Steel Partners Holdings L.P. (SPLP) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a revenue increase, with total revenue for the three months reaching $520.4 million, up from $492.3 million in the same period of 2023, marking a 5.7% rise. For the nine months, revenue also increased to $1.53 billion from $1.44 billion, a 6.4% growth. The Diversified Industrial segment contributed notably, with net sales for the quarter rising to $318.6 million from $299.1 million year-over-year.

Net income for the third quarter was $36.9 million, compared to $27.9 million in the prior year, while net income for the nine months surged to $196.6 million from $111.3 million. This increase in profitability was reflected in the net income per common unit, which rose to $1.83 for the quarter and $9.19 for the nine months, compared to $1.20 and $5.10, respectively, in 2023.

The company’s total assets decreased to $3.63 billion as of September 30, 2024, from $3.99 billion at the end of 2023. Total liabilities also fell to $2.55 billion from $2.99 billion, resulting in an increase in total partners' capital to $1.04 billion from $958.6 million. Cash and cash equivalents decreased significantly to $388.1 million from $577.9 million.

Strategically, SPLP consolidated Steel Connect, Inc. as a subsidiary on May 1, 2023, following a significant share exchange. This acquisition has contributed to the company’s financial results since then. The company also reported a notable increase in capital expenditures, which rose to $55.7 million for the nine months ended September 30, 2024, compared to $36.7 million in the same period of 2023.

In terms of operational performance, the Energy segment faced challenges, with revenues declining by 13.9% for the quarter and 24.8% for the nine months, primarily due to reduced rig hours. Conversely, the Financial Services segment saw revenue growth of 6.2% for the quarter and 11.2% for the nine months, driven by increased interest income and fees.

The company’s management fees increased to $4 million for the third quarter, reflecting higher operational costs. Additionally, SPLP continued its common unit repurchase program, having repurchased 991,157 units for approximately $41.7 million during the nine months, with 720,463 units remaining available for repurchase.