Company delivers sequential increase in Adjusted EBITDA despite macroeconomic uncertainty and industry headwinds

Well positioned for continued investment in organic growth initiatives and acquisitions

Olympic Steel, Inc. (NASDAQ:ZEUS), a leading national metals service center, today announced financial results for the three months ended June 30, 2025.

Net income for the second quarter totaled $5.2 million, or $0.45 per diluted share, compared with net income of $7.7 million, or $0.66 per diluted share, in the second quarter of 2024. The results include $0.8 million of LIFO pre-tax expense in the second quarter of 2025 and $1.0 million of LIFO pre-tax income in the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 was $20.3 million, compared with $21.3 million in the second quarter of 2024.

The Company reported sales of $496 million in the second quarter of 2025, compared with $526 million in the second quarter of 2024.

"Olympic Steel continued to deliver solid results in the second quarter against a backdrop of macroeconomic uncertainty and related headwinds facing the metals industry," said Richard T. Marabito, Chief Executive Officer. "Our strategic actions over the last several years, combined with our operational disciplines, have enabled us to build a stronger, more resilient Olympic Steel that can achieve profitable results in any environment. In the second quarter, our team delivered a sequential increase in Adjusted EBITDA, despite declining market demand for metals. All three of our segments contributed positive EBITDA for the quarter and six months."

Marabito continued, "We are well positioned to continue investing in our growth initiatives with a strong balance sheet and more than $300 million of borrowing availability. New processing and automation equipment from our robust 2025 cap-ex plan is beginning to arrive. As the equipment becomes fully operational, we expect to see sales growth and improvements in productivity and safety through automation. Acquisitions also remain a key piece of our strategy and we are always seeking the right companies to complement our existing businesses."

Marabito concluded, "While market uncertainty remains in the second half of the year, we are encouraged by the positive trend in stainless and aluminum pricing following the June tariff announcement. Inquiries for outsourced fabrication work have steadily increased as OEMs begin to navigate the new tariff environment. We remain confident in our ability to grow our business in any environment through a combination of organic investments in our core processing and distribution business and accretive acquisitions."

The Board of Directors approved a regular quarterly cash dividend of $0.16 per share, which is payable on September 15, 2025, to shareholders of record on September 2, 2025. The Company has paid a regular quarterly dividend since March 2006, increasing the dividend in each of the last three years.

The table that follows provides a reconciliation of certain non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP. Additional reconciliations can be found in the Segment Financial Information table which also follows.



Olympic Steel, Inc. Reconciliation of Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share (Figures may not foot due to rounding.) The following table reconciles adjusted net income per diluted share to the most directly comparable GAAP financial measure:

	Three Months Ended					Six Months Ended
	June 30					June 30
	2025		2024			2025		2024

Net income per diluted share (GAAP)	$	0.45	$	0.66		$	0.66	$	1.40

Excluding the following items
LIFO expense / (income)		0.05		(0.06	)		0.04		(0.04	)

Adjusted net income per diluted share (non-GAAP)	$	0.50	$	0.60		$	0.70	$	1.36



Reconciliation of Net Income to Adjusted EBITDA (in thousands) The following table reconciles Adjusted EBITDA to the most directly comparable GAAP financial measure:

	Three Months Ended					Six Months Ended
	June 30, 2025		June 30, 2024			June 30, 2025		June 30, 2024

Net income (GAAP):	$	5,237	$	7,660		$	7,746	$	16,357
Excluding the following items
Other loss, net		27		21			48		40
Interest and other expense on debt		3,956		4,393			8,138		8,403
Income tax provision		2,153		3,036			3,234		6,248
Depreciation and amortization		8,215		7,227			16,512		14,561

Earnings before interest, taxes, depreciation and amortization (EBITDA)		19,588		22,337			35,678		45,609

LIFO expense / (income)		750		(1,000	)		750		(600	)
Adjusted EBITDA (non-GAAP)	$	20,338	$	21,337		$	36,428	$	45,009

Conference Call and Webcast

A simulcast of Olympic Steel's 2025 second-quarter earnings conference call can be accessed via the Investor Relations section of the Company's website at www.olysteel.com. The live simulcast will begin at 10 a.m. ET on August 1, 2025, and a replay will be available for approximately 14 days thereafter.

