Financial Performance - Net income for Q3 2025 was $2.2 million, or $0.18 per diluted share, down from $2.7 million, or $0.23 per diluted share in Q3 2024[2] - Sales for Q3 2025 totaled $491 million, representing a 4.5% increase compared to $470 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $15.4 million, up from $13.0 million in Q3 2024[2] - Operating income for Q3 2025 was $7.3 million, down 6.9% from $7.8 million in Q3 2024[21] - Net income for Q3 2025 was $2.2 million, a decrease of 21.2% compared to $2.7 million in Q3 2024[21] - The adjusted net income per diluted share for Q3 2025 was $0.19, compared to $0.11 in Q3 2024[9] - Net sales for Q3 2025 reached $490.7 million, a 4.0% increase from $470.0 million in Q3 2024[21] Operational Highlights - The Specialty Metals Segment achieved its strongest shipping quarterly volume in the past three years, contributing significantly to profitability[4] - Year-to-date volumes have outpaced the industry, leading to an expansion in market share[4] - The company has maintained operational discipline and focused on higher-margin opportunities to strengthen competitiveness[4] Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.16 per share, payable on December 15, 2025[4] - Cash dividends per share increased to $0.48 for the nine months ended September 30, 2025, compared to $0.45 for the same period in 2024[27] Balance Sheet and Cash Flow - Total current assets increased to $614.7 million as of September 30, 2025, up from $580.6 million as of December 31, 2024[23] - Accounts receivable increased to $209.7 million as of September 30, 2025, compared to $166.1 million as of December 31, 2024[23] - Total liabilities rose to $510.9 million as of September 30, 2025, compared to $470.6 million as of December 31, 2024[23] - Net cash from operating activities for the nine months ended September 30, 2025, was $59.5 million, significantly higher than $19.1 million for the same period in 2024[27] - The debt to equity ratio improved to 0.42 to 1 as of September 30, 2025, down from 0.47 to 1 as of December 31, 2024[27] Strategic Initiatives - Olympic Steel has entered into a definitive merger agreement with Ryerson, expected to close in Q1 2026, subject to regulatory and shareholder approvals[5] - The company has a proven track record of acquisitions and organic growth initiatives, underscoring its resilience[1] Pricing Trends - Average selling price per ton for Carbon Flat Products increased to $1,371 in Q3 2025, compared to $1,297 in Q3 2024[25]

Financial Performance - Net income for the third quarter of 2025 was $2.2 million, or $0.18 per diluted share, down from $2.7 million, or $0.23 per diluted share in the third quarter of 2024 [2] - Adjusted EBITDA for the third quarter of 2025 was $15.4 million, an increase from $13.0 million in the third quarter of 2024 [2] - Sales totaled $491 million in the third quarter of 2025, representing a 4.5% increase compared to $470 million in the third quarter of 2024 [3] Business Strategy and Outlook - The CEO highlighted the resilience of the business model despite softer demand due to trade and interest rate uncertainties, with all three business segments contributing to profitability [4] - The Specialty Metals segment achieved its strongest shipping quarterly volume in the past three years, indicating strong performance [4] - The company has been diversifying its business, focusing on higher-margin opportunities, and maintaining operational discipline to strengthen competitiveness [4] Dividend and Merger Announcement - The Board of Directors approved a regular quarterly cash dividend of $0.16 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025 [4] - A definitive merger agreement has been reached with Ryerson Holding Corporation, with the transaction expected to close in the first quarter of 2026, pending regulatory and shareholder approvals [5]

Core Insights - The article emphasizes a versatile investment strategy suitable for various investor profiles, including dividend investors, value seekers, and those looking for growth opportunities [1]. Group 1 - The author possesses a Master's degree in Business Economics, providing a strong managerial and economic foundation [1]. - The coverage includes all sectors and different types of stocks, indicating a comprehensive approach to investment analysis [1].

