Financial Data and Key Metrics Changes - In 2025, shipments improved by 14% year-over-year, indicating a commercial recovery after previous market headwinds [4] - Fourth quarter net sales totaled $267.3 million, a sequential decrease of $38.6 million primarily due to seasonality and slower ramp-up post-maintenance shutdown [12] - The fourth quarter GAAP net loss was $14.3 million, translating to a loss of $0.34 per diluted share, while adjusted net loss was $7.7 million or a loss of $0.18 per diluted share [13] - Adjusted EBITDA for the fourth quarter was $2.4 million, below expectations due to lower volumes and compressed raw material spreads [8][13] Business Line Data and Key Metrics Changes - VAR sales reached approximately $28 million, nearly doubling from 2024, driven by increased demand in aerospace and defense [4] - The company is increasing hourly staffing levels in areas with accelerated demand, particularly in seamless mechanical tube production [6][9] Market Data and Key Metrics Changes - The order book has increased by more than 50% year-over-year, reflecting growing demand for domestic steel [9][19] - Industrial markets remain soft, but the global trade environment is creating new opportunities as customers reevaluate supply chains [10] - Aerospace and defense outlook is robust, with strong growth expected through 2026, driven by existing program expansions and new platforms [11] Company Strategy and Development Direction - The company is focused on safety, customer service, and product development in aerospace and defense, alongside ongoing government-funded capital investments [11] - A new four-year labor agreement was reached, emphasizing safety, innovation, and long-term competitiveness, with annual wage increases and competitive benefits [6][21] - The company is investing in operational capabilities through a standardized efficiency initiative aimed at enhancing throughput and improving steel output quality [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stronger operational foundation for 2026, despite fourth quarter performance being below expectations [8] - The company anticipates a slight usage of free cash flow in Q1 2026, with expectations for positive free cash flow for the remainder of the year [18] - Demand for solutions is expected to remain strong, with a typical seasonality reflected in first quarter shipments projected to increase by approximately 10% compared to Q4 [18][22] Other Important Information - The company generated $16 million of operating cash flow in 2025, with operational cash generation exceeding $80 million for the second consecutive year [14] - Capital expenditures for 2026 are expected to be approximately $70 million, including government-related expenditures [15] - The company repurchased approximately 71,000 shares of common stock for $1.2 million in Q4, reducing diluted shares outstanding by 25% since Q4 2021 [17] Q&A Session Summary Question: Labor negotiations costs in Q4 and Q1 2026 - Management indicated no additional costs incurred from labor negotiations in Q4, with a $2 million payment due in Q1 [25][26] Question: Expectations for Melt Utilization improvement - Management expects improvements in Melt Utilization to be volume dependent and influenced by a stronger order book entering 2026 [32] Question: Demand expectations for A&D in 2026 - Management believes A&D sales will meet the previously expected run rate of over $250 million, contingent on new capacity ramping up [48] Question: Status of key capital investments - The bloom reheat furnace is expected to be operational in the next month, with both the bloom and roller hearth furnaces ramping up by late Q2 or early Q3 [50][51] Question: Share count and depreciation and amortization - Management noted a slight increase in diluted shares due to net loss, with depreciation and amortization expected to remain flat due to consistent capital spend [52][54] Question: Customer growth in VAR and lead times - Management highlighted new customer acquisitions in VAR, with expectations to improve lead times as new assets ramp up [60][64]

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]

Core Viewpoint - Metallus has successfully negotiated a new four-year contract with its employees, reflecting a commitment to safety, innovation, and long-term competitiveness [2]. Group 1: Contract Details - The new contract is effective from February 5, 2026, to September 30, 2029, and includes annual increases to base wages for employees [2]. - The contract provides competitive healthcare and retirement benefits, emphasizing employee wellbeing and safe operations [2]. Group 2: Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, serving industries such as industrial, automotive, aerospace & defense, and energy [3]. - The company has been in the steel manufacturing business for over 100 years and reported sales of $1.1 billion in 2024 [3]. - Metallus employs approximately 1,850 people and is a leading U.S. producer of alloy steel bars and seamless mechanical tubing [3].

Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on recycled scrap metal [3] - The company has been in the business of producing high-quality steel for over 100 years and serves various demanding applications in industrial, automotive, aerospace & defense, and energy end-markets [3] - Metallus employs approximately 1,850 people and reported sales of $1.1 billion in 2024 [3] Upcoming Financial Results - Metallus will release its fourth-quarter and full-year 2025 results on February 19, 2026, after the market closes on the New York Stock Exchange [1] - A conference call with the financial community is scheduled for February 20, 2026, at 9:00 a.m. ET, which will be accessible via live Internet broadcast [2] - A replay of the conference call will also be available on the company's investor website [2]

Core Points - Metallus has reached a new tentative agreement for a four-year contract with the United Steelworkers Local 1123 after previous agreements were rejected [1][2] - The new contract aims to balance employee needs and company priorities, ensuring job stability and supporting future success [2] - The current labor contract has been extended for an additional 14 days until February 12, 2026, allowing time for the union to communicate with its members [2] Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, manufactured components, and supply chain solutions, primarily serving industrial, automotive, aerospace & defense, and energy markets [4] - The company employs approximately 1,850 people and reported sales of $1.1 billion in 2024 [4] - Metallus has over 100 years of experience in producing high-quality steel, including alloy steel bars and seamless mechanical tubing [4] Labor Relations - The contract covers around 1,200 bargaining employees at Metallus' Canton, Ohio operations [3] - The CEO of Metallus emphasized the importance of constructive cooperation among all parties to reach a beneficial solution for employees and the company [2]

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]

Core Points - Metallus has reached a tentative agreement with the United Steelworkers Local 1123 for a new four-year contract [1][2] - The agreement aims to ensure competitive wages and benefits for approximately 1,200 bargaining employees at the Canton, Ohio operations [2] Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals, manufacturing components, and supply chain solutions [1][3] - The company has been in the business of producing high-quality steel for over 100 years and employs around 1,850 people [3] - In 2024, Metallus reported sales of $1.1 billion, indicating a strong market presence [3]

Core Points - Metallus (NYSE: MTUS) has agreed to extend its contract with the United Steelworkers (USW) Local 1123 until October 15, 2025, allowing for continued negotiations [1][2] - The current agreement affects approximately 1,200 bargaining employees at Metallus' Canton, Ohio operations [2] - Metallus reported sales of $1.1 billion in 2024 and has been in the business of producing high-quality steel for over 100 years [3] Company Overview - Metallus specializes in high-performance specialty metals, manufactured components, and supply chain solutions, primarily serving industrial, automotive, aerospace & defense, and energy markets [3] - The company employs around 1,850 people and is recognized as a premier U.S. producer of alloy steel bars and seamless mechanical tubing [3]

Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on serving industrial, automotive, aerospace & defense, and energy end-markets [5] - The company has been in the business of producing high-quality steel for over 100 years and employs approximately 1,850 people [5] - Metallus reported sales of $1.1 billion in 2024 [5] Awards and Recognition - Metallus has been named a 2025 NorthCoast 99 award winner by ERC, recognizing it as one of the top workplaces in Northeast Ohio for attracting and retaining top talent [1][3] - The NorthCoast 99 award program, launched 27 years ago, aims to make Northeast Ohio a prime destination for companies and high-performing individuals [2] - The award reflects Metallus' commitment to a culture of care, collaboration, communication, and growth, which is essential for attracting and retaining talent [3] Industry Insights - The NorthCoast 99 winners undergo a rigorous application process that evaluates their strategies in employee engagement, talent development, well-being, and total rewards [2] - The 2025 NorthCoast 99 awards program is supported by various sponsors, indicating a strong community and industry backing for recognizing workplace excellence [4]

Core Viewpoint - Metallus, a leader in specialty metals and supply chain solutions, released its second-quarter 2025 results, indicating ongoing performance in high-demand markets [1]. Company Overview - Metallus (NYSE: MTUS) specializes in high-performance specialty metals manufactured from recycled scrap metal, serving industrial, automotive, aerospace & defense, and energy sectors [3]. - The company has over 100 years of experience in producing high-quality steel and employs approximately 1,850 people [3]. - In 2024, Metallus reported sales of $1.1 billion, highlighting its significant market presence [3]. Conference Call Information - The company scheduled a live conference call for August 8, 2025, at 9:00 a.m. ET, which will be accessible via the internet [2]. - A replay of the conference call will also be available for interested parties [2].