Olympic Steel, Inc.

Total company revenue was $1.278 billion, up 3% year over year; excluding the enVista recall, revenue would have grown 6%. Adjusted gross margin was 60.6%, down 130 basis points year over year. Adjusted EPS, excluding acquired IPR&D, was $0.07. Adjusted EBITDA, excluding acquired IPR&D, was $192 million. Adjusted cash flow from operations was $86 million. For 2025, the company raised revenue guidance to $5.05 billion-$5.15 billion, implying roughly 5%-7% constant currency growth, and raised adjusted EBITDA guidance to $860 million-$910 million. It continues to expect adjusted gross margin of approximately 61.5%, R&D at about 7.5% of revenue, interest expense of about $375 million, an adjusted tax rate of about 15%, and CapEx of about $280 million. Management said Q4 should be the strongest quarter, and noted the updated guidance assumes tariffs will be offset in 2025.

Brent Saunders emphasized that the quarter reinforced confidence in the company’s turnaround plan and said he extended his contract because of confidence in the team, the product portfolio, and the R&D pipeline. He repeatedly framed the business as being in a phase of stabilizing the base and moving toward accelerated growth, with dry eye, contact lenses, and surgical recovery all supporting that next stage. His tone was upbeat and focused on long-term transformation, margin expansion, and innovation, while acknowledging the recall and generics were real setbacks that the team is working through.

Sam Eldessouky highlighted 3% reported revenue growth to $1.278 billion, with 6% growth excluding the enVista recall, and said currency contributed about $21 million in Q2. He said adjusted gross margin was 60.6%, adjusted EBITDA was $192 million, adjusted cash flow from operations was $86 million, adjusted net interest expense was $94 million, and adjusted EPS excluding acquired IPR&D was $0.07. He also said the company refinanced $3.1 billion of debt in June, extending most maturities to 2031 with minimal expected interest expense impact. On guidance, he raised full-year revenue and EBITDA, kept gross margin at about 61.5%, and said roughly 40 basis points of tariff impact are already absorbed in the outlook.

Analysts focused on why Brent extended his tenure, the impact of tariffs, and whether competition in dry eye could change the investment/payback plan for MIEBO and XIIDRA. Management said the extension reflected confidence in the team and pipeline, and that dry eye remains a large, underpenetrated market where their combined OTC and prescription portfolio gives them a strong beachhead. They said MIEBO is already near full coverage, with 74% commercial coverage and 71% Medicare coverage, and argued the main work now is driving adoption, not further pricing/coverage work. Questions also addressed enVista recovery, where management said shipped lenses were about 200,000, full consignment should return over the next few weeks, and momentum should be largely recaptured by Q1 next year.