Company: ZEUS
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001437749-25-032420
Chunk: 42

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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 The decrease in the gross profit as a percentage of net sales in the first nine months of 2025 when compared to the first nine months of 2024 was due to the average selling prices decreasing more than the average cost of inventory. 

Operating expenses in the third quarter of 2025 decreased $0.2 million, or 0.8%, to $21.2 million from $21.4 million in the third quarter of 2024. Operating expenses decreased to 26.0% of net sales in the third quarter of 2025 compared to 26.9% in the third quarter of 2024. Operating expenses in the first nine months of 2025 decreased $4.1   million, or 6.0%, to $64.9 million from $69.1 million in the first nine months of 2024. Operating expenses increased to 27.3% of net sales in the first nine months of 2025 compared to 26.3% in the first nine months of 2024. The decrease in operating expenses on a dollar basis was primarily due to lower variable performance-based incentive compensation and lower operating expenses associated with lower shipments. 

Operating income in the third quarter 2025 totaled $4.0 million, or 4.9% of net sales, compared to $6.5 million, or 8.2% of net sales, in the third quarter of 2024. Operating income in the first nine months 2025 totaled $12.0 million, or 5.0% of net sales, compared to $20.6 million, or 7.8% of net sales, in the first nine months of 2024. 

Corporate expenses

Corporate expenses increased $0.4 million, or 10.0%, to $4.4 million in the third quarter of 2025 from $4.0 million in the third quarter of 2024. Corporate expense primarily increased due to higher year-over-year professional service fees. Corporate expenses increased $1.1 million, or 8.7%, to $14.0 million in the first nine months of 2025 from $12.9 million in the first nine months of 202