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]

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 serves demanding applications in industrial, automotive, aerospace & defense, and energy end-markets [3] - Metallus has been in the business of making high-quality steel for over 100 years and employs approximately 1,880 people [3] Financial Performance - Metallus reported sales of $1.1 billion in 2024 [3] - The company released its first-quarter 2025 results on May 8, 2025 [1] Investor Relations - Metallus will host a conference call with the financial community on May 9, 2025, at 9:00 a.m. ET, which will be accessible via live Internet listening [2] - A replay of the conference call will also be available on the company's investor relations website [2]

Core Viewpoint - Metallus (MTUS) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share, and a significant decline from $0.56 per share a year ago, indicating a -36.36% earnings surprise [1] - The company has struggled to meet consensus EPS estimates over the last four quarters, with revenues of $280.5 million for the quarter ended March 2025, surpassing estimates by 10.30% but down from $321.6 million year-over-year [2] Company Performance - Metallus has not exceeded consensus EPS estimates in the last four quarters, and its revenue performance has only surpassed estimates once during this period [2] - The stock has declined approximately 8.8% since the beginning of the year, compared to a -4.3% decline in the S&P 500 [3] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $282.3 million, and for the current fiscal year, it is $1.03 on revenues of $1.16 billion [7] Industry Context - The Steel - Specialty industry, to which Metallus belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Company Overview - Metallus Inc reported net sales of $1.1 billion in 2024 [9] - The company has an annual melt capacity of approximately 1.2 million tons and a ship capacity of approximately 0.9 million tons [9] - In 2024, Automotive accounted for 45% of the company's shipment mix and 42% of net sales [23] - In 2024, Industrial accounted for 40% of the company's shipment mix and 36% of net sales [23] - In 2024, Aerospace & Defense accounted for 8% of the company's shipment mix and 12% of net sales [23] - In 2024, Energy accounted for 7% of the company's shipment mix and 8% of net sales [23] Financial Performance and Outlook - In Q1 2025, Metallus' net sales were $280.5 million, a 17% increase compared to Q4 2024 [29] - The company's cash and cash equivalents balance was $180.3 million, with total liquidity of $432 million as of March 31, 2025 [29] - The company expects Q2 2025 adjusted EBITDA to be higher than Q1 2025 [29] Capital Allocation and Investment - Planned capital expenditures are approximately $125 million for the full year 2025, inclusive of approximately $90 million of capital expenditures funded by the U S government [29] - From 2022 through Q1 2025, the company repurchased 7.1 million shares for $127.8 million [85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Ohio 46-4024951 (I.R.S. Employer Identification No.) For the transition period from to Commission file number: 1-36313 METALLUS INC. (Exact name of registrant as specified in its charter) (State or ot ...

• Net sales of $280.5 million increased 17 percent compared with $240.5 million in the fourth quarter 2024. The increase in net sales was primarily driven by higher shipments and an increase in raw material surcharge revenue per ton due to higher scrap and alloy prices. Compared with the first quarter of 2024, net sales decreased by 13 percent on unfavorable product mix, lower average base sales (1) prices and lower raw material surcharge revenue per ton. 1 Exhibit 99.1 • Net sales of $280.5 million, an inc ...

Financial Performance - The company reported first-quarter 2025 net sales of $280.5 million, a 17% increase from $240.5 million in the fourth quarter of 2024, but a 13% decrease from $321.6 million in the first quarter of 2024 [1][2][3][14] - Net income for the first quarter of 2025 was $1.3 million, or $0.03 per diluted share, compared to a net loss of $21.4 million in the fourth quarter of 2024 and a net income of $24.0 million in the first quarter of 2024 [1][2][3][22] - Adjusted EBITDA for the first quarter of 2025 was $17.7 million, compared to $8.3 million in the fourth quarter of 2024 and $43.4 million in the first quarter of 2024 [1][2][3][22] Operational Insights - The company experienced a 50% increase in order backlog compared to the same period last year, driven by a solid order book and market share gains [4] - Ship tons increased to 152,900 in the first quarter of 2025, a 17% sequential increase, primarily due to higher industrial, automotive, and energy shipments [14] - Manufacturing costs decreased by $12.5 million sequentially due to increased cost absorption from higher production volume [14] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $180.3 million and total liquidity of $432.0 million [7][58] - Operating cash flow was an outflow of $38.9 million, primarily due to required pension contributions totaling $52.6 million [7][8] - Capital expenditures for the first quarter were $27.5 million, including $13.9 million for government-funded projects [7][9] Market and Strategic Outlook - The company anticipates second-quarter 2025 adjusted EBITDA to be higher than in the first quarter of 2025, supported by an increasing order book and improved operational performance [11][19] - Planned capital expenditures for the full year of 2025 are approximately $125 million, including about $90 million funded by the U.S. government [19] - The company is focused on strategic investments to drive profitable growth and maintain a share repurchase program [5]

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 serves various demanding applications in industrial, automotive, aerospace & defense, and energy end-markets [3] - Metallus has been in the business of producing high-quality steel for over 100 years and employs approximately 1,880 people [3] Financial Performance - Metallus reported sales of $1.1 billion in 2024 [3] - The company is set to release its first-quarter 2025 results on May 8, 2025, after market close [1] Upcoming Events - A live conference call with the financial community is scheduled for May 9, 2025, at 9:00 a.m. ET, which will be accessible via the company's investor website [2] - A replay of the conference call will also be available on the same platform [2]