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]

Financial Performance - Net sales for Q1 2025 were $280.5 million, a decrease of $41.1 million, or 12.8%, compared to Q1 2024, primarily due to unfavorable price/mix and lower volume [80]. - Gross profit for Q1 2025 decreased by $28.7 million, or 56.7%, compared to Q1 2024, driven by unfavorable price/mix and lower volume [84]. - SG&A expenses increased by $0.2 million, or 0.8%, in Q1 2025 compared to Q1 2024, primarily due to higher salary and benefits [88]. - The effective tax rate for Q1 2025 was 53.3%, compared to 20.0% in Q1 2024, reflecting lower pre-tax income [93]. - Net sales adjusted to exclude surcharges increased by $29.7 million, or 11.8%, in Q1 2025 compared to the previous year [80]. Liquidity and Capital Expenditures - Total liquidity as of March 31, 2025, was $432.0 million, including cash and cash equivalents of $180.3 million [77]. - As of March 31, 2025, the company had cash and cash equivalents of $180.3 million, down from $240.7 million on December 31, 2024 [101]. - Total liquidity as of March 31, 2025, was $432.0 million, compared to $458.6 million on December 31, 2024 [101]. - The company expects capital expenditures to be approximately $125 million in 2025, including about $90 million funded by the U.S. government [103]. - The company believes its liquidity sources will be sufficient to meet working capital needs and capital expenditures for at least the next twelve months [102]. Share Repurchase and Pension Contributions - The company repurchased approximately 0.4 million common shares at a cost of $5.6 million, with $97.2 million remaining under its authorized share repurchase program [77]. - The company repurchased approximately 0.4 million common shares at an aggregate cost of $5.6 million, averaging $14.23 per share, with $97.2 million remaining under its share repurchase program as of March 31, 2025 [107]. - The company contributed a total of $52.6 million in pension contributions in the first quarter of 2025, with an additional $5.9 million contributed in April 2025 [104]. - The company anticipates additional pension contributions of approximately $10 million throughout the remainder of 2025 [104]. Cash Flow Activities - For the three months ended March 31, 2025, net cash used by operating activities was $38.9 million, a decrease from net cash provided of $33.4 million for the same period in 2024 [111]. - Net cash used by investing activities for the three months ended March 31, 2025, was $12.9 million, compared to $17.4 million for the same period in 2024 [112]. - Net cash used by financing activities for the three months ended March 31, 2025, was $8.2 million, down from $18.7 million in the same period in 2024 [113]. Government Funding and Trade Developments - The company received $12.9 million from the U.S. government as part of a $99.75 million funding agreement to support munitions production, with $66.4 million received to date [77]. - The company is monitoring trade developments, including a minimum 25% tariff on steel imports, which is expected to positively impact demand for its products [77]. Investment Activities - The company invested $27.5 million in capital projects during Q1 2025, including $13.9 million funded by the U.S. government [74].

