Steel Partners Holdings L.P. (SPLP): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique du capital-investissement et des investissements stratégiques, Steel Partners Holdings L.P. (SPLP) navigue dans un paysage complexe de défis et d'opportunités mondiales. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la prise de décision stratégique de l'entreprise. Des tensions géopolitiques aux perturbations technologiques, SPLP démontre une adaptabilité remarquable dans un écosystème commercial en constante évolution, offrant aux investisseurs une perspective nuancée sur la façon dont une société de holding d'investissement sophistiquée manœuvrait par la dynamique des marchés multiformes.

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques commerciales américaines sur les stratégies d'investissement mondiales des partenaires de l'acier

En 2024, les politiques commerciales américaines ont un impact direct sur le paysage d'investissement des partenaires de l'acier:

Zone de politique commerciale	Impact spécifique	Conséquences financières estimées
Tarifs de la section 301	Augmentation des coûts d'importation pour les investissements internationaux	Potentiel 3,2 millions de dollars supplémentaires supplémentaires
Examen des investissements étrangers	CRFIUS CRÉPRISSAGE POUR LES TRANSACTIONS CROSS-BRANCES	Frais de conformité estimés à 750 000 $

Changements réglementaires affectant les secteurs de la private equity et de la gestion des investissements

Modifications réglementaires clés ayant un impact sur les partenaires en acier:

• SEC Règle 18F-4 Restrictions d'investissement dérivées
• Exigences de conformité Dodd-Frank
• MANDATS DE RAPPORTION AMISSANT pour les sociétés de capital-investissement

Zone de réglementation	Coût de conformité	Impact potentiel des revenus
Améliorations de rapport de la SEC	Frais de conformité annuelle de 1,4 million de dollars	Réduction potentielle de la marge opérationnelle de 2,3%

Les tensions géopolitiques influencent les opportunités d'investissement international

Analyse actuelle du paysage géopolitique:

• Tensions commerciales américaines-chinoises limitant les investissements transfrontaliers
• Sanctions impactant les entrées potentielles du marché russe et iranien
• Complexités réglementaires européennes après le brexit

Règlements gouvernementaux sur la restructuration des entreprises et les investissements stratégiques

Cadre réglementaire pour la restructuration des entreprises:

Domaine réglementaire	Contrainte spécifique	Implication financière
Règlements antitrust	Hart-Scott-Rodino Act Conformité	Frais de dépôt jusqu'à 2,25 M $ par transaction
Règlements d'échange de valeurs mobilières	Exigences de divulgation améliorées	Coûts de rapports annuels potentiels de 1,7 million de dollars

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs économiques

Nature cyclique des secteurs de fabrication et industriels

Steel Partners Holdings L.P. a déclaré un chiffre d'affaires total de 1,82 milliard de dollars pour l'exercice 2022, avec une exposition significative aux secteurs de la fabrication industrielle. Le portefeuille de la société a démontré une sensibilité aux cycles économiques, les performances étaient directement corrélées aux indices de production industriels.

Secteur	Contribution des revenus	Sensibilité économique
Fabrication industrielle	62.4%	Haut
Services énergétiques	23.7%	Modéré
Produits chimiques spécialisés	14.9%	Modéré

Conditions macroéconomiques et fluctuations économiques mondiales

Depuis le quatrième trimestre 2023, SPLP a connu des défis économiques mondiaux avec:

• Impact du taux de croissance du PIB: -0,3% de réduction des performances du portefeuille
• Indice de production industriel mondial Fluctation: 2,1% de baisse
• Volume du commerce international affectant les opérations: 47,3 millions de dollars ajustement des revenus

Les changements de taux d'intérêt ont un impact

Changements de taux d'intérêt de la Réserve fédérale pour 2023-2024:

Période	Taux d'intérêt	Coût d'emprunt SPLP
Q1 2023	4.75%	5.2%
Q3 2023	5.33%	5.8%
Q4 2023	5.50%	6.1%

Défis économiques dans les principaux segments de marché

Défis économiques du segment de marché pour SPLP en 2023:

• Contraction du secteur manufacturier: 3,7%
• Coûts de perturbation de la chaîne d'approvisionnement: 23,6 millions de dollars
• Volatilité des prix des matières premières: augmentation de 12,4%
• Contraintes du marché du travail: 2,9% d'inflation salariale

Impact économique total sur le portefeuille SPLP: ajustement estimé de 56,4 millions de dollars pour la période budgétaire de 2023-2024.

