Exhibit 99.1

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Presentation to Investors

STEWART & STEVENSON

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June 2003

Analysts’ Presentation June 2003

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Forward Looking Statements

Statements Contained in This Presentation Which Are Not Historical Facts Could Be Considered Forward-looking Statements. Such Forward-looking Statements Are Made Pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Actual Results May Differ Materially From Anticipated Results. Forward-looking Statements Involve Risks and Uncertainties Including the Effects of Government Budgets and Requirements, Economic Conditions, Competitive Environment and Timing of Awards and Contracts, in Addition to Other Factors Described in the Company’s Filings With the Securities and Exchange Commission Including the Most Recent 10-K.

Overview Video

Stewart & Stevenson

Corporate Profile

Stewart & Stevenson is a Global System Integrator and Aftermarket Support Organization for Energy Conversion and Utilization Systems in Niche and Environmentally Challenging Applications.

Competitive Advantage is Achieved Through Speed, Application Skills, Customer Relationships and Superior Service Utilizing Enabling Technology Provided by Partners Who Have Scale.

• Manufacturer, Distributor & Provider of Service for Engine-Driven Equipment

• Headquarters in Houston, Texas

• $1.2 Billion Sales FY2002

• 3600+ Employees…800+ Service Techs & 200+ Engineering Positions

• Focus on Four Business Groupings

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Corporate Office Houston, Texas

NYSE Listing Update

• Moved to NYSE October 18, 2002:

• Expand Shareholder Base

• Reduce Transaction Costs

• Improve Trading Efficiency

• Lower Volatility

• Centralize Trading Information

• Create Global Visibility

• New Ticker Symbol “SVC”

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Focus on Four Business Grouping

• Power Products

• Tactical Vehicle Systems

• Engineered Products

• Petroleum Equipment

• Distributed Energy Solutions

• Utility Equipment

• S&S Tug (Airline)

Fiscal Year 2002

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$117MM Sales

Power Products

• Restructured Into 10 Trade Areas

• Smaller Business Units Aimed at Driving Top Line Growth

• Equipment, Parts, Rental, Service Solutions

• 43 Service Locations

• 800+ Service Techs

• Industrial Equipment and Service

• Significant Class 8 and Specialty Vehicle Engine, Transmission, and Truck Parts & Service Business

• Material Handling

FY2002 ($MM)

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Parts & Service Sales 60% of Total

Targeting Operating Margin Improvement of 2-3% Over Next 1-2 Years

Power Products

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Marine

• Propulsion

• Ships Power

• Service

• Parts

Agriculture

• Irrigation Systems

• Engine-Pumps

• Engine-Generators

• Parts

• Service

• Rentals

Industrial, Utilities, Commercial

• Power Gen

• Forklifts

• Off Hwy Vehicle

• Air Compression

• Engines

• Gas Compression

• Pumps

• RailKing

• Service

• Parts

• Rentals

On Highway Truck & Bus

• Parts

• Service

• Refrigeration

• Engines

• Transmissions

Airports, Railway, Highway

• RailKing

• Snowblower

• Wheelchair Lifts

• Service

Power Products Applications

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Power Products Locations

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Tactical Vehicle Systems

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Photo by Rob Curtis, Army Times Staff

Soldiers with the lst squadron, Bravo Company, 2/502nd board a Light
Medium Tactical Vehicle (sic) during a break in a 19-hour truck ride in
blowing sand and high winds from Camp New York into Iraq.

Tactical Vehicle Systems

• Sole Source Provider of 2½-Ton & 5-Ton Family of Medium Tactical Vehicles (FMTV) to US Army Since 1991

• Fifteen Vehicle Variants with 85% Component Commonality $451MM Sales FY2002

• Facility in Sealy, Texas, Producing 2000+ Trucks & Trailers Annually

• Growing Aftermarket Support Infrastructure With Facilities in Military Locations

• E-Commerce Business for Repair Parts and Component Repair Services

• Technology Focus on Hybrid Electric, Suspension and Braking, On-Vehicle Electronics, and Diagnostics

• US Government R&D Program Funding Adds to Technology Base

• Lean Manufacturing and Innovative Supplier Partnering

• Awarded $396 Million Production Contract Extension Through September 2004

• April 17, 2003; Houston, Texas – Stewart & Stevenson Awarded U.S. Army’s FMTV A1CR Contract With a Base Contract of Approximately 10,000 Trucks and Trailers and Production Through 2008

• Value $1.5 Billion+

$451MM Sales FY2002

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Tactical Vehicle Systems Outlook

• Won Multi-year Award

• Five Year Program

• Over 10,000 Vehicles

• Same Proven Product With Further Enhancements

• Integrate Fabrication to Further Enhance Quality and Reduce Lead Times

• Additional Sales Targeted to Other Branches of the US Military and Allied Governments

• UK MoD $2.0 Billion Bid With International Consortium

• 36 Consecutive Months of On-time Delivery—20,000 ^th Vehicle Rolled Off Assembly Line on 3/26/03

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Engineered Products Strategy

• Top Line Growth

• Market Rebound and Share Growth

• New Product Introductions

• Acquisitions…Product Line Extensions

• Process Driven Productivity

• JD Edwards

• Product Structuring

• Project Management

• Synergies with Power Products & TVS

• Shared Technology

• Leveraged Service Infrastructure

• Consolidating Onto One Campus

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Petroleum Equipment

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Petroleum Equipment

• Equipment and Service Solutions for Land and Offshore Oil & Gas Applications

• Coil Tubing Systems

• Fracturing Systems

• Acidizing Systems

• Remanufacturing

• Global Business With Locations in Houston, Hong Kong, Moscow

• Technology Focus on Coil Tubing Systems, Electronic Controls, Engine Application

