Core Viewpoint - Metallus reported a net loss of $21.4 million for Q4 2024, with net sales of $240.5 million, reflecting a challenging market environment and lower demand across most end markets [1][4][12]. Financial Performance - Q4 2024 net sales were $240.5 million, a 6% increase from $227.2 million in Q3 2024, but a 27% decrease from $328.1 million in Q4 2023 [1][12]. - The net loss for Q4 2024 was $21.4 million, or $0.50 per diluted share, compared to a net loss of $5.9 million, or $0.13 per diluted share in Q3 2024, and a net income of $1.3 million, or $0.03 per diluted share in Q4 2023 [1][2][3]. - Adjusted EBITDA for Q4 2024 was $8.3 million, compared to $6.1 million in Q3 2024 and $35.7 million in Q4 2023 [1][2][3]. Yearly Overview - For the full year 2024, net income was $1.3 million, a significant decline from $69.4 million in 2023, with adjusted net income of $25.1 million compared to $89.8 million in 2023 [7][11]. - Total net sales for 2024 were $1.1 billion, down 20% from $1.362 billion in 2023, primarily due to lower shipments and average raw material surcharge revenue [7][12]. Operational Insights - Ship tons in Q4 2024 were 130,200, a 9% increase from Q3 2024 but a 17% decrease from Q4 2023, indicating a mixed performance across different end markets [12]. - Manufacturing costs increased by $10.3 million sequentially in Q4 2024 due to lower cost absorption and inventory management challenges [12]. Cash Flow and Liquidity - As of December 31, 2024, cash and cash equivalents were $240.7 million, with total liquidity of $458.6 million [8][11]. - Operating cash flow for Q4 2024 was $13.9 million, with a total of $40.3 million for the full year [8][11]. Strategic Initiatives - The company received $7.0 million from the U.S. Army as part of a $99.75 million funding agreement for capacity expansion, contributing to a total of $53.5 million in government funding for 2024 [9][11]. - Metallus repurchased $7.8 million of convertible notes and approximately 0.2 million common shares for $3.5 million in Q4 2024, with a total of $37.6 million spent on share repurchases for the year [10][11]. Future Outlook - The company anticipates improved profitability in Q1 2025, driven by stronger customer order patterns and higher average weekly orders compared to the second half of 2024 [5][18]. - Planned capital expenditures for 2025 are approximately $125 million, including $90 million funded by the U.S. government [18].
Metallus Announces Fourth-Quarter and Full-Year 2024 Results