Executive Summary

Q2 2024 revenue was $533.2M (+6.4% y/y), diluted EPS was $4.85, and Adjusted EBITDA was $83.8M with a 15.7% margin; results were aided by a one-time, non-cash $71.5M tax benefit from releasing Steel Connect’s valuation allowance, boosting net income to $124.9M .
Segment drivers: Diversified Industrial and Financial Services grew, Supply Chain benefited from consolidation, while Energy declined on lower rig hours; interest expense fell sharply on lower average debt outstanding .
Capital allocation: ~$100M of debt paydown YTD and continued buybacks; total leverage ~0.8x with $511.6M credit availability and $256.4M cash (ex-WebBank) .
No formal revenue/EPS guidance provided; preferred distribution maintained at $0.375 for Series A units and repurchase programs continued—near-term stock reaction catalysts include deleveraging, margin resilience, and non-cash tax benefit clarity .

What Went Well and What Went Wrong

What Went Well

Record revenue momentum driven by Diversified Industrial, Financial Services, and consolidation of Supply Chain; Executive Chairman: “continued to see record revenue… allowing us to buy back units and pay down over $100 million of debt since the beginning of the year” .
Interest expense fell ~71% y/y as average debt declined, supporting earnings quality outside the tax item .
Strong liquidity: $511.6M revolver availability, $256.4M cash (ex-WebBank), and net cash of $53.7M; total leverage down to ~0.8x .

What Went Wrong

Energy segment revenue fell 26.5% y/y on lower rig hours, pressuring segment income y/y .
SG&A increased, primarily at Financial Services, driven by higher credit performance fees tied to CRT balances and higher headcount, partially offsetting revenue gains .
All other expense rose y/y due to higher finance interest expense, tempering operating leverage despite revenue growth .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q2 2023	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$500.9	$466.9	$476.3	$533.2
Diluted EPS ($USD)	$2.44	$1.75	$1.50	$4.85
Net Income Attrib. to Common ($USD Millions)	$59.2	$41.3	$34.2	$116.3
Adjusted EBITDA ($USD Millions)	$73.6	$59.4	N/A	$83.8
Adjusted EBITDA Margin (%)	14.7%	12.7%	N/A	15.7%

Notes:

Q2 2024 net income benefited from a one-time $71.5M non-cash tax benefit from Steel Connect’s valuation allowance release .

Segment Revenue and Operating Income (Q2 2024 vs Q2 2023)

Segment	Revenue Q2 2023 ($M)	Revenue Q2 2024 ($M)	YoY Change	Income Before Interest & Taxes Q2 2023 ($M)	Q2 2024 ($M)
Diversified Industrial	$315.0	$334.5	+6.2%	$25.1	$29.1
Energy	$50.3	$37.0	-26.5%	$4.0	$3.1
Financial Services	$105.4	$115.6	+9.7%	$25.0	$28.7
Supply Chain	$30.2	$46.1	+52.7% (consolidation)	$1.8	$4.5
Total	$500.9	$533.2	+6.4%	$49.1	$67.6

KPIs and Balance Sheet/Liquidity

KPI	Q2 2024	Source
Net Cash from Operating Activities ($M)	$69.0
Adjusted Free Cash Flow ($M)	$38.6
Capital Expenditures ($M)	$8.3
Total Debt ($M)	$78.7
Net Cash ($M)	$53.7
Cash and Cash Equivalents ex-WebBank ($M)	$256.4
Credit Agreement Availability ($M)	$511.6
Weighted Avg Diluted Units	24,618,691
Total Leverage (Senior Credit Agreement)	~0.8x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Series A Preferred Distribution ($/unit)	Payable Sep 15, 2024	$0.375 (Q2 declaration for Jun 15, 2024)	$0.375 (Q3 payment)	Maintained
Preferred Unit Repurchase Authorization	Ongoing 2024	Repurchase up to 400,000 units (approved Feb 2, 2024)	Ongoing; 76,146 repurchased YTD by Q2	Maintained
Common Unit Repurchase Program	Ongoing	Program since Dec 2016; 750,000 added Mar 2024	734,276 units remain authorized as of Jun 30, 2024	Maintained
Financial/Revenue/EPS Guidance	2024	None disclosed	None disclosed	N/A

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in the document catalog; themes are drawn from the 8-K/press release and 10-Q MD&A .

