Financial Performance - Net sales for the three months ended September 30, 2025, were $305.9 million, an increase of $78.7 million, or 34.6% compared to the same period in 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 the three months ended September 30, 2025, increased by $22.9 million, or 189.3% compared to the same period in 2024, attributed to higher volume and favorable raw material spread [90]. - Gross profit for the nine months ended September 30, 2025, increased by $2.3 million, or 2.6% compared to the same period in 2024, driven by higher volume and favorable raw material spread [94]. - For the three months ended September 30, 2025, total net sales reached $305.9 million, a significant increase from $227.2 million in the same period of 2024, representing a year-over-year growth of approximately 34.5% [106]. - Base sales for the nine months ended September 30, 2025, amounted to $701.8 million, up from $669.3 million in the same period of 2024, reflecting a growth of approximately 4.0% [107]. Liquidity and Capital Expenditures - The company reported total liquidity of $436.9 million, including cash and cash equivalents of $191.5 million as of September 30, 2025 [81]. - Capital investments amounted to $28.4 million and $73.7 million for the three and nine months ended September 30, 2025, respectively, focusing on safety and equipment automation [79]. - The company incurred $44.0 million in net cash used by investing activities for the nine months ended September 30, 2025, compared to $3.6 million in the same period of 2024, highlighting increased capital expenditures [122]. - As of September 30, 2025, total liquidity was reported at $436.9 million, slightly down from $458.6 million as of December 31, 2024 [112]. - The company expects capital expenditures to be approximately $120 million in 2025, including around $90 million funded by the U.S. government [114]. Shareholder Actions - The company repurchased 0.2 million and 0.9 million common shares at a cost of $3.0 million and $11.9 million for the three and 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]. Operating Expenses and Taxation - SG&A expenses for the three months ended September 30, 2025, increased by $2.0 million, or 8.9%, primarily due to higher variable compensation and benefits [97]. - The effective tax rate for the three months ended September 30, 2025, was 25.7%, compared to 16.9% in the same period in 2024, reflecting a taxable income position [100]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $17.9 million, a decrease from $26.4 million in the same period of 2024, primarily due to higher working capital needs [121]. Government Contracts - The company received $10.0 million and $28.0 million from the U.S. government for defense contracts during the three and nine months ended September 30, 2025, respectively [79]. Risks and Challenges - The company emphasizes the uncertainty of future results due to various factors, including customer demand fluctuations and economic conditions [126]. - The company faces competitive pressures from both domestic and foreign competitors, which may affect market penetration and pricing strategies [129]. - The company is monitoring the impacts of global economic conditions, including potential slowdowns and political risks in regions where it operates [129]. - The company is aware of cyber-related risks, including potential IT system failures and security breaches [129]. - The company is evaluating the potential impacts of pandemics and health issues on its operations [129]. - There have been no material changes in the company's exposure to market risk since December 31, 2024 [130]. - The company is assessing the availability of financing and interest rates, which could influence its capital-raising capabilities [129]. - The company is addressing sustainability challenges, including the complexity of commodity supply chains and the need for effective traceability practices [129]. - The company is investing in equipment to support the U.S. Army's munitions production, contingent on timely funding and successful installation [129]. Debt Obligations - The principal amount of the Convertible Senior Notes due 2025 was $46.0 million, with a total cash payment of $9.1 million made to the noteholder during the second quarter of 2025 [110]. - As of September 30, 2025, cash and cash equivalents were reported at $191.5 million, down from $240.7 million as of December 31, 2024 [112].

Financial Performance - Third-quarter 2025 net sales were $305.9 million, a 35% increase from $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 prior-year quarter[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] 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] - Free cash flow for Q3 2025 was $15.6 million, compared to a negative free cash flow of $27.1 million in Q3 2024[28] - 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 received $10.0 million in funding from the U.S. Army in Q3 2025, contributing to its cash flow[28] - 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] - Total liquidity as of September 30, 2025, was $436.9 million, slightly down from $458.6 million at the end of 2024[69] Capital Expenditures and Investments - The company invested $28.4 million in capital expenditures during the third quarter, including $22.0 million for U.S. government-funded projects[9][14] - Capital expenditures in Q3 2025 totaled $6.4 million, down from $11.8 million in Q3 2024[28] Operational Metrics - Ship tons decreased by 3% sequentially to 163,100 tons, but increased by 36% compared to the prior-year third quarter[12] - The total ship tons for the three months ended September 30, 2025, were 163.1 thousand, compared to 119.9 thousand in 2024, reflecting a 36.0% increase[66] - The company reported a total of 483.7 thousand ship tons for the nine months ended September 30, 2025, an increase from 425.3 thousand tons in 2024, representing a growth of 13.7%[67] 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] Debt and Liabilities - The company reported a loss on extinguishment of debt of $3.6 million for the nine months ended September 30, 2025[23] - Total liabilities increased to $452.7 million in 2025 from $426.2 million in 2024, an increase of 6.2%[25] - Current liabilities rose to $305.4 million in 2025 from $281.5 million in 2024, an increase of 8.5%[25] Shareholder Equity - Shareholders' equity increased to $697.7 million in 2025 from $690.5 million in 2024, a growth of 1.7%[25] - Retained deficit improved to $(39.3) million in 2025 from $(52.4) million in 2024, a reduction of 25.5%[25] Business Strategy and 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][13] - 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] - 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 IT systems and reducing operating costs[59] Market Conditions - The company reported a net loss of $5.9 million for the third quarter of 2024, reflecting a challenging market environment[55] - The company aims to enhance clarity of core pricing and results by presenting net sales adjusted to exclude surcharges, which can introduce volatility[63]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission file number: 1-36313 METALLUS INC. (Exact name of registrant as specified in its charter) 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 June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 1835 Dueber Avenue SW, Canton, OH 44706 (Address of principal exec ...