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs sociaux

Changements de travail démographique dans les secteurs industriels et manufacturiers

Selon le Bureau américain des statistiques du travail (2023), l'âge médian des travailleurs manufacturiers est de 44,5 ans. La composition de la main-d'œuvre du secteur industriel montre:

Groupe d'âge	Pourcentage
18-24 ans	10.3%
25-34 ans	22.7%
35 à 44 ans	24.1%
45-54 ans	21.5%
Plus de 55 ans	21.4%

Responsabilité sociale des entreprises et investissement durable

Les données d'investissement ESG pour 2023 indiquent:

Catégorie	Investissement total
Investissements durables	8,4 billions de dollars
Fonds axés sur l'ESG	2,7 billions de dollars
Dépenses de RSE d'entreprise	23,9 milliards de dollars

Préférences des consommateurs pour les pratiques d'investissement transparentes

Résultats de l'enquête sur le sentiment des investisseurs (2023):

• 78% exiger des rapports d'investissement transparents
• 62% Prioriser les stratégies d'investissement éthique
• 55% considèrent l'impact environnemental

Modification de la dynamique du marché du travail

Statistiques de recrutement du marché du travail pour les secteurs industriels (2023):

Métrique de recrutement	Valeur
Temps de temps moyen	45 jours
Pourcentage d'écart de compétences	36%
Préférence de travail à distance	27%
Salaire de départ moyen	$68,500

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs technologiques

Tendances de transformation numérique dans les investissements industriels et manufacturiers

Selon McKinsey, la transformation numérique de la fabrication pourrait générer 1,2 billion de dollars à 2 billions de dollars en valeur économique d'ici 2025. Steel Partners Holdings L.P. a investi dans les technologies numériques dans ses sociétés de portefeuille avec un investissement technologique estimé à 37,5 millions de dollars en 2023.

Catégorie d'investissement technologique	Montant d'investissement ($ m)	Pourcentage de l'investissement total
Infrastructure numérique	15.2	40.5%
Cloud computing	8.7	23.2%
Analyse des données	6.5	17.3%
Cybersécurité	4.1	11%
IA / Machine Learning	3.0	8%

L'innovation technologique comme stratégie clé pour la création de valeur de l'entreprise de portefeuille

Steel Partners Holdings a mis en œuvre des stratégies d'innovation technologique entraînant une augmentation de 22,3% des évaluations des entreprises de portefeuille grâce à des améliorations axées sur la technologie en 2023.

Automatisation et mise en œuvre de l'IA dans Target Industries

L'investissement en automatisation entre les sociétés de portefeuille a atteint 24,6 millions de dollars en 2023, la mise en œuvre de l'IA se concentrant sur les secteurs de fabrication et industriels.

Industrie	Investissement d'automatisation ($ m)	Taux de mise en œuvre de l'IA
Fabrication	12.4	67%
Services industriels	7.2	42%
Énergie	5.0	35%

Considérations de cybersécurité pour l'investissement et la gestion du portefeuille

Steel Partners Holdings a alloué 4,1 millions de dollars à Cybersecurity Investments en 2023, ce qui représente une augmentation de 16,5% par rapport à l'année précédente. Les dépenses de cybersécurité couvrent la détection des menaces, la protection des données et la gestion des risques entre les sociétés de portefeuille.

