Steel Partners Holdings L.P. (SPLP): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico de patrimônio privado e investimentos estratégicos, a Steel Partners Holdings L.P. (SPLP) navega em um cenário complexo de desafios e oportunidades globais. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a tomada de decisão estratégica da empresa. De tensões geopolíticas a interrupções tecnológicas, o SPLP demonstra uma adaptabilidade notável em um ecossistema de negócios em constante evolução, oferecendo aos investidores uma perspectiva diferenciada sobre como uma sofisticada holding de investimentos manobras através de dinâmicas de mercado multifacetadas.

Steel Partners Holdings L.P. (SPLP) - Análise de Pestle: Fatores Políticos

Impacto potencial das políticas comerciais dos EUA nas estratégias de investimento global dos parceiros de aço

A partir de 2024, as políticas comerciais dos EUA afetam diretamente o cenário de investimentos dos parceiros de aço:

Área de política comercial	Impacto específico	Conseqüência financeira estimada
Seção 301 Tarifas	Custos de importação aumentados para investimentos internacionais	Potencial despesa anual adicional de US $ 3,2 milhões
Revisão do investimento estrangeiro	Triagem CFIUS para transações transfronteiriças	Custos de conformidade estimados em US $ 750.000

Alterações regulatórias que afetam os setores de equidade e gerenciamento de investimentos

Principais modificações regulatórias que afetam os parceiros de aço:

• REGRA SEC REGRA 18F-4 RESTRIÇÕES DE INVESTIMENTO DE DERIVAÇÃO
• Requisitos de conformidade Dodd-Frank
• Mandatos de relatórios aprimorados para empresas de private equity

Área regulatória	Custo de conformidade	Impacto potencial da receita
Sec melhorar os aprimoramentos de relatórios	US $ 1,4 milhão de despesa de conformidade anual	Redução de margem operacional em potencial 2,3%

Tensões geopolíticas que influenciam oportunidades de investimento internacional

Análise de paisagem geopolítica atual:

• Tensões comerciais EUA-China limitando investimentos transfronteiriços
• Sanções que afetam possíveis entradas de mercado russo e iraniano
• Complexidades regulatórias européias após o Brexit

Regulamentos governamentais sobre reestruturação corporativa e investimentos estratégicos

Estrutura regulatória para reestruturação corporativa:

Domínio regulatório	Restrição específica	Implicação financeira
Regulamentos antitruste	Conformidade da Lei Hart-Scott-Rodino	Taxas de arquivamento de até US $ 2,25 milhões por transação
Regulamentos de câmbio de valores mobiliários	Requisitos de divulgação aprimorados	Custos de relatório anuais potenciais de US $ 1,7 milhão

Steel Partners Holdings L.P. (SPLP) - Análise de pilão: Fatores econômicos

Natureza cíclica dos setores de fabricação e industrial

A Steel Partners Holdings L.P. relatou receita total de US $ 1,82 bilhão para o ano fiscal de 2022, com exposição significativa a setores de fabricação industrial. O portfólio da empresa demonstrou sensibilidade aos ciclos econômicos, com desempenho diretamente correlacionado aos índices de produção industrial.

Setor	Contribuição da receita	Sensibilidade econômica
Fabricação industrial	62.4%	Alto
Serviços de energia	23.7%	Moderado
Produtos químicos especiais	14.9%	Moderado-baixo

Condições macroeconômicas e flutuações econômicas globais

A partir do quarto trimestre 2023, o SPLP experimentou desafios econômicos globais com:

• Impacto da taxa de crescimento do PIB: -0,3% Redução no desempenho do portfólio
• Índice Global de Produção Industrial Flutuação: Declínio de 2,1%
• Operações afetantes do comércio internacional: US $ 47,3 milhões de ajuste de receita

Alterações de taxa de juros impacto

Alterações da taxa de juros do Federal Reserve para 2023-2024:

Período	Taxa de juro	Custo de empréstimo SPLP
Q1 2023	4.75%	5.2%
Q3 2023	5.33%	5.8%
Q4 2023	5.50%	6.1%

Desafios econômicos nos principais segmentos de mercado

Segmento de mercado Desafios econômicos para SPLP em 2023:

• Contração do setor manufatureiro: 3,7%
• Custos de interrupção da cadeia de suprimentos: US $ 23,6 milhões
• Volatilidade do preço da matéria -prima: aumento de 12,4%
• Restrições do mercado de trabalho: 2,9% de inflação salarial

Impacto econômico total no portfólio SPLP: estimado US $ 56,4 milhões de ajuste de receita para o período fiscal de 2023-2024.

