Steel Partners Holdings Reports 6.4% Revenue Growth to $2.03 Billion for Fiscal Year 2024

Steel Partners Holdings L.P. (SPLP) reported a revenue increase of 6.4% for the fiscal year ending December 31, 2024, totaling $2.03 billion, compared to $1.91 billion in 2023. The growth was driven by a $49 million increase in the Diversified Industrial segment and a $37 million rise in the Financial Services segment, although this was partially offset by a $34 million decline in the Energy segment. The company’s net income rose significantly to $271 million, or $13.07 per common unit, from $154 million, or $7.04 per common unit, in the previous year. This increase in profitability was attributed to higher operating income and a substantial tax benefit resulting from the release of valuation allowances on deferred tax assets.

In terms of operational changes, SPLP executed a significant transaction involving Steel Connect, Inc. in 2023, where it exchanged shares of Aerojet Rocketdyne Holdings for preferred stock in Steel Connect, effectively consolidating its ownership. This strategic move culminated in a short-form merger on January 2, 2025, making Steel Connect a wholly-owned subsidiary of SPLP. The merger was financed through existing credit facilities, amounting to approximately $31.2 million. Additionally, SPLP has been active in repurchasing its common units, acquiring over 2.36 million units for $109 million during 2024, as part of a broader repurchase program.

The company’s employee headcount stood at approximately 5,200 as of December 31, 2024, reflecting its operational scale across various segments, including Diversified Industrial, Energy, Financial Services, and Supply Chain. The Supply Chain segment, which was integrated into SPLP's operations in 2023, reported revenues of $185 million, marking a significant contribution to the overall financial performance. The company also noted a decrease in deposits at WebBank, which fell to $1.66 billion from $2.08 billion, primarily due to reduced funding needs.

Looking ahead, SPLP anticipates continued growth driven by strategic acquisitions and operational efficiencies. The company plans to maintain its focus on enhancing liquidity and operational performance while navigating potential economic challenges, including inflation and supply chain disruptions. The management expressed confidence in meeting its financial obligations and sustaining its growth trajectory, supported by a robust capital structure and available credit facilities.