SOURCE Metallus Inc. Accessibility StatementSkip Navigation CANTON, Ohio, Dec. 4, 2025 /PRNewswire/ -- Metallus (NYSE: MTUS), a leader in high-quality specialty metals, manufactured components, and supply chain solutions, and the United Steelworkers (USW) Local 1123 have reached a new tentative agreement for a four-year contract after the initial tentative agreement was not ratified by USW members on October 30, 2025. The date of the second vote will be set and announced by the union. "We are pleased to hav ...

Financial Data and Key Metrics Changes - In Q3 2025, net sales totaled $305.9 million, a sequential increase of $1.3 million, primarily driven by higher shipments in aerospace and defense and steady volume across automotive and industrial end markets [12] - Net income was $8.1 million, or $0.19 per diluted share, while adjusted net income was $12 million, or $0.28 per diluted share [12] - Adjusted EBITDA rose to $29 million, a sequential increase of 9%, driven by improved product mix and better fixed cost leverage [12][16] - Operating cash flow was $22 million, with a cash and cash equivalents balance of $191.5 million at the end of Q3 [13] Business Line Data and Key Metrics Changes - Aerospace and defense backlog increased approximately 80% year-over-year, contributing to a favorable product mix [6] - Industrial shipments decreased slightly on a sequential basis, while automotive shipments increased slightly [8][9] - Energy shipments remained at reduced volumes, but there is potential for increased customer share due to declining import levels and tightened tariff enforcement [9] Market Data and Key Metrics Changes - Customer feedback indicated that over 97% of respondents would recommend Metallus products, highlighting strong service and quality [5] - The company successfully sold to over two dozen new customers in 2025, indicating a shift towards domestic supply chain solutions [6] - The current lead times for SBQ bars extend to late January and February for seamless mechanical tubing products [7] Company Strategy and Development Direction - The company aims to secure approximately 70% of its long products business through annual agreements during commercial contract negotiations [6] - Metallus is focused on growing its participation in the vacuum arc remelt (VAR) steel product line and has executed a long-term supply agreement to strengthen its strategic position [10] - The company is committed to delivering value to shareholders by driving profitable growth and executing its capital allocation strategy [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future in the growing aerospace and defense market, with expectations to achieve a run rate of $250 million in annual A&D sales by mid-2026 [10] - The company anticipates lower shipments and slightly weaker product mix in Q4 due to normal year-end seasonality and potential global supply chain challenges [16] - Management remains committed to securing a fair labor agreement, with the current contract extended by 90 days to January 29, 2026 [11] Other Important Information - The company plans to spend $5 million to enhance safety management systems and critical equipment, with zero serious injuries reported in 2025 [4] - Capital expenditures for 2025 are approximately $120 million, slightly lower than previous guidance due to timing of cash payments [14] - The company repurchased 178,000 shares of common stock for $3 million in Q3, reflecting confidence in cash flow generation [15] Q&A Session Summary Question: Automotive business performance and domestic share - Management noted that automotive demand remained solid, with no disruptions from global supply chain challenges yet [20][22] Question: Labor negotiation costs incurred in Q3 - Management indicated that costs incurred were minimal, primarily related to negotiation activities [23] Question: Impact of tariffs on customers - Management stated that the tariff environment has been favorable, with increased inquiries from new customers seeking domestic supply chains [26] Question: Global supply chain challenges - Management highlighted concerns over chip supply and aluminum supply affecting automotive production, particularly with Ford [29] Question: Energy market volume rebound potential - Management indicated that oil prices and global demand will drive potential increases in energy market volumes [40] Question: Order book tracking relative to last year - Management expressed confidence in reaching the goal of being 70% booked for the upcoming year, with positive customer forecasts [43] Question: CapEx spend for next year - Management is in the planning phases for 2026 CapEx, with adjustments made due to timing issues [49] Question: New A&D awards and revenue recognition timing - Management expects significant growth in VAR VIM sales and munitions demand, with material revenue recognition anticipated in 2026 [52]

