Steel Partners: Q3 Earnings Sidelines

Steel Partners Holdings L.P. (NYSE: SPLP), a diversified global holding company, recently announced its Q3 2024 earnings results, showcasing robust performance across multiple segments. The company's strategic initiatives and commitment to delivering value for shareholders have driven record revenue and solidified its position in the market.
**Key Drivers of Q3 Revenue Growth**
Steel Partners' Q3 revenue growth was propelled by strong performance in several segments. The Diversified Industrial segment witnessed significant growth in net sales, while the Financial Services segment delivered increased profits. The Supply Chain segment also contributed to the increase, primarily due to favorable consolidation impacts.
Comparatively, Q3 2024 revenue increased by 5.7% year-over-year, driven by higher net sales from the Diversified Industrial segment, higher revenue from the Supply Chain segment, and increased profits from the Financial Services segment. This growth was partially offset by lower net revenue from the Energy segment.

**Adjusted EBITDA Margin Trends**
Steel Partners' adjusted EBITDA margin in Q3 2024 was 14.6%, up from 14.3% in the same period last year and 12.6% in Q2 2024. This improvement was driven by strong performance across multiple segments, including increased profits in the Financial Services segment and significant growth in net sales in the Diversified Industrial segment.

**Impact of Steel Connect's Inclusion**
Steel Connect's inclusion in Steel Partners' consolidated financial statements since May 1, 2023, contributed to a 5.7% increase in Q3 2024 revenue compared to Q3 2023. This was primarily driven by higher net sales from the Diversified Industrial segment, higher revenue from the Supply Chain segment, and increased profits from the Financial Services segment. Adjusted EBITDA also saw a significant boost, with a 14.6% margin in Q3 2024 compared to 9.0% in Q3 2023.
**Net Income and Attributable to Common Unitholders**
Steel Partners' Q3 net income and net income attributable to common unitholders increased significantly compared to previous quarters and the same period last year. Net income rose to $36.9 million, up 32.2% YoY, while net income attributable to common unitholders reached $36.4 million, an increase of 32.2% YoY. This growth was driven by robust performance across multiple segments, including a 6.5% increase in net sales from the Diversified Industrial segment and a 21.2% increase in revenue from the Supply Chain segment. Additionally, the Financial Services segment saw a 6.2% increase in revenue.

In conclusion, Steel Partners' Q3 earnings snapshot reveals a strong performance driven by strategic initiatives and a commitment to delivering value for shareholders. The company's robust revenue growth, improved adjusted EBITDA margin, and increased net income underscore its solid fundamentals and growth potential. As the company continues to build momentum across its business segments, investors should keep a close eye on Steel Partners' progress and consider its strong value proposition.