Executive Summary

Q1 2024 delivered 7.0% revenue growth to $476.3M, while diluted EPS rose to $1.50; Adjusted EBITDA was $58.6M with margin down 190 bps year over year to 12.3% .
Financial Services strength and the consolidation of Supply Chain drove growth, offset by declines in Energy (rig hours) and Diversified Industrial (Building Materials and Tubing) .
Interest expense fell sharply (−76.7% YoY) on lower average debt, and operating cash flow surged to $197.5M on loan sales dynamics; net cash stood at $41.2M and total debt fell to $92.8M .
No formal forward guidance was provided; the Board maintained the regular $0.375 quarterly distribution on Series A Preferred and continued unit repurchases, both relevant to near-term investor positioning .

What Went Well and What Went Wrong

What Went Well

Financial Services: Revenue +18.5% YoY to $110.0M as asset-based lending, CRT and held-for-sale volumes benefited from higher rates; segment operating income rose and credit loss provisions declined YoY .
Capital structure and financing costs: Interest expense decreased 76.7% YoY due to significantly lower average debt outstanding; total debt ended Q1 at $92.8M (down ~$98.6M q/q) .
Cash generation and liquidity: Operating cash flow reached $197.5M, aided by a $163.5M net decrease in loans held for sale; credit facility availability was ~$497.9M .

“2024 started strong with great revenue growth…Our focus continues to be on managing inflation and reducing expenses, especially in SG&A.” — Executive Chairman Warren Lichtenstein .

What Went Wrong

Segment softness: Energy revenue down 33.7% YoY on lower rig hours; Diversified Industrial revenue down 3.9% YoY, pressured by Building Materials (roofing) and Tubing volumes .
Margin compression: Adjusted EBITDA margin declined to 12.3% (−190 bps YoY) as Energy and Diversified Industrial profitability softened despite the Supply Chain contribution .
Higher finance interest expense: Finance interest expense within Financial Services increased by ~$10.2M YoY, reflecting higher rates; SG&A rose 17.7% YoY, led by CRT fees and personnel costs .

Financial Results

Consolidated Performance vs Prior Year and Prior Quarter

Metric	Q1 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$445.371	$466.907	$476.346
Diluted EPS ($)	$1.09	$1.75	$1.50
Adjusted EBITDA ($USD Millions)	$63.131	$59.358	$58.560
Adjusted EBITDA Margin (%)	14.2%	12.7%	12.3%

Segment Breakdown

Segment	Revenue ($USD Millions)	Revenue ($USD Millions)	Revenue ($USD Millions)	Adj. EBITDA ($USD Millions)	Adj. EBITDA ($USD Millions)	Adj. EBITDA ($USD Millions)
	Q1 2023	Q4 2023	Q1 2024	Q1 2023	Q4 2023	Q1 2024
Diversified Industrial	$304.426	$275.394	$292.440	$31.923	$24.376	$22.990
Energy	$48.164	$34.218	$31.921	$7.321	$2.113	$2.684
Financial Services	$92.781	$112.341	$109.955	$26.212	$26.207	$28.412
Supply Chain	—	$44.954	$42.030	—	$4.373	$3.236

KPIs and Cash Metrics

KPI	Q1 2023	Q4 2023	Q1 2024
Net Cash Provided by Operating Activities ($USD Millions)	$(48.248)	$9.547	$197.460
Adjusted Free Cash Flow ($USD Millions)	$33.362	$87.587	$23.873
Capital Expenditures ($USD Millions)	$10.708	$14.784	$10.066
Total Debt ($USD Millions)	—	$191.371	$92.809
Net Cash ($USD Millions)	—	$56.376	$41.231

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company-wide financial guidance	FY/Q2 2024+	Not provided	Not provided	Maintained (no guidance)
Series A Preferred quarterly distribution	Q2 2024 payable 6/15/24	$0.375 per unit	$0.375 per unit	Maintained
Common Unit Repurchase	Ongoing	Program authorized; cumulative purchases 7.8M units by Q3 2023	933,787 units repurchased in Q1 2024; 777,833 units remain authorized	Active program continued
Preferred Unit Repurchase	2024	Not previously authorized	Up to 400,000 preferred units authorized; 76,146 repurchased in Q1 2024	New/Active in 2024

Earnings Call Themes & Trends

Note: No public Q1 2024 earnings call transcript was found; themes compiled from press releases and 10-Q narrative .

