Metallus (MTUS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $280.5M, up 17% sequentially but down 12.8% year-over-year due to unfavorable price/mix and lower surcharges.

• Net income was $1.3M ($0.03 per diluted share); adjusted net income was $3.2M ($0.07 per share).

• Adjusted EBITDA was $17.7M, more than doubling sequentially but less than half the prior-year quarter.

• Order backlog increased approximately 50% year-over-year, reflecting strong demand and market share gains.

• Liquidity remains strong with $432.0M available, including $180.3M in cash.

Financial highlights

• Q1 2025 net sales were $280.5M, up 17% sequentially but down from $321.6M year-over-year.

• Gross profit for Q1 2025 was $21.9M, down from $50.6M in Q1 2024.

• Operating cash flow was an outflow of $38.9M, mainly due to $52.6M in required pension contributions.

• Capital expenditures totaled $27.5M in Q1, including $13.9M for government-funded projects.

• Free cash flow for Q1 2025 was negative $52.5M.

Outlook and guidance

• Q2 2025 adjusted EBITDA is expected to be higher than Q1 2025.

• Shipments are projected to modestly increase, led by aerospace & defense.

• Melt utilization and manufacturing cost absorption are expected to improve in Q2.

• Full-year 2025 capital expenditures are planned at ~$125M, including ~$90M funded by the U.S. government.

• Management expects liquidity and cash flow to be sufficient for at least the next twelve months.