Steel Partners Holdings L.P. (SPLP) - Análise de Pestle: Fatores sociais

Mudança de dados demográficos da força de trabalho em setores industriais e de fabricação

De acordo com o Bureau of Labor Statistics dos EUA (2023), a idade média dos trabalhadores manufatureiros é de 44,5 anos. A composição da força de trabalho do setor industrial mostra:

Faixa etária	Percentagem
18-24 anos	10.3%
25-34 anos	22.7%
35-44 anos	24.1%
45-54 anos	21.5%
55 anos ou mais	21.4%

Responsabilidade social corporativa e investimento sustentável

Dados de investimento ESG para 2023 indica:

Categoria	Investimento total
Investimentos sustentáveis	US $ 8,4 trilhões
Fundos focados em ESG	US $ 2,7 trilhões
Gastos corporativos de RSE	US $ 23,9 bilhões

Preferências do consumidor por práticas de investimento transparentes

Resultados da pesquisa de sentimentos de investidores (2023):

• 78% exigem relatórios de investimento transparentes
• 62% priorizam estratégias de investimento éticas
• 55% consideram o impacto ambiental

Mudança de dinâmica do mercado de trabalho

Estatísticas de recrutamento do mercado de trabalho para setores industriais (2023):

Métrica de recrutamento	Valor
Tempo médio para contratar	45 dias
Porcentagem de lacunas de habilidades	36%
Preferência remota de trabalho	27%
Salário inicial médio	$68,500

Steel Partners Holdings L.P. (SPLP) - Análise de Pestle: Fatores tecnológicos

Tendências de transformação digital em investimentos industriais e de fabricação

De acordo com a McKinsey, a transformação digital na fabricação pode gerar US $ 1,2 trilhão a US $ 2 trilhões em valor econômico até 2025. A Steel Partners Holdings L.P. investiu em tecnologias digitais em suas empresas de portfólio com um investimento estimado em tecnologia de US $ 37,5 milhões em 2023.

Categoria de investimento em tecnologia	Valor do investimento ($ M)	Porcentagem de investimento total
Infraestrutura digital	15.2	40.5%
Computação em nuvem	8.7	23.2%
Análise de dados	6.5	17.3%
Segurança cibernética	4.1	11%
AIDA/Aprendizado de máquina	3.0	8%

Inovação tecnológica como uma estratégia -chave para a criação de valor da empresa de portfólio

A Steel Partners Holdings implementou estratégias de inovação tecnológica, resultando em um aumento de 22,3% nas avaliações da empresa de portfólio por meio de melhorias orientadas para a tecnologia em 2023.

Automação e implementação de IA nas indústrias -alvo

O investimento em automação entre as empresas de portfólio atingiu US $ 24,6 milhões em 2023, com a implementação da IA ​​focada nos setores de fabricação e industrial.

Indústria	Investimento de automação ($ M)	Taxa de implementação da IA
Fabricação	12.4	67%
Serviços industriais	7.2	42%
Energia	5.0	35%

Considerações de segurança cibernética para investimento e gerenciamento de portfólio

A Steel Partners Holdings alocou US $ 4,1 milhões aos investimentos em segurança cibernética em 2023, representando um aumento de 16,5% em relação ao ano anterior. Os gastos com segurança cibernética cobrem a detecção de ameaças, proteção de dados e gerenciamento de riscos em empresas de portfólio.

