Financial Performance - Net sales for the year ended December 31, 2025, were $1,158.3 million, an increase of $74.3 million, or 6.9%, compared to 2024, driven by higher shipments and surcharges [162]. - Net sales for 2025 totaled $1,158.3 million, with base sales of $914.4 million after excluding surcharges of $243.9 million, compared to net sales of $1,084.0 million in 2024 [189]. - Net sales for 2025 reached $1,158.3 million, a 6.8% increase from $1,084.0 million in 2024, but a decrease from $1,362.4 million in 2023 [314]. - The United States accounted for $1,039.5 million of net sales in 2025, representing a 9.3% increase from $951.0 million in 2024, while foreign sales decreased to $118.8 million from $133.0 million [314]. - Revenue from the automotive sector was $472.3 million in 2025, up from $452.3 million in 2024, while industrial revenue increased to $408.1 million from $390.5 million [315]. - Net loss for 2025 was $(1.2) million, compared to a net income of $69.4 million in 2023 [265]. - Comprehensive loss for 2025 was $3.5 million, compared to a loss of $3.4 million in 2024 and a profit of $67.1 million in 2023 [268]. Profitability and Expenses - Gross profit for 2025 decreased by $2.6 million, or 2.7%, primarily due to unfavorable price/mix, despite higher volume and favorable raw material spread [165]. - SG&A expenses increased by $6.3 million, or 7.2%, in 2025, mainly due to higher variable compensation and annual merit increases [169]. - The company incurred restructuring charges of $2.7 million in 2025, which were not present in 2024 or 2023 [265]. - The company reported a stock-based compensation expense of $14.7 million in 2025, up from $14.0 million in 2024 [274]. Cash Flow and Liquidity - Total liquidity as of December 31, 2025, was $389.2 million, including cash and cash equivalents of $156.7 million [160]. - The company reported a decrease in cash and cash equivalents from $240.7 million in 2024 to $156.7 million in 2025, contributing to total liquidity of $389.2 million, down from $458.6 million [193][194]. - Operating activities generated $16.0 million in net cash for 2025, a significant decline from $40.3 million in 2024 and $125.3 million in 2023 [204]. - Net cash provided by operating activities decreased to $16.0 million in 2025 from $40.3 million in 2024, primarily due to higher working capital and increased pension contributions [205]. - Net cash used by investing activities rose significantly to $75.2 million in 2025 from $10.8 million in 2024, driven by higher capital expenditures and accelerated government-supported project spending [206]. - Net cash used by financing activities decreased to $25.2 million in 2025 from $68.9 million in 2024, attributed to lower shares surrendered for taxes and reduced repurchases of common shares [207]. Capital Expenditures and Investments - The company invested $109.0 million in capital expenditures in 2025, focusing on safety, equipment automation, and efficiency improvements [160]. - The company expects capital expenditures of approximately $70 million in 2026, including $35 million partially funded by the U.S. government [196]. - The company repurchased approximately 0.9 million common shares at a cost of $13.1 million, reducing diluted shares outstanding by 1.7 million shares [160]. - The company repurchased approximately 0.9 million common shares in 2025 at an average price of $14.53 per share, with a remaining balance of $89.7 million under its share repurchase program [202]. Pension and Retirement Obligations - A net loss of $6.6 million from pension and postretirement benefit plans was recognized in 2025, driven by a $27.8 million increase in pension liability [176]. - The company contributed $62.0 million to pension plans in 2025, with an expected total contribution of approximately $27 million for 2026 [197]. - Projected benefit obligations for pension and other postretirement plans were $534.8 million and $75.6 million, respectively, with an underfunded status of $91.7 million and $29.7 million [225]. - Net periodic pension expense for 2025 was $15.5 million, while postretirement benefit income was $5.4 million, based on a weighted average discount rate of 5.71% [226]. Taxation - The provision for income taxes for the year ended December 31, 2025, was $3.1 million, a decrease of $0.2 million from $3.3 million in 2024, reflecting a significant effective tax rate increase from 72.2% in 2024 to 163.2% in 2025 [183][186]. - The effective tax rate for 2025 was 163.2%, significantly higher than 72.2% in 2024 and 28.0% in 2023 [330]. - Cash taxes paid by Metallus for 2025 were $(7.1) million, a decrease from $27.9 million in 2024 and $25.3 million in 2023 [331]. - The total income tax payments (refunds) for 2025 were $(7.1) million, indicating a refund situation compared to positive payments in previous years [331]. Assets and Liabilities - Total assets increased to $1,140.2 million in 2025 from $1,116.7 million in 2024, reflecting a growth of approximately 2.1% [270]. - Total current liabilities rose to $314.9 million in 2025, up from $281.5 million in 2024, indicating an increase of approximately 11.8% [270]. - The defined benefit pension and other postretirement benefit obligation was $610.4 million as of December 31, 2025, exceeding the fair value of plan assets by $121.4 million [248]. - The company has no aggregate debt outstanding as of December 31, 2025, reducing interest rate risk exposure [234]. Market and Operational Risks - The company is closely monitoring trade developments, including tariffs that positively impact demand for domestic products, though the ultimate impact remains uncertain [160]. - Forward-looking statements indicate potential risks including fluctuations in customer demand, changes in operating costs, and competitive factors affecting market conditions [230]. - The company is exposed to risks from global conflicts and commodity price fluctuations, which could impact future operations [236]. - The company is managing commodity price risks through supplier pricing agreements and raw material surcharges [237]. Miscellaneous - The company operates as a single reportable segment, with performance evaluated on a consolidated basis by the Chief Operating Decision Maker [312]. - Metallus has an annual melt capacity of approximately 1.2 million tons and a shipment capacity of approximately 0.9 million tons [277]. - The company recognizes revenue upon shipment or delivery of products, with invoiced amounts generally due within 30 days [218]. - The allowance for doubtful accounts is adjusted based on forward-looking estimates of uncollectible balances, with historical write-offs being immaterial [288].

