Steel Partners Hldgs L P Stock Price, News & Analysis

Steel Partners Holdings L.P. (SPLP) is described as a diversified global holding company. The partnership structure allows it to own and operate businesses and hold significant interests in various companies across multiple sectors. According to its public disclosures, these areas include diversified industrial products, energy, defense, supply chain management and logistics, banking, and youth sports.

The common units of Steel Partners have traded under the symbol SPLP. The company announced that its units would transition from a listing on the New York Stock Exchange to quotation on the OTCQX platform operated by OTC Markets Group Inc. Following this transition, the company began filing periodic and current reports with OTC Markets in line with the Alternative Reporting Standard for OTCQX U.S. and OTCQB.

Business model and operating segments

Steel Partners generates results through a portfolio of operating businesses and investments. Its financial reporting highlights several operating segments, including Diversified Industrial, Supply Chain, Financial Services, and Energy. The Diversified Industrial segment focuses on industrial products and related activities, while the Supply Chain segment reflects operations related to supply chain management and logistics. The Financial Services segment includes activities such as banking and credit-related services, and the Energy segment reflects operations tied to energy-related businesses.

The company consolidates the results of certain portfolio companies, such as Steel Connect, Inc., which has contributed to its Supply Chain segment. Segment disclosures in its results of operations show how revenue and profitability are influenced by performance in these areas, including changes in net sales, credit performance fees, provisions for credit losses, and operating expenses.

Capital structure and units

Steel Partners has issued common units as well as 6.00% Series A Preferred Units. The preferred units carry a stated distribution rate, and the board of directors of the general partner has declared regular quarterly cash distributions on these Series A Preferred Units. The company has also announced actions affecting these securities, including the redemption of all remaining outstanding 6.00% Series A Preferred Units in cash at a specified redemption price per unit, plus accrued and unpaid distributions up to, but excluding, the redemption date.

In addition, the general partner assigned to an affiliate, Steel Excel, Inc., the right under the limited partnership agreement to purchase all outstanding common units not held by the general partner and its affiliates and that had not demanded appraisal rights. Steel Excel, Inc. exercised this right to purchase those common units for cash at a stated price per common unit pursuant to Section 15 of the Eleventh Amended and Restated Agreement of Limited Partnership. These actions reflect significant changes for holders of both preferred and common units.

Listing status and regulatory reporting

Steel Partners announced its intention to voluntarily delist its common units and Series A Preferred Units from the New York Stock Exchange and to deregister these securities under Section 12(b) of the Securities Exchange Act of 1934. The company stated that it planned to file a Form 25 with the U.S. Securities and Exchange Commission and, around the time of delisting, a Form 15 to suspend or terminate its reporting obligations under the Exchange Act, including Forms 8-K, 10-Q, and 10-K. The company applied for its common and preferred units to be quoted on the OTCQX platform and indicated that it would provide disclosures in accordance with OTCQX U.S. and OTCQB Alternative Reporting Standard guidelines.

In connection with these changes, Steel Partners has noted that there is no guarantee that brokers will continue to make a market in its units or that trading will continue on the OTCQX or other venues. It has also highlighted that the availability of information sufficient to enable brokers to provide quotes may affect trading activity.

Financial performance and segment dynamics

Steel Partners reports revenue, net income, Adjusted EBITDA, and other metrics across its segments. Its results of operations discussion attributes changes in revenue and profitability to factors such as higher net sales in the Diversified Industrial segment, higher revenue in the Supply Chain and Financial Services segments, and lower revenue in the Energy segment. The company also discusses cost of goods sold, selling, general and administrative expenses, interest expense, realized and unrealized gains or losses on securities, and other expenses.

Within the Financial Services segment, the company has cited higher credit performance fees due to higher credit risk transfer balances, as well as changes in provisions for credit losses and finance interest expense. The Supply Chain segment’s results have been affected by the full-year inclusion of operations following consolidation of Steel Connect, Inc. The Energy segment has experienced lower revenue and lower selling, general and administrative expenses in some periods, including the effect of favorable settlement of certain legal matters.