Financial Performance - Net sales reached $306 million in Q3 2025[13] - Net income was $8 million in Q3 2025[13] - Adjusted EBITDA improved to $29 million in Q3 2025, marking the fourth consecutive quarterly improvement[10, 13] - Adjusted EPS was $028 in Q3 2025[13] - Liquidity stood at $437 million[13] Operational Highlights - Aerospace & Defense backlog increased by approximately 80% compared to the previous year[10] - Melt utilization improved sequentially to 72%[10] - Capital expenditures totaled $284 million in Q3 2025, including $22 million for U S government-funded projects[10] - The company repurchased 02 million common shares for $3 million[10] End Market Performance - Base sales per ton in Aerospace & Defense reached $2,546 in Q3 2025[16] - Base sales per ton in Energy reached $1,644 in Q3 2025[16] Q4 2025 Outlook - Capital expenditures for Q4 2025 are projected to be approximately $45 million, primarily related to U S government-funded projects[21]

Core Insights - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals and has released its third-quarter 2025 results on November 6, 2025 [1][3] - The company will host a conference call for the financial community on November 7, 2025, at 9:00 a.m. ET, which will be accessible via live Internet streaming [1] Company Overview - Metallus manufactures high-performance specialty metals from recycled scrap metal in Canton, OH, serving various end-markets including industrial, automotive, aerospace & defense, and energy [2] - The company is recognized as a premier U.S. producer of alloy steel bars (up to 16 inches in diameter), seamless mechanical tubing, and manufactured components [2] - Metallus has over 100 years of experience in producing high-quality steel and employs approximately 1,850 people, with sales reaching $1.1 billion in 2024 [2]

Company Performance - Metallus (MTUS) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and showing a significant improvement from a loss of $0.09 per share a year ago, resulting in an earnings surprise of +64.71% [1] - The company achieved revenues of $305.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.14% and increasing from $227.2 million year-over-year [2] - Over the last four quarters, Metallus has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Metallus shares have increased approximately 27.3% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $270.5 million, while for the current fiscal year, it is $0.59 on revenues of $1.14 billion [7] Industry Outlook - The Steel - Specialty industry, to which Metallus belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Metallus may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Net sales for Q3 2025 were $305.9 million, an increase of $78.7 million, or 34.6% compared to Q3 2024, driven by higher shipments and favorable surcharges [84]. - For the nine months ended September 30, 2025, net sales were $891.0 million, an increase of $47.5 million, or 5.6% compared to the same period in 2024, primarily due to higher shipments and surcharges [87]. - Gross profit for Q3 2025 increased by $22.9 million, or 189.3% compared to Q3 2024, attributed to higher volume and favorable raw material spread [90]. - Base sales for the three months ended September 30, 2025, were $241.9 million, up from $182.0 million in the same period of 2024, reflecting a growth of approximately 32.8% [106]. - The company reported a total of 163.1 thousand ship tons for the three months ended September 30, 2025, compared to 119.9 thousand ship tons for the same period in 2024, indicating a 36.0% increase in shipment volume [106]. Expenses and Investments - SG&A expenses for Q3 2025 rose by $2.0 million, or 8.9%, compared to Q3 2024, mainly due to higher variable compensation and salary [97]. - Capital investments for Q3 2025 were $28.4 million, with a total of $73.7 million for the nine months ended September 30, 2025, focusing on safety and equipment automation [79]. - Capital expenditures for 2025 are projected to be approximately $120 million, including about $90 million funded by the U.S. government [114]. - Net cash used by investing activities for the nine months ended September 30, 2025, was $44.0 million, compared to $3.6 million in the same period of 2024, due to higher capital expenditures [122]. Liquidity and Cash Flow - Total liquidity as of September 30, 2025, was $436.9 million, including cash and cash equivalents of $191.5 million [81]. - The company’s net cash provided by operating activities for the nine months ended September 30, 2025, was $17.9 million, down from $26.4 million in the same period of 2024, primarily due to increased working capital needs [121]. - Total liquidity as of September 30, 2025, was $436.9 million, slightly down from $458.6 million as of December 31, 2024 [112]. - The company expects to meet its working capital needs and other liquidity requirements for at least the next twelve months based on current cash balances and projected cash flows [113]. Share Repurchase and Taxation - The company repurchased 0.2 million and 0.9 million common shares for $3.0 million and $11.9 million in Q3 and the nine months ended September 30, 2025, respectively [81]. - The company repurchased approximately 0.9 million common shares at an aggregate cost of $11.9 million during the nine months ended September 30, 2025, with an average repurchase price of $14.31 per share [118]. - The effective tax rate for Q3 2025 was 25.7%, up from 16.9% in Q3 2024, primarily due to being in a taxable income position [100]. Government Funding and Support - The company received $10.0 million and $28.0 million from the U.S. government in Q3 and the nine months ended September 30, 2025, respectively, as part of a $99.75 million funding agreement [79]. Market and Economic Conditions - The company is closely monitoring trade developments, including tariffs on steel imports, which are expected to positively impact demand for domestic products [81]. - The company is monitoring the impacts of global economic conditions, including potential slowdowns and political risks in regions where it operates [129]. - The company emphasizes the uncertainty of future results due to various factors, including customer demand fluctuations and economic conditions [126]. - The company is cautious about the potential impacts of pandemics and health issues on its operations [129]. Strategic Focus and Goals - The company is focused on achieving its 2030 environmental goals, which may be impacted by changes in regulations and technology adoption [129]. - The company is focused on improving profitability through strategic actions and initiatives [126]. - The company is investing in equipment to support the U.S. Army's munitions production, contingent on timely funding and successful installation [129]. - The company is assessing the availability of financing and interest rates, which could affect its capital-raising capabilities [129]. - The company faces competitive pressures from both domestic and foreign competitors, including price competition and new product introductions [129]. - The company is committed to maintaining appropriate relations with unions to avoid business disruptions [126].