Financial Data and Key Metrics Changes - In 2025, shipments improved by 14% year-over-year, indicating a commercial recovery after previous market headwinds [4] - Fourth quarter net sales totaled $267.3 million, a sequential decrease of $38.6 million primarily due to seasonality and slower ramp-up post-maintenance shutdown [13] - The fourth quarter GAAP net loss was $14.3 million, or a loss of $0.34 per diluted share, while adjusted net loss was $7.7 million, or a loss of $0.18 per diluted share [14] - Adjusted EBITDA for the fourth quarter was $2.4 million, below expectations due to lower volumes and compressed raw material spread [8][14] Business Line Data and Key Metrics Changes - VAR sales totaled approximately $28 million, almost doubling from 2024, reflecting strong growth in aerospace and defense [4] - The company is increasing hourly staffing levels in areas with accelerated demand, such as seamless mechanical tube production [6][9] - The order book has increased more than 50% year-over-year, indicating strong demand for domestic steel [9][21] Market Data and Key Metrics Changes - Industrial markets remain soft, but the global trade environment is creating new opportunities as customers reevaluate supply chains [10] - Auto sales and production are expected to be slightly down, with pricing pressure persisting as OEMs prioritize margins [10] - Aerospace and defense outlook remains robust, with strong growth expected through 2026 driven by existing program expansions and new platforms [11] Company Strategy and Development Direction - The company is focused on safety, outstanding customer service, and product development in aerospace and defense, supporting a strategy for sustainable growth [11] - Significant progress has been made in advancing manufacturing capabilities, including the ramp-up of a new automated grinding line [7] - The company aims to strengthen operational foundations and improve execution in 2026 through targeted organizational changes and operational enhancements [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger order book entering 2026, with expectations for improved melt utilization and operational performance [20][34] - The company anticipates a sequential increase in average melt utilization rate and expects first quarter shipments to increase by approximately 10% compared to the fourth quarter [20][21] - Management remains cautious about external variables but expects year-over-year adjusted EBITDA growth in each quarter of 2026 [23] Other Important Information - The company received $4.1 million in government funding as part of a nearly $100 million arrangement to support munitions production [16] - Required pension contributions for 2026 are expected to total approximately $27 million, a nearly 60% reduction from 2025 [17] - Total liquidity remains strong at $389 million as of December 31, 2025, with no outstanding borrowings [18] Q&A Session Summary Question: Inquiry about fourth quarter labor negotiation costs - Management indicated no additional costs were incurred from labor negotiations in the fourth quarter as the agreement was settled in early February [27][30] Question: Expectations for melt utilization improvement - Management stated that improvements in melt utilization are based on both volume and expectations from third-party advisory programs [34] Question: Demand expectations for A&D in 2026 - Management noted that A&D demand is expected to continue growing, with several new customers and programs contributing to this growth [40][41] Question: Status of key capital investments - Management confirmed that the bloom reheat furnace and roller hearth furnace are on track for commissioning in the first half of 2026 [50][51] Question: Share count and depreciation and amortization - Management explained that diluted shares would increase slightly due to net loss positions, while depreciation and amortization are expected to remain flat due to consistent capital spend [52][54]

