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Metallus Reports First-Quarter 2025 Results

On May 8, 2025, Metallus Inc. (NYSE: MTUS), a frontrunner in high-quality specialty metals and supply chain solutions, announced its financial results for the first quarter of 2025. The company demonstrated notable growth with net sales amounting to $280.5 million, a significant 17% increase from $240.5 million in Q4 2024. This upward trend showcases the company’s robust market presence and effective strategies in capitalizing on rising demand for specialty metals.

Financial Highlights

In the first quarter, Metallus achieved a net income of $1.3 million, translating to $0.03 per diluted share. When adjusted, the net income was $3.2 million, or $0.07 per diluted share, coupled with an adjusted EBITDA of $17.7 million. These results present a marked improvement compared to the fourth quarter of 2024, which reported a net loss of $21.4 million and an adjusted EBITDA of only $8.3 million.

Moreover, when compared to the same quarter the previous year, where net sales reached $321.6 million and net income was $24.0 million, the current figures illustrate the challenges in maintaining prior performance amid changing market dynamics. The decrease in year-over-year sales is attributed to a less favorable product mix and lower sales prices, emphasizing the need for ongoing strategic adjustments.

Strengthening Business Position

During this quarter, Metallus highlighted an increase in its order backlog by approximately 50%, attributed to an uptick in orders from both new and existing clientele. The CEO, Mike Williams, emphasized the importance of enforcing steel tariffs, which he believes will bolster the company’s ability to respond to the growing demand for U.S.-produced steel. Furthermore, the company’s capital investments amounted to $27.5 million, underpinning its commitment to operational enhancement.

Despite some fluctuations within the defense supply chain stemming from customer manufacturing challenges, Metallus remains focused on supporting the U.S. Army's munitions production initiatives, an area where enhanced capacity and service effectiveness are crucial. Williams assured stakeholders about the company’s capacity to navigate potential macroeconomic uncertainties, aligning operational priorities with the goal of sustaining profitability.

Production and Cost Efficiency

The increased net sales were also supported by a rise in shipments, with 152,900 tons shipped, marking a 17% boost from the previous quarter. This increase reflects heightened industrial, automotive, and energy shipments. Manufacturing costs concurrently decreased by $12.5 million, attributable to better absorption of costs and lower maintenance expenses. This change in operational efficiency was accompanied by improved melt utilization rates, rising to 65% from 56% in the prior quarter.

Cash Flow and Liquidity

As of March 31, 2025, Metallus reported cash and cash equivalents of $180.3 million, with total liquidity reaching $432.0 million. The company executed $5.6 million in share repurchases and received $11.9 million from the U.S. Army related to capacity expansion initiatives. This government support is essential as Metallus aims to grow its production capabilities amid increasing defense sector requirements.

Looking Ahead

Metallus anticipates that adjusted EBITDA for the second quarter of 2025 will surpass that of the first quarter, buoyed by forecasted modest increases in shipments, particularly for aerospace and defense products. Lead times for product deliveries are expected to extend into July, reflecting demand pressures. Furthermore, ongoing operational improvements are set to enhance manufacturing cost absorption.

The company maintains a projected capital expenditure budget of approximately $125 million for the year, emphasizing its commitment to strategic growth and market adaptability. As the firm continues to respond to evolving market conditions, it remains vigilant about potential economic challenges while driving for innovation and operational excellence. These concerted efforts place Metallus in a strong position to achieve sustainable growth and value creation for its stakeholders moving forward.

For additional insights and financial information, Metallus invites stakeholders to tune into its earnings webcast scheduled for May 9, 2025, at 9:00 AM ET.