Core Insights - Olympic Steel reported Q2 2025 GAAP revenue of $496 million, exceeding analyst estimates of $491.13 million, but down 5.7% year-over-year from $526 million [1][2] - Non-GAAP earnings per share were $0.50, surpassing the consensus of $0.40, although down 16.7% from $0.60 in Q2 2024 [1][2] - The company is facing margin pressure and softening demand in the overall metals market despite successful integration of acquisitions [1][5] Financial Performance - GAAP net income for Q2 2025 was $5.2 million, a decline of 32.5% from $7.7 million in Q2 2024 [2] - Adjusted EBITDA decreased by 4.7% to $20.3 million compared to $21.3 million in the previous year [2] - The Carbon Flat Products segment saw tons sold drop by 6.2% to 214,894, with net sales down 8.2% year-over-year, although gross profit increased [7] Business Strategy - The company focuses on growth through targeted acquisitions, with plans to pursue at least one acquisition per year [4][6] - Recent acquisition of Metal Works has led to higher operating expenses but also expanded sales contributions [6] - Investments in automation and technology are aimed at enhancing operational efficiency, with approximately $35 million planned for capital expenditures in 2025 [8] Operational Developments - Olympic Steel has reduced inventory balances by 5.8% from December 31, 2024, to June 30, 2025, and generated net cash from operating activities of $64.9 million for the first half of 2025 [8] - Cash on hand was reported at $14.8 million as of June 30, 2025, with a reduction in credit facility revolver balance by $39.3 million during the same period [8] Market Outlook - Management indicated a positive outlook for increased demand in value-added products and fabrication services due to new U.S. tariffs on imported stainless steel and aluminum [9] - There is a trend of rising inquiries for fabrication projects attributed to manufacturers adjusting to tariff changes [9] - The company did not provide formal revenue or earnings guidance for the remainder of fiscal 2025 [9]

[Part I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section provides unaudited consolidated financial statements, management's discussion, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income, cash flows, and equity, with detailed accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, presenting assets, liabilities, and shareholders' equity as of June 30, 2025 Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $596,765 | $580,591 | | **Total Assets** | **$1,074,910** | **$1,044,496** | | **Total Current Liabilities** | $194,338 | $132,638 | | Credit facility revolver | $233,198 | $272,456 | | **Total Liabilities** | **$496,707** | **$470,572** | | **Total Shareholders' Equity** | **$578,203** | **$573,924** | - Total assets increased to **$1.07 billion** as of June 30, 2025, from **$1.04 billion** at year-end 2024, primarily driven by an increase in accounts receivable[9](index=9&type=chunk) - Total liabilities rose to **$496.7 million**, mainly due to a significant increase in accounts payable, while borrowings under the credit facility revolver decreased[9](index=9&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's financial performance, detailing net sales, operating income, net income, and diluted EPS Financial Performance Summary (in thousands, except per share data) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $496,483 | $526,250 | $989,424 | $1,052,892 | | **Operating Income** | $11,373 | $15,110 | $19,166 | $31,048 | | **Net Income** | $5,237 | $7,660 | $7,746 | $16,357 | | **Diluted EPS** | $0.45 | $0.66 | $0.66 | $1.40 | - Net sales and net income declined year-over-year for both the second quarter and the first six months of 2025, with Q2 2025 net income at **$5.2 million**, down from **$7.7 million** in Q2 2024[11](index=11&type=chunk) - Dividends declared per share increased to **$0.16** in Q2 2025 from **$0.15** in Q2 2024[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash generation and usage across operating, investing, and financing activities Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by (used for) operating activities** | $64,925 | $(5,512) | | **Net cash used for investing activities** | $(17,460) | $(13,206) | | **Net cash provided by (used for) financing activities** | $(44,562) | $14,937 | - The company generated **$64.9 million** in cash from operations in the first six months of 2025, a significant improvement from a **$5.5 million** use of cash in the same period of 2024, primarily due to favorable changes in working capital, especially a large increase in accounts payable[14](index=14&type=chunk) - Cash used for financing activities was **$44.6 million**, driven by net repayments on the credit facility revolver, compared to cash provided by financing of **$14.9 million** in the prior year period[14](index=14&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, revenue