#USA #Canton #Metallus #Specialty Metals #NYSE MTUS

Metallus Reports Strong Earnings in Q2 2025

Metallus (NYSE: MTUS), an industry leader in specialty metals and supply chain solutions, has announced its financial results for the second quarter of 2025, showcasing impressive growth and resilience despite economic challenges. The company recorded net sales of $304.6 million, representing a 9% increase from the previous quarter's $280.5 million. Additionally, net income rose significantly to $3.7 million, or $0.09 per diluted share, compared to $1.3 million in Q1 2025.

Financial Highlights

The second quarter not only marked an increase in sales but also showed improvement in adjusted earnings, which reached $8.4 million on an adjusted basis, or $0.20 per diluted share. This compares favorably to $3.2 million in adjusted income from the first quarter of the same year. The adjusted EBITDA for Q2 stood at $26.5 million, reflecting a substantial increase from $17.7 million in Q1 2025.

In the same quarter last year, Metallus reported net sales of $294.7 million and net income of $4.6 million. The growth in Q2 2025 is indicative of the ongoing recovery in key markets and the company's effective strategic initiatives.

Operating Performance

During the second quarter, the company shipped 167,700 tons of products, which is an increase of 10% from the previous quarter, demonstrating strong demand in the aerospace, defense, automotive, and energy sectors. Melt utilization reached 71%, a notable improvement from 65% in Q1 and 53% in Q2 2024, highlighting the effectiveness of operational enhancements implemented across manufacturing facilities.

CEO Mike Williams expressed confidence in Metallus's ability to navigate market challenges while maintaining focus on safety and operational excellence. He stated, "We delivered solid second-quarter results with significant improvement in profitability and operating cash flow, supported by improving end markets and strong execution by our teams."

Cash Flow and Liquidity

In terms of cash flow, Metallus reported an operating cash flow of $34.8 million for the second quarter, primarily driven by profitability and an income tax refund. The company ended the quarter with $190.8 million in cash and cash equivalents, with total liquidity amounting to $437.0 million as of June 30, 2025. This liquidity level positions the company to continue its investments and repurchase activities efficiently.

In the second quarter, Metallus invested $17.8 million in capital expenditures, which included $15.3 million on projects funded by the U.S. government as part of its initiative to enhance munitions production.

Future Outlook

Looking forward, Metallus anticipates stable shipments in the third quarter, although it expects adjusted EBITDA to be modestly lower than in the second quarter due to ongoing labor negotiations and maintenance costs. The company plans to conduct labor contract negotiations in the coming weeks, with potential short-term cost implications; however, these are seen as crucial for strengthening operations and ensuring long-term sustainability.

Capital expenditures are projected to reach approximately $125 million for the full year, aligning with previous guidance and including significant government-funded projects. Williams concluded, "We remain confident in our strategic direction and our ability to deliver sustained profitability and cash flow across all market environments."

Conclusion

In conclusion, Metallus's strong performance in the second quarter of 2025 reflects its competitive positioning in the specialty metals industry and its commitment to operational excellence. The company's continued advancements in capacity and capabilities align with its strategic goals and the demands of its diverse customer base. As it navigates the complexities of the market, Metallus remains focused on delivering value to its shareholders while investing in its workforce and operational infrastructure.