STEEL PARTNERS HOLDINGS L.P. (SPLP)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 delivered solid top-line growth and strong margin expansion: revenue $497.9M (+6.6% YoY), adjusted EBITDA $84.7M with margin 17.0% vs 12.7% YoY, and diluted EPS $3.40, aided by a substantial tax benefit in the quarter .
• Diversified Industrial and Financial Services drove the quarter, with segment income before interest and taxes up materially; Energy remained soft on lower rig hours, while Supply Chain continued to benefit from consolidation effects .
• Operating cash flow was a quarterly headwind (-$4.9M), and adjusted free cash flow compressed YoY ($72.5M vs $87.6M), though year-end liquidity and leverage improved (total debt $119.7M; net cash $62.2M; total leverage ~0.9x) .
• No explicit forward guidance ranges were provided; Series A Preferred quarterly distribution maintained at $0.375 in Q4 and subsequent quarter . S&P Global consensus estimates were not available at the time of this analysis (daily request limit exceeded), so beats/misses vs Street cannot be assessed.

What Went Well and What Went Wrong

What Went Well

• Adjusted EBITDA margin expanded to 17.0% (vs 12.7% YoY), supported by higher operating income and lower credit loss provisions in Financial Services; Diversified Industrial strength continued across net sales .
• Segment performance was broad-based: Q4 income before interest and taxes rose across Diversified Industrial ($19.3M), Financial Services ($35.4M), Supply Chain ($7.0M), with Energy also positive ($4.1M) .
• Management highlighted record revenue and disciplined execution: “We’re proud to report record revenue this year... Our team’s commitment to continuous improvement and operational excellence drove these results” — Executive Chairman Warren Lichtenstein .

What Went Wrong

• Quarterly operating cash flow turned negative (-$4.9M), and adjusted free cash flow declined YoY ($72.5M vs $87.6M), reflecting working capital and loan sale dynamics in WebBank .
• Realized/unrealized losses on securities were a drag in Q4 ($6.0M loss vs $0.9M gain YoY), marking-to-market the investment portfolio .
• Energy segment softness persisted on lower rig hours, contributing to reduced operating income for the segment across 2024 vs prior year .

Financial Results

Quarterly P&L Metrics (Q2 → Q4 2024)

Q4 Year-over-Year Comparison

Segment Revenue (Q2 → Q4 2024)

Segment Income Before Interest Expense and Income Taxes (Q2 → Q4 2024)

KPIs and Balance Sheet (Quarterly)

Estimates vs Actuals (Q4 2024)

Guidance Changes

Earnings Call Themes & Trends

No public Q4 2024 earnings call transcript was available; themes are drawn from management’s press release commentary.

Management Commentary

• “We’re proud to report record revenue this year, with particularly strong results in our diversified industrial and financial services businesses... Our team’s commitment to continuous improvement and operational excellence drove these results for all our stakeholders.” — Executive Chairman Warren Lichtenstein .
• Liquidity remained robust with ~$470M availability under the senior credit agreement, $263.4M cash and cash equivalents (ex-WebBank), and $84.7M long-term investments at year-end .
• Leverage improved to ~0.9x vs ~1.5x at prior year-end; total debt fell to $119.7M, net cash increased to $62.2M .

Q&A Highlights

No Q4 2024 earnings call transcript or Q&A was published in the available filings and press releases; therefore, no Q&A highlights can be provided from primary sources .

Estimates Context

• Wall Street consensus (S&P Global) was not retrievable due to access limits at the time of analysis; we cannot assess beats/misses vs Street for Q4 2024. Treat estimates as unavailable pending SPGI access restoration.
• Given positive YoY revenue and margin expansion, sell-side models may need to reflect stronger Financial Services profitability with lower credit loss provisions and improved leverage metrics; however, formal consensus revision analysis is deferred without SPGI data .

Key Takeaways for Investors

• Margin and earnings quality improved: adjusted EBITDA margin hit 17.0% and diluted EPS rose to $3.40; Financial Services and Diversified Industrial anchored the quarter .
• Balance sheet de-risking continued: total debt down to $119.7M, net cash up to $62.2M, and leverage ~0.9x — increasing financial flexibility for repurchases and selective investments .
• Cash generation volatility: quarterly operating cash flow was negative (-$4.9M) and adjusted FCF declined YoY ($72.5M vs $87.6M), underscoring working capital and loan sale timing sensitivity in WebBank .
• Segment breadth: Supply Chain and Financial Services contributions remain durable; Energy remains cyclically soft — monitor rig activity trends and associated capex .
• Tax items materially impacted results (non-cash benefits, valuation allowance releases earlier in 2024); investors should normalize for these when assessing run-rate EPS and margins .
• Capital returns continue for preferred holders (Series A $0.375 maintained); common unit buybacks executed earlier in 2024 indicate ongoing capital allocation discipline .
• Absent formal guidance or a call, focus near-term on execution in Diversified Industrial and credit performance dynamics at Financial Services; medium-term thesis centers on cross-cycle margin resilience, deleveraging, and disciplined capital allocation .