Executive Summary & Highlights Metallus's Q2 2025 performance shows improved profitability and cash flow, driven by strong execution and market gains [Second-Quarter 2025 Performance Overview](index=1&type=section&id=Second-Quarter%202025%20Performance%20Overview) Metallus reported Q2 2025 net sales of **$304.6 million** and adjusted EBITDA of **$26.5 million**, reflecting significant sequential and year-over-year profitability improvements Q2 2025 Financial Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------- | :-------- | :-------- | :-------- | | Net Sales | $304.6 million | $280.5 million | $294.7 million | | Net Income (GAAP) | $3.7 million | $1.3 million | $4.6 million | | Diluted EPS (GAAP) | $0.09 | $0.03 | $0.10 | | Adjusted Net Income | $8.4 million | $3.2 million | $6.7 million | | Adjusted Diluted EPS | $0.20 | $0.07 | $0.15 | | Adjusted EBITDA | $26.5 million | $17.7 million | $19.9 million | - Q2 2025 net sales increased **9% sequentially** from Q1 2025 and **3% year-over-year** from Q2 2024[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mike Williams highlighted solid Q2 results driven by improved profitability, operating cash flow, strengthening end markets, market share gains, and operational execution - Solid Q2 results with significant improvement in **profitability** and **operating cash flow**, supported by improving end markets, continued market share gains, and strong execution[5](index=5&type=chunk) - Safety and operational excellence remain top priorities, with benefits seen from ongoing process improvements, including an increase in **melt utilization**[5](index=5&type=chunk) - Demand for domestic steel remains strong, and the company is on track with new asset installations to expand capabilities and support the Army's mission to increase munitions production[5](index=5&type=chunk) - Anticipates short-term cost impacts in the second half of the year from labor contract negotiations and annual shutdown maintenance, but remains confident in strategic direction for sustained profitability and cash flow[5](index=5&type=chunk) [Second-Quarter 2025 Financial Summary](index=1&type=section&id=Second-Quarter%202025%20Financial%20Summary) Q2 2025 net sales reached **$304.6 million**, operating cash flow was **$34.8 million**, and total liquidity stood at **$437.0 million** Q2 2025 Key Financial Highlights | Metric | Value | | :-------------------------------- | :-------- | | Net Sales | $304.6 million | | Net Income | $3.7 million | | Adjusted EBITDA | $26.5 million | | Operating Cash Flow | $34.8 million | | Ending Cash & Cash Equivalents | $190.8 million | | Capital Expenditures | $17.8 million | | Common Shares Repurchased | $3.3 million | | Total Liquidity (as of June 30, 2025) | $437.0 million | - Net sales of **$304.6 million** increased **9%** compared with Q1 2025 (**$280.5 million**) and **3%** compared with Q2 2024 (**$294.7 million**), driven by higher shipments and increased raw material surcharge revenue per ton[6](index=6&type=chunk) Financial Position & Outlook This section details Metallus's cash, liquidity, capital allocation, and future commercial and operational expectations [Cash, Liquidity and Repurchase Activity](index=2&type=section&id=Cash%2C%20Liquidity%20and%20Repurchase%20Activity) Metallus reported **$190.8 million** in cash and **$437.0 million** in total liquidity, with **$34.8 million** operating cash flow and **$3.3 million** in share repurchases Cash, Liquidity, and Capital Allocation (Q2 2025) | Metric | Value (as of June 30, 2025) | | :-------------------------------- | :-------------------------- | | Cash and Cash Equivalents | $190.8 million | | Operating Cash Flow (Q2) | $34.8 million | | Capital Expenditures (Q2) | $17.8 million | | - U.S. Government Funded Projects | $15.3 million | | Common Shares Repurchased (Q2) | $3.3 million | | Remaining Share Repurchase Auth. | $93.9 million | | Convertible Notes Settled (Q2) | $5.5 million | | Total Liquidity | $437.0 million | | Government Funding Received (Q2) | $5.1 million | | Total Government Funding to Date | $71.5 million | - Operating cash flow of **$34.8 million** in Q2 was primarily driven by profitability and the receipt of an income tax refund[9](index=9&type=chunk) - The company settled the remaining **$5.5 million** aggregate principal amount of its outstanding convertible notes, resulting in **no outstanding borrowings** as of June 30, 2025[11](index=11&type=chunk) [Outlook](index=2&type=section&id=Outlook) Metallus anticipates a modest sequential decline in Q3 adjusted EBITDA due to expected costs from labor agreement negotiations and planned annual shutdown maintenance - Third-quarter adjusted EBITDA is expected to be **modestly lower** than the second quarter[13](index=13&type=chunk) - Profitability in Q3 is expected to be negatively impacted by costs associated with labor agreement negotiations, higher electricity costs, and planned annual shutdown maintenance costs[13](index=13&type=chunk) [Commercial Outlook](index=2&type=section&id=Commercial%20Outlook) Q2 2025 ship tons increased **10% sequentially** to **167,700 tons**, with melt utilization improving to **71%**, and Q3 shipments expected to be similar Ship Tons Performance | Metric | Q2 2025 | Sequential Change (vs. Q1 2025) | YoY Change (vs. Q2 2024) | | :---------------- | :-------- | :------------------------------ | :----------------------- | | Ship Tons | 167,700 tons | +14,800 tons (+10%) | +12% | | Melt Utilization | 71% | Up from 65% | Up from 53% | - Q2 2025 ship tons increased **10% sequentially**, driven by higher shipments in aerospace & defense, automotive, and energy end markets[14](index=14&type=chunk) - Third-quarter shipments are expected to be **similar to the second quarter**, and base price per ton is anticipated to remain relatively steady[15](index=15&type=chunk) [Operations Outlook](index=3&type=section&id=Operations%20Outlook) The company projects increased melt utilization in Q3, with **$15 million** in annual shutdown maintenance planned for H2 2025 and **$125 million** in full-year capital expenditures - The company expects an increase in the average **melt utilization rate** in the third quarter from **71 percent** in the second quarter[16](index=16&type=chunk) - Annual shutdown maintenance is planned for the second half of 2025 at a cost of approximately **$15 million**, with approximately **$5 million** expected in the third quarter[16](index=16&type=chunk) - Planned capital expenditures are approximately **$125 million** for the full year of 2025, consistent with previous guidance and inclusive