recognition, and segment information supporting the financial statements - The company operates in three reportable segments: specialty metals flat products, carbon flat products, and tubular and pipe products[23](index=23&type=chunk) Disaggregated Revenue by Segment (Six Months Ended June 30, 2025) | Segment | % of Total Revenue | | :--- | :--- | | Carbon flat products | 57.5% | | Specialty metals flat products | 26.7% | | Tubular and pipe products | 15.8% | Segment Operating Income (Six Months Ended June 30, 2025, in thousands) | Segment | Operating Income (in thousands) | | :--- | :--- | | Carbon flat products | $13,218 | | Tubular and pipe products | $8,010 | | Specialty metals flat products | $7,556 | | Corporate (Other) | $(9,618) | | **Total** | **$19,166** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses declining sales and net income, improved gross margin, increased operating expenses, segment performance, and strong liquidity [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section analyzes consolidated net sales, gross profit margin, and operating expenses for the second quarter and first half of 2025 - Consolidated net sales for Q2 2025 decreased **5.7%** YoY to **$496.5 million**, driven by a **5.3%** decrease in sales volume[100](index=100&type=chunk) - For the first six months of 2025, net sales decreased **6.0%** YoY to **$1.0 billion**, due to a **5.1%** decrease in average selling prices[101](index=101&type=chunk) - Gross profit margin increased to **24.5%** in Q2 2025 from **22.7%** in Q2 2024, as the average cost of inventory decreased more than average selling prices[103](index=103&type=chunk) - Operating expenses increased **5.6%** in Q2 2025, primarily due to the inclusion of operating expenses from the MetalWorks acquisition[104](index=104&type=chunk) [Segment Operations](index=34&type=section&id=Segment%20Operations) This section analyzes the operating income and gross profit margins for the Specialty Metals, Carbon Flat, and Tubular and Pipe segments - **Specialty Metals Flat Products:** Q2 2025 operating income fell to **$4.9 million** from **$7.9 million** YoY, as gross profit margin contracted from **19.8%** to **17.8%**[111](index=111&type=chunk)[115](index=115&type=chunk)[118](index=118&type=chunk) - **Carbon Flat Products:** Q2 2025 operating income increased to **$7.4 million** from **$5.4 million** YoY, driven by a significant gross profit margin expansion to **25.8%** from **20.7%**[119](index=119&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk) - **Tubular and Pipe Products:** Q2 2025 operating income decreased to **$3.9 million** from **$6.5 million** YoY, impacted by a **9.3%** drop in shipping volume and lower gross margins[128](index=128&type=chunk)[129](index=129&type=chunk)[135](index=135&type=chunk) [Liquidity, Capital Resources and Cash Flows](index=38&type=section&id=Liquidity,%20Capital%20Resources%20and%20Cash%20Flows) This section reviews cash flow generation, the amended ABL Credit Facility, available liquidity, and dividend declarations - Generated **$64.9 million** in cash from operations in the first six months of 2025, a significant improvement from a **$5.5 million** use of cash in the prior-year period[140](index=140&type=chunk) - On April 17, 2025, the company amended its **ABL Credit Facility**, extending the maturity date to **April 17, 2030**[43](index=43&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, the company had approximately **$305 million** of availability under its **ABL Credit Facility** and was in compliance with all covenants[45](index=45&type=chunk)[151](index=151&type=chunk) - The Board of Directors approved a regular quarterly dividend of **$0.16 per share**, payable in September 2025[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from volatile metals prices and interest rate fluctuations, mitigated by metals swaps and interest rate hedges - The company is exposed to cyclical and volatile metals pricing, which affects raw material costs, sales prices, and inventory valuation[157](index=157&type=chunk)[158](index=158&type=chunk) - To manage interest rate risk on its variable-rate ABL Credit Facility, the company entered into a two-year forward starting interest rate hedge on **$75 million** of its debt, fixing the rate at **3.82%**[163](index=163&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during Q2 2025 - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective**[164](index=164&type=chunk) - **No material changes** were made to the internal control over financial reporting during the second quarter of 2025[165](index=165&type=chunk) [Part II. OTHER INFORMATION](index=43&type=section&id=Part%20II.%20OTHER%20INFORMATION) This section includes other required disclosures, such as director and officer trading arrangements and a list of exhibits [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section confirms no director or officer adopted or terminated Rule 10b5-1 trading arrangements during Q2 2025 - **No director or officer adopted or terminated** a Rule 10b5-1 trading arrangement during the second quarter of 2025[168](index=168&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including the amended Loan and Security Agreement and SOX certifications - Key exhibits filed include the **Ninth Amendment to the company's Loan and Security Agreement** and **Sarbanes-Oxley Act certifications** from the Principal Executive Officer and Principal Financial Officer[169](index=169&type=chunk)