Topic	Previous Mentions (Q4 2023)	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Capital allocation (debt paydown, buybacks)	Emphasized liquidity and net cash; buybacks ongoing	Increased revolver availability; continued buybacks	>$100M debt paydown YTD; continued buybacks; leverage ~0.8x	Strengthening
Financial Services CRT, fees, and headcount	SG&A up on CRT fees/headcount	SG&A up on CRT fees/headcount; lower credit loss provisions	SG&A up, all other expense up on finance interest; lower provisions ytd	Mixed—costs up with volume
Energy rig hours and pricing	Segment income stable/modest; revenue down y/y	Significant y/y revenue decline on rig hours	Revenue -26.5% y/y; income down	Softness continues
Supply Chain consolidation impact	New segment added; revenue contribution	First full quarter contribution	+52.7% y/y revenue from consolidation; income up	Positive integration
Interest expense / debt profile	Lower interest expense on lower debt	Interest expense down ~77% y/y	Down ~71% y/y on lower average debt	Improving
Tax rate / valuation allowance impacts	Lower 2023 ETR from tax items	Normal provision (~23.8%)	One-time non-cash $71.5M benefit; ETR (six months) -43.1%	One-time benefit Q2

Management Commentary

“Steel Partners has continued to see record revenue, which is driven by the improved performance of our Diversified Industrial, Financial Services, and Supply Chain segments… allowing us to buy back units and pay down over $100 million of debt since the beginning of the year.” — Executive Chairman Warren Lichtenstein .
On tax: Steel Connect’s valuation allowance release resulted in a one-time, non-cash $71.5M income tax benefit; not expected to recur .
Liquidity: $511.6M availability under senior credit agreement; cash (ex-WebBank) $256.4M; long-term investments $72.8M .

Q&A Highlights

No Q2 2024 earnings call transcript is available; therefore, Q&A themes and any guidance clarifications could not be assessed from a call transcript .

Estimates Context

Wall Street consensus (S&P Global) for SPLP’s Q2 2024 was not available due to an SPGI request limit error; as a result, we cannot benchmark reported EPS or revenue vs consensus. Values retrieved from S&P Global were unavailable due to API limit constraints.

Key Takeaways for Investors

Underlying operating performance improved across Diversified Industrial, Financial Services, and Supply Chain, supporting top-line and EBIT growth; Energy remains a drag near-term on lower rig hours .
The large Q2 EPS/NIz beat is not a run-rate event—driven by a non-cash, one-time tax benefit; focus on Adjusted EBITDA and cash generation for core performance assessment .
Deleveraging and lower interest expense are structurally positive; with total leverage ~0.8x and ample revolver availability, balance sheet strength provides optionality for buybacks and bolt-ons .
Financial Services growth (higher asset-based lending, CRT-linked activity) is accretive but increases SG&A; monitor expense growth vs revenue scaling and credit loss trends .
Supply Chain consolidation is accretive to growth and profitability; track integration execution and margin lift .
Energy softness likely persists until rig activity normalizes; consider segment mix when projecting margins .
Near-term trading implications: clarity that the tax benefit is non-recurring may temper EPS extrapolation; positive catalysts include deleveraging, liquidity, and Adjusted EBITDA momentum; medium-term thesis hinges on diversified segment growth and disciplined capital allocation .

Citations: All figures and statements are sourced from the Q2 2024 press release and 8-K/10-Q filings: and prior-quarter references and Q4 2023 8-K .

STEEL PARTNERS HOLDINGS L.P. (SPLP)·Q2 2024 Earnings Summary