of approximately **$90 million** of capital expenditures funded by the U.S. government[16](index=16&type=chunk) - Required pension contributions are expected to decline to approximately **$3.5 million** in the second half of 2025 compared with a previous estimate of approximately **$10 million**[16](index=16&type=chunk) [Other Matters & Strategic Initiatives](index=3&type=section&id=Other%20Matters%20%26%20Strategic%20Initiatives) Metallus received an additional **$10.0 million** in government funding and will begin labor agreement negotiations with anticipated incremental costs in H2 2025 - In July, the company received an additional **$10.0 million** in government funding related to the capacity expansion funding agreement[16](index=16&type=chunk) - Negotiations with the United Steelworkers regarding the current labor agreement will begin on August 18, 2025, with an anticipated **$3 million to $5 million** of incremental cost in the second half of 2025 associated with these negotiations[16](index=16&type=chunk) Company Information & Disclosures This section provides corporate information, webcast details, non-GAAP financial measure definitions, and forward-looking statements [Webcast Information](index=4&type=section&id=Webcast%20Information) Metallus will host a live Internet webcast of its conference call on Friday, August 8, 2025, at 9:00 a.m. ET, accessible at investors.metallus.com - Metallus will provide live Internet listening access to its conference call with the financial community on Friday, August 8, 2025, at **9:00 a.m. ET**, broadcast at investors.metallus.com[17](index=17&type=chunk) [About Metallus Inc.](index=4&type=section&id=About%20Metallus%20Inc.) Metallus (NYSE: MTUS) is a leader in high-performance specialty metals, manufacturing alloy steel products from recycled scrap metal, serving diverse industrial markets - Metallus (NYSE: MTUS) manufactures high-performance specialty metals from recycled scrap metal in Canton, OH[18](index=18&type=chunk) - The company serves demanding applications in industrial, automotive, aerospace & defense, and energy end-markets[18](index=18&type=chunk) - Metallus employs approximately **1,850 people** and had sales of **$1.1 billion** in 2024[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Metallus supplements GAAP results with non-GAAP measures like adjusted EPS and EBITDA, used by management for performance assessment and investor comparability - Metallus reports financial results in accordance with GAAP and corresponding metrics as non-GAAP financial measures, including adjusted earnings (loss) per share, adjusted net income (loss), EBITDA, adjusted EBITDA, free cash flow, and base sales[19](index=19&type=chunk) - Management believes these non-GAAP measures are useful to investors as they are representative of the company's performance and provide improved comparability of results, but should be viewed as additions to, not alternatives for, GAAP results[19](index=19&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including demand fluctuations, operating costs, and global economic conditions - The news release includes "forward-looking" statements, identifiable by specific words, which are subject to material uncertainties that may affect actual results[20](index=20&type=chunk)[23](index=23&type=chunk) - Factors that could cause actual results to differ materially include fluctuations in customer demand, changes in operating costs, success of operating plans, pension obligations, competitive factors, global economic conditions, and risks related to U.S. Army funding agreements[20](index=20&type=chunk)[21](index=21&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement, except as required by federal securities laws[23](index=23&type=chunk) Consolidated Financial Statements This section presents Metallus's consolidated statements of operations, balance sheets, and cash flows for the reported periods [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, net sales were **$304.6 million** and net income was **$3.7 million**, while six-month net income significantly decreased to **$5.0 million** from **$28.6 million** in the prior year Consolidated Statements of Operations (Three Months Ended June 30) | (in millions, except per share data) | 2025 | 2024 | | :----------------------------------- | :------ | :------ | | Net sales | $304.6 | $294.7 | | Gross Profit | $32.2 | $24.1 | | Income (Loss) Before Income Taxes | $8.6 | $6.1 | | Net Income (Loss) | $3.7 | $4.6 | | Diluted earnings (loss) per share | $0.09 | $0.10 | Consolidated Statements of Operations (Six Months Ended June 30) | (in millions, except per share data) | 2025 | 2024 | | :----------------------------------- | :------ | :------ | | Net sales | $585.1 | $616.3 | | Gross Profit | $54.1 | $74.7 | | Income (Loss) Before Income Taxes | $11.5 | $36.1 | | Net Income (Loss) | $5.0 | $28.6 | | Diluted earnings (loss) per share | $0.11 | $0.62 | - Net income for the six months ended June 30, 2025, significantly decreased to **$5.0 million** from **$28.6 million** in the prior year, primarily due to a **$3.6 million** loss on extinguishment of debt in 2025[25](index=25&type=chunk) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$1,112.0 million**, with cash at **$190.8 million**, and total liabilities decreased to **$422.0 million** due to settled convertible notes Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | (Dollars in millions) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $190.8 | $240.7 | | Total Current Assets | $560.5 | $587.3 | | Total Assets | $1,112.0 | $1,116.7 | | **LIABILITIES** | | | | Accounts payable | $143.7 | $119.2 | | Current convertible notes, net | — | $5.4 | | Total Current Liabilities | $276.2 | $281.5 | | Total Liabilities | $422.0 | $426.2 | | **SHAREHOLDERS' EQUITY** | | | | Total Shareholders' Equity | $690.0 | $690.5 | - Cash and cash equivalents decreased by **$49.9 million** from December 31, 2024, to June 30, 2025[28](index=28&type=chunk) - Current convertible notes, net, were reduced to **zero** as of June 30, 2025, from **$5.4 million** at December 31, 2024[28](index=28&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 net cash from operating activities was **$34.8 million**, a significant increase from Q2 2024, while the six-month period saw a net use of **$4.1 million** Net Cash Provided (Used) by Operating Activities (Three Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net income (loss) | $3.7 | $4.6 | | Net Cash Provided (Used) by Operating Activities | $34.8 | $8.3 | | Net Cash Provided (Used) by Investing Activities | $(12.7) | $(4.1) | | Net Cash Provided (Used) by Financing Activities | $(12.4) | $(9.4) | Net Cash Provided (Used) by Operating Activities (Six Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net income (loss) | $5.0 | $28.6 | | Net Cash Provided (Used) by Operating Activities | $(4.1) | $41.7 | | Net Cash Provided (Used) by Investing Activities | $(25.6) | $(21.5) | | Net Cash Provided (Used) by Financing Activities | $(20.6) | $(28.1) | - Net cash provided by operating activities significantly increased to **$34.8 million** in Q2 2025 from **$8.3 million** in Q2 2024, but for the six-month period, it shifted to a net use of **$4.1 million** in 2025 from a net provide of **$41.7 million** in 2024[29](index=29&type=chunk) Non-GAAP Reconciliations & Supplemental Data This section provides reconciliations for non-GAAP financial measures including free cash flow, adjusted net income, EBITDA, base sales, and liquidity [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Q2 2025 Free Cash Flow was **$32.3 million**, a substantial improvement from Q2 2024, while the six-month period showed a negative free cash flow of **$20.2 million** Free Cash Flow Reconciliation (Three Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net Cash Provided (Used) by Operating Activities | $34.8 | $8.3 | | Less: Capital expenditures (excluding government-funded) | $(2.5) | $(14.1) | | Free Cash Flow | $32.3 | $(5.8) | Free Cash Flow Reconciliation (Six Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net Cash Provided (Used) by Operating Activities | $(4.1) | $41.7 | | Less: Capital expenditures (excluding government-funded) | $(16.1) | $(31.5) | | Free Cash Flow | $(20.2) | $10.2 | - Capital spending for U.S. government-funded projects (**$15.3 million** in Q2 2025 and **$29.2 million** in 6M 2025) is excluded from Free Cash Flow calculation[31](index=31&type=chunk) [Reconciliation of Adjusted Net Income and Diluted EPS (Quarterly)](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Diluted%20EPS%20(Quarterly)) Q2 2025 adjusted net income was **$8.4 million** (**$0.20** diluted EPS), an increase from prior periods, with key adjustments including loss on debt extinguishment Adjusted Net Income and Diluted EPS (Three Months Ended) | (Dollars in millions) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------- | :------------ | :------------ | :------------- | | Net income (loss) (As reported) | $3.7 | $4.6 | $1.3 | | Adjustments: | | | | | Loss on extinguishment of debt | $3.6 | — | — | | IT transformation costs | $1.0 | $1.2 | $0.9 | | As adjusted (Net income) | $8.4 | $6.7 | $3.2 | | As adjusted (Diluted EPS) | $0.20 | $0.15 | $0.07 | - Adjusted net income for Q2 2025 increased to **$8.4 million** from **$3.2 million** in Q1 2025 and **$6.7 million** in Q2 2024[35](index=35&type=chunk) - Key adjustments in Q2 2025 included a **$3.6 million** loss on extinguishment of debt and **$1.0 million** in IT transformation costs[35](index=35&type=chunk) [Reconciliation of Adjusted Net Income and Diluted EPS (Six Months)](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Diluted%20EPS%20(Six%20Months)) For the six months ended June 30, 2025, adjusted net income was **$11.6 million** (**$0.27** diluted EPS), a decrease from **$32.8 million** in the prior year period Adjusted Net Income and Diluted EPS (Six Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net income (loss) (As reported) | $5.0 | $28.6 | | Adjustments: | | | | Loss on extinguishment of debt | $3.6 | — | | IT transformation costs | $1.9 | $2.5 | | Salaried pension plan surplus asset distribution | $3.6 | — | | As adjusted (Net income) | $11.6 | $32.8 | | As adjusted (Diluted EPS) | $0.27 | $0.71 | - Adjusted net income for the six months ended June 30, 2025, decreased to **$11.6 million** from **$32.8 million** in the prior year period[45](index=45&type=chunk) - Significant adjustments for the 2025 six-month period include a **$3.6 million** loss on extinguishment of debt and a **$3.6 million** salaried pension plan surplus asset distribution[45](index=45&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Q2 2025 Adjusted EBITDA was **$26.5 million** (**8.7%** margin), an increase from prior periods, while the six-month Adjusted EBITDA was **$44.2 million** (**7.6%** margin) EBITDA and Adjusted EBITDA (Three Months Ended) | (Dollars in millions) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------- | :------------ | :------------ | :------------- | | Net income (loss) | $3.7 | $4.6 | $1.3 | | EBITDA | $21.7 | $17.1 | $15.4 | | EBITDA Margin | 7.1% | 5.8% | 5.5% | | Adjusted EBITDA | $26.5 | $19.9 | $17.7 | | Adjusted EBITDA Margin | 8.7% | 6.8% | 6.3% | EBITDA and Adjusted EBITDA (Six Months Ended June 30) | (Dollars in millions) | 2025 | 2024 | | :-------------------- | :------ | :------ | | Net income (loss) | $5.0 | $28.6 | | EBITDA | $37.1 | $57.7 | | EBITDA Margin | 6.3% | 9.4% | | Adjusted EBITDA | $44.2 | $63.3 | | Adjusted EBITDA Margin | 7.6% | 10.3% | - Adjusted EBITDA margin improved sequentially to **8.7%** in Q2 2025 from **6.3%** in Q1 2025[55](index=55&type=chunk) [Reconciliation of Base Sales by End-Market](index=17&type=section&id=Reconciliation%20of%20Base%20Sales%20by%20End-Market) Q2 2025 total net sales were **$304.6 million**, with base sales of **$237.7 million**, showing increases from Q1 2025, while six-month base sales decreased year-over-year Net Sales, Surcharges, and Base Sales by End-Market (Three Months Ended June 30, 2025) | End-Market | Ship Tons (000s) | Net Sales (million) | Surcharges (million) | Base Sales (million) | Net Sales / Ton | Surcharges / Ton | Base Sales / Ton | | :---------------- | :--------------- | :------------- | :-------------- | :-------------- | :-------------- | :--------------- | :--------------- | | Industrial | 66.5 | $104.4 | $28.6 | $75.8 | $1,570 | $430 | $1,140 | | Automotive | 69.6 | $122.8 | $24.8 | $98.0 | $1,764 | $356 | $1,408 | | Aerospace & Defense | 15.4 | $42.1 | $5.7 | $36.4 | $2,734 | $370 | $2,364 | | Energy | 16.2 | $30.8 | $7.8 | $23.0 | $1,901 | $481 | $1,420 | | Other | — | $4.5 | — | $4.5 | — | — | — | | **Total** | **167.7** | **$304.6** | **$66.9** | **$237.7** | **$1,816** | **$399** | **$1,417** | Net Sales, Surcharges, and Base Sales by End-Market (Six Months Ended June 30, 2025) | End-Market | Ship Tons (000s) | Net Sales (million) | Surcharges (million) | Base Sales (million) | Net Sales / Ton | Surcharges / Ton | Base Sales / Ton | | :---------------- | :--------------- | :------------- | :-------------- | :-------------- | :-------------- | :--------------- | :--------------- | | Industrial | 132.8 | $206.1 | $55.2 | $150.9 | $1,552 | $416 | $1,136 | | Automotive | 133.7 | $236.0 | $46.4 | $189.6 | $1,765 | $347 | $1,418 | | Aerospace & Defense | 24.0 | $74.6 | $9.1 | $65.5 | $3,108 | $379 | $2,729 | | Energy | 30.1 | $59.5 | $14.5 | $45.0 | $1,977 | $482 | $1,495 | | Other | — | $8.9 | — | $8.9 | — | — | — | | **Total** | **320.6** | **$585.1** | **$125.2** | **$459.9** | **$1,825** | **$391** | **$1,434** | - Base sales for Q2 2025 increased to **$237.7 million** from **$222.2 million** in Q1 2025, while for the six months ended June 30, 2025, base sales decreased to **$459.9 million** from **$487.3 million** in the prior year[65](index=65&type=chunk)[66](index=66&type=chunk) [Calculation of Total Liquidity](index=20&type=section&id=Calculation%20of%20Total%20Liquidity) As of June 30, 2025, Metallus reported total liquidity of **$437.0 million**, comprising cash and available borrowing capacity, a decrease from December 31, 2024 Total Liquidity Calculation | (Dollars in millions) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $190.8 | $240.7 | | Credit Agreement: | | | | Maximum availability | $400.0 | $400.0 | | Suppressed availability | $(148.5) | $(176.8) | | Availability not borrowed | $246.2 | $217.9 | | Total Liquidity | $437.0 | $458.6 | - Total liquidity decreased by **$21.6 million** from December 31, 2024, to June 30, 2025, primarily due to a reduction in cash and cash equivalents[69](index=69&type=chunk) [Adjusted EBITDA Walks](index=21&type=section&id=Adjusted%20EBITDA%20Walks) Adjusted EBITDA increased from **$19.9 million** in Q2 2024 to **$26.5 million** in Q2 2025, driven by volume, raw material spread, and manufacturing improvements Adjusted EBITDA Walk (Q2 2024 vs. Q2 2025) | (Dollars in millions) | Impact | | :-------------------- | :----- | | Beginning Adjusted EBITDA (2024 2Q) | $19.9 | | Volume | $8.3 | | Price/Mix | $(12.4)| | Raw Material Spread | $5.8 | | Manufacturing | $6.2 | | SG&A | $(2.5) | | Other | $1.2 | | Ending Adjusted EBITDA (2025 2Q) | $26.5 | Adjusted EBITDA Walk (Q1 2025 vs. Q2 2025) | (Dollars in millions) | Impact | | :-------------------- | :----- | | Beginning Adjusted EBITDA (2025 1Q) | $17.7 | | Volume | $4.3 | | Price/Mix | $(0.2) | | Raw Material Spread | $0.9 | | Manufacturing | $3.6 | | SG&A | $0.3 | | Other | $(0.1) | | Ending Adjusted EBITDA (2025 2Q) | $26.5 | - Volume and manufacturing improvements were key positive drivers for Adjusted EBITDA both year-over-year and sequentially[71](index=71&type=chunk)

Company Overview - TimkenSteel was founded in 1917 and became a standalone public company in 2014 [9] - The company produces steel primarily from recycled scrap metal using electric arc furnace (EAF) technology [9] - TimkenSteel's annual melt capacity is approximately 12 million tons, with a shipping capacity of approximately 09 million tons [9] - In 2021, TimkenSteel reported net sales of $13 billion [9] Financial Performance and Targets - TimkenSteel is targeting $80 million of run-rate profitability improvement through optimization [16] - The company generated $341 million of free cash flow [16] - The company's historical average adjusted EBITDA margin is 8%, with a long-term target of over 12% [85] - The company's historical average melt utilization rate is 61%, with a long-term target in the mid-80% range [85] - Capital expenditures are targeted between $30 million and $40 million [85] Environmental Goals - TimkenSteel has established 2030 environmental goals, including a reduction in Scope 1 and Scope 2 GHG emissions [9, 68] - From 2018 to 2021, the company achieved a 31% reduction in fresh water withdrawn [70] - From 2018 to 2021, the company achieved a 29% reduction in waste-to-landfill intensity [71] Q3 2022 Results and Outlook - In Q3 2022, TimkenSteel reported net sales of $3168 million [28] - The company experienced a net loss of $133 million with adjusted EBITDA of $108 million [28] - The company's total liquidity at the end of Q3 2022 was $4872 million [90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 For the transition period from to Commission file number: 1-36313 WASHINGTON, D.C. 20549 330.471.7000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Securities Ex ...

[Metallus First-Quarter 2025 Results](index=1&type=section&id=Metallus%20Announces%20First-Quarter%202025%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Metallus reported Q1 2025 net sales of $280.5 million and net income of $1.3 million, improving sequentially from Q4 2024 but declining from Q1 2024 Q1 2025 Key Financial Metrics Comparison | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Sales | $280.5M | $240.5M | $321.6M | | Net Income (Loss) | $1.3M | ($21.4M) | $24.0M | | Diluted EPS (Loss) | $0.03 | ($0.50) | $0.52 | | Adjusted Net Income (Loss) | $3.2M | ($3.3M) | $26.1M | | Adjusted Diluted EPS (Loss) | $0.07 | ($0.08) | $0.56 | | Adjusted EBITDA | $17.7M | $8.3M | $43.4M | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted increased order backlog, supported steel tariffs, and confirmed strategic investments and share repurchases - The company's order backlog has increased by approximately **50%** compared to the same period last year, driven by new and existing customers[5](index=5&type=chunk) - Management supports the enforcement and expansion of steel tariffs, believing they will help meet growing demand for domestically produced steel[5](index=5&type=chunk) - Capital allocation strategy prioritizes strategic investments for profitable growth, such as expanding capacity for U.S. Army munitions production, alongside the ongoing share repurchase program[6](index=6&type=chunk) [First-Quarter 2025 Financial Summary](index=1&type=section&id=FIRST-QUARTER%202025%20FINANCIAL%20SUMMARY) Q1 2025 net sales increased sequentially, driven by higher shipments and improved melt utilization, reducing manufacturing costs - Net sales increased **17%** sequentially from Q4 2024, primarily due to higher shipments and increased raw material surcharge revenue, but decreased **13%** compared to Q1 2024[7](index=7&type=chunk) - Shipments increased by **17%** sequentially to **152,900 tons**, driven by higher demand from industrial, automotive, and energy markets[15](index=15&type=chunk) - Melt utilization improved to **65%** in Q1 2025 from **56%** in Q4 2024, leading to a **$12.5 million** sequential decrease in manufacturing costs, though still below Q1 2024's **72%** utilization rate[15](index=15&type=chunk) [Cash, Liquidity, and Repurchase Activity](index=2&type=section&id=CASH%2C%20LIQUIDITY%20AND%20REPURCHASE%20ACTIVITY) The