Company: ZEUS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024377
Chunk: 29

Company: OLYMPIC STEEL INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 (i.e., all three segments), including compensation for certain personnel, expenses related to being a publicly traded entity such as board of directors’ expenses, audit expenses, and various other professional fees.

     23

Results of Operations

Our results of operations are impacted by the market price of metals.  Metals prices fluctuate significantly and changes to our net sales, cost of materials sold, gross profit, cost of inventory and profitability, are all impacted by industry metals pricing. 

Metals prices in our specialty metals products segment decreased during 2025 compared to 2024, due to decreases in metals surcharges experienced during 2025. The price of grade 304 stainless steel surcharges decreased by 4.4% between December 2024 and June 2025. Metals index pricing for our carbon flat products segment slightly decreased during the second quarter of 2025 by $31 per ton, or 3.3%, and increased during the first six months of 2025 by $209 per ton, or 30.2%. In addition, metals index prices were 12.4% higher in the second quarter of 2025 compared to the second quarter of 2024. Metals pricing for the tubular and pipe products segment lags behind the carbon flat products segment by several months. 

Transactional or “spot” selling prices generally move in tandem with market price changes, while fixed selling prices typically lag and reset quarterly. Similarly, inventory costs (and, therefore, cost of materials sold) tend to move slower than market selling price changes due to mill lead times and inventory turnover impacting the rate of change in average cost. When average selling prices decrease, and net sales decrease, gross profit and operating expenses as a percentage of net sales will generally increase. 

Consolidated Operations

The following table presents consolidated operating results for the periods indicated (dollars are shown in thousands):

      For the Three Months Ended June 30, 

      For the Six Months Ended June 30, 

      2025 

      2024 

      2025 

      2024 

      % of net 

      % of net 

      % of net 

      % of net 

      $ 

      sales 

      $ 

      sales 

      $ 

      sales 

      $ 

      sales 

      Net sales 
      
     $
     496,483

     100.0

     $
     526,250

     100.0