STK - Earnings begin to recover - Earnings Flash

- STK reported Q2 2023 results with revenue bouncing back 41% QoQ and NPAT recovering 19x QoQ from Q1 2023’s low base. However, Q2 2023 NPAT was weak vs Q2 2022, slumping 46% YoY.

- As a producer of upstream material, STK was an early beneficiary of restocking across the value chain. 

- H1 2023 revenue and NPAT achieved 47% and 30% of our respective full-year forecasts. We see no potential changes to our forecasts, pending a fuller review, as we expect earnings will continue to recover in H2 2023.