Financial Performance - First-quarter 2025 net sales were $280.5 million, a 17% increase from $240.5 million in the fourth quarter of 2024, but a 13% decrease compared to $321.6 million in the first quarter of 2024[2][7][4] - Net income for the first quarter of 2025 was $1.3 million, or $0.03 per diluted share, with adjusted net income of $3.2 million, or $0.07 per diluted share[2][8] - Net sales for Q1 2025 decreased to $280.5 million, down 12.8% from $321.6 million in Q1 2024[27] - Gross profit for Q1 2025 was $21.9 million, a decline of 56.7% compared to $50.6 million in Q1 2024[27] - Net income for Q1 2025 was $1.3 million, significantly lower than $24.0 million in Q1 2024, representing a decrease of 94.6%[27] - Basic earnings per share for Q1 2025 were $0.03, down from $0.55 in Q1 2024, a decline of 94.5%[27] - For the three months ended March 31, 2025, the net income was $1.3 million, a decrease of 94.6% compared to $24.0 million in the same period of 2024[31] - Adjusted net income for the three months ended March 31, 2025 was $3.2 million, compared to $26.1 million in the same period of 2024[36] - Adjusted diluted earnings per share for the three months ended March 31, 2025 was $0.07, down from $0.56 in the same period of 2024[36] Operational Metrics - The order backlog increased approximately 50% compared to the same period last year, reflecting strong demand and market share gains[5] - Ship tons for the first quarter were 152,900, a 17% sequential increase, driven by higher industrial, automotive, and energy shipments[15] - Ship tons sold in Q1 2025 were 152.9 thousand, a slight decrease from 155.2 thousand in Q1 2024[52] Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2025, were $180.3 million, with total liquidity of $432.0 million[10][8] - Total current assets as of March 31, 2025, were $568.4 million, a decrease from $587.3 million as of December 31, 2024[30] - Total assets decreased to $1,101.5 million in Q1 2025 from $1,116.7 million in Q4 2024[30] - Total liabilities increased to $415.4 million in Q1 2025 from $426.2 million in Q4 2024[30] - Cash and cash equivalents decreased to $180.3 million in Q1 2025 from $240.7 million in Q4 2024[30] - Net cash used by operating activities was $(38.9) million, a significant decline from $33.4 million provided in the prior year[33] - Free cash flow for the three months ended March 31, 2025 was $(52.5) million, compared to $16.0 million in the same period of 2024[33] - The company reported a cash balance of $181.9 million at the end of the period, down from $278.6 million at the end of March 2024[31] - Total liquidity as of March 31, 2025, was $432.0 million, a decrease from $458.6 million as of December 31, 2024[54] Expenses and Costs - Manufacturing costs decreased by $12.5 million sequentially due to increased cost absorption from higher production volume[15] - Selling, general & administrative expenses (SG&A) slightly increased to $24.3 million in Q1 2025 from $24.1 million in Q1 2024[27] - Required pension contributions totaled $52.6 million in the first quarter, impacting cash flow[11] - The company reported a loss on the sale or disposal of assets of $1.5 million in Q1 2025, compared to a gain of $0.1 million in Q1 2024[27] - The company recognized a loss of $3.6 million related to the distribution of surplus assets from the salaried pension plan[40] - IT transformation costs incurred during the period were primarily related to professional service fees, aimed at modernizing legacy systems[38] Capital Expenditures - The company invested $27.5 million in capital expenditures during the first quarter, including $13.9 million for government-funded projects[10][8] - Planned capital expenditures for the full year of 2025 are approximately $125 million, including about $90 million funded by the U.S. government[18] - Capital expenditures for the same period were $13.6 million, down from $17.4 million in 2024[33] Future Outlook - The company expects second-quarter 2025 adjusted EBITDA to be higher than in the first quarter, driven by increased shipments and improved operational performance[14] - The company is undergoing a multi-year IT transformation initiative aimed at modernizing legacy systems and reducing operating costs[46] - Professional service fees related to business transformation costs were incurred to evaluate strategic growth opportunities through acquisitions[46] - The company announced a name change to Metallus Inc. during Q1 2024, incurring rebranding costs[47]

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]

Company Overview - Metallus Inc was renamed in February 2024, formerly known as TimkenSteel Corporation[7] - The company reported net sales of $1.1 billion in 2024[7] - The company's annual melt capacity is approximately 1.2 million tons with a ship capacity of approximately 0.9 million tons[7] Financial Performance and Outlook - In Q4 2024, net sales were $240.5 million with a net loss of $21.4 million and adjusted EBITDA of $8.3 million[20] - The company's total liquidity was $458.6 million at the end of 2024[20] - Capital expenditures are planned to be approximately $125 million in 2025, including approximately $90 million funded by the U S government[20] Market and Strategy - The industrial sector accounts for 40% of shipment tons and 36% of net sales, while the automotive sector accounts for 45% of shipment tons and 42% of net sales in 2024[16] - The company aims to grow A&D product sales to over $250 million in 2026, which is more than double the 2023 sales level[63] - From 2022 through 2024, the company repurchased 6.7 million shares for $122.2 million, with $102.8 million available for repurchase at the end of December 2024[71] Environmental Goals - The company is targeting a 40% absolute reduction in combined Scope 1 and Scope 2 GHG emissions by 2030, compared with a 2018 baseline[54]

