Metallus Inc (NYSE: MTUS), Market Cap of ~$862 million, is a U.S.-based manufacturer of high-performance specialty metals, precision components, and supply chain solutions serving industrial, automotive, aerospace, defense, and energy sectors. The company produces alloy, carbon, and micro-alloy steel products using electric arc furnace technology. The company reported fourth-quarter 2025 results showing higher sales but margin pressures, while management cited operational and macro factors impacting profitability.
Top-Line Growth vs. Sequential Decline
Net sales in Q4 2025 reached $267.3 million, up 11% from $240.5 million in Q4 2024. Shipments rose 14% year-over-year to 148,000 tons but fell 9% sequentially from Q3 2025. Management attributed the sequential decline to seasonal patterns, slower ramp-up following annual maintenance, and lower surcharge revenue from compressed scrap prices. Melt utilization was 66%, down from 72% in Q3 but up from 56% in Q4 2024.
Profitability Under Pressure
Metallus posted a net loss of $14.3 million, or $0.34 per share, compared with a net loss of $21.4 million, or $0.50 per share, in Q4 2024. Adjusted net loss was $7.7 million, or $0.18 per share. Adjusted EBITDA declined to $2.4 million from $8.3 million in the prior-year quarter, with an adjusted EBITDA margin of 0.9%.
Annual Metrics Highlight Aerospace Growth
For full-year 2025, net sales rose 7% to $1.2 billion. The company recorded a net loss of $1.2 million, or $0.03 per share, versus net income of $1.3 million in 2024. Full-year adjusted EBITDA reached $75.6 million, slightly below $77.7 million in 2024. Total shipments for the year increased 14% to 631,700 tons.
Aerospace and defense sales grew 19% to $160.6 million, accounting for 14% of total revenue, up from 12% in 2024. Melt utilization averaged 69% for the full year.
Management Summary and Views
CEO Mike Williams said 2025 shipments were supported by “strengthening demand across key end markets” and growth in domestic steel. Management highlighted slower-than-expected post-maintenance ramp-up and compressed scrap prices as key drivers of Q4 results. Staffing increases are underway in targeted areas to meet an order book that is more than 50% higher year-over-year.
Product and Operational Updates
Metallus is commissioning a bloom reheat furnace, expected to be fully operational in the first half of 2026. Lead times for bar products currently extend to mid-second quarter, while tube products reach mid-third quarter. A new four-year labor agreement with the United Steelworkers was ratified on Feb. 5, 2026, including a one-time $2 million payment in Q1 2026.
M&A and Strategic Transformation
The company incurred business transformation costs in 2025 related to professional fees for evaluating strategic opportunities and potential acquisitions to diversify its product and end-market portfolio. Metallus is also executing a multi-year IT transformation initiative to modernize legacy systems, reduce operating costs, and improve cybersecurity.
Government Schemes and Funding
Metallus is expanding munitions production capacity through a $99.75 million funding agreement with the U.S. Army. The company received $4.1 million under this program in Q4 2025, bringing total government funding in 2024-2025 to $85.6 million. Approximately $35 million of planned 2026 capital expenditures will be partially funded by the U.S. government.
Competitive Analysis and Market Expansion
Metallus focuses on its U.S. manufacturing footprint in Canton, Ohio, to maintain supply chain control and cost-effective delivery. Management is targeting growth in the aerospace and defense sector, leveraging metallurgical expertise for a multi-metal growth strategy.
Liquidity and Credit Position
Total liquidity at year-end 2025 was $389.2 million, including $156.7 million in cash and $232.5 million in unborrowed availability under a $400 million credit agreement. Collateral restrictions limited $162.2 million of credit availability. No updates to credit ratings from major agencies were reported.
Macro and Sector Pressures
Manufacturing costs were impacted by general inflation and higher utility expenses. Melt utilization fell to 66% in Q4 from 72% in Q3, reducing fixed-cost leverage. Management expects approximately $10 million in cost improvements in Q1 2026 as utilization recovers.
Analyst Activity and 2026 Outlook
No analyst upgrades, downgrades, or price-target changes were reported on the earnings release date. Metallus expects sequential improvement in Q1 2026 adjusted EBITDA, with shipments projected to rise roughly 10%. The company also anticipates a 60% reduction in required pension contributions for the full year 2026.