Company: ZEUS
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001437749-25-032420
Chunk: 31

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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 gross profit as a percentage of net sales is due to the average selling prices increasing more than the average cost of inventory. 

Operating expenses in the third quarter of 2025 increased $11.3 million, or 11.4%, to $110.4 million from $99.0 million in the third quarter of 2024. As a percentage of net sales, operating expenses increased to 22.5% for the third quarter of 2025 from 21.0% in the third quarter of 2024. Operating expenses in the specialty metals flat products segment increased $3.2 million, operating expenses in the carbon flat products segment increased $8.0 million, operating expenses in the tubular and pipe products segment decreased $0.2 million and Corporate expenses increased $0.4 million in the third quarter of 2025 compared to the third quarter of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating and acquisitions related expenses in 2025 and higher year-over-year payroll, distribution and warehousing expenses.

Operating expenses in the first nine months of 2025 increased $24.6 million, or 8.0%, to $331.4 million from $306.8 million in the first nine months of 2024. As a percentage of net sales, operating expenses increased to 22.4% for the first nine months of 2025 from 20.1% in the first nine months of 2024. Operating expenses in the specialty metals flat products segment increased $4.2 million, operating expenses in the carbon flat products segment increased $23.5 million, operating expenses in the tubular and pipe products segment decreased $4.1 million and Corporate expenses increased $1.1 million in the first nine months of 2025 compared to the first nine months of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating and acquisition related expenses in 2025 and higher year-over-year payroll, distribution, occupancy and warehousing expenses.

Interest and other expense on debt totaled $4.1 million, or 0.9% of net sales, in the third quarter of 2025 compared to $3.9 million, or 0.9% of net sales, in the third