Core Viewpoint - Metallus Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results for Q1 2025, which led to a significant drop in stock price [1][3]. Financial Performance - Metallus reported non-GAAP earnings per share of $0.07 for Q1 2025, missing consensus estimates by $0.05 [3]. - The company's stock price fell by $1.48, or 11.31%, closing at $11.61 per share on May 9, 2025, following the earnings announcement [3]. Company Challenges - The CEO of Metallus indicated that the company experienced volatility in the defense supply chain during Q1 2025, attributed to customer manufacturing start-up challenges [3].

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Core Viewpoint - Metallus Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results for Q1 2025, which led to a significant drop in stock price [1][3]. Financial Performance - Metallus reported non-GAAP earnings per share of $0.07 for Q1 2025, missing consensus estimates by $0.05 [3]. - The company's stock price fell by $1.48, or 11.31%, closing at $11.61 per share on May 9, 2025, following the earnings announcement [3]. Company Challenges - The CEO of Metallus indicated that the company experienced volatility in the defense supply chain during Q1 2025, attributed to customer manufacturing start-up challenges [3].

Core Viewpoint - Metallus Inc. is under investigation for potential securities fraud and unlawful business practices, following a disappointing financial report that led to a significant drop in stock price [1][2]. Financial Performance - Metallus reported non-GAAP earnings per share of $0.07 for Q1 2025, which was $0.05 below consensus estimates [2]. - The company's stock price fell by $1.48, or 11.31%, closing at $11.61 per share on May 9, 2025, after the earnings announcement [2]. Company Background - Pomerantz LLP is a prominent law firm specializing in corporate, securities, and antitrust class litigation, with a history of fighting for victims of securities fraud and corporate misconduct [3].

Core Viewpoint - Metallus has announced the promotion of Kristopher R. Westbrooks to president and chief operating officer, and the appointment of John M. Zaranec III as executive vice president and chief financial officer, effective June 16, 2025, indicating a strategic move to enhance leadership and operational excellence within the company [1][2][6]. Group 1: Leadership Changes - Kristopher R. Westbrooks will oversee safety, manufacturing operations, and supply chain organizations, focusing on cross-functional collaboration and alignment with strategic initiatives [2][4]. - John M. Zaranec III brings over 20 years of financial experience in the manufacturing sector, previously serving as division chief financial officer at Materion Corporation [5][6]. Group 2: Executive Backgrounds - Westbrooks has been with Metallus since September 2018 as chief financial officer and has played a crucial role in the company's transformation [3][4]. - Zaranec has held various leadership roles at Materion, including chief accounting officer and corporate controller, and has experience in public accounting [5]. Group 3: Company Overview - Metallus manufactures high-performance specialty metals from recycled scrap metal, serving industries such as automotive, aerospace, and energy [7]. - The company reported sales of $1.1 billion in 2024 and employs approximately 1,880 people [7].

Core Viewpoint - The Schall Law Firm is investigating Metallus Inc. for potential violations of securities laws, particularly regarding misleading statements and undisclosed information that may have affected investors [1][2]. Group 1: Investigation Details - The investigation centers on whether Metallus issued false or misleading statements and failed to disclose critical information to investors [2]. - Metallus reported its Q1 2025 financial results on May 8, 2025, with non-GAAP earnings per share significantly missing consensus estimates [2]. - Following the announcement, Metallus shares dropped by over 11.3% the next day, indicating a negative market reaction [2]. Group 2: Company Background - Metallus Inc. is listed on the NYSE under the ticker MTUS [1]. - The CEO of Metallus attributed the volatility in the defense supply chain during Q1 to customer manufacturing start-up challenges [2]. Group 3: Legal Representation - The Schall Law Firm specializes in securities class action lawsuits and represents investors globally [3]. - Shareholders who experienced losses are encouraged to contact the firm for discussions regarding their rights [3].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Metallus Inc. and its officers or directors, following disappointing financial results that led to a significant drop in the company's stock price [1][3]. Financial Performance - On May 8, 2025, Metallus reported non-GAAP earnings per share of $0.07 for the first quarter of 2025, which was $0.05 below consensus estimates [3]. - The CEO of Metallus indicated that the company experienced volatility in the defense supply chain due to customer manufacturing start-up challenges during the first quarter [3]. - Following the earnings announcement, Metallus's stock price decreased by $1.48, or 11.31%, closing at $11.61 per share on May 9, 2025 [3]. Legal Investigation - Pomerantz LLP is actively seeking claims from investors of Metallus regarding possible securities fraud or other unlawful business practices [1].

Core Viewpoint - Metallus Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results for Q1 2025, which led to a significant drop in its stock price [1][3]. Financial Performance - Metallus reported non-GAAP earnings per share of $0.07 for Q1 2025, missing consensus estimates by $0.05 [3]. - The company's stock price fell by $1.48, or 11.31%, closing at $11.61 per share on May 9, 2025, following the earnings announcement [3]. Management Commentary - The CEO of Metallus indicated that the company experienced volatility in the defense supply chain during the first quarter, attributed to customer manufacturing start-up challenges [3].