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Cost discipline and SG&A	“Erosion of income and EBITDA… focused on reducing costs”	SG&A up in Financial Services; Corporate SG&A lower	Focus on managing inflation and reducing SG&A; SG&A +17.7% YoY	Ongoing cost focus; SG&A pressure persists
Financial Services (WebBank)	Revenue growth; higher finance interest and credit loss provisions	Strong revenue; SG&A up on CRT fees; lower credit loss provisions in Q4 vs prior	Revenue +18.5% YoY; lower credit loss provisions; higher finance interest expense	Solid top-line; mixed cost dynamics
Energy/Rig activity	Strong prior period pricing/volume; later decline	Revenue lower	Revenue −33.7% YoY on lower rig hours	Weakening activity
Diversified Industrial mix	Building Materials/Tubing softness	Lower sales; impairment on idle equipment	Lower sales volume in Building Materials (roofing) and Tubing; higher material costs	Pressure continues
Supply Chain (ModusLink)	Added segment (May 2023)	Revenue $44.954M; Adj. EBITDA $4.373M	Revenue $42.030M; Adj. EBITDA $3.236M	Stable contribution
Macro/Interest rates	Higher rates affecting finance interest	Higher average interest rates; debt lower	Higher rates lift Financial Services revenue and finance interest expense	Rate tailwinds and costs

Management Commentary

“2024 started strong with great revenue growth…Our Financial Services segment continues to deliver positive results, which were offset by the decline in the Energy and Diversified Industrial segments.” — Executive Chairman Warren Lichtenstein .
“We have seen erosion of both income and EBITDA year over year, and our management team is focused on reducing costs and expenses…thrilled to bring online our…plant for Lucas Milhaupt.” — Q3 2023 release .

Q&A Highlights

No Q1 2024 earnings call transcript or Q&A was available in company filings or document catalog; analysis leverages the 8‑K press release and 10‑Q (no transcript listings found).

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable at the time of request due to SPGI rate limits; therefore, we cannot assess beats/misses versus consensus. Values retrieved from S&P Global were unavailable due to rate-limit errors.

Key Takeaways for Investors

Mix-shift continues: Financial Services (WebBank) and Supply Chain are the primary growth engines, while Energy and Diversified Industrial face cyclical and volume headwinds .
Margin pressure is the watch item: Adj. EBITDA margin fell to 12.3% (−190 bps YoY) amid Energy/Diversified Industrial softness; management is prioritizing SG&A control .
Financing costs improved markedly: Interest expense dropped 76.7% YoY on lower average debt; total debt reduced to $92.8M, improving flexibility .
Strong operating cash flow was aided by loan sales dynamics (held-for-sale decrease); monitor sustainability as loan balances and deposit flows normalize .
Capital returns: Common and preferred unit repurchases plus the maintained preferred distribution offer shareholder support; track remaining authorization and pace .
Energy activity is a near-term drag; a recovery in rig hours would be a positive catalyst for segment profitability .
With no formal guidance or available consensus data, trading setups hinge on segment momentum (Financial Services resilience vs. Energy/Diversified Industrial recovery) and ongoing cost actions .

Appendix: Additional References

First Quarter 2024 press release and financial tables (8‑K Item 2.02, EX‑99.2) .
Q1 2024 10‑Q: full financials, segment details, liquidity and covenants .
Q4 2023 press release and segment tables (trend context) .
Q3 2023 press release and segment tables (trend context) .
Preferred distribution press release (Q2 payable) .
Reverse/Forward unit split extension and abandonment (capital actions) .
Company press release archive (web reference) .
Q1 2024 press release (web reference) .

STEEL PARTNERS HOLDINGS L.P. (SPLP)·Q1 2024 Earnings Summary