Christopher Sakai's questions to Olympic Steel Inc (ZEUS) leadership • Q2 2025
Question
Christopher Sakai of Singular Research inquired about the initiatives behind the Carbon Flat gross margin improvement, the outlook for operating expenses, the pricing forecast for hot-rolled steel, and the potential demand impact from foreign investment related to tariff deals.
Answer
CFO Richard Manson explained that the Carbon Flat margin improvement was due to a combination of favorable index pricing, a better product mix, a focus on fabrication, and strong performance from end-product companies. He expects operating expenses to decline in Q3, in line with seasonally lower volumes. President & COO Andrew Greiff anticipates price stability for hot-rolled steel in the second half, barring any changes to tariffs. Greiff also commented that while it's too early to gauge the impact of foreign investment deals, any increase in U.S. manufacturing is a long-term positive.