Zone de mise au point de la cybersécurité	Investissement ($ m)	Pourcentage d'atténuation des risques
Détection des menaces	1.6	62%
Protection des données	1.2	48%
Sécurité du réseau	0.8	35%
Gestion de la conformité	0.5	22%

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations SEC pour les sociétés de détention d'investissement

Steel Partners Holdings L.P. est enregistré auprès de la Securities and Exchange Commission (SEC) dans le cadre du dossier n ° 811-22148 de la Loi sur les sociétés d'investissement. En 2024, la Société maintient le respect des exigences réglementaires SEC suivantes:

Exigence réglementaire	Statut de conformité	Coût de dépôt annuel
Forme de rapport annuel N-CEN	Pleinement conforme	$57,500
Forme de rapport mensuel N-PORT	Pleinement conforme	$42,300
Sarbanes-Oxley Conformité	Pleinement conforme	$215,000

Structures juridiques complexes de capital-investissement et de gestion des investissements

Steel Partners Holdings L.P. opère via plusieurs entités juridiques avec la propriété structurée suivante:

• Enregistré au Delaware comme partenariat limité
• Maintient 7 sociétés de détention d'investissement subsidiaire
• Fonctionne dans le cadre des accords de gestion des investissements à plusieurs niveaux

Type d'entité juridique	Nombre d'entités	Capital total enregistré
Sociétés d'investissement subsidiaires	7	$453,200,000
Véhicules d'investissement offshore	3	$124,500,000

Risques potentiels en matière de litige dans le portefeuille d'investissement diversifié

Depuis 2024, Steel Partners Holdings L.P. a une procédure judiciaire en cours avec les caractéristiques suivantes:

Catégorie de litige	Nombre de cas actifs	Exposition juridique estimée
Conflits des actionnaires	2	$18,700,000
Désaccords contractuels	3	$12,500,000
Enquêtes réglementaires	1	$5,300,000

Exigences réglementaires pour la gouvernance d'entreprise et les rapports financiers

Steel Partners Holdings L.P. adhère aux normes de gouvernance d'entreprise suivantes et d'information financière:

• Compliance complète avec les principes de comptabilité GAAP
• Audit indépendant réalisé par Ernst & Jeune LLP
• Soumissions de divulgation financière trimestrielles et annuelles

Exigence de rapport	Fréquence	Coût de conformité
Audit financier annuel	Annuellement	$375,000
Rapports financiers trimestriels	4 fois par an	$145,000
Déclarations de divulgation des actionnaires	Trimestriel	$85,000

Steel Partners Holdings L.P. (SPLP) - Analyse du pilon: facteurs environnementaux

Les investisseurs croissants se concentrent sur la durabilité et les performances environnementales

Selon le rapport 2023 Global Sustainable Investment Alliance (GSIA), les actifs d'investissement durable ont atteint 30,7 billions de dollars dans le monde, ce qui représente une augmentation de 15% par rapport à 2020.

Métrique de la durabilité	SPLP Performance 2023	Benchmark de l'industrie
Réduction des émissions de carbone	12,4% de réduction	Moyenne de l'industrie de 8,7%
Investissement d'énergie renouvelable	4,2 millions de dollars	Médiane du secteur de 3,6 millions de dollars
Dépenses de conformité environnementale	6,8 millions de dollars	Moyenne sectorielle de 5,5 millions de dollars

Règlements sur les émissions de carbone affectant les sociétés de portefeuille industrielles

L'Agence américaine de protection de l'environnement (EPA) a déclaré des émissions de carbone du secteur industriel à 1,4 milliard de tonnes métriques en 2022, représentant 23% du total des émissions nationales.

Cadre réglementaire	Coût de conformité	Chronologie de la mise en œuvre
Amendements de la Clean Air Act	2,3 millions de dollars par société de portefeuille SPLP	2024-2026
Programme de rapports sur les gaz à effet de serre	1,7 million de dollars de dépenses de rapport annuelles	En cours

Impact de la transition des énergies renouvelables sur les investissements manufacturiers

L'Agence internationale des énergies renouvelables (IRENA) a déclaré Global Renewable Energy Investments à 366 milliards de dollars en 2023, le secteur manufacturier représentant 18% des investissements totaux.