Financial Data and Key Metrics Changes - In Q1 2025, net sales totaled $280.5 million, a sequential increase of $40 million or 17% [17] - Net income for the quarter was $1.3 million or $0.03 per diluted share, while adjusted net income was $3.2 million or $0.07 per diluted share [18] - Adjusted EBITDA reached $17.7 million, a sequential increase of $9.4 million [18] - Manufacturing costs declined by $12.5 million sequentially due to increased cost absorption and lower maintenance costs [19] Business Line Data and Key Metrics Changes - Overall shipments increased by 17% compared to the previous quarter, driven by higher industrial, automotive, and energy shipments [10] - Shipments to industrial customers rose by 33% sequentially, while energy shipments improved by 24% [11][12] - Automotive shipments increased by 9% sequentially, primarily due to seasonality [13] - Aerospace and defense shipments decreased due to production startup challenges but are expected to recover in the second quarter [14] Market Data and Key Metrics Changes - The order backlog increased approximately 50% from the same period last year, reflecting growing demand for U.S.-produced steel [7] - Lead times for SBQ bars and seamless mechanical tubing products currently extend to ten weeks [11] - The energy market is seeing increased demand as customers shift from imports to domestic sourcing [35] Company Strategy and Development Direction - The company plans to invest approximately $5 million in safety management systems and equipment upgrades in 2025 [8] - Capital allocation strategy prioritizes strategic investments for long-term growth and ongoing share repurchase programs [15] - The company remains focused on executing its business strategy while prioritizing safety and customer service [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism despite macroeconomic uncertainties, citing a strong U.S.-based business model [16] - The company anticipates second-quarter adjusted EBITDA to be higher than in the first quarter, with modest increases in shipments expected [26] - Management is confident in meeting the 2025 revenue goal of approximately $30 million from vacuum arc remelt products [15] Other Important Information - The company made $52.6 million in required pension contributions in Q1 2025, with expectations of reduced future contributions [20] - Cash flow for the first quarter was an outflow of $38.9 million, primarily due to pension contributions [21] - The company repurchased 395,000 shares for $5.6 million in Q1 and had $96 million remaining under its share repurchase authorization as of April [25] Q&A Session Summary Question: How much of the volume boost in Q1 2025 is due to pull forward demand related to tariffs? - Management indicated that very little of the shipment increase was due to tariff hedging, as most orders were placed in Q4 2024, and the tariffs did not take effect until April [34] Question: What is the outlook for the energy market and customer demand? - Management expects continued demand growth in the energy sector as customers seek domestic sourcing, despite some inventory overhang from imports [35] Question: Can you provide details on the aerospace and defense customer manufacturing startup challenges? - Management noted that a new facility faced commissioning difficulties but expects to see orders from this facility later in the year as progress is made [41]

Financial Data and Key Metrics Changes - In the first quarter, net sales totaled $280.5 million, a sequential increase of $40 million or 17% [16] - Net income for the first quarter was $1.3 million or $0.03 per diluted share, while adjusted net income was $3.2 million or $0.07 per diluted share [18] - Adjusted EBITDA was $17.7 million, a sequential increase of $9.4 million, driven by higher shipments and lower manufacturing costs [19] Business Line Data and Key Metrics Changes - Overall shipments increased by 17% compared to the previous quarter, with significant increases in industrial (33%) and energy (24%) shipments, while aerospace and defense shipments decreased due to production startup challenges [9][10][12] - Automotive shipments improved by 9% sequentially, primarily driven by seasonality [12] - The order backlog increased approximately 50% from the same period a year ago, reflecting strong demand for U.S. produced steel [6] Market Data and Key Metrics Changes - Shipments to industrial customers increased significantly, driven by distributors replenishing their inventory [10] - Energy shipments improved despite a flat rig count, indicating market share gains in specific product categories [11] - Aerospace and defense shipments are expected to recover in the second quarter as the industry addresses supply chain challenges [13] Company Strategy and Development Direction - The company is focused on capitalizing on the growing demand for domestic steel and has a strong balance sheet to support its strategy [4][6] - Investments in safety management systems and equipment upgrades are planned for 2025, with a budget of approximately $5 million [7] - The capital allocation strategy prioritizes strategic investments for long-term growth and includes an ongoing share repurchase program [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the trade environment and macroeconomic landscape, emphasizing the company's U.S.-based business model [15] - The company anticipates second quarter adjusted EBITDA to be higher than the first quarter, with expected increases in shipments and operational performance [27][28] - Management remains committed to delivering quality products while driving profitability [29] Other Important Information - The company made $52.6 million in required pension contributions in the first quarter, with expectations of a significant reduction in future contributions [20] - Cash flow for the first quarter was an outflow of $38.9 million, primarily due to pension contributions [21] - The company received $11.9 million in government funding as part of a $99.75 million agreement to support munitions production [23][24] Q&A Session Summary Question: How much of the volume boost in Q1 is due to pull forward demand related to tariffs? - Management indicated that very little of the shipment increase was related to hedging against tariffs, as most orders were placed in Q4, and the tariffs took effect in April [34][35] Question: What is the outlook for the energy market and customer demand? - Management expects continued demand increase in the energy sector as customers seek domestic sourcing, despite some inventory overhang from foreign imports [36][37] Question: Can you provide details on customer manufacturing startup challenges in aerospace and defense? - Management noted that a new facility faced commissioning difficulties but expects progress and increased orders later in the year, along with new inquiries for munitions grades [41][42]