Steel Partners Reports Strong Performance and Strategic Growth

The diversified holding company highlights financial stability, acquisitions, and market challenges.

March 12, 2025

Stronger Financials and Shareholder Returns

Steel Partners continued its focus on capital efficiency, reducing outstanding shares through buybacks and driving long-term value. The company repurchased 1.09 million common units for $46 million during the year, bringing total repurchases since the program’s start to nearly 8.9 million units. An additional 1.27 million units were acquired through a separate agreement with Hale Partnership Fund, further tightening the float.

Tax strategy also played a role in 2024’s results. Steel Connect, a key subsidiary, reversed its valuation allowance on deferred tax assets, unlocking a $73.4 million non-cash tax benefit. This adjustment strengthened the company’s financial position and contributed to overall profitability.

Strategic Acquisitions and Corporate Moves

Steel Partners reinforced its supply chain business with the full acquisition of Steel Connect, executing a short-form merger to consolidate ownership. The move, finalized in early 2025, brought Steel Connect under full control and prompted its delisting from Nasdaq. The integration aligns with the company’s approach to maximizing asset performance and simplifying its corporate structure.

Another key transaction involved Steel Partners’ investment in Aerojet Rocketdyne. The company exchanged common stock holdings for Series E Convertible Preferred Stock in Steel Connect, adjusting its portfolio for long-term positioning.

Business Segment Performance

Steel Partners operates across four distinct industries, each responding to different market forces:

• Diversified Industrial – Demand for niche industrial products remained steady, though inflation and supply chain disruptions pressured margins. Rising raw material costs, especially in metals, remain an ongoing concern.


• Energy – The oil and gas services business navigated volatile crude prices , while Steel Sports expanded its reach in youth athletics.


• Financial Services – WebBank continued originating loans and driving revenue, though shifts in interest rates and regulatory oversight introduced challenges.


• Supply Chain – Steel Connect’s logistics business managed global trade fluctuations , with demand in consumer electronics creating additional uncertainty.

Regulatory and Market Pressures

The annual report also underscores key risks facing the business. Inflation, interest rate changes, and global trade disruptions all pose challenges. WebBank, in particular, is adjusting to new state-level banking regulations , which could impact lending relationships and rate structures.

Cybersecurity remains a focus, with investments in data protection and compliance measures. While no material incidents were reported, the company continues to monitor potential threats closely.

Looking Ahead

Steel Partners remains focused on long-term value creation, using disciplined acquisitions, operational efficiencies, and capital allocation to navigate market shifts. With a diversified portfolio and a strong financial position , the company is well-positioned to adapt to changing conditions while staying committed to growth and shareholder returns.