• Internet gross sales of $280.5 million, an building up of 17 % in comparison with the fourth quarter of 2024
• Internet source of revenue of $1.3 million and altered EBITDA⁽¹⁾ of $17.7 million
• Invested $27.5 million in capital expenditures and deployed $5.6 million to repurchase habitual stocks
• Money and money equivalents stability used to be $180.3 million with overall liquidity⁽²⁾ of $432.0 million as of March 31, 2025

CANTON, Ohio, Might 8, 2025 /PRNewswire/ — Metallus (NYSE: MTUS), a pacesetter in high quality forte metals, manufactured elements and provide chain answers, lately reported first-quarter 2025 web gross sales of $280.5 million and web source of revenue of $1.3 million, or $0.03 in step with diluted percentage. On an adjusted foundation⁽¹⁾, the first-quarter 2025 web source of revenue used to be $3.2 million, or $0.07 in step with diluted percentage, and altered EBITDA used to be $17.7 million.

This compares with the corporate’s sequential fourth-quarter 2024 web gross sales of $240.5 million and web lack of $21.4 million, or a lack of $0.50 in step with diluted percentage. On an adjusted foundation⁽¹⁾, the fourth-quarter 2024 web loss used to be $3.3 million, or a lack of $0.08 in step with diluted percentage, and altered EBITDA used to be $8.3 million.

In the similar quarter utmost 12 months, web gross sales had been $321.6 million and web source of revenue used to be $24.0 million, or $0.52 in step with diluted percentage. On an adjusted foundation⁽¹⁾, the first-quarter 2024 web source of revenue used to be $26.1 million, or $0.56 in step with diluted percentage, and altered EBITDA used to be $43.4 million.

“Our solid order book, strengthening spot pricing environment, and recent market share gains demonstrate the trust our customers place in us and the resilience of our business strategy. We support the enforcement and expansion of steel tariffs and believe they will help Metallus meet the growing demand for U.S.-produced steel. As domestic steel consumption increases, we are experiencing an increase in our order bookings from new and existing customers. Consequently, our order backlog has increased approximately 50 percent from the same period a year ago. At the same time, we remain mindful of the potential challenges posed by the current macroeconomic landscape. We are confident that we will be able to navigate this uncertainty and continue delivering value to our stakeholders,” mentioned Mike Williams, president and prominent govt officer.

“While we have seen some volatility in the defense supply chain during the first quarter driven by customer manufacturing start-up challenges, we remain on track with our investments to expand capacity in support of the U.S. Army’s mission to ramp up munitions production. Our capital allocation strategy remains unchanged, prioritizing strategic investments that drive profitable growth alongside our ongoing share repurchase program. We will continue focusing on safety, outstanding customer service, and our strategic priorities as we seek to deliver sustainable profitability and cash flow in all market conditions,” mentioned Williams.

FIRST-QUARTER 2025 FINANCIAL SUMMARY

• Internet gross sales of $280.5 million larger 17 % in comparison with $240.5 million within the fourth quarter 2024. The rise in web gross sales used to be basically pushed by way of upper shipments and an building up in uncooked subject material surcharge earnings in step with ton because of upper scrap and alloy costs. When put next with the 1st quarter of 2024, web gross sales reduced by way of 13 % on unfavourable product combine, decrease reasonable bottom gross sales⁽¹⁾ costs and decrease uncooked subject material surcharge earnings in step with ton.
• Send lots of 152,900 larger 22,700 lots sequentially, or 17 %, pushed by way of upper business, car and effort shipments, partly offset by way of decrease aerospace & protection shipments. When put next with the prior-year first quarter, send lots reduced 1 % on account of decrease shipments in aerospace & protection and car, partly offset by way of upper business and effort shipments.
• Production prices reduced by way of $12.5 million on a sequential foundation on account of larger value absorption on upper manufacturing quantity and decrease deliberate annual shutdown upkeep prices. Soften usage stepped forward to 65 % within the first quarter 2025 from 56 % within the fourth quarter 2024. When put next with the prior-year first quarter, production prices reduced by way of $2.8 million past soften usage used to be 72 % in utmost 12 months’s first quarter.

CASH, LIQUIDITY AND REPURCHASE ACTIVITY

As of March 31, 2025, the corporate’s money and money equivalents stability used to be $180.3 million. Within the first quarter, running money wave used to be an outflow of $38.9 million, basically pushed by way of required pension contributions. Capital expenditures totaled $27.5 million within the first quarter together with $13.9 million for tasks funded by way of the U.S. govt. Overall liquidity⁽²⁾ used to be $432.0 million as of March 31, 2025.