Liquidity, capital resources, and leverage

Steel Partners has discussed its liquidity in terms of available capacity under its senior credit agreement, cash and cash equivalents (excluding certain restricted cash), and long-term investments. It has also provided information on total debt, net cash (a measure that considers debt, pension and preferred unit liabilities, cash, pension assets, and investments), and leverage as defined in its senior credit agreement. Reductions in total debt and changes in leverage ratios have been noted in its disclosures.

The company’s capital expenditures relate to purchases of property, plant, and equipment as a percentage of revenue. It also reports Adjusted free cash flow and describes how changes in operating income, capital expenditures, and other factors influence this measure. Non-GAAP measures such as Adjusted EBITDA and Adjusted free cash flow are accompanied by references to reconciliations to the nearest GAAP measures and explanations of their use.

Tax and partnership structure

Steel Partners is organized as a limited partnership. It states that, as a limited partnership, it is generally not responsible for federal and state income taxes, and that profits and losses are passed directly to limited partners for inclusion in their respective income tax returns. The tax provision in its consolidated financial statements represents income tax expense or benefit of its consolidated corporate subsidiaries.

The company’s disclosures describe changes in income tax benefit or provision, effective tax rates, valuation allowances on net operating losses, and tax impacts of unrealized gains on investments from related parties that are eliminated for financial statement purposes. These factors influence the overall income tax benefit or provision reported in its results.

Youth sports and social impact through Steel Sports

Within its portfolio, Steel Partners owns Steel Sports, described as a wholly owned subsidiary and a social impact organization created to put “Kids First” and change lives through sports. Steel Sports focuses on forging a path of success for the next generation by instilling values, building character, and teaching life lessons on and off the field. It operates under The Steel Coaching System – The Lasorda Way, which emphasizes positive coaching, mentorship, and a growth mindset.

Steel Sports seeks to create better athletes and better people by focusing on core values described as Teamwork, Respect, Integrity, and Commitment. The organization has developed an advisory board that includes leaders from professional sports, education, and youth development. Public announcements have highlighted appointments to this advisory board, including individuals with significant experience in youth sports, community leadership, and professional baseball. Through its programs, coaching network, and community initiatives, Steel Sports aims to help children develop empathy, resilience, leadership skills, and a sense of purpose.

Talent development and leadership focus

Steel Partners has also described internal initiatives aimed at developing future leaders within its family of companies. One example is a Rotational Leadership Program, a multi-year professional development initiative that offers participants structured rotations across functions such as supply chain, operations, finance, human resources, information technology, sales and marketing, and an executive track. The program is designed to provide hands-on experience, exposure to key business areas, mentorship from senior leaders, and alignment with the company’s emphasis on continuous improvement and long-term value creation.

According to the company, this program reflects its focus on talent development, succession planning, and cultivating leaders who embody its stated core values. The initiative is also described as consistent with its broader “Kids First” purpose by helping people reach their potential, building character, and supporting the development of future leaders.

Governance and partnership matters

Steel Partners conducts governance activities through its general partner, Steel Partners Holdings GP Inc. Unitholders vote on matters such as the election of independent directors to the board of the general partner, advisory votes on executive compensation, the frequency of such advisory votes, and the ratification of the appointment of the independent registered public accounting firm. Unitholders have also considered amendments to the partnership’s amended and restated agreement of limited partnership, including provisions designed to protect the tax benefits of net operating loss carryforwards of subsidiaries and portfolio companies.

The company holds annual meetings of limited partners where these matters are presented and voted upon. Outcomes of these meetings, including the election of directors and approval of proposals, are disclosed in public announcements.

Status considerations for investors

Steel Partners has undertaken significant actions affecting its trading venue, reporting framework, and capital structure. These include voluntary delisting from the NYSE, deregistration from the SEC, application for quotation on the OTCQX platform, redemption of preferred units, and the exercise of rights to purchase outstanding common units not held by the general partner and its affiliates. These developments are important for investors analyzing the historical and ongoing status of SPLP units, as they influence liquidity, disclosure practices, and the ownership structure of the partnership.