Forward-Looking Statements

It is the Company's policy not to endorse any analyst's sales or earnings estimates. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "anticipate," "should," "intend," "expect," "believe," "estimate," "project," "plan," "potential," and "continue," as well as the negative of these terms or similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: the levels of imported steel in the United States, imposed tariffs and duties on imported and exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry, including retaliatory actions by other countries; supply disruptions and inflationary pressures, including the availability and rising costs of transportation, energy, logistical services and labor; general and global business, economic, financial and political conditions, including, but not limited to, recessionary conditions and legislation passed under the current administration, including the impact of the enactment of the One Big Beautiful Bill Act, or the OBBBA, on July 4, 2025; risks associated with shortages of skilled labor, increased labor costs and our ability to attract and retain qualified personnel; risks of volatile metals prices and inventory devaluation; rising interest rates and their impacts on our variable interest rate debt; supplier consolidation or addition of new capacity; risks associated with economic sanctions, and current global conflicts, or additional war, military conflict, or hostilities could adversely affect global metals supply and pricing; reduced production schedules, layoffs or work stoppages by our own, our suppliers' or customers' personnel; our ability to successfully integrate recent acquisitions, including Central Tube and Bar, or CTB, Metal-Fab, Inc., or Metal-Fab and Metal Works, LLC, or MetalWorks, into our business and risks inherent with the acquisitions in the achievement of expected results, including whether the acquisition will be accretive and within the expected timeframe; the adequacy of our existing information technology and business system software, including duplication and security processes; the inflation or deflation existing within the metals industry, as well as product mix and inventory levels on hand, which can impact our cost of materials sold as a result of the fluctuations in the last-in, first-out, or LIFO, inventory valuation; competitive factors such as the availability, and global pricing of metals and production levels, industry shipping and inventory levels and rapid fluctuations in customer demand and metals pricing; fluctuations in the value of the U.S. dollar and the related impact on foreign steel pricing, U.S. exports, and foreign imports to the United States; risks associated with infectious disease outbreaks, including, but not limited to customer closures, reduced sales and profit levels, slower payment of accounts receivable and potential increases in uncollectible accounts receivable, falling metals prices that could lead to lower of cost or net realizable value inventory adjustments and the impairment of intangible and long-lived assets, negative impacts on our liquidity position, inability to access our traditional financing sources and increased costs associated with and less ability to access funds under our asset-based credit facility, or ABL Credit Facility, and the capital markets; increased customer demand without corresponding increase in metal supply could lead to an inability to meet customer demand and result in lower sales and profits; cyclicality and volatility within the metals industry; customer, supplier and competitor consolidation, bankruptcy or insolvency; the timing and outcomes of inventory lower of cost or net realizable value adjustments and LIFO income or expense; reduced availability and productivity of our employees, increased operational risks as a result of remote work arrangements, including the potential effects on internal controls, as well as cybersecurity risks and increased vulnerability to security breaches, information technology disruptions and other similar events; the successes of our efforts and initiatives to improve working capital turnover and cash flows, and achieve cost savings; risks and uncertainties associated with intangible assets, including impairment charges related to indefinite lived intangible assets; our ability to generate free cash flow through operations and repay debt; the impacts of union organizing activities and the success of union contract renewals; the amounts, successes and our ability to continue our capital investments and strategic growth initiatives, including acquisitions and our business information system implementations; events or circumstances that could adversely impact the successful operation of our processing equipment and operations; changes in laws or regulations or the manner of their interpretation or enforcement could impact our financial performance and restrict our ability to operate our business or execute our strategies; events or circumstances that could impair or adversely impact the carrying value of any of our assets; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase shares of our common stock and the amounts and timing of repurchases, if any; and unanticipated developments that could occur with respect to contingencies such as litigation, arbitration and environmental matters, including any developments that would require any increase in our costs for such contingencies.

