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Metallus Reports Fourth-Quarter and Full-Year 2024 Financial Highlights

Metallus Inc. (NYSE MTUS), a prominent player in the specialty metals industry, released its financial results for the fourth quarter and the complete fiscal year of 2024 on February 27, 2025. The results showcased both achievements and challenges faced amid fluctuating market conditions.

Financial Overview

For the fourth quarter of 2024, Metallus reported net sales of $240.5 million, an increase of 6% compared to $227.2 million in the preceding quarter. However, this represents a 27% decline compared to the same quarter in 2023, which generated $328.1 million. The company's net loss for the fourth quarter reached $21.4 million, equating to a loss of $0.50 per diluted share. When adjusted, this loss amounted to $3.3 million or $0.08 per diluted share.

The full-year financial results reflected a net income of $1.3 million, or $0.03 per diluted share, a significant drop from $69.4 million or $1.47 per diluted share in 2023. The overall net sales for the year were reported at $1.1 billion, marking a 20% decrease compared to the previous year's $1.362 billion.

Key Drivers of Financial Performance

The decline in sales has been attributed to decreased shipments across the majority of the company's end markets, leading to lower melt utilization rates. Despite the challenges, increased shipments in the aerospace and defense, as well as automotive sectors, partially offset the downturn in other industrial areas. An improved product mix in the aerospace segment was credited for fueling the modest rise in quarterly sales.

Cost Management and Capital Investment

Total manufacturing costs for the quarter increased due to lower cost absorption and timing issues related to inventory. Melt utilization decreased to 56% from 60% in the third quarter, affected by planned operations maintenance and additional downtime aimed at aligning inventory with market demand. Management remains committed to investing in asset and workforce development, despite these challenges. In 2024, Metallus allocated $64.3 million towards capital expenditures and $54.8 million for repurchasing common shares and convertible notes as part of its ongoing capital allocation strategy.

Outlook for 2025

Looking forward into 2025, President and CEO Mike Williams expressed optimism, citing an uptick in customer order patterns and a more favorable market outlook. The company anticipates that better market conditions will lead to improved profitability, which will leverage their investments made in prior years.

For the first quarter of 2025, Metallus expects shipments to rise as the backlog of orders strengthens. Negotiations on annual price agreements, which account for a major segment of sales, are nearing completion, though base prices per ton are projected to decline slightly compared to 2024.

The company plans to maintain a robust focus on safety and exceptional customer service as it strives to navigate the evolving landscape of the specialty metals market. Furthermore, with expectations of a $125 million investment in capital projects throughout 2025, including significant contributions from U.S. government funding, Metallus is poised for a strategic resurgence.

Conclusion

Metallus Inc. is currently navigating through challenging financial waters but continues to position itself strategically for recovery and growth moving forward. Continuous investments in both operations and workforce development, alongside improving market conditions, could pave the way for a more prosperous financial outlook as we progress through 2025.