Steel Partners (SPLP) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 rose 5.7% year-over-year to $520.4M, driven by gains in Diversified Industrial and Financial Services, partially offset by a decline in Energy.

• Net income for Q3 2024 was $36.9M, up 32.2% from Q3 2023; nine-month net income reached $196.6M, up 76.6% year-over-year.

• Operating cash flow for the nine months ended September 30, 2024 was $368.2M, a significant increase from the prior year.

• Adjusted EBITDA for Q3 was $76.0M (14.6% margin), and $218.3M (14.3% margin) year-to-date.

• The company repurchased 1.28M common units for $63.4M outside its repurchase program and 991,157 units for $41.7M under the program YTD.

Financial highlights

• Q3 2024 revenue: $520.4M (+5.7% YoY); nine months: $1.53B (+6.4% YoY).

• Q3 2024 net income: $36.9M; nine months: $196.6M.

• Q3 2024 EPS (basic): $1.83; Q3 net income per diluted unit: $1.65; nine months: $9.19 per basic unit, $8.02 per diluted unit.

• Q3 2024 operating income before taxes: $53.1M, up from $30.0M YoY.

• Adjusted free cash flow was $34.3M in Q3 and $96.8M YTD, both lower YoY due to higher working capital and capex.

Outlook and guidance

• Full-year 2024 capital expenditures expected in the range of $66M to $70M, up from $51.5M in 2023.

• The company expects to remain in compliance with all credit facility covenants and maintain adequate liquidity for at least the next twelve months.

• Management highlighted continued momentum and value creation, emphasizing strategic initiatives and segment growth.