Company: ZEUS
Filing Date: 2025-10-29
Form Type: 425
Source: 0001193125-25-256374
Chunk: 20

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-29
Form: 425
Chunk 20
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 enduring synergies based on our existing model and the model going forward. So I agree 100% with Eddie on that. And then you did ask about some costs that would be incurred to realize those synergies. And yeah,
obviously, there’ll be some costs. I think on one of the slides we talked about potentially that being up to $40 million.

Alan Weber: Okay.
Then I guess the last question is when and if the markets do improve, how do you think about incremental EBITDA margins starting from your proforma EBITDA?

Rick Marabito: Well, I’ll start on that. I mean, certainly, again, what we’ve got in the deck and what we’ve talked about are our proforma
margins using sort of the environment we’re in and then looking on a pro forma basis and modeling out what that would be. If you go back two or three years in terms of what the EBITDA margin profiles were for our sector, for Ryerson, for
Olympic and for others, it was several points higher. I tend to think of if you can get in that 6% to 8% quartile consistently on the distribution service center side of the business, that’s pretty good. Obviously, given the depressed market
we’ve been in the last couple of years, the current margin profiles for really all of us in terms of service centers is depressed from that. So we’ve got a 6% pro forma in here, but you get market tailwinds and more of a normalized
market. And I can see that going to 6% to 8% okay.

Edward Lehner: Yeah, Alan, we look at it historically and you go back and look at again the last 20
years. And you can certainly spotlight years like 2014, 2018, 2021. And conversely, you can look at years like 2015, 2009, 2020 and even the last several years, 2024 and even 2025 year to date. And you kind of - you traverse that continuum of years.
And here’s what I would tell you. We’re in the bottom quartile now. And so, that feels like a 2% to 5% EBITDA margin. As you get to that second quartile, that feels like a 4% to 6% EBITDA margin. You get to that third quartile when you
start to see mid-cycle trends