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/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

• 2024 total sales reached $1.94 billion; net income was $23.0 million; adjusted EBITDA was $72.5 million.

• Q4 2024 net income was $3.9 million ($0.33/diluted share), down from $7.4 million ($0.64/diluted share) in Q4 2023.

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

• Q4 2024 sales were $419 million, down from $489 million in Q4 2023.

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

Outlook and guidance

• Remain optimistic about long-term industry prospects and value creation through automation, product diversity, and quality solutions.

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

• 2025 effective tax rate projected at 27%-28%.

• Anticipate margin improvements in 2026 as new projects become operational.

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