Catégorie d'investissement en énergies renouvelables	Montant d'investissement SPLP	ROI projeté
Fabrication solaire	12,5 millions de dollars	7,2% par an
Infrastructure d'énergie éolienne	9,3 millions de dollars	6,8% par an

Évaluation des risques environnementaux dans les processus de prise de décision d'investissement

Moody's ESG Solutions a indiqué que les entreprises ayant des stratégies de gestion des risques environnementales solides ont connu une volatilité des investissements de 15% par rapport aux pairs de l'industrie.

Métrique d'évaluation des risques	Performances de courant SPLP	Norme de l'industrie
Budget d'atténuation des risques environnementaux	8,6 millions de dollars	7,2 millions de dollars
Profondeur de diligence raisonnable environnementale	92% complet	Moyenne de l'industrie 85%

Steel Partners Holdings L.P. (SPLP) - PESTLE Analysis: Social factors

Sociological

You need to see the social landscape not just as a backdrop, but as a direct input to your operating costs and revenue outlook. For Steel Partners Holdings L.P., the social environment in 2025 is defined by a resilient, albeit cooling, labor market and a consumer who is still spending, but with more caution.

The US labor market remains tight, which is a structural challenge for industrial companies like SPLP. The unemployment rate is projected to average around 4.2% to 4.3% for the full 2025 fiscal year, which is still historically low and signals persistent wage pressure. This means finding and keeping skilled labor in your manufacturing and supply chain segments will defintely cost more.

Here's the quick math on the labor and consumption environment:

Metric (2025 Projection/Data)	Value	Implication for SPLP
US Annual Average Unemployment Rate	4.2% - 4.3%	Sustained wage pressure and higher recruitment costs for skilled industrial roles.
Real PCE Growth (Consumer Spending)	1.9% - 2.1%	Moderate, but slowing, demand for industrial products and stable client base for financial services.
Average Monthly Nonfarm Payroll Gains	125,100 (projected)	Labor supply growth is decelerating, keeping the market competitive for talent.

Stable US labor market, with unemployment projected to average around 4.3% in 2025

The stability of the US labor market, with the unemployment rate hovering near 4.3% as of August 2025, is a double-edged sword. On one hand, it supports the consumer base that buys products from SPLP's industrial segments and uses its financial services. On the other, it limits the pool of available talent, particularly in specialized areas like supply chain management and manufacturing operations.

The slowdown is already visible, with projected job gains at a monthly rate of 125,100 in 2025, down from prior estimates. This means you can't rely on a sudden influx of talent. You must grow your own.

Strong consumer spending supports demand for products across SPLP's industrial and financial segments

Consumer spending remains a key driver. Real Personal Consumption Expenditures (PCE), a core measure, is forecast to grow by a healthy 1.9% to 2.1% in 2025. While this is a deceleration from 2024's growth, it is still a solid expansion that directly impacts demand for the durable goods and components produced by SPLP's industrial businesses.

Furthermore, the financial industry, which includes SPLP's WebBank subsidiary, anticipates business conditions will improve in the second half of 2025 as consumer spending remains healthy and policy uncertainty declines. This resilient spending, driven by low unemployment and accumulated household wealth, provides a buffer against broader economic headwinds.

Corporate social responsibility focus through the Steel Sports subsidiary (Kids First initiative)

SPLP's commitment to corporate social responsibility (CSR) is primarily channeled through its Steel Sports subsidiary and the 'Kids First' initiative. This program is a tangible effort to build social capital and a positive brand image, which is increasingly important to customers, employees, and investors.

The initiative focuses on youth development, aiming to create a positive experience for over 100,000 athletes and their families each year. This is not just philanthropy; it's a values-driven approach that instills core principles-Teamwork, Respect, Integrity, and Commitment-which mirror the values SPLP seeks in its own workforce.

Launch of a Rotational Leadership Program to build future talent pipeline internally

Recognizing the tight labor market and the need for internal succession planning, SPLP launched its Rotational Leadership Program in November 2025. This is a critical action to mitigate future talent risk.

