Metallus Inc. (MTUS) Misses Q2 EPS by 1c, offers outlook

Metallus Inc. (NYSE: MTUS) reported Q2 EPS of $0.20, $0.01 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $304.6 million versus the consensus estimate of $295.73 million.

OUTLOOK

Given the elements outlined in the outlook below, the company expects third-quarter adjusted EBITDA to be modestly lower than the second quarter. While the company expects sequentially similar shipments and base prices as well as improved operational performance, profitability is expected to be negatively impacted by costs associated with labor agreement negotiations, higher electricity costs, and planned annual shutdown maintenance costs.

Commercial:

Third-quarter shipments are expected to be similar to the second quarter.
Lead times for both bar and tube products currently extend to October.
Base price per ton is anticipated to remain relatively steady.

Operations:

The company expects an increase in the average melt utilization rate in the third quarter from 71 percent in the second quarter.
Annual shutdown maintenance is planned for the second half of 2025 at a cost of approximately $15 million, of which approximately $5 million is expected to occur in the third quarter.

Other matters:

Planned capital expenditures are approximately $125 million for the full year of 2025, consistent with previous guidance and inclusive of approximately $90 million of capital expenditures funded by the U.S. government.
Required pension contributions are expected to decline to approximately $3.5 million in the second half of 2025 compared with previous estimate of approximately $10 million during that period.
In July, the company received an additional $10.0 million in government funding related to the capacity expansion funding agreement.
As previously announced, the company will begin negotiations with the United Steelworkers on August 18, 2025 regarding the current labor agreement that is set to expire on September 29, 2025. The company anticipates $3 million to $5 million of incremental cost in the second half of 2025 associated with labor agreement negotiations.

For earnings history and earnings-related data on Metallus Inc. (MTUS) click here.

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