Financial Performance - Third-quarter 2025 net sales were $305.9 million, a 35% increase compared to $227.2 million in the same quarter last year[6][4] - Net income for the third quarter was $8.1 million, or $0.19 per diluted share, compared to a net loss of $5.9 million in the same quarter last year[2][4] - Adjusted EBITDA for the third quarter was $29.0 million, reflecting a sequential improvement from $26.5 million in the second quarter of 2025[2][3][12] - Gross profit for Q3 2025 was $35.0 million, compared to $12.1 million in Q3 2024, reflecting a significant improvement[23] - Net income for the nine months ended September 30, 2025, was $13.1 million, down from $22.7 million in the same period of 2024[23] - Basic earnings per share for Q3 2025 were $0.19, compared to a loss of $0.13 per share in Q3 2024[23] - Adjusted net income for Q3 2025 was $12.0 million, compared to an adjusted net loss of $4.4 million in Q3 2024[32] - For the nine months ended September 30, 2025, the company reported an adjusted net income of $23.6 million, with adjusted diluted earnings per share of $0.55, compared to $28.4 million and $0.62 for the same period in 2024[43] - The company reported a net income of $13.1 million for the nine months ended September 30, 2025, compared to $22.7 million for the same period in 2024[43] Cash Flow and Liquidity - Operating cash flow for the third quarter was $22.0 million, with total liquidity of $436.9 million as of September 30, 2025[7][9] - Total cash, cash equivalents, and restricted cash at the end of Q3 2025 was $192.2 million, compared to $255.9 million at the end of Q3 2024[26] - The company’s cash and cash equivalents decreased to $191.5 million as of September 30, 2025, down from $240.7 million at the end of 2024[69] Expenses and Charges - Selling, general & administrative expenses (SG&A) increased to $24.5 million in Q3 2025 from $22.5 million in Q3 2024[23] - The company incurred restructuring charges of $2.7 million in Q3 2025, with no such charges reported in Q3 2024[23] - The company incurred restructuring charges of $2.7 million and IT transformation costs of $2.9 million during the nine months ended September 30, 2025[43] - Annual shutdown maintenance planned for the fourth quarter will incur approximately $11 million in costs, impacting melt utilization rates[14][14] Operational Metrics - Ship tons for the third quarter were 163,100, a 36% increase compared to the prior-year third quarter, but a 3% decrease sequentially[12][12] - The company reported a total of 163.1 thousand ship tons for Q3 2025, compared to 119.9 thousand ship tons in Q3 2024, indicating a 36.0% increase in volume[66] - Total ship tons for the nine months ended September 30, 2025, were 483.7 thousand, up from 425.3 thousand in the same period of 2024, representing a 13.7% increase[67] Investments and Capital Expenditures - The company invested $28.4 million in capital expenditures during the third quarter, including $22.0 million for government-funded projects[9][14] - Capital expenditures in Q3 2025 totaled $6.4 million, down from $11.8 million in Q3 2024[28] Future Outlook - The company expects fourth-quarter adjusted EBITDA to be lower than the third quarter due to normal seasonality and potential global supply chain challenges[12][12] - Metallus secured new 2026 programs with key customers in the aerospace and defense market, targeting an annual run rate of $250 million in total sales by mid-2026[14][14] Balance Sheet Highlights - Total assets increased to $1,150.4 million in 2025 from $1,116.7 million in 2024, representing a growth of approximately 3.0%[25] - Total liabilities rose to $452.7 million in 2025 from $426.2 million in 2024, an increase of approximately 6.2%[25] - Shareholders' equity reached $697.7 million in 2025, compared to $690.5 million in 2024, showing a slight increase of approximately 1.7%[25] - Accounts receivable, net of allowances, stood at $129.3 million in 2025, up from $90.8 million in 2024, indicating a significant increase of about 42.5%[25] - Inventories, net increased to $237.5 million in 2025 from $219.8 million in 2024, reflecting a growth of approximately 8.0%[25] Debt and Interest - Interest expense, net, decreased to $(1.4) million in Q3 2025 from $(2.4) million in Q3 2024[23] - The company reported a loss on extinguishment of debt of $3.6 million for the nine months ended September 30, 2025[23] - The company recognized a loss of $3.6 million from the distribution of surplus assets following the completion of the salaried pension plan annuitization in May 2024[50] Strategic Initiatives - The company is focusing on targeted growth through acquisitions as part of its business transformation strategy[35] - The company is undergoing a multi-year IT transformation initiative aimed at reducing operating costs and improving efficiency[36] - The company is undergoing a multi-year IT transformation initiative aimed at modernizing legacy systems and reducing operating costs[59] - Business transformation costs include professional service fees for evaluating strategic opportunities to diversify the company's end market and product portfolio through acquisitions[58] - The company offered an exit incentive program to certain employees to support succession planning and sustainable profitable growth strategy[45]