The program is a two-year professional development initiative designed to build future leaders across the company's diverse operations. It's a serious commitment, structured around four six-month rotations, giving associates hands-on experience in high-value areas like:

• Supply Chain and Operations
• Finance and HR
• IT, Sales, and Marketing
• Executive Track roles

This program is a direct investment in long-term succession planning and operational excellence, linking back to the 'Kids First' purpose by helping people reach their potential.

Steel Partners Holdings L.P. (SPLP) - PESTLE Analysis: Technological factors

Industry shift toward Electric Arc Furnaces (EAFs) for more efficient and lower-emission steel production.

The steel industry's technological shift toward Electric Arc Furnaces (EAFs) presents a major operational and sourcing factor for Steel Partners Holdings L.P. (SPLP), even as a diversified industrial player. This transition is not just about environmental compliance; it's a fundamental change in the raw material supply chain. In the U.S., EAFs now account for roughly 70% of steel output, with projections pointing toward 80-85% by 2025.

This means the raw materials for SPLP's subsidiaries-which manufacture products like seamless stainless steel tubing and welded low carbon tubing-are increasingly sourced from scrap-based, lower-emission mills. The global EAF market, a proxy for this technological adoption, is projected to grow from $750 million in 2025 to $1,269 million by 2032. This shift increases demand for ferrous scrap metal, which can lead to price volatility, but it also aligns the supply chain with growing sustainability mandates.

You need to ensure your raw material procurement strategy is defintely optimized for this scrap-heavy market.

High demand for specialty products like power electronics for datacom and military applications.

The technology-driven demand for high-performance, niche components is a significant revenue driver for the Diversified Industrial segment. This segment manufactures specialty products like power electronics, motion control devices, and custom ball-screws. These components are critical for high-growth, high-specification sectors like military aerospace, datacom, and medical devices.

The segment's strong performance reflects this demand, contributing a substantial $322.7 million in revenue in the third quarter of 2025 alone. The technological complexity of these products-requiring precise temperature control and superior impurity removal capabilities-allows SPLP to command higher margins than commodity steel products. This is where proprietary technology and intellectual property (IP) become a competitive moat.

Need for digital transformation in the Supply Chain segment (ModusLink) to manage tariff complexity.

The Supply Chain segment, primarily driven by ModusLink, operates in a global environment where geopolitical shifts, like new tariffs, are injecting significant cost and complexity. To counter this, a rapid digital transformation is necessary to maintain the segment's estimated annual revenue of $750 million. ModusLink is addressing this by focusing on leveraging advanced technology for a more resilient and agile supply chain.

This digital push is centered on three key technological areas:

• Digital Visibility Tools: Provide real-time data on sourcing, production, and transportation to quickly reroute shipments or adjust inventory, mitigating the impact of unexpected duties.
• AI Technologies: Used for smarter, faster operations, including real-time inventory optimization and predictive maintenance.
• Poetic Software: An enterprise-class entitlement management solution for activation and provisioning of digital and connected products, a crucial service for technology clients.

The goal is to move beyond mere efficiency and build true supply chain resilience.

Investment in advanced manufacturing techniques across the Diversified Industrial segment.

Sustained capital investment in advanced manufacturing is non-negotiable for the Diversified Industrial segment to remain competitive. This investment is guided by the 'Steel Business System' (SBS), which emphasizes Lean Manufacturing and Six Sigma methodologies for continuous improvement and waste elimination.

For the first six months ended June 30, 2025, Steel Partners Holdings L.P.'s total capital expenditures were $14,663,000. This CapEx is the financial engine funding the adoption of new techniques in their 90 global locations. These investments focus on automation, energy efficiency improvements, and modernizing existing facilities to reduce labor costs and improve margins.

Here's a quick look at the investment context:

Metric	Value (6 Months Ended June 30, 2025)	Strategic Context
Total Capital Expenditures (CapEx)	$14,663,000	Funding for advanced machinery, automation, and facility upgrades across all segments.
Diversified Industrial Segment Q3 2025 Revenue	$322.7 million	Indicates the scale of the segment requiring continuous technological investment.
Operational Excellence Program	Lean Manufacturing, Six Sigma	The framework for driving technology adoption and process optimization.

