Metallus : First Quarter 2026 Earnings Presentations

Published: 2026-05-04 17:10:25 ET MTUS

Published on 05/04/2026 at 05:10 pm EDT

May 2026

Announced two spot price increases for bar products and five spot price increases for tube products in the first quarter, with increases taking effect throughout second half of 2026

Successfully reheated and rolled the first blooms using the new bloom reheat furnace, marking an important operational milestone

compared with the prior year period

New Bloom Reheat Furnace at Faircrest Plant

STRONG FIRST QUARTER EXECUTION

ADJUSTED EBITDA EXPECTED TO IMPROVE THROUGHOUT 2026

PRIOR YEAR AND SEQUENTIAL COMPARISON

$281

$308

$267

Q1 25

Q4 25

Q1 26

Q1 25

$(14)

Q4 25

Q1 26

$25

$18

Q1 25

Q4 25

Q1 26

($2)

($27)

($39)

Q1 25

Q4 25

Q1 26

$0.18

$0.07

Q1 25

($0.18)

Q4 25

Q1 26

$432

$389

$375

Q1 25

Q4 25

Q1 26

SOLID YEAR OVER YEAR PERFORMANCE: NET SALES UP 10%; ADJUSTED EBITDA INCREASED 39%

Adjusted EBITDA is defined as net income (loss) before interest (income) expense, net, income taxes, depreciation and amortization, presented on a non-GAAP basis excluding certain items; see Appendix for a reconciliation of non-GAAP measures

Adjusted EPS is defined as diluted earnings (loss) per share, excluding certain items; see Appendix for a reconciliation of non-GAAP measures

Total Liquidity is defined as available borrowing capacity plus cash and cash equivalents 4

vs. Q4 2025 Shipments (k Tons)

Base Sales per Ton(1)

Industrial

$1,133

$1,189

$1,206

66 60 67

Q1 25 Q4 25 Q1 26

Automotive

64 64 67

Q1 25 Q4 25 Q1 26

$1,429 $1,396 $1,344

Q1 25 Q4 25 Q1 26

$3,384

$2,198

$2,457

Aerospace & Defense

Q1 25

Q4 25

Q1 26

Q1 25

Q4 25

Q1 26

$1,583

$1,675

$1,588

Energy

Q1 25 Q4 25 Q1 26 Q1 25 Q4 25 Q1 26

SHIP TONS INCREASED 7% VERSUS PRIOR YEAR AND 11% SEQUENTIALLY

(1) Base Sales is defined as Net sales excluding surcharges; see the reconciliation of base sales to net sales in the Appendix.

PRIOR YEAR COMPARISON

$ in Millions

$4.5

$4.8 $1.0

$(3.9)

$0.7

$(0.2)

$24.6

$17.7

2025 Q1

VOLUME

PRICE/MIX

RAW

MANUFACTURING

OTHER

2026 Q1

ADJUSTED

MATERIAL SPREAD

SG&A

ADJUSTED

EBITDA(1) EBITDA (1)

SEQUENTIAL COMPARISON

$ In Millions

$8.5 $0.5

$24.6

$(1.0)

$4.3

$2.7

$7.2

$2.4

2025 Q4 ADJUSTED

EBITDA(1)

VOLUME PRICE/MIX RAW

MATERIAL SPREAD MANUFACTURING

SG&A OTHER 2026 Q1 ADJUSTED

EBITDA(1)

(1) Adjusted EBITDA is defined as net income (loss) before interest (income) expense, net, income taxes, depreciation and amortization, presented on a non-GAAP basis excluding certain items; see Appendix for a reconciliation of non-GAAP measures 6

PERFORMANCE METRIC VS. Q1 2026 OUTLOOK

Shipments

Second-quarter shipments are expected to increase modestly on a sequential basis, in the low single digits on a percentage basis, supported by continued strength in the order book and normal seasonality.