company ended Q1 2025 with $180.3 million cash and $432.0 million liquidity, with operating cash outflow driven by a pension contribution Q1 2025 Cash and Liquidity Overview | Metric | Value (in millions) | | :--- | :--- | | Cash and Cash Equivalents (End of Q1) | $180.3 | | Total Liquidity (End of Q1) | $432.0 | | Operating Cash Flow | ($38.9) | | Capital Expenditures | $27.5 | | Share Repurchases | $5.6 | - Received **$11.9 million** from the U.S. Army and **$1.0 million** from JobsOhio during the quarter as part of larger funding agreements for capacity expansion[12](index=12&type=chunk) - The company repurchased approximately **395,000** common shares for **$5.6 million**, with **$97.2 million** remaining under the authorized repurchase program[11](index=11&type=chunk) - The remaining **$5.5 million** of outstanding convertible notes are expected to be settled in cash during the second quarter of 2025[13](index=13&type=chunk) [Business Outlook](index=2&type=section&id=OUTLOOK) Metallus anticipates higher Q2 2025 adjusted EBITDA, driven by increased shipments and improved manufacturing cost absorption - The company expects second-quarter 2025 adjusted EBITDA to be higher than the first quarter of 2025[14](index=14&type=chunk) - Q2 shipments are expected to increase modestly, driven by higher aerospace & defense shipments, with lead times for bar and tube products extending to July[14](index=14&type=chunk) - The average melt utilization rate is expected to increase in Q2, leading to improved manufacturing cost absorption[18](index=18&type=chunk) - Full-year 2025 planned capital expenditures remain at approximately **$125 million**, with about **$90 million** funded by the U.S. government[18](index=18&type=chunk) [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Metallus reported Q1 2025 net sales of $280.5 million and net income of $1.3 million, significantly lower than Q1 2024's $24.0 million Consolidated Statements of Operations (Unaudited) | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $280.5 | $321.6 | | Cost of products sold | $258.6 | $271.0 | | **Gross Profit** | **$21.9** | **$50.6** | | SG&A expenses | $24.3 | $24.1 | | Income Before Income Taxes | $2.9 | $30.0 | | **Net Income** | **$1.3** | **$24.0** | | Basic earnings per share | $0.03 | $0.55 | | Diluted earnings per share | $0.03 | $0.52 | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Metallus reported total assets of $1,101.5 million and cash of $180.3 million, slightly down from year-end 2024 Consolidated Balance Sheets (Unaudited) | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$568.4** | **$587.3** | | Property, plant and equipment, net | $510.7 | $507.3 | | **Total Assets** | **$1,101.5** | **$1,116.7** | | **Total Current Liabilities** | **$280.1** | **$281.5** | | **Total Liabilities** | **$415.4** | **$426.2** | | **Total Shareholders' Equity** | **$686.1** | **$690.5** | | **Total Liabilities and Shareholders' Equity** | **$1,101.5** | **$1,116.7** | [Consolidated Statements of Cash Flows](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The company experienced a net cash outflow of $60.0 million in Q1 2025, primarily from operating activities due to a pension contribution Consolidated Statements of Cash Flows (Unaudited) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided (Used) by Operating Activities | ($38.9) | $33.4 | | Net Cash Provided (Used) by Investing Activities | ($12.9) | ($17.4) | | Net Cash Provided (Used) by Financing Activities | ($8.2) | ($18.7) | | **Increase (Decrease) in Cash** | **($60.0)** | **($2.7)** | | Cash at beginning of period | $241.9 | $281.3 | | **Cash at End of Period** | **$181.9** | **$278.6** | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP measures like Adjusted EBITDA and Free Cash Flow for clearer operational insights [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Reconciliation of Free Cash Flow | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided (Used) by Operating Activities | ($38.9) | $33.4 | | Less: Capital expenditures | ($13.6) | ($17.4) | | **Free Cash Flow** | **($52.5)** | **$16.0** | [Reconciliation of Adjusted Net Income and EPS](index=11&type=section&id=Reconciliation%20of%20adjusted%20net%20income%20%28loss%29) Reconciliation of Adjusted Net Income (Loss) | (in millions, except per share) | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | **As reported Net Income (Loss)** | **$1.3** | **$24.0** | **($21.4)** | | Adjustments (net) | $1.9 | $2.1 | $18.1 | | **As adjusted Net Income (Loss)** | **$3.2** | **$26.1** | **($3.3)** | | **As reported Diluted EPS (Loss)** | **$0.03** | **$0.52** | **($0.50)** | | **As adjusted Diluted EPS (Loss)** | **$0.07** | **$0.56** | **($0.08)** | [Reconciliation of EBITDA and Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Reconciliation of Adjusted EBITDA | (in millions) | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | Net income (loss) | $1.3 | $24.0 | ($21.4) | | **EBITDA** | **$15.4** | **$40.6** | **($12.1)** | | EBITDA Margin | 5.5% | 12.6% | (5.0%) | | Adjustments | $2.3 | $2.8 | $20.4 | | **Adjusted EBITDA** | **$17.7** | **$43.4** | **$8.3** | | Adjusted EBITDA Margin | 6.3% | 13.5% | 3.5% | [Reconciliation of Base Sales by End Market](index=15&type=section&id=Reconciliation%20of%20Base%20Sales%20by%20end%20market) Q1 2025 Sales Breakdown by End Market | (in millions, except tons) | Industrial | Automotive | Aerospace & Defense | Energy | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Ship Tons (thousands) | 66.3 | 64.1 | 8.6 | 13.9 | 152.9 | | Net Sales | $101.7 | $113.2 | $32.5 | $28.7 | $280.5 | | Base Sales | $75.1 | $91.6 | $29.1 | $22.0 | $222.2 | [Calculation of Total Liquidity](index=17&type=section&id=Calculation%20of%20Total%20Liquidity) Calculation of Total Liquidity | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $180.3 | $240.7 | | Availability not borrowed | $251.7 | $217.9 | | **Total Liquidity** | **$432.0** | **$458.6** | [Adjusted EBITDA Walk](index=18&type=section&id=ADJUSTED%20EBITDA%20WALKS) Adjusted EBITDA Walk (in millions) | Driver | Q1 2024 vs. Q1 2025 | Q4 2024 vs. Q1 2025 | | :--- | :--- | :--- | | **Beginning Adjusted EBITDA** | **$43.4** | **$8.3** | | Volume | ($1.4) | $11.3 | | Price/Mix | ($28.6) | ($14.9) | | Raw Material Spread | — | $3.9 | | Manufacturing | $2.8 | $12.5 | | SG&A | $0.4 | ($4.3) | | Other | $1.1 | $0.9 | | **Ending Adjusted EBITDA** | **$17.7** | **$17.7** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 1-36313 METALLUS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R. ...

