Metallus Announces Fourth-Quarter and Full-Year 2025 Results

Core Insights - Metallus reported a net sales increase of 7% year-over-year for 2025, totaling $1.2 billion, driven by improved market demand and higher shipments across key end markets [1][2] - The company experienced a net loss of $1.2 million for the full year 2025, compared to a net income of $1.3 million in 2024, with adjusted net income of $15.3 million for 2025 [1][2] - The order book increased by over 50% year-over-year, indicating a stronger start to 2026 [1] Financial Performance - Fourth-quarter 2025 net sales were $267.3 million, a decrease of 13% from the third quarter, primarily due to lower shipments and seasonal factors [1][4] - Adjusted EBITDA for the fourth quarter was $2.4 million, down from $29.0 million in the third quarter [1] - Full-year 2025 adjusted EBITDA was $75.6 million, slightly lower than $77.7 million in 2024 [1][2] Operational Highlights - Manufacturing costs increased due to planned maintenance and lower production volume, with melt utilization declining to 66% in Q4 2025 from 72% in Q3 2025 [1][4] - Ship tons for 2025 totaled 631,700, a 14% increase from 2024, with significant growth in the aerospace and defense sectors [1][2] - The company is implementing operational optimization initiatives and increasing staffing levels to meet growing demand [1] Cash and Liquidity - As of December 31, 2025, total liquidity was $389.2 million, with cash and cash equivalents at $156.7 million [1][2] - The company invested $109.0 million in capital expenditures in 2025, including $81.3 million for government-funded projects [1][2] - Metallus repurchased 0.9 million common shares for $13.1 million during 2025, representing 3.8% of outstanding shares [2] Outlook - The company anticipates first-quarter adjusted EBITDA to be higher than in the fourth quarter of 2025, supported by a strong order book [2] - Price increases for certain products are expected to be implemented in 2026, with average base prices projected to rise slightly [2] - A new four-year labor agreement with the United Steelworkers was ratified on February 5, 2026, which includes a one-time payment of approximately $2.0 million [2]