Metallus(US:MTUS)2025-05-08 20:15Financial 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].