• New Proprietary Product Introduction and Service Growth Focus

• Sold Non-core Blowout Preventer, Valve, and Drilling Riser Business in FY2002

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Unique Engineering Solutions in Global Markets

Distributed Energy Solutions

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Distributed Energy Solutions

Power Generation Solutions – Land and Marine

• Reciprocating Engine Generator Sets

• Turnkey Power Plants

• Installation Services

• Operations and Maintenance Services

• Equipment From 550 KW to 5700 KW

• Complete Power Plants to 50 MW

• Fabrication Facilities Located in Houston, Texas, and Sacramento, California

• Power Products Segment Performs Aftermarket Service and Support

• Detroit Diesel/MTU, EMD, Wartsila, Deutz, and Waukesha

Voted “Project of the Year in 2002”

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Global Market Participant Providing Distributed Energy Solutions

Utility Equipment

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Utility Equipment

• Equipment and Service Solutions for Specialty Vehicles in a Niche Market

• Rail King

• Rail Car Movers

• Snow Removal

• Used by Airports & State/Local Highway Departments

• Input/Output Product Lines

• Seismic Vibrators for Geophysical Industry

• Located in Houston, Texas

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S&S Tug (Airlin)e

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S&S Tug (Airline)

• Manufacturer and Service Provider of Full Range of Aircraft Ground Support Systems:

• Baggage & Push Back Tractors

• Ground Power

• Belt Loaders

• Air Starts

• Air Conditioners

• Facilities Near Atlanta, GA

• Service Facilities on Airport Properties

• Technology Focus…Emissions, Electric Propulsion, Drive Train Systems

• MXi Electric Propulsion Tow Tractor for Industrial Plant Material Handling Applications

• Market Growth Through Electric Products, Regional Airlines, Military, and Specialty Material Handling

• Acquired DAVCO December 2002

• Regional and Governmental Airline Ground Support Equipment

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Global Market Participant With Strong Customer Relationships

Financial

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Results

Strong Balance Sheet (First Quarter FY2003)

• Solid Asset Base

• $660 Million in Total Assets

• 89% Comprised of Cash, Receivables, Inventory, Property, Plant and Equipment

• Positive Shareholders Equity

• 28.6 Million Common Shares Outstanding (Diluted)

• $361 Million Total Shareholders Equity

• $12.60 Book Value Per Share at End of First Quarter FY2003

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Low Corporate Debt

• $57 Million Total Debt at the End of First Quarter FY2003

• $55 Million of Senior Unsecured Notes

• $30 Million Paid May 2003

• $25 Million Due in 2006

• Unsecured Revolving Credit Facility

• Provides Up to $150 Million Including Letter of Credit Facility

• No Borrowings Under the Revolver at Year End

• Loan Covenants Not Overly Restrictive

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Debt Reduced $149 Million Since 1^stQuarter FY1999

Positive Cash Generation

• $66 Million Cash Provided by Operations in Fiscal 2002

• Capital Reinvestment Rate Approximates Depreciation Plus Expansion

• Minimal Cash Used for Acquisitions

• Quarterly Dividend Paid for 57 Consecutive Quarters

• Positive Cash Provided by Operations Expected to Continue in Fiscal 2003…

• First Quarter FY2003 $12.8 Million

*Net Cash Provided by Operating Activities*	*65.9*

*Expenditures for PPE*	*(27.0*	)

*Acquisition of Businesses*	*(4.9*	)

*Dividends Paid*	*(9.7*	)

*Other*	*2.3*

*Total*	*26.6*

Excellent Liquidity Profile

• Maintain Flexibility in Uncertain Times

• $116 Million in Cash at End of First Quarter FY2003

• $57 Million in Debt

• $150 Million in Credit Availability

• Strong Balance Sheet

• Positive Cash Generation

• Conservative and Selective Acquisition Criteria

• Returns Must Be in Excess of Cost of Capital or Have Synergistic Attributes to Enhance Businesses

• Continuing To Evaluate Acquisition Candidates

• Stock Repurchase Strategy

• No Re-purchase Program in Place

• Decision to Maintain Strong Liquidity

• “Cash is King”

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FY2002/03 Success-Overhead Reduction

Corporate Headquarters’ Headcount

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• Decentralized Corporate Office to Place More Responsibility and Resource in the Business Unit

• Credit, A/P, A/R, General Accounting

• Marketing

• Combined CFO and Treasurer Positions

• Defined Benefit Pension Plan Frozen…Reduced Expense:

• 2003 - $5MM

• 2006 - $10MM+

Continuing Focus on Reduced Expense

Sales & Earnings Trend

• First Quarter Sales Down Year Over Year $9.9 Million

• Continuing Operations Remained Profitable for the Quarter Despite Revenue Drop

• Expectation is to Remain Profitable in FY2003

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* Excluding Pension and Restructuring

Strong Cost Management in FY2002…FY2003 Cost and Top Line Focus

Summary

• Major Focus on Power Products Revenue & Margin Growth

• Grow Service in All Business Units

• Increase Margin Rates in Engineered Products

• Launch New Products in Engineered Products

• Utilize Information Management for Improved Customer Service, Lower Costs, and e-Commerce

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Thank You!