In addition to financial information prepared in accordance with GAAP, this document also contains adjusted earnings per diluted share and adjusted EBITDA, which are non-GAAP financial measures. Management's view of the Company's performance includes adjusted earnings per share and adjusted EBITDA, and management uses these non-GAAP financial measures internally for planning and forecasting purposes and to measure the performance of the Company. We believe these non-GAAP financial measures provide useful and meaningful information to us and investors because they enhance investors' understanding of the continuing operating performance of our business and facilitate the comparison of performance between past and future periods. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Additionally, the presentation of these measures may be different from non-GAAP financial measures used by other companies. A reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures is provided above.

About Olympic Steel

Founded in 1954, Olympic Steel (NASDAQ:ZEUS) is a leading U.S. metals service center focused on the direct sale and value-added processing of carbon and coated sheet, plate, and coil steel products; stainless steel sheet, plate, bar and coil; aluminum sheet, plate and coil; pipe, tube, bar, valves and fittings; tin plate and metal-intensive end-use products, including water treatment systems; stainless steel bollards; commercial, residential and industrial venting and air filtration systems; Wright^® brand self-dumping hoppers; metal canopy components; and EZ-Dumper^® dump inserts. Headquartered in Cleveland, Ohio, Olympic Steel operates from 54 facilities.

For additional information, please visit the Company's website at www.olysteel.com.




Olympic Steel, Inc. Consolidated Statements of Net Income (in thousands, except per-share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024

Net sales	$	496,483	$	526,250	$	989,424	$	1,052,892

Costs and expenses
Cost of materials sold (excludes items shown separately below)		374,679		406,547		749,179		814,085
Warehouse and processing		36,336		33,243		70,955		66,136
Administrative and general		31,272		29,167		62,646		59,319
Distribution		18,542		17,462		37,474		34,220
Selling		11,497		13,201		23,974		24,737
Occupancy		4,569		4,293		9,518		8,786
Depreciation		6,559		5,839		13,041		11,845
Amortization		1,656		1,388		3,471		2,716

Total costs and expenses		485,110		511,140		970,258		1,021,844

Operating income		11,373		15,110		19,166		31,048

Other loss, net		27		21		48		40

Income before interest and income taxes		11,346		15,089		19,118		31,008

Interest and other expense on debt		3,956		4,393		8,138		8,403

Income before income taxes		7,390		10,696		10,980		22,605

Income tax provision		2,153		3,036		3,234		6,248

Net income	$	5,237	$	7,660	$	7,746	$	16,357


Earnings per share:

Net income per share - basic	$	0.45	$	0.66	$	0.66	$	1.40

Weighted average shares outstanding - basic		11,742		11,662		11,736		11,663

Net income per share - diluted	$	0.45	$	0.66	$	0.66	$	1.40

Weighted average shares outstanding - diluted		11,764		11,662		11,759		11,663





Olympic Steel, Inc. Balance Sheets (in thousands)

	As of June 30, 2025			As of December 31, 2024
Assets

Cash and cash equivalents	$	14,815		$	11,912
Accounts receivable, net		203,723			166,149
Inventories, net (includes LIFO reserves of $7,091 as of June 30, 2025 and $6,341 as of December 31, 2024)		368,024			390,626
Prepaid expenses and other		10,203			11,904

Total current assets		596,765			580,591

Property and equipment, at cost		536,477			519,702
Accumulated depreciation		(328,569	)		(315,866	)

Net property and equipment		207,908			203,836

Goodwill		83,818			83,818
Intangible assets, net		115,073			118,111
Other long-term assets		30,506			21,204
Right of use asset, net		40,840			36,936