Financial Data and Key Metrics Changes - The company reported sales of $496 million and net income of $5.2 million for the second quarter of 2025, compared to $7.7 million in the same period of 2024 [5][16] - Adjusted EBITDA for the quarter was $20.3 million, a 26% increase compared to the first quarter of 2025, but down from $21.3 million in the prior year period [6][17] - Consolidated operating expenses totaled $110.4 million, up from $104.6 million in 2024, reflecting the addition of Metalworks [17][18] - The company reduced its total debt to $233 million, which is $39 million lower than year-end levels [18] Business Segment Data and Key Metrics Changes - The Carbon segment recorded second quarter EBITDA of $12.5 million, while the Pipe and Tube segment achieved adjusted EBITDA of $6.7 million [12] - The Specialty Metals Group saw EBITDA of $5.9 million, representing over 60% improvement from the first quarter [12] - All three business segments continued to deliver positive EBITDA, indicating resilience despite market challenges [7] Market Data and Key Metrics Changes - Shipping data indicated that service center shipping rates in 2025 are below those of 2024, yet the company's flat roll shipments for the first half of 2025 remained above the same period in 2024 [10] - The company gained market share across its stainless and aluminum product lines, benefiting from increased domestic mill price increases following tariff adjustments [13] Company Strategy and Development Direction - The company is focused on diversifying into higher value metal-intensive products and expanding fabricating capabilities [7] - A robust capital expenditure plan for 2025 includes $35 million primarily for organic growth opportunities, with several new processing and automation projects scheduled to enhance productivity [13][19] - The company aims to capitalize on trends towards increased U.S. manufacturing and fabrication services, particularly among OEMs [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment due to tariffs and market uncertainties but expressed optimism about emerging trends and potential demand growth [9][14] - The company expects the third quarter to be seasonally slower, with typical declines of 5% to 6% sequentially from the second quarter [31] - Management highlighted the importance of resolving uncertainties related to tariffs and tax legislation as potential tailwinds for future growth [40][46] Other Important Information - The effective tax rate for the second quarter was approximately 28%, with expectations for the full year to be between 28% and 29% [19] - The company has paid regular quarterly dividends since February 2006, with a current dividend of $0.16 per share [19][20] Q&A Session Summary Question: Details on new processing and automation equipment - Management discussed the benefits of new high-speed lasers and automation systems aimed at improving safety and efficiency [22][23] Question: Insights on Pipe and Tube segment profitability - Management noted strong growth in the data center sector and increased interest from OEMs for fabrication services [30] Question: Trends in July and August demand - Management indicated that July is typically slow due to holidays, but they expect a normal pickup in August [31] Question: Drivers of flat roll margin improvements - Margin improvements were attributed to changes in index pricing and a better product mix, including more coated products and value-added work [36][37] Question: Outlook for pricing and working capital - Management expects a flattish outlook for working capital in Q3, with potential for cash flow improvements in Q4 depending on pricing trends [64] Question: M&A opportunities - Management confirmed that they are actively looking for acquisition opportunities and have seen an increase in potential candidates [68]

