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Metallus (MTUS)
NYSE:MTUS
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Metallus
(NYSE:MTUS)
Rating:56Neutral
Price Target:
$16.50
▼(-3.17% Downside)
Metallus (MTUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$701.01M
Dividend YieldN/A
Average Volume (3M)328.40K
Price to Earnings (P/E)30.6
Beta (1Y)1.36
Revenue Growth-18.93%
EPS Growth-141.88%
CountryUS
Employees1,880
SectorBasic Materials
Sector Strength68
IndustrySteel
Share Statistics
EPS (TTM)0.20
Shares Outstanding41,826,460
10 Day Avg. Volume276,384
30 Day Avg. Volume328,403
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit6.38
Enterprise Value/Ebitda28.58
Forecast
1Y Price Target
$20.25Price Target Upside18.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Metallus Business Overview & Revenue Model
Company DescriptionMetallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.
How the Company Makes MoneyMetallus generates revenue through multiple key streams, primarily by selling its high-performance metal alloys and components to manufacturers in the aerospace, automotive, and energy sectors. The company also earns income from its metallurgical consulting services, which help clients optimize their materials and processes for better performance and sustainability. Additionally, Metallus has established strategic partnerships with major industry players, allowing it to expand its market presence and leverage joint ventures for research and development, ultimately enhancing its product offerings and driving sales. The continuous demand for innovative metallurgical solutions in various industries further contributes to Metallus's earnings.
Metallus Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Metallus reported significant growth in shipments and financial performance, supported by government funding and strategic investments. Safety improvements and reduced pension obligations are also notable positives. However, ongoing supply chain challenges, upcoming maintenance costs, and unresolved pricing issues present some concerns.Q2-2025 Updates
Positive Updates
Increased Shipments and Revenue Growth
Overall shipments increased by 10% compared to the first quarter, with higher aerospace and defense, automotive, and energy shipments. Net sales for the second quarter totaled $304.6 million, a sequential increase of $24.1 million or 9%.
Safety Improvements
Investment of approximately $5 million in safety management systems has led to 0 serious injuries, a 40% reduction in injury severity, and a 6% reduction in injury frequency compared to the same period last year.
Successful Capital Investments
The automatic grinding line at the Harrison facility has completed commissioning and is operational, contributing to safety and throughput improvements.
Strong Financial Performance
Adjusted EBITDA increased by 50% to $26.5 million, driven by higher shipments and improved melt utilization. Operating cash flow was $34.8 million, supported by profitability and a federal income tax refund.
Government Funding and Support
Received $81.5 million of government funding to support the U.S. Army's mission of increasing munitions production, with further funding expected throughout 2025 and into 2026.
Reduction in Pension Contributions
Estimated required pension contributions have been reduced by $6.5 million for the second half of 2025, with further reductions expected in 2026.
Negative Updates
Pricing and Contract Challenges
No significant price increases for SBQ bars since earlier this year. Contract discussions for 2026 have not yet begun, potentially affecting future pricing.
Supply Chain and Melt Utilization Issues
Supply chain issues in the aerospace and defense sectors continue, affecting order rates. Melt utilization impacted by electrical supply interruptions and reliability issues with auxiliary equipment.
Increased Costs and Upcoming Maintenance
Planned shutdown maintenance in the second half of the year will cost approximately $15 million. Higher electricity costs are expected due to the expiration of a previous long-term contract.