Base Prices

The company recently implemented spot price increases on both bar and seamless mechanical tubing products not covered by an annual pricing agreement. These price increases take effect at various dates throughout the second half of 2026, dependent on product type.

Operations

Manufacturing costs are expected to improve sequentially by approximately $2 million in the second quarter as a result of higher melt utilization, resulting in improved cost absorption, net of the run rate cost increase related to the ratified union contract.

Adjusted EBITDA(1)

Expect second quarter of 2026 adjusted EBITDA to be modestly higher than both the first quarter of 2026 and second quarter of 2025.

SAFETY IS A NON-NEGOTIABLE

Consistent commitment backed by investments in training and tools support a best-in-class safety culture.

STRONG THROUGH CYCLE CASH FLOW GENERATION

Cash flow generation and a resilient balance sheet reinforce financial strength and position the company to pursue future value creation.

PARTNERSHIPS WITH INDUSTRY-LEADING CUSTOMERS

Leveraging long-term relationships across end markets, we drive deep industry alignment and uphold a strong commitment to operational excellence.

CAPITALIZING ON DEFENSE SECTOR MOMENTUM

Positioned to meet the rising global demand for munitions and other applications, backed by a robust growth strategy and operational momentum.

ADVANCING A MULTI-METAL GROWTH STRATEGY

Driving revenue growth in our multi-metal solutions by leveraging metallurgical expertise, downstream assets, and a customer-centric approach.

U.S. MANUFACTURING FOOTPRINT

U.S.-based manufacturing footprint enables greater control over the supply chain, ensuring consistent, cost-effective, and high-quality service delivery.

Appendix

$M QUARTERLY - CONSOLIDATED TOTAL

(Unaudited)

2025

2026

Net income (loss)

$ 1.3

$ (14.3)

$ 5.4

Net Income Margin(1)

0.5%

(5.3)%

1.8%

Provision (benefit) for income taxes

1.6

(6.2)

2.6

Interest (income) expense, net

(1.5)

(0.7)

(0.4)

Depreciation and amortization

13.7

14.5

13.7

Amortization of cloud-computing costs(2)

0.3

Earnings (loss) Before Interest, Taxes, Depreciation and Amortization (EBITDA)(3)

$ 15.4

$ (6.4)

$ 21.6

EBITDA margin(3)

5.5%

(2.4%)

7.0%

Adjustments:

(Gain) loss from remeasurement of benefit plans, net

6.6

(2.5)

Business transformation costs(4)

0.6

IT transformation costs(5)

0.9

0.5

0.2

Manufacturing optimization costs(6)

1.7

2.3

Sales and use tax refund

(0.8)

Rebranding costs (7)

0.1

Salaried pension plan surplus asset distribution (8)

3.6

USW one-time contract negotiation (9)

2.2

(Gain) loss on sale or disposal of assets, net

(1.5)

0.2

Adjusted EBITDA(10)

Adjusted EBITDA margin(10)

$ 17.7

6.3%

$ 2.4

0.9%

$ 24.6

8.0%

This reconciliation is provided as additional relevant information about the company's performance.

EBITDA and Adjusted EBITDA are important financial measures used in the management of the business, including decisions concerning the allocation of resources and assessment of performance. Management believes that reporting EBITDA and Adjusted EBITDA is useful to investors as these measures are representative of the company's performance. Management also believes that it is appropriate to compare GAAP net income (loss) to EBITDA and Adjusted EBITDA.

Net Income Margin is defined as net income (loss) as a percentage of net sales.

Amortization of cloud computing software costs consists of expense recognized in Selling, General, and Administrative expense resulting from amortization of capitalized implementation costs for cloud computing IT systems. This expense is not included in depreciation and amortization.

EBITDA is defined as net income (loss) before interest (income) expense, net, income taxes, depreciation and amortization. EBITDA Margin is EBITDA as a percentage of net sales.

Business transformation costs consists of professional service fees associated with the evaluation of certain strategic opportunities, with a focus on targeted growth to diversify the company's end market and product portfolio through acquisitions.