Required pension contributions totaled $52.6 million within the first quarter, maximum of which linked to the bargaining unit 401-k plan. Moreover, all over the 1st quarter, the corporate repurchased roughly 395,000 habitual stocks within the seen marketplace at an combination value of $5.6 million. As of March 31, 2025, the corporate had $97.2 million difference beneath its licensed percentage repurchase program.

Throughout the 1st quarter, the corporate won $11.9 million from the U.S. Military as a part of the prior to now introduced $99.75 million capability growth investment promise in help of the U.S. Military’s project of ramping up munitions manufacturing. The corporate additionally won $1.0 million all over the 1st quarter from JobsOhio as a part of the prior to now introduced $3.5 million serve. To future, the corporate has won $66.4 million of presidency investment and expects spare investment to be equipped beneath the prior to now introduced commitments all through 2025 and into early 2026 as mutually yes upon milestones are accomplished.

Throughout the 1st quarter of 2025, the corporate won a realize of conversion from the holder of the difference $5.5 million of exceptional convertible notes. The corporate expects to govern those convertible notes in money all over the second one quarter of 2025. As of March 31, 2025, the honest worth of the exceptional convertible notes used to be $9.7 million.

OUTLOOK

Given the weather defined within the outlook beneath, the corporate expects second-quarter of 2025 adjusted EBITDA to be upper than the 1st quarter of 2025.

Business:

• 2nd-quarter shipments are anticipated to modestly building up from the 1st quarter pushed by way of upper aerospace & protection shipments.
• Supremacy instances for each bar and tube merchandise recently lengthen to July.
• The corporate just lately carried out spot worth will increase on particular bar trait (SBQ) and seamless mechanical tubing (SMT) merchandise no longer coated by way of an annual pricing promise.

Operations:

• The corporate expects the common soften usage charge to extend in the second one quarter, pushed by way of stepped forward operational functionality and supported by way of an expanding layout retain.
• Production value absorption is anticipated to give a boost to in the second one quarter on a deliberate building up in soften usage.

Alternative issues:

• Deliberate capital expenditures are roughly $125 million for the whole 12 months of 2025, in line with earlier steering and inclusive of roughly $90 million of capital expenditures funded by way of the U.S. govt.
• Required pension contributions had been roughly $6 million in April with an estimated spare $10 million of required pension contributions in the second one part of 2025.
• As prior to now famous, the corporate plans to govern the exceptional convertible notes in money all over the second one quarter of 2025.

METALLUS EARNINGS WEBCAST INFORMATION
Metallus will lend reside Web listening get right of entry to to its convention name with the monetary society scheduled for Friday, Might 9, 2025 at 9:00 a.m. ET. The reside convention name will likely be broadcast at buyers.metallus.com. A replay of the convention name may also be to be had at buyers.metallus.com.

ABOUT METALLUS INC.
Metallus (NYSE: MTUS) manufactures high-performance forte metals from recycled scrap steel in Canton, OH, serving challenging packages in business, car, aerospace & protection and effort finish markets. The corporate is a premier U.S. manufacturer of alloy metal bars (as much as 16 inches in diameter), seamless mechanical tubing and manufactured elements. Within the industry of creating high quality metal for greater than 100 years, Metallus’ confirmed experience contributes to the functionality of our consumers’ merchandise. The corporate employs roughly 1,880 public and had gross sales of $1.1 billion in 2024. For more info, please consult with us at www.metallus.com.

NON-GAAP FINANCIAL MEASURES
Metallus studies its monetary leads to accordance with accounting ideas most often permitted in the USA (“GAAP”) and corresponding metrics as non-GAAP monetary measures. This profits drop contains references to refer to non-GAAP monetary measures: adjusted profits (loss) in step with percentage, adjusted web source of revenue (loss), EBITDA, adjusted EBITDA, isolated money wave, bottom gross sales, and alternative adjusted pieces. Those are impressive monetary measures old within the control of the industry, together with choices regarding the allocation of sources and overview of functionality. Control believes that reporting those non-GAAP monetary measures comes in handy to buyers as those measures are consultant of the corporate’s functionality and lend stepped forward comparison of effects. See the hooked up schedules for definitions of the non-GAAP monetary measures referred to above and corresponding reconciliations of those non-GAAP monetary measures to essentially the most related GAAP monetary measures. Non-GAAP monetary measures must be seen as additions to, and no longer as possible choices for, Metallus’ effects ready in response to GAAP. As well as, the non-GAAP measures Metallus makes use of might range from non-GAAP measures old by way of alternative corporations, and alternative corporations would possibly not outline the non-GAAP measures Metallus makes use of in the similar approach.