The ongoing commitment to capital expenditure is crucial for protecting the segment's high-margin niche in specialty products.

Steel Partners Holdings L.P. (SPLP) - PESTLE Analysis: Legal factors

Voluntary Delisting and SEC Deregistration

You need to know that Steel Partners Holdings L.P. made a major move to cut down on compliance costs by going private in all but name. The company announced its voluntary delisting from the New York Stock Exchange (NYSE) on April 11, 2025, with the final trading day for its Common Units and 6.0% Series A Preferred Units on the NYSE anticipated to be on or about May 1, 2025.

This decision immediately suspended the company's obligation to file periodic reports with the Securities and Exchange Commission (SEC), such as Forms 8-K, 10-Q, and 10-K, once the Form 15 was filed around May 1, 2025. Full deregistration under the Securities Exchange Act of 1934 is expected to be effective by July 30, 2025. This shift significantly reduces the administrative and financial burden of being a full public filer.

The units now trade on the OTCQX platform, which maintains a public market but with substantially lighter reporting requirements. That's a huge cost-saver.

Redemption of Remaining Preferred Units

In a move to simplify the capital structure, Steel Partners Holdings L.P. announced on October 22, 2025, that it would redeem all remaining outstanding units of its 6.00% Series A Preferred Units.

The redemption price is set at $25.00 per unit, plus an amount equal to any accrued and unpaid distributions up to, but excluding, the redemption date. This action eliminates a class of securities that required ongoing distribution management and complex accounting, making the balance sheet cleaner and the company easier to manage from a corporate finance perspective.

WebBank's Evolving FinTech Regulatory Scrutiny

The company's subsidiary, WebBank, is a key player in the financial technology (FinTech) 'sponsor bank' model, which is facing intense and evolving regulatory scrutiny in 2025. Regulators like the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) are doubling down on oversight of these bank-FinTech partnerships, particularly after high-profile failures in the sector.

The legal risk here centers on third-party risk management and consumer protection. Specifically, the focus is on ensuring compliance with:

• Unfair, Deceptive, or Abusive Acts or Practices (UDAAP).
• Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements.
• Adequate oversight of FinTech partners' consumer-facing products.

Honestly, the regulatory environment for sponsor banks has never been tougher. In 2024, over a quarter of the FDIC's enforcement actions targeted sponsor banks, a trend that continues into 2025 as regulators seek to impose more comprehensive frameworks on embedded finance.

Trade Compliance Complexity and Section 232 Tariffs

For the industrial segments of Steel Partners Holdings L.P., trade compliance has become significantly more complex and costly in 2025 due to rapid changes in Section 232 tariffs (tariffs imposed on steel and aluminum imports to protect national security).

The legal landscape shifted dramatically in February 2025 when Presidential Proclamations eliminated all existing country exemptions and terminated all General Approved Exclusions (GAEs) for steel and aluminum imports, effective March 12, 2025. This forced the company to immediately re-evaluate its global supply chain and procurement strategy.

Furthermore, the tariff rates themselves increased substantially in the middle of the year, creating immediate cost pressure. Here's the quick math on the tariff hikes for most countries:

Material	Previous Section 232 Tariff Rate	New Section 232 Tariff Rate (Effective June 4, 2025)
Steel (and derivatives)	25%	50%
Aluminum (and derivatives)	25%	50%

Plus, the scope of covered products expanded. In an August 2025 Federal Register notice, the Bureau of Industry and Security announced that 407 new HTSUS subheadings were added to the list of products subject to the 50% tariff, effective August 18, 2025. This constant expansion and rate increase means the legal and trade compliance teams must defintely stay on top of daily changes just to calculate import costs accurately.

Steel Partners Holdings L.P. (SPLP) - PESTLE Analysis: Environmental factors

Increased adoption of EAF technology in the steel sector supports lower energy consumption per ton.

The global steel industry is clearly shifting toward lower-emission production methods, which is a crucial trend for a diversified industrial player like Steel Partners Holdings L.P. The Electric Arc Furnace (EAF) method, which uses scrap steel and electricity, is the core of this shift, as it requires significantly less energy per ton than traditional blast furnaces.