Financial Data and Key Metrics Changes - In 2025, shipments improved by 14% year-over-year, indicating a commercial recovery after previous market headwinds [4] - Fourth quarter net sales totaled $267.3 million, a sequential decrease of $38.6 million primarily due to seasonality and slower ramp-up post-maintenance shutdown [13] - The fourth quarter GAAP net loss was $14.3 million, or a loss of $0.34 per diluted share, while adjusted net loss was $7.7 million, or a loss of $0.18 per diluted share [14] - Adjusted EBITDA for the fourth quarter was $2.4 million, below expectations due to lower volumes and increased manufacturing costs [8][14] Business Line Data and Key Metrics Changes - VAR sales totaled approximately $28 million in 2025, almost doubling from 2024, reflecting strong growth in aerospace and defense [4] - The company is increasing hourly staffing levels in areas with accelerated demand, such as seamless mechanical tube production [6][9] Market Data and Key Metrics Changes - The order book has increased by more than 50% year-over-year, indicating strong demand for domestic steel [9][20] - Industrial markets remain soft, but favorable trade conditions are creating new opportunities for reliable domestic suppliers [10] - Aerospace and defense outlook is robust, with strong growth expected through 2026, driven by existing program expansions and new platforms [11] Company Strategy and Development Direction - The company is focused on safety, operational enhancements, and strategic investments to support long-term growth [5][7] - A new four-year labor agreement was reached, emphasizing safety, innovation, and long-term competitiveness [6] - The company is investing in new manufacturing capabilities, including a new automated grinding line and other state-of-the-art assets scheduled for commissioning in 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger operational foundation and improved execution for 2026, despite fourth quarter performance being below expectations [8][13] - The company anticipates a slight increase in first quarter shipments by approximately 10% compared to the fourth quarter, supported by a solid order book [20] - Management expects year-over-year adjusted EBITDA growth in each quarter of 2026, driven by strong demand and operational improvements [23] Other Important Information - The company generated $16 million of operating cash flow in 2025, with operational cash generation exceeding $80 million for the second consecutive year [15] - Planned capital expenditures for 2026 are expected to be approximately $70 million, including government-related expenditures [16] - The company repurchased approximately 71,000 shares of common stock for $1.2 million in the fourth quarter, reflecting confidence in cash flow generation [18] Q&A Session Summary Question: What were the costs incurred from labor negotiations in Q4 and Q1 2026? - Management indicated no additional costs were incurred in Q4 due to the labor agreement being settled in February, but a $2 million payment is due in Q1 [27][30] Question: How does the company expect melt utilization to improve? - Management stated that improvements are expected from both volume increases and third-party advisory programs, with a stronger order book entering 2026 [34] Question: What is the status of A&D sales expectations for 2026? - Management believes they are on target to hit a $250 million run rate in A&D sales, contingent on the ramp-up of munitions manufacturing capacity [48] Question: What is the status of key capital investments? - Management reported that the bloom reheat furnace is expected to be operational in the next month, with both the bloom and roller hearth furnaces ramping up by late Q2 or early Q3 [50][51] Question: What is the outlook for lead times and sales? - Management expects lead times to improve as new assets ramp up, which will also help maintain competitive lead times [63][66]