[Financial Performance Overview](index=1&type=section&id=Metallus%20Announces%20Fourth-Quarter%20and%20Full-Year%202024%20Results) [Fourth-Quarter 2024 Performance](index=1&type=section&id=Fourth-Quarter%202024%20Performance) Metallus reported a net loss of $21.4 million on net sales of $240.5 million in Q4 2024, showing sequential improvement from Q3 2024 despite a significant decline from Q4 2023 Q4 2024 Key Financial Metrics vs. Prior Periods (in millions) | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Net Sales | $240.5M | $227.2M | $328.1M | | Net Income (Loss) | ($21.4M) | ($5.9M) | $1.3M | | Diluted EPS (Loss) | ($0.50) | ($0.13) | $0.03 | | Adjusted Net Income (Loss) | ($3.3M) | ($4.4M) | $16.5M | | Adjusted Diluted EPS (Loss) | ($0.08) | ($0.09) | $0.36 | | Adjusted EBITDA | $8.3M | $6.1M | $35.7M | [Full-Year 2024 Performance](index=1&type=section&id=Full-Year%202024%20Performance) For the full year 2024, the company's net income fell sharply to $1.3 million from $69.4 million in 2023, with net sales decreasing to $1.1 billion due to weak demand and lower melt utilization Full-Year 2024 vs. 2023 Financials (in millions) | Metric | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | | Net Sales | $1.1B | $1.36B | | Net Income | $1.3M | $69.4M | | Diluted EPS | $0.03 | $1.47 | | Adjusted Net Income | $25.1M | $89.8M | | Adjusted Diluted EPS | $0.57 | $1.91 | | Adjusted EBITDA | $77.7M | $169.0M | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Mike Williams acknowledged the disappointing 2024 financial performance but expressed encouragement about stronger customer order patterns in early 2025 and commitment to shareholder value - **2024 financial performance was deemed 'disappointing'** due to weak demand, lower shipments, and reduced melt utilization across most end markets[5](index=5&type=chunk) - The company is encouraged by **stronger customer order patterns in Q1 2025**, with higher average weekly orders compared to the second half of 2024[6](index=6&type=chunk) - The capital allocation strategy focuses on **strategic business investments** for profitable growth and an **ongoing share repurchase program** to deliver shareholder value[6](index=6&type=chunk) [Financial Details and Operations](index=2&type=section&id=Financial%20Details%20and%20Operations) [Fourth-Quarter 2024 Operational Summary](index=2&type=section&id=FOURTH-QUARTER%202024%20FINANCIAL%20SUMMARY) In Q4 2024, net sales rose 6% sequentially to $240.5 million, driven by a 9% increase in ship tons, despite a year-over-year decline and increased manufacturing costs due to lower melt utilization - **Net sales increased 6% sequentially** due to higher shipments and favorable aerospace & defense product mix, but **decreased 27% YoY**[10](index=10&type=chunk) - **Ship tons increased 9% sequentially to 130,200 tons**, but **decreased 17% YoY** due to lower shipments across all end markets[10](index=10&type=chunk) - **Melt utilization declined to 56% from 60%** in the prior quarter, impacted by planned annual shutdown maintenance and efforts to balance inventory with demand[10](index=10&type=chunk) [Full-Year 2024 Operational Summary](index=2&type=section&id=FULL-YEAR%20FINANCIAL%20SUMMARY) For the full year 2024, net sales decreased by 20% to $1.1 billion, and ship tons fell by 19%, primarily due to lower shipments across most end markets, with melt utilization declining to 60% - **Full-year net sales decreased 20% YoY**, driven by a **19% decrease in ship tons (555,500 tons)**[11](index=11&type=chunk) - The aerospace & defense end market was a bright spot, with **net sales increasing 17% to $134.9 million**, representing **12% of total sales in 2024, up from 8% in 2023**[11](index=11&type=chunk) - **Melt utilization for the full year declined to 60% in 2024 from 70% in 2023** as the company balanced production with demand[11](index=11&type=chunk) [Cash, Liquidity, and Shareholder Returns](index=2&type=section&id=CASH,%20LIQUIDITY%20AND%20REPURCHASE%20ACTIVITY) The company maintained a strong financial position, ending 2024 with $240.7 million in cash and $458.6 million in total liquidity, while actively returning capital through share and note repurchases and receiving government funding - Ended 2024 with a cash and cash equivalents balance of **$240.7 million** and total liquidity of **$458.6 million**[10](index=10&type=chunk) - Received **$53.5 million in government funding** during 2024 as part of agreements with the U.S. Army and JobsOhio, with additional funding expected in 2025 and 2026[12](index=12&type=chunk) - In 2024, repurchased **2.0 million common shares for $37.6 million** and retired **convertible notes at a cost of $17.2 million**[13](index=13&type=chunk)[14](index=14&type=chunk) [Business Outlook](index=3&type=section&id=OUTLOOK) [First-Quarter 2025 Outlook](index=3&type=section&id=First-Quarter%202025%20Outlook) Metallus expects Q1 2025 adjusted EBITDA to be higher than Q4 2024, driven by increased shipments and an anticipated average melt utilization rate of approximately 70% - Expects **Q1 2025 adjusted EBITDA to be higher than Q4 2024**[15](index=15&type=chunk) - **Shipments are expected to increase** from Q4 2024, with the **average melt utilization rate projected to be approximately 70%**[15](index=15&type=chunk) - Average base price per ton for customers with annual agreements (covering ~70% of the order book) is expected to **decrease by low to mid-single digits** in 2025 compared to 2024[15](index=15&type=chunk) [Full-Year 2025 Projections](index=4&type=section&id=Full-Year%202025%20Projections) For the full year 2025, Metallus projects approximately $125 million in capital expenditures, with $90 million funded by the U.S. government, alongside required pension contributions and an effective income tax rate 2025 Financial Projections (in millions) | Item | Projected Amount | | :--- | :--- | | Planned Capital Expenditures | ~$125 million | | - *Funded by U.S. Gov't* | *~$90 million* | | Required Pension Contributions | ~$65 million | | Effective Income Tax Rate | ~25% | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company's income statement shows a significant drop in profitability for the full year 2024, with a net income of $1.3 million compared to $69.4 million in 2023, and a Q4 2024 net loss of $21.4 million Income Statement Highlights (in millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $240.5 | $328.1 | $1,084.0 | $1,362.4 | | Gross Profit | $10.9 | $41.4 | $97.7 | $186.5 | | SG&A Expenses | $20.4 | $22.7 | $87.7 | $84.6 | | Net Income (Loss) | $(21.4) | $1.3 | $1.3 | $69.4 | [Consolidated Balance Sheets](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2024, Metallus