STU, delivering a -NZ$21m EBIT loss in FY25, followed by a -NZ$7m EBIT loss through the first four months of FY26.We expect losses to continue in the coming months, with breakeven EBIT unlikely until at least February/March 2026 given low trading days in December and January.

Steel & Tube Holdings More Losses Ahead—UNDERPERFORM