FORWARD-LOOKING STATEMENTS
This information drop contains “forward-looking” statements inside the that means of the federal securities rules. You’ll most often determine the corporate’s forward-looking statements by way of phrases corresponding to “will,” “anticipate,” “aspire,” “believe,” “could,” “estimate,” “expect,” “forecast,” “outlook,” “intend,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “target,” “should,” “would,” “strategy,” or “strategic direction” or alternative indistinguishable phrases, words or expressions that put across the lack of certainty of week occasions or results. The corporate cautions readers that unedited effects might range materially from the ones expressed or implied in forward-looking statements made by way of or in the name of the corporate because of plenty of elements, corresponding to: (1) the consequences of fluctuations in buyer call for on gross sales, product combine and costs within the industries wherein the corporate operates, together with the facility of the corporate to answer fast adjustments in buyer call for together with however no longer restricted to adjustments in home and international political and financial statuses because of, amongst alternative elements, U.S. and overseas business insurance policies and the have an effect on on financial statuses, adjustments in buyer running schedules because of provide chain constraints or unplanned paintings stoppages, the facility of consumers to procure financing to buy the corporate’s merchandise or apparatus that accommodates its merchandise, the consequences of purchaser bankruptcies or liquidations, the have an effect on of adjustments in business industry cycles, and whether or not statuses of honest business exist in U.S. markets; (2) adjustments in running prices, together with the impact of adjustments within the corporate’s production processes, adjustments in prices related to various ranges of operations and production capability, availability of uncooked fabrics and effort, the corporate’s skill to mitigate the have an effect on of fluctuations in uncooked fabrics and effort prices and the effectiveness of its surcharge mechanism, adjustments within the anticipated prices related to product guaranty claims, adjustments because of stock control, value aid tasks and other ranges of purchaser calls for, the consequences of unplanned paintings stoppages, availability of professional hard work and adjustments in the price of hard work and advantages; (3) the luck of the corporate’s running plans, introduced methods, tasks and capital investments, the consistency to satisfy call for ranges following unplanned downtime, and the corporate’s skill to uphold suitable members of the family with the union that represents its mates in positive places to bring to steer clear of disruptions of industrial; (4) whether or not the corporate is in a position to effectively put into effect movements designed to give a boost to profitability on expected phrases and timetables and whether or not the corporate is in a position to absolutely understand the predicted advantages of such movements; (5) the corporate’s pension tasks and funding functionality; (6) with admire to the corporate’s skill to reach its sustainability objectives, together with its 2030 environmental objectives, the facility to satisfy such objectives inside the anticipated time-frame, adjustments in rules, laws, prevalent requirements or society coverage, the alignment of the medical society on dimension and reporting approaches, the complexity of commodity provide chains and the evolution of and adoption of pristine generation, together with traceability practices, gear and processes; (7) availability of attribute insurance policy at commercially cheap charges or inadequate insurance policy to safe claims or damages; (8) the supply of financing and rates of interest, which impact the corporate’s value of budget and/or skill to lift capital; (9) the affects from any repurchases of our habitual stocks, together with the timing and quantity of any repurchases; (10) aggressive elements, together with adjustments in marketplace penetration, expanding price war by way of current or pristine overseas and home competition, the creation of pristine merchandise by way of current and pristine competition, and pristine generation that can have an effect on the best way the corporate’s merchandise are bought or allotted; (11) deterioration in international financial statuses, or in financial statuses in any of the geographic areas wherein the corporate conducts industry, together with spare opposed results from international financial slowdown, terrorism or hostilities, together with political dangers related to the prospective instability of governments and felony techniques in nations wherein the corporate or its consumers behavior industry, and adjustments in foreign money valuations; (12) the have an effect on of worldwide conflicts at the financial system, sourcing of uncooked fabrics, and commodity costs; (13) climate-related dangers, together with environmental and terrible climate brought about by way of weather adjustments, and legislative and regulatory tasks addressing international weather alternate or alternative environmental considerations; (14) unanticipated litigation, claims or tests, together with claims or issues linked to highbrow attribute, product legal responsibility or guaranty, function issues, regulatory compliance and environmental problems and taxes, amongst alternative issues; (15) cyber-related dangers, together with data generation machine screw ups, interruptions and safety breaches; (16) the prospective have an effect on of pandemics, epidemics, pervasive problem or alternative fitness problems; and (17) with admire to the apparatus investments to help the U.S. Military’s project of ramping up munitions manufacturing within the coming years, whether or not the investment awarded to help those investments is won at the expected timetable, whether or not the corporate is in a position to effectively entire the set up and commissioning of the pristine belongings at the centered finances and timetable, and whether or not the predicted building up in throughput is accomplished. Additional, this information drop represents our modern coverage and intent and isn’t supposed to build felony rights or tasks. Positive requirements of dimension and function contained on this information drop are creating and in response to guesses, and negative pledge will also be for the reason that any plan, goal, initiative, projection, objective, project, loyalty, expectation or probability poised forth on this information drop can or will likely be accomplished. Inclusion of knowledge on this information drop isn’t a sign that the topic or data is subject material to our industry or running effects. 