Globally, EAF capacity has seen nearly an 11% increase since 2020, with an additional 24% expansion projected by 2030. This is a massive capital allocation signal. Half of all new steelmaking capacity currently under development is planned to use EAF technology, often integrated with Direct Reduced Iron (DRI) to further cut coal use. For a company with a diversified industrial segment, this means that future steel-related acquisitions or capital expenditures must prioritize this lower-carbon, lower-energy-intensity technology just to remain competitive on operating costs and carbon footprint.

Regulatory rollbacks on air pollution may increase operational flexibility but raise environmental risk profile.

The regulatory environment for the industrial and energy segments of Steel Partners Holdings L.P. has become more flexible in the near term, but this flexibility comes with a higher long-term risk profile. In November 2025, the administration issued a proclamation that temporarily suspended compliance deadlines for a 2024 Environmental Protection Agency (EPA) rule that imposed new hazardous-air-pollution standards on coke oven facilities.

This move grants a two-year exemption from the new standards, which were set to require fenceline monitoring for toxic pollutants like benzene at coke plants and chromium at steel mills. While this delay reduces immediate capital expenditure pressure for new pollution control systems, it significantly increases the company's exposure to future regulatory and litigation risk. Honestly, the market will eventually price in the cost of compliance, delayed or not, plus the risk of community lawsuits over air quality.

Here is a quick map of the near-term regulatory impact:

Factor	Near-Term Impact (2025-2027)	Long-Term Risk
EPA 2024 Coke Oven Rule	Two-year suspension of compliance deadlines.	Increased exposure to citizen lawsuits and eventual, higher compliance costs.
Fenceline Monitoring	Requirement for monitoring benzene and chromium is delayed.	Lack of verifiable data raises public scrutiny and environmental justice concerns.
Operational Flexibility	Increased by delaying capital-intensive pollution control upgrades.	Higher probability of future non-compliance fines; 85% of steel/coke plants were in noncompliance with the Clean Air Act in the last three years.

Growing pressure from customers for verifiable, low-carbon materials in construction and automotive supply chains.

Customer demand for low-carbon materials is no longer a niche trend; it's a core supply chain requirement, especially in the largest end-use markets for Steel Partners Holdings L.P.'s industrial products. The global carbon steel market is valued at approximately $1,140.2 billion in 2025. The two largest consumer segments drive this demand:

• Construction remains the largest end-use segment, accounting for 34% of the global carbon steel market.
• The automotive sector, which is projected to increase US domestic light vehicle production by 1.16% to 10.45 million units in 2025, represents about 20-25% of overall steel demand.

The low-carbon steel segment already held the largest market revenue share by type in 2024, at 90.2% of the carbon steel market, which underscores the universal demand for the most common, mild steel products. This means that customers in the construction and automotive supply chains are increasingly requiring Environmental Product Declarations (EPDs) to verify the low-carbon nature of the materials they purchase. If the company's industrial subsidiaries cannot provide this verification, they risk being excluded from major infrastructure and OEM contracts.

Need to manage environmental liabilities from legacy industrial and energy operations.

Managing legacy environmental liabilities is a continuous, non-negotiable cost for a company with decades of industrial and energy operations. As of December 31, 2024, Steel Partners Holdings L.P. reported consolidated environmental remediation liabilities totaling $27,620 thousand (or $27.62 million).

Here's the quick math on how that liability is structured in their 2025 fiscal year filings:

• Accrued Liabilities (Current): $1,995 thousand
• Other non-current liabilities: $25,625 thousand

This total represents the current estimate for environmental clean-up and litigation reserves. What this estimate hides, though, is the potential for cost overruns at specific sites. For example, the company is still working with the Connecticut Department of Energy and Environmental Protection (CTDEEP) on a 1989 consent order for a former manufacturing facility in Fairfield, Connecticut, with additional environmental investigation work expected throughout 2025. These legacy sites require continuous cash flow management, even if the total liability is deemed non-material to the overall company's financial position.