Financial Data and Key Metrics Changes - The company reported sales of $496 million and net income of $5.2 million for the second quarter of 2025, compared to $7.7 million in the same period of 2024 [6][18] - Adjusted EBITDA for the quarter was $20.3 million, a 26% increase compared to the first quarter of 2025, but down from $21.3 million in the prior year period [7][19] - Consolidated operating expenses totaled $110.4 million, up from $104.6 million in 2024, reflecting the addition of Metalworks [20] Business Segment Data and Key Metrics Changes - The Carbon segment achieved second quarter EBITDA of $12.5 million, while the Pipe and Tube segment recorded adjusted EBITDA of $6.7 million [13] - The Specialty Metals Group saw EBITDA of $5.9 million, representing over 60% improvement from the first quarter [14] - All three business segments continued to deliver positive EBITDA despite challenging market conditions [7] Market Data and Key Metrics Changes - Shipping data indicated that service center shipping rates in 2025 are below those of 2024, yet the company's flat roll shipments for the first half of 2025 remained above the same period in 2024 [11][12] - The company gained market share across its stainless and aluminum product lines, driven by increased demand following tariff adjustments [14] Company Strategy and Development Direction - The company is focused on diversifying into higher value metal-intensive products and expanding fabricating capabilities [7] - A robust capital expenditure plan for 2025 includes $35 million primarily for organic growth opportunities and automation [14] - The company has completed eight acquisitions in the last seven years, with the integration of Metalworks contributing positively to earnings [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in the manufacturing industry due to tariffs but expressed optimism about emerging trends such as the resolution of reciprocal tariffs and new tax legislation [10] - The company expects the environment to remain challenging in the second half of the year but sees potential for growth in U.S. manufacturing and fabrication services [15][16] Other Important Information - The effective tax rate for the second quarter was lower than the previous year, with expectations for the 2025 tax rate to approximate 28% to 29% [21] - The company has maintained a quarterly dividend of $0.16 per share, continuing a history of regular dividends since February 2006 [22] Q&A Session Summary Question: Can you elaborate on the new processing and automation equipment? - The new equipment includes high-speed lasers and a casto system to improve safety and efficiency, with benefits expected to materialize as operations ramp up [24][25] Question: What are the drivers behind the flat roll margin improvements? - Margin improvements were driven by changes in index pricing and a strategic focus on higher-margin products and fabrication [38][39] Question: How do you see the pricing for hot rolled steel in the second half of the year? - Pricing is expected to stabilize unless there are changes to tariffs, which could introduce pressure [56] Question: Are there still acquisition opportunities available? - The company is actively looking at more acquisition candidates, with a recent increase in opportunities compared to earlier in the year [67][68]

Financial Performance Overview [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Olympic Steel reported a year-over-year decline in sales and net income for the second quarter of 2025, with sales dropping to $496 million from $526 million and net income falling to $5.2 million from $7.7 million, while Adjusted EBITDA remained relatively stable at $20.3 million and showed a sequential increase Q2 2025 vs Q2 2024 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $496 million | $526 million | | Net Income | $5.2 million | $7.7 million | | Diluted EPS | $0.45 | $0.66 | | Adjusted EBITDA | $20.3 million | $21.3 million | - The company's Q2 2025 results included a LIFO pre-tax expense of **$0.8 million**, contrasting with a LIFO pre-tax income of **$1.0 million** in Q2 2024[2](index=2&type=chunk)[3](index=3&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management emphasized the company's ability to achieve profitability despite macroeconomic uncertainty and declining metal market demand, actively investing in organic growth and pursuing strategic acquisitions with a strong balance sheet and over $300 million in borrowing availability - The company delivered a sequential increase in Adjusted EBITDA despite declining market demand for metals, with all three segments contributing positive EBITDA for the quarter and six-month period[4](index=4&type=chunk) - Strategic focus remains on investing in growth initiatives, including new processing and automation equipment from the 2025 capital expenditure plan and pursuing complementary acquisitions[4](index=4&type=chunk) - Management is encouraged by positive trends in stainless and aluminum pricing following a June tariff announcement, which has also led to increased inquiries for outsourced fabrication work[4](index=4&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) The Board of Directors approved a regular quarterly cash dividend of $0.16 per share, continuing an uninterrupted dividend payment history since March 2006 and marking the third consecutive year the company has increased its dividend - A quarterly cash dividend of **$0.16 