Steel Partners (SPLP) Q1 2025 earnings summary

Executive summary

• Revenue increased 4.8% year-over-year to $499.2 million for the quarter ended March 31, 2025, driven by growth across all segments.

• Net income was $29.1 million, down from $34.8 million in the prior year quarter, primarily due to higher SG&A expenses and realized/unrealized losses on securities.

• Operating cash flow remained strong at $200.4 million, supported by a net decrease in loans held for sale and operating income.

Financial highlights

• Revenue: $499.2 million, up $22.9 million (4.8%) year-over-year.

• Net income: $29.1 million, down $5.7 million from prior year.

• SG&A expenses increased 8.0% to $146.2 million, mainly due to higher credit performance fees in Financial Services.

• Interest expense rose 120.2% to $3.1 million, reflecting higher rates and lower cash balances.

• Realized/unrealized losses on securities were $10.0 million, compared to $4.1 million gains last year.

• Operating cash flow: $200.4 million; investing cash outflow: $174.6 million; financing cash outflow: $89.1 million.

Outlook and guidance

• Management expects to remain in compliance with all credit facility covenants for the next twelve months.

• Capital expenditures for the remainder of 2025 are planned, with $6.0 million in pension contributions estimated.

• The company continues to evaluate strategic alternatives, including acquisitions and divestitures, to enhance liquidity and value.