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Shares of Steel Partners Holdings L.P. Common Units SPLP have inched up 1.9% since reporting results for the fourth quarter of 2024. This compares with the S&P 500 index’s 0.4% growth over the same time frame. Over the past month, the stock has lost 3.4% compared with the S&P 500’s 8.4% decline.
Earnings & Revenue Growth
Steel Partners reported fourth-quarter 2024 earnings per diluted common unit of $3.40, a 94% surge from $1.75 in the prior-year quarter.
SPLP registered fourth-quarter 2024 revenues of $497.9 million, reflecting a 6.6% increase from $466.9 million in the prior-year quarter. Net income surged 74.7% to $74.6 million from $42.7 million in the year-ago period.
For the full year, revenues climbed 6.4% to $2.03 billion from $1.91 billion in 2023. Net income soared 76.1% year over year to $271.2 million. Net income attributable to common unitholders was $261.6 million, or $11.38 per diluted unit, compared with $150.8 million, or $6.43 per diluted unit, in 2023.
Steel Partners Holdings LP Price, Consensus and EPS Surprise
Steel Partners Holdings LP price-consensus-eps-surprise-chart | Steel Partners Holdings LP Quote
Other Key Business Metrics
Steel Partners reported an adjusted EBITDA of $84.7 million for the fourth quarter, marking a 42.7% increase from $59.4 million in the prior-year quarter. The adjusted EBITDA margin expanded to 17% from 12.7% in the fourth quarter of 2023.
For the year, adjusted EBITDA increased 26% to $303 million, with the adjusted EBITDA margin rising to 14.9% from 12.6% in 2023. The adjusted free cash flow, however, declined to $169.3 million from $236 million in the previous year.
Liquidity remained solid, with net cash totaling $62.2 million as of Dec. 31, 2024, up from $56.4 million at the end of 2023. The company reduced total debt by $71.7 million year over year to $119.7 million.
Segmental Performance
The diversified industrial segment remained the largest revenue generator, marking an 8% year-over-year increase and contributing $297.4 million to the fourth quarter. This segment also saw a 94.6% jump in income before interest and taxes to $19.3 million.
Financial services’ revenues increased 2.9% year over year to $115.7 million in the quarter, with segmental profit rising 36.2% to $35.4 million. The supply-chain segment posted revenue growth of 9.1% to $49 million, whereas its income more than doubled to $7 million from $2.9 million in the prior-year quarter.
On the downside, the energy segment registered a modest 4.7% year-over-year revenue increase to $35.8 million in the fourth quarter, but full-year revenues declined 19.2% to $145 million due to lower rig hours.