Financial Data and Key Metrics Changes - In Q4 2024, net sales totaled $240.5 million, a sequential increase of $13.3 million or 6% driven by higher shipments of 10,300 tons [31] - The company reported a GAAP net loss of $21.4 million in Q4, translating to a loss of $0.50 per diluted share, while the adjusted net loss was $3.3 million or $0.08 per diluted share [32] - Adjusted EBITDA for Q4 was $8.3 million, a sequential increase of $2.2 million, primarily due to higher shipments and a favorable product mix [32] Business Line Data and Key Metrics Changes - Aerospace and defense shipments increased to approximately 11,000 tons in Q4 from about 3,000 tons in Q3, with full-year sales rising by 17% to nearly $135 million [23] - Shipments to energy customers increased by 78% sequentially, although from a low base, indicating a recovery in the energy sector [16] - Automotive shipments increased by 3% sequentially, with the company targeting approximately 40% of shipments to the automotive sector in 2025 [20][21] Market Data and Key Metrics Changes - The trade environment is expected to improve due to a new tariff of at least 25% on steel long products, which is anticipated to boost domestic demand [12][13] - The company noted a decline in shipments to industrial customers by 6% sequentially, primarily due to weakness in distribution and heavy equipment [15] Company Strategy and Development Direction - The company is focused on enhancing customer relationships, investing in workforce training, and improving safety and efficiency in operations [7][8] - Metallus Inc. aims to grow aerospace and defense sales to over $250 million by 2026, leveraging partnerships and new product developments [27][26] - The company is committed to a capital allocation strategy that includes strategic investments and a share repurchase program to provide value to shareholders [8][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about an improving order book and increased shipments as they enter 2025, despite challenges in 2024 due to weak market demand [8][47] - The company anticipates first-quarter adjusted EBITDA to be higher than in Q4, with expected increases in shipments across various end markets [47] - Management highlighted the importance of safety and operational efficiency as key focus areas moving forward [29] Other Important Information - The company invested approximately $8 million in safety improvements in 2024 and plans to invest an additional $5 million in 2025 [10] - Operating cash flow for Q4 was $13.9 million, with full-year operating cash flow totaling $40.3 million [35] - The company repurchased 2 million shares for $37.6 million in 2024, reducing outstanding shares by nearly 5% [42] Q&A Session Summary Question: Demand profile in Q4 and expectations for Q1 - Management noted a healthy development in the order book driven by recapture of automotive business and restocking from distribution, with positive momentum attributed to the trade environment [56][59] Question: Expected downtime in Q1 - Management confirmed that there is no expected or planned downtime, although there were power interruptions due to severe cold weather in January [64] Question: Clarification on $80 million target and IT upgrades - Management clarified that IT transformation upgrades are independent of other investments, with ongoing support required for existing projects [66] Question: Share repurchase clarification - Management confirmed that the share count reduction is from the fourth quarter, with an average estimate of 44 million shares for 2025 [69] Question: Seasonality expectations for 2025 - Management expects a potential Q1 bump due to restocking but anticipates that demand will level out as customers secure domestic supply [76] Question: Automotive market outlook - Management sees modest increases in automotive demand in 2025, influenced by interest rates and consumer buying patterns [108]

Financial Data and Key Metrics Changes - In the fourth quarter of 2024, net sales totaled $240.5 million, a sequential increase of 6% driven by higher shipments [23] - The company reported a GAAP net loss of $21.4 million in the fourth quarter, or a loss of $0.50 per diluted share, which included a $9.4 million loss on convertible note repurchases [23] - Adjusted EBITDA for the fourth quarter was $8.3 million, a sequential increase of $2.2 million [23] Business Line Data and Key Metrics Changes - Shipments to aerospace and defense increased significantly, with fourth quarter shipments reaching approximately 11,000 tons compared to 3,000 tons in the third quarter [16] - Aerospace and defense sales for the full year increased by 17% to nearly $135 million, representing 12% of total sales in 2024 [17] - Shipments to energy customers increased by 78% sequentially, although from a low base, indicating a recovery in the energy sector [11] Market Data and Key Metrics Changes - Net sales increased by 6% sequentially, driven by higher shipments and strength in aerospace and defense product demand [10] - Shipments to industrial customers declined by 6% sequentially, primarily due to weakness in distribution and heavy equipment [11] - The company is seeing increased order activity across its distribution and broader industrial customer base in response to the trade environment [11] Company Strategy and Development Direction - The company is focused on enhancing customer relationships and investing in workforce training and development [5] - Strategic investments are being made to drive profitable growth, alongside an ongoing share repurchase program [6] - The company aims to capitalize on growth trends in higher value specialty metals used in demanding applications [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about an improving order book and increased shipments as they enter 2025 [6] - The trade environment is closely monitored, with expectations that new tariffs will boost domestic demand [9] - The company anticipates first quarter adjusted EBITDA to be higher than the fourth quarter, with expected increases in shipments across various end markets [33] Other Important Information - The company invested approximately $8 million in safety improvements in 2024 and plans to invest an additional $5 million in 2025 [7] - Required pension contributions for 2025 are estimated at approximately $65 million, with a significant portion due in the first quarter [24] - The company repurchased 2 million shares of common stock for $37.6 million in 2024, reducing outstanding shares by nearly 5% [29] Q&A Session Summary Question: Demand profile in the fourth quarter and first quarter - Management noted a healthy development in the order book, driven by recapture of automotive business and restocking from distribution [39][40] Question: Expected downtime in the first quarter - Management confirmed that there is no expected or planned downtime, although there were power interruptions due to severe cold weather [44] Question: Clarification on the $80 million profitability improvement target - Management clarified that IT transformation upgrades are independent of other investments related to the profitability target [46] Question: Share repurchase and share count clarification - Management confirmed that the reduction in share count is from the fourth quarter, with an average estimate of 44 million shares for 2025 [47][48] Question: Seasonality expectations for 2025 - Management expects a potential Q1 bump due to restocking but anticipates leveling out thereafter [53][54] Question: Automotive market outlook - Management sees modest increases in automotive demand in 2025, influenced by interest rates and consumer buying patterns [77]

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 employs approximately 1,880 people [3] - Metallus reported sales of $1.1 billion in 2024, indicating a strong market presence [3] Financial Results - Metallus released its fourth-quarter and full-year 2024 results on February 27, 2025 [1] - A live conference call to discuss these financial results is scheduled for February 28, 2025, at 9:00 a.m. ET, with access available online [2]