per share** was approved, payable on September 15, 2025, to shareholders of record on September 2, 2025[5](index=5&type=chunk) - The company has consistently paid a quarterly dividend since March 2006 and has increased it in each of the last three years[5](index=5&type=chunk) Financial Statements and Reconciliations [Non-GAAP Reconciliations](index=2&type=section&id=Non-GAAP%20Reconciliations) The company provided reconciliations for non-GAAP measures to their GAAP equivalents, with Adjusted Net Income per diluted share at $0.50 for Q2 2025 compared to GAAP's $0.45, and Adjusted EBITDA at $20.3 million reconciled from a GAAP Net Income of $5.2 million Reconciliation of Net Income Per Diluted Share to Adjusted (Non-GAAP) | Period | GAAP Net Income Per Share (USD) | LIFO Impact (USD) | Adjusted Net Income Per Share (Non-GAAP, USD) | | :--- | :--- | :--- | :--- | | **Q2 2025** | $0.45 | $0.05 | $0.50 | | **Q2 2024** | $0.66 | ($0.06) | $0.60 | Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Period | Net Income (GAAP, USD thousands) | Adjustments (Interest, Taxes, D&A, etc., USD thousands) | LIFO Expense/(Income) (USD thousands) | Adjusted EBITDA (Non-GAAP, USD thousands) | | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | $5,237 | $14,351 | $750 | $20,338 | | **Q2 2024** | $7,660 | $14,677 | ($1,000) | $21,337 | [Consolidated Statements of Net Income](index=5&type=section&id=Consolidated%20Statements%20of%20Net%20Income) For the three months ended June 30, 2025, Olympic Steel's net sales decreased to $496.5 million from $526.3 million year-over-year, with operating income falling to $11.4 million from $15.1 million, resulting in a net income of $5.2 million, down from $7.7 million in Q2 2024 Consolidated Income Statement Highlights (in thousands) | Account | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Net sales | $496,483 | $526,250 | | Total costs and expenses | $485,110 | $511,140 | | Operating income | $11,373 | $15,110 | | Net income | $5,237 | $7,660 | Earnings Per Share | Metric | Three Months Ended June 30, 2025 (USD) | Three Months Ended June 30, 2024 (USD) | | :--- | :--- | :--- | | Net income per share - basic | $0.45 | $0.66 | | Net income per share - diluted | $0.45 | $0.66 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Olympic Steel's total assets increased to $1.075 billion from $1.044 billion at year-end 2024, with total liabilities rising to $496.7 million from $470.6 million, and shareholders' equity seeing a slight increase to $578.2 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Total current assets | $596,765 | $580,591 | | **Total assets** | **$1,074,910** | **$1,044,496** | | Total current liabilities | $194,338 | $132,638 | | **Total liabilities** | **$496,707** | **$470,572** | | **Total shareholders' equity** | **$578,203** | **$573,924** | - Key changes in assets include an increase in Accounts Receivable to **$203.7 million** and a decrease in Inventories to **$368.0 million**, while on the liability side, Accounts Payable increased significantly to **$144.6 million** and the Credit facility revolver was reduced to **$233.2 million**[19](index=19&type=chunk) [Segment Financial Information](index=7&type=section&id=Segment%20Financial%20Information) In Q2 2025, the Carbon Flat Products segment saw net sales of $282.5 million, down from $307.8 million YoY, though operating income increased, while the Specialty Metals Flat Products segment reported a slight increase in sales to $134.7 million but a decrease in operating income, and the Tubular and Pipe Products segment experienced a decline in both net sales and operating income Q2 2025 Segment Performance (in thousands) | Segment | Net Sales (USD thousands) | Operating Income (USD thousands) | | :--- | :--- | :--- | | Carbon Flat Products | $282,543 | $7,393 | | Specialty Metals Flat Products | $134,706 | $4,926 | | Tubular and Pipe Products | $79,234 | $3,865 | Q2 2024 Segment Performance (in thousands) | Segment | Net Sales (USD thousands) | Operating Income (USD thousands) | | :--- | :--- | :--- | | Carbon Flat Products | $307,755 | $5,361 | | Specialty Metals Flat Products | $130,873 | $7,849 | | Tubular and Pipe Products | $87,622 | $6,497 | - Total assets for flat-products increased to **$716.8 million** as of June 30, 2025, from **$695.9 million** at the end of 2024, while tubular and pipe products assets also grew to **$357.1 million**[22](index=22&type=chunk) [Other Key Financial Metrics](index=8&type=section&id=Other%20Key%20Financial%20Metrics) The company's financial health indicators show a stronger position, with the debt-to-equity ratio improving to 0.40 to 1 as of June 30, 2025, from 0.47 to 1 at year-end 2024, and net cash from operating activities for the first six months of 2025 was a positive $64.9 million, a significant turnaround from a cash use of $5.5 million in the same period of 2024 Key Ratios and Metrics | Metric | As of June 