Metallus Announces Third-Quarter 2025 Results

Core Insights - Metallus reported third-quarter 2025 net sales of $305.9 million, a 35% increase from $227.2 million in the same quarter last year, and net income of $8.1 million, compared to a net loss of $5.9 million in Q3 2024 [1][3][12] - The company experienced sequential sales growth for the fourth consecutive quarter, driven by strong demand in aerospace and defense markets, despite lower shipments in energy and industrial sectors [12][20] Financial Performance - Third-quarter 2025 adjusted net income was $12.0 million, or $0.28 per diluted share, with adjusted EBITDA of $29.0 million [1][12] - Operating cash flow for the third quarter was $22.0 million, with cash and cash equivalents totaling $191.5 million as of September 30, 2025 [6][11] - Capital expenditures in Q3 amounted to $28.4 million, including $22.0 million for U.S. government-funded projects [6][11] Operational Highlights - The company received $10.0 million from the U.S. Army as part of a $99.75 million capacity expansion funding agreement, with total government funding received reaching $81.5 million [8][20] - Metallus is on track with the installation of new assets to enhance operational capabilities and has secured new defense programs for 2026 [4][20] Market Outlook - The company anticipates fourth-quarter adjusted EBITDA to be lower than in Q3 due to normal seasonality and potential global supply chain challenges [9][13] - Shipments are expected to decrease in Q4, with lead times for bar products extending to January and tube products to February [13] Shareholder Activity - Metallus repurchased approximately 178,000 common shares for $3.0 million during Q3, with $90.9 million remaining under its share repurchase program [7][11]