Olympic Steel Reports Fourth-Quarter and Full-Year 2024 Results
Olympic Steel, a national leader in metal service, announced its financial results for the three and twelve months ended December 31, 2024. Despite tough market conditions, the company posted an increase in profitability during the fourth quarter, continuing to execute on its long-term diversification strategy.
Fourth-Quarter Results Overview
In the fourth quarter of 2024, Olympic Steel reported net income of $3.9 million, or $0.33 per diluted share, compared to $7.4 million, or $0.64 per diluted share, in the same period of 2023. The company’s performance includes $3.1 million in LIFO (Last-In, First-Out) pre-tax income for the quarter, down from $5.3 million in the prior year.
Adjusted EBITDA for the quarter was $14.5 million, showing a sequential improvement from the third quarter of 2024, but down from $16.7 million in the same period last year. Sales for Q4 2024 totaled $419 million, compared to $489 million in Q4 2023, reflecting a decrease in both pricing and demand for metals.
Full-Year Financial Performance
For the full year 2024, Olympic Steel posted a net income of $23.0 million, or $1.97 per diluted share, a significant decrease from $44.5 million, or $3.85 per diluted share, in 2023. Full-year LIFO pre-tax income was $5.7 million, down from $8.3 million in 2023. Adjusted EBITDA for the year was $72.5 million, compared to $97.6 million in 2023, while sales dropped from $2.2 billion in 2023 to $1.9 billion in 2024.
CEO’s Insight on 2024 Performance
Richard T. Marabito, CEO of Olympic Steel, stated, “Despite a challenging year for the metals industry, marked by decreased demand and pricing, we delivered on our strategy to remain profitable in all market conditions. We grew market share and outperformed industry shipments, keeping total shipping volumes within 1% of 2023 levels.”
He added, “Every segment of our business achieved positive EBITDA in every quarter of 2024, showcasing the effectiveness of our diversification strategy and operational discipline. We also made strategic investments in automation during the year, which has improved our throughput, safety, and productivity.”
Strategic Investments and Growth Plans
During the fourth quarter of 2024, Olympic Steel completed the acquisition of Metal Works, a leading metal canopy manufacturer, further expanding its portfolio. Marabito emphasized the success of this acquisition and the company’s ongoing commitment to its diversification strategy and growth in higher-value metal products.
Dividend Increase for Shareholders
In recognition of its solid performance, Olympic Steel's Board of Directors approved a 7% increase in the quarterly dividend, raising it from $0.15 per share to $0.16 per share. This increase marks the fourth consecutive dividend hike since 2022, cumulatively raising the dividend from $0.02 to $0.16 per share. The dividend will be paid on March 17, 2025, to shareholders of record as of March 3, 2025.
Olympic Steel has paid a regular quarterly dividend since 2006, and the increase reflects the company’s strong financial discipline and commitment to returning value to shareholders.
Key Takeaways:
• Fourth-quarter net income: $3.9 million ($0.33 per diluted share), down from $7.4 million ($0.64 per share) in Q4 2023.
• Adjusted EBITDA for Q4: $14.5 million, a sequential improvement from Q3 2024 but lower than Q4 2023's $16.7 million.
• Sales for Q4: $419 million, down from $489 million in Q4 2023, reflecting decreased demand and pricing.
• Full-year net income: $23.0 million ($1.97 per diluted share), a decrease from $44.5 million ($3.85 per share) in 2023.
• Adjusted EBITDA for 2024: $72.5 million, compared to $97.6 million in 2023.
• Sales for 2024: $1.9 billion, compared to $2.2 billion in 2023.
• Strategic acquisitions: Completed eighth acquisition in the past seven years with the purchase of Metal Works, a leading metal canopy manufacturer.
• Quarterly dividend increase: 7% increase from $0.15 to $0.16 per share, marking the fourth increase since 2022.
• Future outlook: Despite a tough market, Olympic Steel remains confident in its profitability, growth strategy, and commitment to diversification.