Company Guidance
During Metallus' Second Quarter 2025 Earnings Call, the company provided guidance indicating several positive trends and future expectations. The company reported a 10% increase in shipments compared to the first quarter, with notable growth in aerospace, defense, automotive, and energy sectors. Net sales for the second quarter reached $304.6 million, marking a 9% sequential increase. Adjusted EBITDA also saw a significant rise, up 50% from the first quarter, totaling $26.5 million. The company's melt utilization rate improved to 71%, with expectations for further increases in the third quarter. Metallus has announced a price increase of $100 per ton for seamless mechanical tubing products, effective in November, which is expected to benefit base price per ton. The company is also investing approximately $5 million in safety enhancements and has seen a 40% reduction in injury severity and a 6% decrease in injury frequency so far in 2025. For the full year, planned capital expenditures remain at $125 million, with significant government funding supporting these investments. Looking forward, third-quarter shipments are expected to be similar to the second quarter, and the company anticipates modestly lower adjusted EBITDA due to planned maintenance costs and increased electricity expenses.Metallus Financial Statement Overview
Summary
Metallus faces significant challenges in maintaining profitability and cash flow stability. The income statement and cash flow metrics highlight recent operational difficulties, with negative net and EBIT margins and deteriorating cash flow performance. However, the balance sheet remains strong with low leverage, indicating a solid capital structure.Income Statement
Metallus has experienced significant volatility in its revenue and profitability. The TTM data shows a sharp decline in revenue and profitability, with negative net and EBIT margins. Historical data indicates fluctuating revenue growth and declining margins, suggesting challenges in maintaining stable profitability.45
Neutral
Balance Sheet
The balance sheet is relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has turned negative in the TTM period, reflecting recent profitability challenges. The equity ratio remains strong, suggesting a solid capital structure.65
Positive
Cash Flow
Cash flow performance has deteriorated, with negative operating and free cash flows in the TTM period. Historical data shows declining free cash flow growth, indicating potential liquidity issues. The high free cash flow to net income ratio in the TTM period is due to negative net income, which is concerning.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.08B | 1.36B | 1.33B | 1.28B | 830.70M |
| Gross Profit | 77.10M | 97.70M | 186.50M | 126.70M | 220.00M | 15.60M |
| EBITDA | 17.20M | 58.70M | 153.30M | 156.00M | 244.20M | 17.40M |
| Net Income | -22.30M | 1.30M | 69.40M | 65.10M | 171.00M | -61.90M |
Balance Sheet | ||||||
| Total Assets | 1.11B | 1.12B | 1.18B | 1.08B | 1.16B | 994.00M |
| Cash, Cash Equivalents and Short-Term Investments | 190.80M | 240.70M | 280.60M | 257.20M | 259.60M | 102.80M |
| Total Debt | 16.00M | 17.10M | 24.60M | 32.90M | 59.40M | 99.20M |
| Total Liabilities | 422.00M | 426.20M | 443.70M | 395.50M | 494.30M | 486.50M |
| Stockholders Equity | 690.00M | 690.50M | 731.60M | 686.50M | 664.60M | 507.50M |
Cash Flow | ||||||
| Free Cash Flow | -83.60M | -24.00M | 73.70M | 107.40M | 184.70M | 156.60M |
| Operating Cash Flow | -5.50M | 40.30M | 125.30M | 134.50M | 196.90M | 173.50M |
| Investing Cash Flow | -14.90M | -10.80M | -49.90M | -21.70M | -4.80M | -6.00M |
| Financing Cash Flow | -61.40M | -68.90M | -51.90M | -114.60M | -35.30M | -91.80M |
Metallus Technical Analysis
Positive
17.04
Price Trends
16.14
Positive
14.75
Positive
14.70
Positive
Market Momentum
0.24
Negative
61.40
Neutral
67.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTUS, the sentiment is Positive. The current price of 17.04 is above the 20-day moving average (MA) of 16.25, above the 50-day MA of 16.14, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.40 is Neutral, neither overbought nor oversold. The STOCH value of 67.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTUS.
Metallus Risk Analysis
Metallus disclosed 30 risk factors in its most recent earnings report. Metallus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Metallus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.66B | 14.90 | 10.75% | 1.94% | -9.83% | -28.70% | |
68 Neutral | $376.13M | 27.42 | 2.50% | 1.88% | -9.21% | -60.42% | |
64 Neutral | $149.31M | 17.44 | 6.34% | 0.74% | -5.81% | -29.10% | |
62 Neutral | $10.28B | 6.21 | 0.76% | 2.84% | 3.10% | -36.03% | |
56 Neutral | $701.01M | 30.62 | -3.13% | ― | -18.93% | -141.88% | |
55 Neutral | ― | ― | 4.13% | 62.89% | |||
50 Neutral | $114.10M | ― | -10.88% | ― | -20.35% | 77.51% |
* Basic Materials Sector Average
Performance Comparison
MTUS
Metallus
17.04
2.34
15.92%
FRD
Friedman Industries
21.72
7.48
52.53%
ZEUS
Olympic Steel
33.81
-1.32
-3.76%
RDUS
Schnitzer Steel Industries
30.00
15.77
110.82%
ACNT
Ascent Industries
12.20
2.52
26.03%
WS
Worthington Steel, Inc.
33.03
1.38
4.36%
Metallus Corporate Events
Business Operations and StrategyFinancial Disclosures
Metallus Reports Strong Q2 2025 Financial Results
Positive
Aug 7, 2025
On August 7, 2025, Metallus announced its second-quarter 2025 financial results, reporting net sales of $304.6 million and net income of $3.7 million. The company saw a significant increase in profitability and operating cash flow, driven by higher shipments and improved market conditions. Metallus also highlighted its strategic initiatives, including the installation of new assets to support increased munitions production for the U.S. Army. The company remains focused on operational excellence and is preparing for labor contract negotiations and annual maintenance, which are expected to have short-term cost impacts but align with its long-term strategic goals.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.