Core Insights - Metallus reported third-quarter 2025 net sales of $305.9 million, a 35% increase from $227.2 million in the same quarter last year, and net income of $8.1 million, compared to a net loss of $5.9 million in Q3 2024 [1][3][12] - The company experienced sequential sales growth for the fourth consecutive quarter, driven by strong demand in aerospace and defense markets, despite lower shipments in energy and industrial sectors [12][20] Financial Performance - Third-quarter 2025 adjusted net income was $12.0 million, or $0.28 per diluted share, with adjusted EBITDA of $29.0 million [1][12] - Operating cash flow for the third quarter was $22.0 million, with cash and cash equivalents totaling $191.5 million as of September 30, 2025 [6][11] - Capital expenditures in Q3 amounted to $28.4 million, including $22.0 million for U.S. government-funded projects [6][11] Operational Highlights - The company received $10.0 million from the U.S. Army as part of a $99.75 million capacity expansion funding agreement, with total government funding received reaching $81.5 million [8][20] - Metallus is on track with the installation of new assets to enhance operational capabilities and has secured new defense programs for 2026 [4][20] Market Outlook - The company anticipates fourth-quarter adjusted EBITDA to be lower than in Q3 due to normal seasonality and potential global supply chain challenges [9][13] - Shipments are expected to decrease in Q4, with lead times for bar products extending to January and tube products to February [13] Shareholder Activity - Metallus repurchased approximately 178,000 common shares for $3.0 million during Q3, with $90.9 million remaining under its share repurchase program [7][11]

Core Points - Metallus (NYSE: MTUS) confirmed that members of the United Steelworkers (USW) Local 1123 voted against ratifying a tentative labor agreement reached on October 3, 2025 [1][2] - The current labor contract has been extended for an additional 90 days until January 29, 2026, allowing time for further negotiations [2] - Metallus employs approximately 1,200 bargaining employees in Canton, Ohio [3] Company Overview - Metallus is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on industrial, automotive, aerospace & defense, and energy end-markets [4] - The company has been in the business of producing high-quality steel for over 100 years and reported sales of $1.1 billion in 2024 [4] - Metallus employs around 1,850 people and is a premier U.S. producer of alloy steel bars and seamless mechanical tubing [4]

Core Points - Metallus has reached a tentative agreement with the United Steelworkers Local 1123 for a new four-year contract [1][2] - The agreement aims to ensure competitive wages and benefits for approximately 1,200 bargaining employees at the Canton, Ohio operations [2] Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, manufacturing components, and supply chain solutions [1][3] - The company has been in the business of producing high-quality steel for over 100 years and employs around 1,850 people [3] - In 2024, Metallus reported sales of $1.1 billion, indicating a strong market presence [3]