Metallus(MTUS) - 2025 Q1 - Quarterly Results

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]