Olympic Steel Reports Mixed Q3 Results with Increased Sales but Decreased Net Income

Olympic Steel, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a mixed performance amid fluctuating market conditions. For the three months ended September 30, 2025, the company achieved net sales of $490.7 million, a 4.4% increase from $470.0 million in the same period of 2024. However, net income for the quarter decreased to $2.2 million, or $0.18 per share, compared to $2.7 million, or $0.23 per share, in the prior year. For the nine months ended September 30, 2025, net sales totaled $1.48 billion, down 2.8% from $1.52 billion in 2024, with net income also declining to $9.9 million from $19.1 million.

The company's cost of materials sold rose to $373.0 million in the third quarter of 2025, up from $363.1 million in the same quarter of 2024. For the nine-month period, costs decreased to $1.12 billion from $1.18 billion, reflecting lower metals pricing. Gross profit as a percentage of net sales improved to 24.0% in the third quarter, up from 22.7% in the previous year, indicating better pricing power despite the overall decline in sales volume. Operating expenses increased by 11.4% in the third quarter, primarily due to higher payroll and acquisition-related costs.

Operationally, Olympic Steel continues to expand its footprint and product offerings, particularly through its specialty metals flat products segment, which accounted for 28.7% of total net sales in the third quarter of 2025, up from 26.7% a year earlier. The carbon flat products segment, however, saw a decrease in sales volume, contributing 54.6% of total sales, down from 56.4%. The tubular and pipe products segment also experienced a slight increase in sales, contributing 16.6% of total sales, compared to 16.9% in the prior year.

The company’s balance sheet showed total assets of $1.09 billion as of September 30, 2025, an increase from $1.04 billion at the end of 2024. Total liabilities rose to $510.9 million, up from $470.6 million, primarily due to increased accounts payable and borrowings under its asset-based revolving credit facility. Olympic Steel has maintained compliance with its financial covenants and had approximately $312 million of availability under its credit facility as of the reporting date.

Looking ahead, Olympic Steel is navigating a challenging market environment characterized by fluctuating metals prices and economic uncertainties. The company has entered into a merger agreement with Ryerson Holding Corporation, which, if completed, will see Olympic Steel become a wholly-owned subsidiary of Ryerson. This strategic move is expected to enhance operational efficiencies and expand market reach, although it remains subject to shareholder and regulatory approvals. The company anticipates that its ongoing investments in processing capabilities and strategic acquisitions will position it for future growth despite current market headwinds.