Metallus Inc. Reports Fourth‑Quarter 2025 Results and Outlook for 2026

Metallus Inc. (NYSE: MTUS) released its fourth‑quarter and full‑year 2025 financial results on February 19, 2026, outlining a mixed performance that reflects both challenges and opportunities in the metals and mining sector.

Quarterly Highlights

  • Net sales: $267.3 million, down 12 % from the third‑quarter figure of $305.9 million. The decline mirrors a broader slowdown in the high‑quality specialty‑metal market, though sales remained above last‑year’s $240.5 million for the same period.
  • Net income: Metallus posted a net loss of $14.3 million, or $0.34 per diluted share, compared with a net income of $8.1 million in the preceding quarter. The loss was driven primarily by higher operating expenses and a one‑time charge related to capital expenditures.
  • Adjusted EBITDA: A modest $2.4 million, a steep decline from $29.0 million in the prior quarter. Adjusted EBITDA reflects the company’s efforts to control costs while investing in capacity expansion.

On a sequential basis, the quarter’s performance was weaker than the third quarter, but the company noted that operations performed better in the first quarter of 2026 thanks to the deployment of additional hourly staffing in targeted areas.

Full‑Year Performance

  • Net sales: $1.2 billion, a 7 % increase over the 2024 total of $1.08 billion.
  • Operating cash flow: $16.0 million, underscoring a cash‑generating capability that supports ongoing investment and shareholder returns.
  • Capital expenditures: $109.0 million, directed toward strategic and operational priorities, including the expansion of a bloom reheat furnace.
  • Share repurchases: $22.2 million, and convertible notes were settled, reducing debt exposure.

At year‑end, Metallus held $156.7 million in cash and cash equivalents and reported total liquidity of $389.2 million.

Strategic Context

Chief Executive Officer Mike Williams emphasized that increased shipments and strengthening demand across key end markets—notably aerospace, defense, and government‑funded assets—were the primary drivers of the year‑long sales growth. The company highlighted that its aerospace and defense product line saw “strong growth as we expanded customer relationships, increased our presence, and achieved new orders in strategically important markets.”

The four‑year United States‑Wage (USW) labor agreement, ratified on February 5, 2026, provides a stable labor framework that supports operational expansion. Metallus also announced operational optimization initiatives and that the bloom reheat furnace investment is on track, positioning the company for higher throughput and efficiency in the coming years.

Outlook for 2026

  • Order book: Up more than 50 % year‑over‑year, suggesting a robust pipeline that could translate into higher revenue and earnings as production ramps up.
  • Adjusted EBITDA: Expected to improve sequentially throughout 2026 relative to 2025, reflecting the benefits of cost controls and higher utilization.
  • Market positioning: Metallus remains a leader in high‑quality specialty metals and manufactured components, serving industries such as oil and gas, automotive, industrial equipment, mining, construction, rail, and power generation.

Market Reaction

The company’s stock traded at $20.98 on February 17, 2026, within a 52‑week range of $10.78 to $21.73. The negative price‑earnings ratio of –97.79 reflects the company’s current operating losses, yet analysts project a recovery in profitability as the 2026 order book materializes.

In summary, Metallus Inc. reports a challenging fourth quarter but signals a positive trajectory for 2026, driven by a growing order pipeline, strategic capital investments, and a focus on operational excellence.