Olympic Steel (ZEUS) Q4 2024 earnings summary

Executive summary

• Achieved sequential improvement in Q4 2024 earnings versus Q3, with all segments delivering positive EBITDA each quarter despite challenging metals markets.

• Maintained shipping volumes within 1% of 2023, outperforming industry shipment levels.

• Completed the acquisition of Metal Works, immediately accretive and strategically aligned; eighth acquisition in seven years.

• Increased quarterly dividend by 7% to $0.16 per share, marking the fourth increase since 2022.

• Full-year 2024 net income was $23.0 million ($1.97/diluted share), down from $44.5 million ($3.85/diluted share) in 2023.

Financial highlights

• Total 2024 sales reached $1.94 billion, down from $2.16 billion in 2023; Q4 2024 sales were $419 million.

• Q4 2024 net income was $3.9 million, down from $7.4 million in Q4 2023.

• Q4 adjusted EBITDA was $14.5 million, higher than Q3 2024 ($13 million) but below Q4 2023 ($16.7 million).

• Cash and cash equivalents at year-end 2024 were $11.9 million; shareholders' equity per share was $51.54.

• Net cash from operating activities in 2024 was $33.7 million, down from $175.2 million in 2023.

Outlook and guidance

• Remain optimistic about long-term prospects, focusing on automation, product diversity, and quality.

• 2025 capital expenditures expected to be $35 million, up from $29.5 million in 2024.

• Most new capacity and automation projects to impact margins in 2026.

• 2025 effective tax rate expected to be 27%-28%.

• Focus continues on diversification and higher-value product offerings.