Olympic Steel, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $492.9 million, a decrease of 6.4% from $526.6 million in the same period of 2024. The company's operating income also fell to $7.8 million, down from $15.9 million year-over-year. Net income for the quarter was $2.5 million, or $0.21 per share, compared to $8.7 million, or $0.75 per share, in the prior year. The decrease in revenue and profitability was attributed to a consolidated 10.2% drop in average selling prices, despite a 4.3% increase in sales volume.
In terms of operational metrics, Olympic Steel's accounts receivable increased significantly to $212.5 million from $166.1 million, while inventories decreased to $360.1 million from $390.6 million. The company reported a total of 2,187 employees as of March 31, 2025, reflecting its ongoing commitment to maintaining a skilled workforce. The company also noted a significant increase in accounts payable, which rose to $140.1 million from $80.7 million, indicating a shift in working capital management.
Strategically, Olympic Steel has continued to expand its product offerings and geographic footprint through acquisitions. The company completed the acquisition of Metal Works, LLC in November 2024, which has enhanced its capabilities in manufacturing service station canopies and other metal products. This acquisition is expected to contribute positively to the carbon flat products segment, which accounted for 58% of total net sales in the first quarter of 2025.
Looking ahead, Olympic Steel's management expressed cautious optimism regarding market conditions, although they acknowledged the potential impact of fluctuating metals prices and economic uncertainties. The company has taken steps to mitigate risks associated with interest rate volatility by entering into a fixed-rate interest rate hedge on a portion of its outstanding debt. The outlook remains contingent on the ability to navigate market challenges, including supply chain disruptions and inflationary pressures, while continuing to leverage its expanded product offerings to meet customer demand.
About OLYMPIC STEEL INC
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