MTUS · Metallus Inc.

Metallus delivered a materially improved first-quarter 2026 performance, reversing the prior quarter’s $14.3 million net loss and significantly outpacing last year’s $1.3 million net income. The $308.3 million in net sales reflects a 10% year-over-year increase, driven primarily by higher shipments across most end-markets and increased raw material surcharge revenue per ton. Sequentially, sales rose 15% from $267.3 million in Q4 2025, supported by a 11% increase in ship tons to 163,800 tons. Adjusted EBITDA surged 39% year-over-year to $24.6 million — far exceeding the $17.7 million in Q1 2025 — due to improved manufacturing performance: melt utilization rose to 72%, up from 66% in Q4 2025 and 65% in Q1 2025, enhancing fixed-cost absorption and reducing maintenance-related downtime. Management highlighted operational milestones, including the successful reheating and rolling of the first blooms on the new bloom reheat furnace, reinforcing execution against strategic capital initiatives. While operating cash flow was negative ($26.9 million) due to working capital build and front-loaded pension contributions, total liquidity remained robust at $374.7 million, enabling continued investment — $24.7 million in capex (including $18.3 million government-funded) and $4.3 million in share repurchases. Forward-looking commentary affirms confidence in sequential improvement, with Q2 2026 adjusted EBITDA expected modestly higher than Q1, underpinned by a strengthening order book, expanding lead times into late Q3, and anticipated price/mix improvements in H2 2026. The outlook reaffirms full-year expectations of improving profitability versus prior-year periods.