Quarterlytics / Basic Materials / Steel / Olympic Steel / FY2024 Annual Report

Olympic Steel
Annual Report 2024

ZEUS · NASDAQ Basic Materials
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Ticker ZEUS
Exchange NASDAQ
Sector Basic Materials
Industry Steel
Employees 1001-5000
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FY2024 Annual Report · Olympic Steel
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2024 Annual Report

About the Company
Financial Information
In thousands, except per-share and ratio data
      2024
      2023
      2022
For the Year
     Net sales
$  1,941,672 )
$  2,158,163 )
$  2,559,990 )
     Operating income
47,859 )
77,671 )
133,747 )
     Net income
22,980 )
44,529 )
90,931 )
     Net income per diluted share
1.97 )
3.85 )
7.87 )
     Weighted average diluted shares outstanding
11,677 )
11,578 )
11,559 )
     Capital expenditures
29,487 )
21,326 )
19,854 )
At Year End
     Accounts receivable, net
166,149 )
191,149 )
219,789 )
     Inventories
390,626 )
386,535 )
416,931 )
     Total assets
1,044,496 )
984,835 )
891,627 )
     Total debt
272,456 )
190,198 )
165,658 )
     Shareholders’ equity
573,924 )
555,478 )
515,968 )
     Shareholders’ equity per share
51.54 )
49.90 )
46.36 )
     Debt-to-equity ratio
0.47 to 1 )
0.34 to 1 )
0.32 to 1 )
We are a leading metals service center focused on the direct sale and value-added processing of carbon and coated sheet, 
plate and coil products; stainless steel sheet, plate, bar and coil; aluminum sheet, plate and coil; pipe, tube bar, valves and 
¿ttings, tin plate and metal-intensive end-use products. We provide metals processing and distribution services for a Zide 
range of customers. We operate in three reportable segments specialty metals Àat products, carbon Àat products, and tubular 
and pipe products. Our specialty metals Àat products segment’s focus is on the direct sale and distribution of processed 
aluminum and stainless Àat-rolled sheet and coil products, Àat bar products, prime tin mill products and fabricated parts. 
Through acquisitions, our specialty metals Àat products segment has expanded its geographical footprint and enhanced its 
product offerings in stainless steel and aluminum plate, sheet, angles, rounds, Àat bar, tube and pipe and the manufacturing 
and distribution of stainless steel bollards and Zater treatment systems. Our carbon Àat products segment’s focus is on 
the direct sale and distribution of large volumes of processed carbon and coated Àat-rolled sheet, coil and plate products 
and fabricated parts. Through acquisitions, our carbon Àat products segment has expanded its product offerings to include 
self-dumping metal hoppers and steel and stainless-steel dump inserts for pickup truck and service truck beds. Through 
the acquisition of 0etal-)ab on -anuary 3, 2023, the carbon Àat products segment further expanded its product offerings to 
include venting, micro air and clean air products for residential, commercial and industrial applications. Through the recent 
acquisition of 0etal Works on November 11, 2024, the carbon Àat products segment further expanded its product offerings to 
include the manufacturing of service station canopies, deck clips, long gutters, trim, boat docks and solar canopy and ground 
racking components. Our tubular and pipe products segment’s focus is on the distribution of metal tubing, pipe, bar, valves 
and ¿ttings and the fabrication of parts supplied to various industrial markets. Through the acquisition of Central Tube and %ar 
on October 2, 2023, the tubular and pipe products segment further expanded its geographic footprint and extended its value-
added contract manufacturing capabilities. We also perform toll processing of customer-oZned metals.

DEAR SHAREHOLDERS,
2024 Zas an important year for Olympic Steel, as Ze 
celebrated our 70th anniversary and our 30th year as a 
publicly traded company. These milestones provide us Zith 
a Zonderful opportunity to reÀect on and celebrate our proud 
history and journey to become a leading national metals 
service center. 
We have evolved into a stronger, more resilient company, 
Zhich helped us successfully navigate a dif¿cult year for 
the metals industry that included loZer industry shipments 
and pricing, higher interest rates and uncertainty around the 
2024 elections.
Despite these headZinds, all three of our segments 
achieved positive (%ITDA in every quarter of 2024, Zhich 
is a testament to the success of our diversi¿cation strategy 
and our team’s commitment to operational discipline. It also 
reÀects our dedication to make the right investments in our 
business, including both organic groZth and acquisitions that 
further our strategy to drive pro¿table, sustainable groZth in 
all market conditions. 
We are proud of our ability to continue to deliver long-term 
value for our shareholders. 
2024 HIGHLIGHTS
Olympic Steel ¿nished 2024 Zith $1.9 billion in sales, 
$47.9 million in operating income, and net income of $23.0 
million. All three business segments contributed positively to 
our results.
Our Carbon segment’s product mix, including counter-cyclical 
manufactured products, enabled us to maintain our sales 
volumes despite loZer industry-Zide shipments and loZer 
demand from our contractual OEM customers. We gained 
market share by Zinning business from neZ and existing 
accounts, especially in the value-add fabrication sector. In 
addition, our coated product sales increased more than 20% 
compared Zith 2023. 
%y focusing on fabrication, our 3ipe and Tube segment had 
a strong year Zhile navigating industry-Zide headZinds. 
This strategy of providing additional fabrication services 
yields higher margins compared Zith our standard products 
and further entrenches our offering of ready-for-assembly 
products for OEM accounts. In addition, our acquisition 
of Central Tube and %ar, a producer of fabricated tube and 
bar products, in late 2023 further supported these gains. 
Our continued drive for improved pro¿tability revolves 
around a combination of sales groZth, more fabrication and 
cost containment. 
The Specialty Metals segment remained resilient and 
pro¿table in 2024, continuing to outpace market shipments 
in both the stainless and aluminum markets, Zhich helped 
overcome soft end-user demand and compressed commodity 
prices. The segment greZ its market share and made a 
meaningful contribution to pro¿tability despite lackluster 
market conditions under Zhich nickel prices hit a four-year 
loZ, negatively impacting stainless steel surcharges. 
We have continued to make investments in higher-margin 
opportunities to accelerate groZth. During 2024, many of 
these investments Zere related to automation and capacity 
expansion, Zhich enable us to enhance throughput, safety 
and productivity.