Olympic Steel Reports 10% Revenue Decline to $1.94 Billion for Fiscal Year 2024

Olympic Steel, Inc. reported a decrease in financial performance for the fiscal year ending December 31, 2024, with net sales falling to $1.94 billion, a decline of 10% from $2.16 billion in 2023. The company's gross profit also decreased to $451.2 million, down from $473.5 million the previous year, resulting in a gross profit margin of 23.2%, compared to 21.9% in 2023. Operating income dropped significantly to $47.9 million, or 2.5% of net sales, from $77.7 million, or 3.6% of net sales, in the prior year. Net income was reported at $23.0 million, translating to $1.97 per share, a decrease from $44.5 million, or $3.85 per share, in 2023.

The decline in revenue and profitability was attributed to a significant drop in metals prices, particularly in the specialty metals flat products segment, where average selling prices decreased by 24.2%. The carbon flat products segment also experienced a 40.3% decrease in index pricing from December 2023 to July 2024. Despite a slight increase in sales volume, the overall average selling price fell to $1,837 per ton in 2024 from $2,023 per ton in 2023. The company noted that the decrease in metals pricing affected both net sales and cost of materials sold across all segments.

Strategically, Olympic Steel has expanded its operations through several acquisitions, including Metal Works, LLC, which was acquired for $80 million in November 2024, and Central Tube and Bar, Inc. (CTB), acquired for $40.3 million in October 2023. These acquisitions are expected to enhance the company's product offerings and geographic reach, particularly in the carbon flat products and tubular and pipe products segments. The company also reported an increase in operating expenses to $403.3 million, primarily due to the inclusion of expenses related to the recent acquisitions and the absence of employee retention credits from the previous year.

Operationally, Olympic Steel employed approximately 2,163 people as of December 31, 2024, with a slight increase in employee headcount compared to the previous year. The company serves a diverse customer base, with approximately 49% of consolidated net sales in 2024 coming from industrial machinery and equipment manufacturers. The company continues to focus on improving its operational efficiencies and expanding its market share through strategic investments and acquisitions.

Looking ahead, Olympic Steel anticipates ongoing challenges related to fluctuating metals prices and supply chain disruptions. The company remains committed to its growth strategy, which includes further acquisitions and investments in processing equipment to meet customer demand. Management expressed confidence in the company's ability to navigate these challenges while maintaining a focus on operational excellence and customer service.