Metallus (NYSE:MTUS) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Speaker5Thank you for standing by, and welcome to the Metallus Inc. fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, ...

Earnings Presentation | Q4 2025 February 2026 Forward-Looking Statements & Non-GAAP Financial Measures Forward-looking statements This presentation includes "forward-looking" statements within the meaning of the federal securities laws. You can generally identify the company's forward-looking statements by words such as "will," "anticipate," "aspire," "believe," "could," "estimate," "expect," "forecast," "outlook," "intend," "may," "plan," "possible," "potential," "predict," "project," "seek," "target," "sh ...

Exhibit 99.1 Metallus Announces Fourth-Quarter and Full-Year 2025 Results CANTON, Ohio: February 19, 2026 – Metallus (NYSE: MTUS), a leader in high-quality specialty metals, manufactured components and supply chain solutions, today reported fourth-quarter 2025 net sales of $267.3 million and net loss of $14.3 million, or a loss of $0.34 per diluted share. On an adjusted basis (2) , the fourth- quarter 2025 net loss was $7.7 million, or a loss of $0.18 per diluted share, and adjusted EBITDA was $2.4 million. ...

Metallus Announces Fourth-Quarter and Full-Year 2025 Results [Accessibility Statement] Skip Navigation- Adjusted EBITDA expected to improve sequentially throughout 2026 compared with the same periods in 2025- Order book up more than 50% year-over-year; expecting stronger start to 2026- Operational optimization initiatives underway; bloom reheat furnace investment on track- Four-year USW labor agreement ratified on February 5, 2026- Total liquidity(1) of $389.2 million at the end of 2025- Invested $109.0 mil ...

Core Viewpoint - Metallus has successfully negotiated a new four-year contract with its employees, reflecting a commitment to safety, innovation, and long-term competitiveness [2]. Group 1: Contract Details - The new contract is effective from February 5, 2026, to September 30, 2029, and includes annual increases to base wages for employees [2]. - The contract provides competitive healthcare and retirement benefits, emphasizing employee wellbeing and safe operations [2]. Group 2: Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, serving industries such as industrial, automotive, aerospace & defense, and energy [3]. - The company has been in the steel manufacturing business for over 100 years and reported sales of $1.1 billion in 2024 [3]. - Metallus employs approximately 1,850 people and is a leading U.S. producer of alloy steel bars and seamless mechanical tubing [3].

Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on recycled scrap metal [3] - The company has been in the business of producing high-quality steel for over 100 years and serves various demanding applications in industrial, automotive, aerospace & defense, and energy end-markets [3] - Metallus employs approximately 1,850 people and reported sales of $1.1 billion in 2024 [3] Upcoming Financial Results - Metallus will release its fourth-quarter and full-year 2025 results on February 19, 2026, after the market closes on the New York Stock Exchange [1] - A conference call with the financial community is scheduled for February 20, 2026, at 9:00 a.m. ET, which will be accessible via live Internet broadcast [2] - A replay of the conference call will also be available on the company's investor website [2]

Core Insights - The focus is on identifying companies in the consumer products sector that exhibit strong brand recognition, solid financials, and growth potential [1] Group 1: Investment Focus - The investment strategy emphasizes a keen understanding of consumer trends and the ability to identify profitable opportunities within the sector [1]