IT transformation costs are primarily related to professional service fees not eligible for capitalization that are associated specifically with an information technology application simplification and modernization project.

Manufacturing optimization costs consist of third-party professional fees related to process optimization efforts and improving manufacturing efficiency within targeted facilities.

Rebranding costs consist primarily of professional service fees associated with the company's name change to Metallus Inc., announced during the first quarter of 2024.

Following the completion of the salaried pension plan annuitization in May 2024, there were surplus assets which were used to make a one-time 401(k) contribution to eligible employees. As a result, the company recognized a loss of

$3.6 million when the remaining assets were distributed.

The United Steelworkers ("USW") ratified a new four-year labor agreement with Metallus on February 5, 2026. A one-time payment in the total amount of

$1.9 million was made in the first quarter of 2026 to union employees, in accordance with the terms of the agreement, along with $0.3 million of one-time payments related to external parties assisting with achieving the new labor agreement.

Adjusted EBITDA is defined as EBITDA excluding, as applicable, adjustments listed in the table above. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share are financial measures not required by or presented in accordance with GAAP. These Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the financial measures prepared in accordance with GAAP, and a reconciliation of these financial measures to the most comparable GAAP financial measures is presented. Management believes this data provides investors with additional useful information on the underlying operations and trends of the business and enables period-to-period comparability of the company's financial performance.

$M QUARTERLY - CONSOLIDATED TOTAL

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Three Months Ended December 31, 2025

(Dollars in millions) (Unaudited)

Net income (loss)

Diluted

earnings (loss) per

share(1)

Net income (loss)

Diluted

earnings (loss) per

share(11)

Net income (loss)

Diluted

earnings (loss) per

share(12)

As reported

$ 5.4

$ 0.13

$ 1.3

$ 0.03

$ (14.3)

$ (0.34)

Adjustments:(2)

Loss (gain) on sale or disposal of assets,

net

0.2

(1.5)

(0.03)

Loss (gain) from remeasurement of

benefit plans, net

(2.5)

(0.06)

6.6

0.16

Sales and use tax refund

(0.8)

(0.02)

Business transformation costs(3)

0.6

0.02

IT transformation costs(4)

0.2

0.9

0.02

0.5

0.01

Manufacturing optimization costs(5)

2.3

0.06

1.7

0.04

Rebranding costs(6)

0.1

Salaried pension plan surplus asset

distribution(7)

3.6

0.08

USW one-time contract negotiation(8)

2.2

0.05

Tax effect on above adjustments(9)

(0.7)

(0.02)

(0.7)

(0.01)

(2.2)

(0.05)

As adjusted(10)

$ 7.7

$ 0.18

$ 2.9

$ 0.07

$ (7.7)

$ (0.18)

For the three months ended March 31, 2026, common share equivalents for shares issuable for equity-based awards (1.5 million shares) were included in the computation of diluted earnings (loss) per share, as they were considered dilutive. The total diluted weighted average shares outstanding for the three months ended March 31, 2026 was 43.2 million shares.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share are defined as net income (loss) and diluted earnings (loss) per share, respectively, excluding, as applicable, adjustments listed in the table.

Business transformation costs consist of professional service fees associated with the evaluation of certain strategic opportunities, with a focus on targeted growth to diversify the company's end market and product portfolio through acquisitions.

The company is undergoing a multi-year IT transformation initiative intended to streamline and modernize legacy IT systems while also reducing operating costs, increasing information security and positioning us to take advantage of market opportunities. IT transformation costs were primarily related to professional service fees not eligible for capitalization and are primarily related to project planning and third-party implementation services.

Manufacturing optimization costs consist of third-party professional fees related to process optimization efforts and improving manufacturing efficiency within targeted facilities

Rebranding costs consist primarily of professional service fees associated with the company's name change to Metallus Inc., announced during the first quarter of 2024.