Área de foco em segurança cibernética	Investimento ($ m)	Porcentagem de mitigação de risco
Detecção de ameaças	1.6	62%
Proteção de dados	1.2	48%
Segurança de rede	0.8	35%
Gerenciamento de conformidade	0.5	22%

Steel Partners Holdings L.P. (SPLP) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos da SEC para empresas de holding de investimento

A Steel Partners Holdings L.P. está registrada na Securities and Exchange Commission (SEC) sob o arquivo da Lei da Companhia de Investimentos nº 811-22148. A partir de 2024, a empresa mantém a conformidade com os seguintes requisitos regulatórios da SEC:

Requisito regulatório	Status de conformidade	Custo de arquivamento anual
Relatório anual do formulário N-CEN	Totalmente compatível	$57,500
Formulário N-Port Reportagem mensal	Totalmente compatível	$42,300
Conformidade de Sarbanes-Oxley	Totalmente compatível	$215,000

Estruturas legais complexas de equidade privada e gerenciamento de investimentos

A Steel Partners Holdings L.P. opera através de várias entidades legais com a seguinte propriedade estruturada:

• Registrado em Delaware como uma parceria limitada
• Mantém 7 holdings de investimento subsidiário
• Opera sob acordos de gerenciamento de investimentos com várias camadas

Tipo de entidade legal	Número de entidades	Capital total registrado
Empresas de investimento subsidiárias	7	$453,200,000
Veículos de investimento offshore	3	$124,500,000

Riscos potenciais de litígios em diversas portfólio de investimentos

A partir de 2024, a Steel Partners Holdings L.P. possui procedimentos legais em andamento com as seguintes características:

Categoria de litígio	Número de casos ativos	Exposição legal estimada
Disputas de acionistas	2	$18,700,000
Desacordos contratuais	3	$12,500,000
Investigações regulatórias	1	$5,300,000

Requisitos regulatórios para governança corporativa e relatórios financeiros

A Steel Partners Holdings L.P. adere aos seguintes padrões de governança corporativa e relatórios financeiros:

• Conformidade total com os princípios contábeis do GAAP
• Auditoria independente conduzida por Ernst & Young LLP
• Submissões de divulgação financeira trimestral e anual

Requisito de relatório	Freqüência	Custo de conformidade
Auditoria financeira anual	Anualmente	$375,000
Relatórios financeiros trimestrais	4 vezes por ano	$145,000
Declarações de divulgação dos acionistas	Trimestral	$85,000

Steel Partners Holdings L.P. (SPLP) - Análise de Pestle: Fatores Ambientais

O investidor crescente se concentra na sustentabilidade e no desempenho ambiental

De acordo com o Relatório Global de Aliança de Investimentos Sustentáveis ​​Globais (GSIA), os ativos de investimento sustentável atingiram US $ 30,7 trilhões globalmente, representando um aumento de 15% em relação a 2020.

Métrica de sustentabilidade	SPLP Performance 2023	Referência da indústria
Redução de emissões de carbono	12,4% de redução	8,7% média da indústria
Investimento de energia renovável	US $ 4,2 milhões	Mediana do setor de US $ 3,6 milhões
Gastos com conformidade ambiental	US $ 6,8 milhões	Média do setor de US $ 5,5 milhões

Regulamentos de emissão de carbono que afetam empresas de portfólio industrial

A Agência de Proteção Ambiental dos EUA (EPA) relatou emissões de carbono do setor industrial em 1,4 bilhão de toneladas em 2022, representando 23% do total de emissões nacionais.

Estrutura regulatória	Custo de conformidade	Linha do tempo da implementação
Alterações da Lei do Ar Limpo	US $ 2,3 milhões por empresa de portfólio SPLP	2024-2026
Programa de relatório de gases de efeito estufa	Despesas de relatórios anuais de US $ 1,7 milhão	Em andamento

Impacto de transição energética renovável nos investimentos em fabricação

A Agência Internacional de Energia Renovável (IRENA) relatou investimentos globais de energia renovável em US $ 366 bilhões em 2023, com o setor manufatureiro representando 18% do total de investimentos.

Categoria de investimento em energia renovável	Valor do investimento SPLP	ROI projetado
Fabricação solar	US $ 12,5 milhões	7,2% anualmente
Infraestrutura de energia eólica	US $ 9,3 milhões	6,8% anualmente

Avaliação de risco ambiental em processos de tomada de decisão de investimento

A MOODY da ESG Solutions relatou que empresas com estratégias robustas de gerenciamento de riscos ambientais experimentaram 15% de volatilidade de investimento em comparação aos colegas do setor.

Métrica de avaliação de risco	Desempenho de corrente SPLP	Padrão da indústria
Orçamento de mitigação de risco ambiental	US $ 8,6 milhões	US $ 7,2 milhões
Profundidade ambiental de due diligence	92% abrangente	85% média da indústria

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.