Alternative dangers when it comes to the corporate’s industry, the industries wherein the corporate operates, or the corporate’s habitual stocks could also be described from month to month within the corporate’s filings with the SEC. All of those possibility elements are tricky to are expecting, are matter to subject material uncertainties that can impact unedited effects and could also be past the corporate’s keep watch over. Readers are cautioned that it isn’t conceivable to are expecting or determine the entire dangers, uncertainties and alternative elements that can impact week effects and that the above record must no longer be thought to be to be an entire record. With the exception of as required by way of the federal securities rules, the corporate undertakes negative legal responsibility to publicly replace or revise any forward-looking observation, whether or not on account of pristine data, week occasions or another way.

Reconciliation of Sovereign Money Stream⁽²⁾ to GAAP Internet Money Supplied (Impaired) by way of Working Actions:

This reconciliation is supplied as spare related details about the corporate’s monetary place. Sovereign money wave is an impressive monetary measure old within the control of the industry. Control believes that isolated money wave comes in handy to buyers as a result of this is a significant indicator of money generated from running actions to be had for the execution of its industry technique.

Reconciliation of adjusted web source of revenue (loss)⁽²⁾ to GAAP web source of revenue (loss) and altered diluted profits (loss) in step with percentage⁽²⁾ to GAAP diluted profits (loss) in step with percentage for the 3 months ended March 31, 2025, March 31, 2024, and December 31, 2024:

Adjusted web source of revenue (loss) and altered diluted profits (loss) in step with percentage are monetary measures no longer required by way of or offered in response to GAAP. Those Non-GAAP monetary measures must be thought to be as a complement to, and no longer as an alternative to, the monetary measures ready in response to GAAP, and a reconciliation of those monetary measures to essentially the most related GAAP monetary measures is gifted. Control believes this knowledge supplies buyers with spare helpful data at the underlying operations and developments of the industry and allows period-to-period comparison of the corporate’s monetary functionality.

Reconciliation of Profits (Loss) Earlier than Passion, Taxes, Depreciation and Amortization (EBITDA)⁽³⁾ and Adjusted EBITDA⁽⁸⁾ to GAAP Internet Source of revenue (Loss):

This reconciliation is supplied as spare related details about the corporate’s functionality. EBITDA and Adjusted EBITDA are impressive monetary measures old within the control of the industry, together with choices regarding the allocation of sources and overview of functionality. Control believes that reporting EBITDA and Adjusted EBITDA comes in handy to buyers as those measures are consultant of the corporate’s functionality. Control additionally believes that it’s suitable to check GAAP web source of revenue (loss) to EBITDA and Adjusted EBITDA.

Reconciliation of Bottom Gross sales by way of finish marketplace to GAAP Internet Gross sales by way of finish marketplace:

The tables beneath provide web gross sales by way of finish marketplace, adjusted to exclude surcharges, which represents a monetary measure that has no longer been enthusiastic in response to GAAP. We consider presenting web gross sales by way of finish marketplace, each on a improper foundation and on a in step with ton foundation, adjusted to exclude uncooked subject material and effort surcharges, supplies spare perception into key drivers of web gross sales corresponding to bottom worth and product combine. Because of the truth that the surcharge mechanism can introduce volatility to our web gross sales, web gross sales adjusted to exclude surcharges supplies control and buyers readability of our core pricing and effects. Presenting web gross sales by way of finish marketplace, adjusted to exclude surcharges together with on a in step with ton foundation, lets in control and buyers to higher analyze key marketplace signs and developments and lets in for enhanced comparability between our finish markets.

When surcharges are integrated in a buyer promise and are acceptable (i.e., succeed in the edge quantity), in response to the phrases defined within the respective promise, surcharges are upcoming integrated as isolated sequence pieces on a buyer’s bill. Those spare surcharge sequence pieces regulate bottom costs to check value fluctuations because of marketplace statuses. Each and every week, the corporate will publish at the surcharges web page of its exterior web page, in addition to our buyer portal, the scrap, alloy, and effort surcharges that will likely be implemented (as a isolated sequence merchandise) to invoices dated in refer to week (founded upon cargo volumes in refer to week). All surcharges invoiced are integrated in GAAP web gross sales.

Calculation of Overall Liquidity⁽¹⁾:

This calculation is supplied as spare related details about the corporate’s monetary place.

SOURCE Metallus Inc.