Olympic Steel earnings slump in 'challenging' first quarter

Olympic Steel’s earnings slid in the first quarter as the steel industry faced “challenging” economic conditions.

The Cleveland-based service center chain logged net income of $2.5 million in the first quarter, off 71% from $8.7 million a year earlier. Net sales dropped 6% to $492.9 million in the same comparison.

“Olympic Steel had a strong shipping start to the year and delivered positive EBITDA in all three business segments in a challenging macro-economic environment for the steel industry,” CEO Richard T. Marabito said in a statement on May 1.

Flat-rolled shipping volumes were up 24% from the fourth quarter of 2024 and up 6% over the first quarter of 2024, In fact, they were at their highest levels since the third quarter of 2021, he added.

In its carbon flat products segment, Olympic sold 232,827 short tons (st) in the first quarter, up 6% from 219,675 st a year earlier.

But while shipment volumes were up, selling prices were down. In its carbon flat products business, for example, Olympic recorded average selling prices of $1,229/st in the first quarter of 2025. That was down 10% from $1,370/st in the first quarter of 2024.

Marabito also noted that Olympic completed its latest acquisition, Georgia-based components manufacturer Metal Works, at the end of 2024. The company “is off to an excellent start and as expected has been immediately accretive.”

Metal Works makes products primarily from coated carbon steel and aluminum. It operates two facilities in Oakwood, Ga.

Outlook

Marabito said he was upbeat on Olympic’s domestic capabilities in the current high-tariff environment.

“We are well-positioned to support increased manufacturing in the US,” he said. “Over 90% of our metals supply and almost all our sales are domestically based.”

He added that Olympic’s  fabrication capabilities “provide an excellent solution for OEMs looking to outsource or expand their first stages of manufacturing in the US.”

Looking ahead, Marabito said the company “will continue to focus on what we can control.”

“While macro forces are likely to have impacts that reverberate throughout the economy, we believe the strategies we have in place will enable us to drive profitability and growth,” he concluded.