The United Steelworkers ("USW") ratified a new four-year labor agreement with Metallus on February 5, 2026. A one-time payment in the total amount of $1.9 million was made in the first quarter of 2026 to union employees, in accordance with the terms of the agreement, along with $0.3 million of one-time payments related to external parties assisting with achieving the new labor agreement.

Tax effect on above adjustments includes the tax impact related to the adjustments shown above.

Adjusted net income (loss), adjusted diluted earnings (loss) per share, and the related tax effect has been revised to include amortization of cloud computing software costs.

For the three months ended March 31, 2025, common share equivalents for shares issuable for equity-based awards (0.9 million shares) were included in the computation of diluted earnings (loss) per share, as they were considered dilutive. Common share equivalents for shares issuable upon the conversion of outstanding convertible notes were excluded in the computation of diluted earnings (loss) per share for the three months ended March 31, 2025 as these shares would be anti-dilutive. The total diluted weighted average shares outstanding for the three months ended March 31, 2025 was 43.0 million shares.

For the three months ended December 31, 2025, common share equivalents for shares issuable for equity-based awards and common share equivalents for shares issuable upon the conversion of outstanding convertible notes were excluded from the computation of diluted earnings (loss) per share, because the effect of their inclusion would have been anti-dilutive. The total diluted weighted average shares outstanding for the three months ended December 31, 2025 was 41.7 million shares.

This calculation is provided as additional relevant information about the company's financial position.

$M QUARTERLY - CONSOLIDATED TOTAL

(Unaudited)

2025

2026

Cash and cash equivalents

180.3

$ 156.7

$ 104.0

Credit Agreement:

Maximum availability

400.0

$ 400.0

Suppressed availability(2)

(143.0)

(162.2)

(124.0)

Availability

257.0

237.8

276.0

Credit facility amount borrowed

Letter of credit obligations

(5.3)

Availability not borrowed

251.7

$ 232.5

$ 270.7

Total Liquidity(1)

432.0

$ 389.2

$ 374.7

Total Liquidity is defined as available borrowing capacity plus cash and cash equivalents

As of each respective period above, Metallus had less than $400 million in collateral assets to borrow against 12

The tables to the right present net sales by end-market sector, adjusted to exclude surcharges, which represents a financial measure that has not been determined in accordance with GAAP. We believe presenting net sales by end-market sector, both on a gross basis and on a per ton basis, adjusted to exclude raw material and energy surcharges, provides additional insight into key drivers of net sales such as base price and product mix. Due to the fact that the surcharge mechanism can introduce volatility to our net sales, net sales adjusted to exclude surcharges provides management and investors clarity of our core pricing and results. Presenting net sales by end-market sector, adjusted to exclude surcharges including on a per ton basis, allows management and investors to better analyze key market indicators and trends and allows for enhanced comparison between our end-market sectors.

When surcharges are included in a customer agreement and are applicable (i.e., reach the threshold amount), based on the terms outlined in the respective agreement, surcharges are then included as separate line items on a customer's invoice. These additional surcharge line items adjust base prices to match cost fluctuations due to market conditions. Each month, the company will post on the surcharges page of its external website, as well as our customer portal, the scrap, alloy, and energy surcharges that will be applied (as a separate line item) to invoices dated in the following month (based upon shipment volumes in the following month). All surcharges invoiced are included in GAAP net sales. For a full discussion regarding the base sales reconciliation shown below refer to the most recently filed 10-Q/10-K.

INDUSTRIAL AUTOMOTIVE

ENERGY

AEROSPACE & DEFENSE(2)

Base Sales is defined as net sales adjusted to exclude raw material surcharges

In the fourth quarter of 2023, the company split the Aerospace & Defense end-market out from the Industrial end-market.

Net sales dollars excludes "other" sales primarily attributable to the company's scrap sales - $4.4M in Q1 2025, $3.7M in Q4 2025, $4.7M in Q1 2026 Figures in the table may not recalculate exactly as presented in the earnings release due to rounding

Disclaimer

Metallus Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:02 UTC.