reported total assets of $1.12 billion, a decrease from $1.18 billion at the end of 2023, primarily due to reduced cash and cash equivalents, leading to a decrease in total shareholders' equity Balance Sheet Summary (in millions) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $240.7 | $280.6 | | Total Current Assets | $587.3 | $656.8 | | Total Assets | $1,116.7 | $1,175.3 | | Total Current Liabilities | $281.5 | $248.4 | | Total Liabilities | $426.2 | $443.7 | | Total Shareholders' Equity | $690.5 | $731.6 | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the full year 2024, net cash provided by operating activities significantly decreased to $40.3 million from $125.3 million in 2023, with net cash used in investing and financing activities resulting in a net decrease in cash of $39.4 million Cash Flow Summary (in millions) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $40.3 | $125.3 | | Net Cash from Investing Activities | $(10.8) | $(49.9) | | Net Cash from Financing Activities | $(68.9) | $(51.9) | | Net Change in Cash | $(39.4) | $23.5 | | Cash at End of Period | $241.9 | $281.3 | [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) The company reported a negative free cash flow of $16.0 million for the full year 2024, a sharp decline from a positive $73.7 million in 2023, calculated by subtracting capital expenditures from operating cash flow Free Cash Flow (in millions) | Period | Net Cash from Operations | Capital Expenditures | Free Cash Flow | | :--- | :--- | :--- | :--- | | Q4 2024 | $13.9 | $(13.0) | $0.9 | | FY 2024 | $40.3 | $(56.3) | $(16.0) | | FY 2023 | $125.3 | $(51.6) | $73.7 | [Reconciliation of Adjusted Net Income and EPS](index=12&type=section&id=Reconciliation%20of%20adjusted%20net%20income%20(loss)) Metallus provides reconciliations from GAAP to adjusted net income and EPS, excluding specific items to show a Q4 2024 adjusted loss of $3.3 million and a full-year 2024 adjusted income of $25.1 million - Q4 2024 adjustments included a **$9.4M loss on debt extinguishment** and an **$8.5M loss from remeasurement of benefit plans**[35](index=35&type=chunk) - Full-year 2024 adjustments totaled **$23.8 million**, primarily from **remeasurement of benefit plans ($10.3M)**, **loss on debt extinguishment ($9.4M)**, and **IT transformation costs ($5.1M)**[42](index=42&type=chunk) [Reconciliation of EBIT and EBITDA](index=16&type=section&id=Reconciliation%20of%20EBIT%20and%20EBITDA) The reconciliation from GAAP Net Income to Adjusted EBITDA shows a Q4 2024 Adjusted EBITDA of $8.3 million and a full-year 2024 Adjusted EBITDA of $77.7 million, down from $169.0 million in 2023 EBITDA Reconciliation Summary (in millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(21.4) | $1.3 | $1.3 | $69.4 | | EBITDA | $(12.1) | $15.7 | $49.7 | $146.2 | | Adjusted EBITDA | $8.3 | $35.7 | $77.7 | $169.0 | | Adjusted EBITDA Margin | 3.5% | 10.9% | 7.2% | 12.4% | [Reconciliation of Base Sales by End Market](index=18&type=section&id=Reconciliation%20of%20Base%20Sales%20by%20end%20market) The company provides a breakdown of sales by end market, showing a 19% year-over-year decrease in total ship tons for 2024, with declines in most markets offset by growth in Aerospace & Defense Full-Year Ship Tons by End Market (in thousands) | End Market | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | Industrial | 220.0 | 264.6 | -16.9% | | Automotive | 250.0 | 306.4 | -18.4% | | Aerospace & Defense | 47.0 | 45.6 | +3.1% | | Energy | 38.5 | 67.2 | -42.7% | | **Total** | **555.5** | **683.8** | **-18.8%** | [Calculation of Total Liquidity](index=21&type=section&id=Calculation%20of%20Total%20Liquidity) Total liquidity, comprising cash and available borrowing capacity, stood at $458.6 million at the end of 2024, a decrease from $539.4 million at the end of 2023 due to lower cash and reduced credit availability Total Liquidity (in millions) | Component | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $240.7 | $280.6 | | Availability not borrowed | $217.9 | $258.8 | | **Total Liquidity** | **$458.6** | **$539.4** | [Adjusted EBITDA Walk](index=22&type=section&id=ADJUSTED%20EBITDA%20WALKS) The Adjusted EBITDA walk illustrates that the decline from $169.0 million in FY 2023 to $77.7 million in FY 2024 was primarily driven by lower volume, higher manufacturing costs, and unfavorable raw material spread Full Year 2023 to 2024 Adjusted EBITDA Change (in millions) | Driver | Impact on EBITDA | | :--- | :--- | | Beginning Adj. EBITDA (FY 2023) | $169.0 | | Volume | $(60.3) | | Price/mix | $18.3 | | Raw material spread | $(15.9) | | Manufacturing | $(31.1) | | SG&A | $(1.0) | | Other | $(1.3) | | **Ending Adj. EBITDA (FY 2024)** | **$77.7** | [Other Information](index=5&type=section&id=Other%20Information) [Webcast Information](index=5&type=section&id=METALLUS%20EARNINGS%20WEBCAST%20INFORMATION) Metallus will host a conference call and live webcast for the financial community on Friday, February 28, 2025, at 9:00 a.m. ET to discuss these results, accessible via the company's investor relations website - A conference call is scheduled for **February 28, 2025, at 9:00 a.m. ET**[17](index=17&type=chunk) [About Metallus Inc.](index=5&type=section&id=ABOUT%20METALLUS%20INC.) Metallus (NYSE: MTUS) is a U.S. manufacturer of high-performance specialty metals, primarily alloy steel bars and seamless mechanical tubing, serving industrial, automotive, aerospace & defense, and energy markets - Metallus is a **U.S. producer of alloy steel bars and seamless mechanical tubing** from recycled scrap metal[18](index=18&type=chunk) - The company serves the **industrial, automotive, aerospace & defense, and energy end markets**[18](index=18&type=chunk) [Forward-Looking Statements and Non-GAAP Measures](index=5&type=section&id=FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements subject to various risks and uncertainties, and clarifies the company's use of non-GAAP financial measures for performance assessment and improved investor comparability - The report includes **non-GAAP financial measures like adjusted EPS, adjusted net income, EBITDA, and free cash flow**, which management believes are useful for investors[19](index=19&type=chunk) - Key risks identified include **fluctuations in customer demand, changes in operating costs, success of capital investments, and global economic conditions**[21](index=21&type=chunk)

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 September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-36313 METALLUS INC. (Exact name of registrant as specified in its charter) Ohio 46-4024951 (State or other jurisdiction of incorporation ...