Total assets	$	1,074,910		$	1,044,496

Liabilities

Accounts payable	$	144,572		$	80,743
Accrued payroll		19,292			24,184
Other accrued liabilities		23,845			21,846
Current portion of lease liabilities		6,629			5,865

Total current liabilities		194,338			132,638

Credit facility revolver		233,198			272,456
Other long-term liabilities		23,979			22,484
Deferred income taxes		9,895			11,049
Lease liabilities		35,297			31,945

Total liabilities		496,707			470,572

Shareholders' Equity

Preferred stock		-			-
Common stock		138,892			138,538
Accumulated other comprehensive loss		(54	)		190
Retained earnings		439,365			435,196

Total shareholders' equity		578,203			573,924

Total liabilities and shareholders' equity	$	1,074,910		$	1,044,496





Olympic Steel, Inc. Segment Financial Information (In thousands, except tonnage and per-ton data. Figures may not foot to consolidated totals due to Corporate expenses.)

	Three Months Ended June 30,
	Carbon Flat Products				Specialty Metals Flat Products				Tubular and Pipe Products
	2025		2024		2025		2024		2025		2024

Tons sold ¹		214,894		229,090		32,149		31,695		N/A		N/A

Net sales	$	282,543	$	307,755	$	134,706	$	130,873	$	79,234	$	87,622
Average selling price per ton		1,315		1,343		4,190		4,129		N/A		N/A
Cost of materials sold		209,612		243,996		110,761		104,944		54,306		57,607
Gross profit		72,931		63,759		23,945		25,929		24,928		30,015
Operating expenses		65,538		58,398		19,019		18,080		21,063		23,518
Operating income		7,393		5,361		4,926		7,849		3,865		6,497

Depreciation and amortization		5,152		4,112		956		929		2,089		2,168
LIFO (income) / expense		-		-		-		-		750		(1,000	)

	Six Months Ended June 30,
	Carbon Flat Products				Specialty Metals Flat Products				Tubular and Pipe Products
	2025		2024		2025		2024		2025		2024

Tons sold ¹		447,721		448,765		63,828		61,598		N/A		N/A

Net sales	$	568,783	$	608,730	$	264,244	$	260,407	$	156,397	$	183,755
Average selling price per ton		1,270		1,356		4,140		4,228		N/A		N/A
Cost of materials sold		424,951		479,611		219,561		212,534		104,667		121,940
Gross profit		143,832		129,119		44,683		47,873		51,730		61,815
Operating expenses		130,614		115,101		37,127		36,093		43,720		47,691
Operating income		13,218		14,018		7,556		11,780		8,010		14,124

Depreciation and amortization		10,242		8,193		1,909		1,917		4,326		4,416
LIFO (income) / expense		-		-		-		-		750		(600	)

¹ The Company does not report tons sold for McCullough Industries, EZ-Dumper, Metal-Fab, or MetalWorks in the Carbon Flat Products Segment, Shaw Stainless in the Specialty Metals Flat Products Segment or for the entire Tubular and Pipe Products Segment.





Other Information (in thousands, except per-share and ratio data)

	As of June 30, 2025		As of December 31, 2024
Assets
Flat-products	$	716,785	$	695,880
Tubular and pipe products		357,115		347,469
Corporate		1,010		1,147
Total assets	$	1,074,910	$	1,044,496


	As of June 30, 2025		As of December 31, 2024
Shareholders' equity per share	$	51.64	$	51.54

Debt to equity ratio	0.40 to 1		0.47 to 1


	Six Months Ended June 30,
	2025		2024

Net cash from operating activities	$	64,925	$	(5,512	)

Cash dividends per share	$	0.32	$	0.30

View source version on businesswire.com: https://www.businesswire.com/news/home/20250731806037/en/

Richard A. Manson

Chief Financial Officer

(216) 672-0522

ir@olysteel.com

Olympic Steel Reports Second-Quarter 2025 Results