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Shareholders' equity per share | $51.64 | $51.54 | | Debt to equity ratio | 0.40 to 1 | 0.47 to 1 | Cash Flow and Dividends | Metric | Six Months Ended June 30, 2025 (USD) | Six Months Ended June 30, 2024 (USD) | | :--- | :--- | :--- | | Net cash from operating activities | $64,925 thousand | $(5,512) thousand | | Cash dividends per share | $0.32 | $0.30 | Disclosures and Company Information [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning readers that forward-looking statements are subject to numerous risks and uncertainties, including impacts from steel import levels, tariffs, economic conditions, supply disruptions, interest rates, and global conflicts, which could cause actual results to differ materially from projections - The release includes forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[11](index=11&type=chunk) - Key risks highlighted include U.S. trade policy, supply disruptions, inflationary pressures, volatile metals prices, rising interest rates, and the ability to integrate recent acquisitions[11](index=11&type=chunk) [About Olympic Steel](index=4&type=section&id=About%20Olympic%20Steel) Founded in 1954 and headquartered in Cleveland, Ohio, Olympic Steel is a leading U.S. metals service center, focusing on the direct sale and value-added processing of a wide range of metal products, including carbon and stainless steel, aluminum, pipe, and tube, operating from 54 facilities - Olympic Steel (NASDAQ: ZEUS) is a U.S. metals service center founded in 1954[13](index=13&type=chunk) - The company's business includes direct sale and value-added processing of carbon, coated, and stainless steel, aluminum, pipe, tube, and various metal-intensive end-use products[13](index=13&type=chunk)

Company Overview - Olympic Steel's 2024 revenue reached $1.9 billion[5] - The company operates with approximately 2,100 employees[5] - The company has 54 sales and warehouse locations spanning over 4.4 million square feet[5] - The company's revenue mix in 2025 is comprised of Carbon Flat Products (58%), Specialty Metals Flat Products (26%), and Tubular & Pipe Products (16%)[5] Growth Strategy & Capital Allocation - The company focuses on investing in higher-return growth opportunities[6] - The company is returning cash to shareholders[6] - The company has access to a $625 million Asset Based Loan (ABL) maturing in June 2030, with a $200 million accordion feature[27] - The company has access to S-3 shelf filing up to $200 million through debt or stock offerings, including $50 million At-The-Market (ATM) program[27] Financial Performance - For the three months ended March 31, 2025, net sales were $492.941 million, compared to $526.642 million for the same period in 2024[31] - Net income for the three months ended March 31, 2025, was $2.509 million, compared to $8.697 million for the same period in 2024[31] - EBITDA for the three months ended March 31, 2025, was $16.090 million, compared to $23.272 million for the same period in 2024[31]

Core Viewpoint - NANO Nuclear Energy Inc. has filed six new utility patent applications for its ZEUS™ microreactor, emphasizing its commitment to enhancing its intellectual property portfolio and advancing the nuclear reactor industry [1][5]. Company Overview - NANO Nuclear Energy Inc. is a publicly listed advanced technology-driven nuclear energy company in the U.S., focusing on five business lines: portable microreactor technologies, nuclear fuel fabrication, transportation, applications for space, and consulting services [6]. Product Development - The ZEUS™ microreactor is designed as a solid-core battery reactor with a fully sealed core, utilizing a highly conductive moderator matrix to dissipate fission heat, which minimizes risks associated with coolant accidents [2][4]. - The design allows the reactor and support systems to fit within a standard shipping container, enhancing transportability to areas without conventional energy infrastructure [4]. Strategic Goals - The patent applications aim to protect key processes and components of the ZEUS™ microreactor, which will benefit both the company's program and the broader advanced nuclear reactor industry [5]. - The company is working towards commercializing next-generation microreactors, with a focus on transitioning from development to market readiness [5]. Subsidiaries and Future Plans - Advanced Fuel Transportation Inc. (AFT), a subsidiary, aims to build a North American transportation company for HALEU fuel, targeting small modular reactors and national laboratories [8]. - HALEU Energy Fuel Inc. (HEF) is focused on developing a domestic source for HALEU fuel fabrication for NANO Nuclear's microreactors and the advanced nuclear industry [9]. - NANO Nuclear Space Inc. (NNS) is exploring commercial applications of micronuclear reactor technology in space, including power systems for extraterrestrial projects [10].