Investor Presentation February 2025 Forward-Looking Statements & Non-GAAP Financial Measures Forward-looking statements This presentation includes "forward-looking" statements within the meaning of the federal securities laws. You can generally identify the company's forward-looking statements by words such as "will," "anticipate," "aspire," "believe," "could," "estimate," "expect," "forecast," "outlook," "intend," "may," "plan," "possible," "potential," "predict," "project," "seek," "target," "should," "wo ...

Financial Data and Key Metrics Changes - In Q4 2024, net sales totaled $240.5 million, a sequential increase of $13.3 million or 6% driven by higher shipments of 10,300 tons [31] - The company reported a GAAP net loss of $21.4 million in Q4, translating to a loss of $0.50 per diluted share, while the adjusted net loss was $3.3 million or $0.08 per diluted share [32] - Adjusted EBITDA for Q4 was $8.3 million, a sequential increase of $2.2 million, primarily due to higher shipments and a favorable product mix [32] Business Line Data and Key Metrics Changes - Aerospace and defense shipments increased to approximately 11,000 tons in Q4 from about 3,000 tons in Q3, with full-year sales rising by 17% to nearly $135 million [23] - Shipments to energy customers increased by 78% sequentially, although from a low base, indicating a recovery in the energy sector [16] - Automotive shipments increased by 3% sequentially, with the company targeting approximately 40% of shipments to the automotive sector in 2025 [20][21] Market Data and Key Metrics Changes - The trade environment is expected to improve due to a new tariff of at least 25% on steel long products, which is anticipated to boost domestic demand [12][13] - The company noted a decline in shipments to industrial customers by 6% sequentially, primarily due to weakness in distribution and heavy equipment [15] Company Strategy and Development Direction - The company is focused on enhancing customer relationships, investing in workforce training, and improving safety and efficiency in operations [7][8] - Metallus Inc. aims to grow aerospace and defense sales to over $250 million by 2026, leveraging partnerships and new product developments [27][26] - The company is committed to a capital allocation strategy that includes strategic investments and a share repurchase program to provide value to shareholders [8][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about an improving order book and increased shipments as they enter 2025, despite challenges in 2024 due to weak market demand [8][47] - The company anticipates first-quarter adjusted EBITDA to be higher than in Q4, with expected increases in shipments across various end markets [47] - Management highlighted the importance of safety and operational efficiency as key focus areas moving forward [29] Other Important Information - The company invested approximately $8 million in safety improvements in 2024 and plans to invest an additional $5 million in 2025 [10] - Operating cash flow for Q4 was $13.9 million, with full-year operating cash flow totaling $40.3 million [35] - The company repurchased 2 million shares for $37.6 million in 2024, reducing outstanding shares by nearly 5% [42] Q&A Session Summary Question: Demand profile in Q4 and expectations for Q1 - Management noted a healthy development in the order book driven by recapture of automotive business and restocking from distribution, with positive momentum attributed to the trade environment [56][59] Question: Expected downtime in Q1 - Management confirmed that there is no expected or planned downtime, although there were power interruptions due to severe cold weather in January [64] Question: Clarification on $80 million target and IT upgrades - Management clarified that IT transformation upgrades are independent of other investments, with ongoing support required for existing projects [66] Question: Share repurchase clarification - Management confirmed that the share count reduction is from the fourth quarter, with an average estimate of 44 million shares for 2025 [69] Question: Seasonality expectations for 2025 - Management expects a potential Q1 bump due to restocking but anticipates that demand will level out as customers secure domestic supply [76] Question: Automotive market outlook - Management sees modest increases in automotive demand in 2025, influenced by interest rates and consumer buying patterns [108]

Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on recycled scrap metal [3] - The company has been in the business of producing high-quality steel for over 100 years and employs approximately 1,880 people [3] - Metallus reported sales of $1.1 billion in 2024, indicating a strong market presence [3] Financial Results - Metallus released its fourth-quarter and full-year 2024 results on February 27, 2025 [1] - A live conference call to discuss these financial results is scheduled for February 28, 2025, at 9:00 a.m. ET, with access available online [2]

Company Performance - Metallus (MTUS) reported a quarterly loss of $0.08 per share, significantly missing the Zacks Consensus Estimate of $0.01, and down from earnings of $0.36 per share a year ago, representing an earnings surprise of -900% [1] - The company posted revenues of $240.5 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.72%, and down from $328.1 million in the same quarter last year [2] - Over the last four quarters, Metallus has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Outlook - Metallus shares have increased by approximately 12.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $269.9 million, and for the current fiscal year, it is $1.05 on revenues of $1.16 billion [7] Industry Context - The Steel - Speciality industry, to which Metallus belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Metallus's stock performance [5]

Financial Performance - Net sales for the year ended December 31, 2024 were $1,084.0 million, a decrease of $278.4 million, or 20.4%, compared to 2023, driven by lower shipments and surcharges [164]. - Gross profit for the year ended December 31, 2024 decreased by $88.8 million, or 47.6%, due to lower shipments and higher manufacturing costs [167]. - Net income for 2024 was $1.3 million, a significant drop from $69.4 million in 2023, reflecting a decline of approximately 98.1% [275]. - Basic earnings per share decreased to $0.03 in 2024 from $1.58 in 2023, a decline of about 98.1% [275]. - Total assets decreased to $1,116.7 million in 2024 from $1,175.3 million in 2023, a reduction of approximately 5.0% [280]. - Total liabilities decreased to $426.2 million in 2024 from $443.7 million in 2023, a decline of about 4.0% [280]. - Shareholders' equity decreased to $690.5 million in 2024 from $731.6 million in 2023, reflecting a decrease of approximately 5.6% [280]. - Cash and cash equivalents decreased to $240.7 million in 2024 from $280.6 million in 2023, a decline of about 14.2% [280]. - The company reported a loss on extinguishment of debt of $9.4 million in 2024, compared to $11.4 million in 2023 [275]. - Other comprehensive loss for 2024 was $4.7 million, compared to a loss of $2.3 million in 2023, indicating an increase in losses [278]. Sales and Revenue - Total net sales for 2024 were $1,084.0 million, with base sales of $864.4 million after excluding surcharges [188]. - The company reported a total of 555.5 ship tons sold in 2024, down from 683.8 ship tons in 2023 [188]. - The net sales per ton for 2024 was $1,951, compared to $1,992 in 2023, indicating a decrease in pricing power [188]. - The Company's revenue from the industrial sector for the year ended December 31, 2024, was $390.5 million, down from $533.3 million in 2023 [328]. - The aerospace and defense sector generated $134.9 million in revenue for the year ended December 31, 2024, compared to $115.0 million in 2023 [328]. - Bar product sales decreased to $641.8 million in 2024 from $917.1 million in 2023, representing a decline of 30.0% [330]. Expenses and Costs - SG&A expenses for the year ended December 31, 2024 increased by $3.1 million, or 3.7%, primarily due to higher salary and benefits [170]. - The company reported stock-based compensation expense of $14.0 million in 2024, up from $11.5 million in 2023, reflecting increased employee compensation costs [286]. - Net cash provided by operating activities for 2024 was $40.3 million, a decrease from $125.3 million in 2023, primarily due to lower profitability and higher pension contributions [217]. - Net cash used by financing activities in 2024 was $68.9 million, compared to $51.9 million in 2023, mainly due to higher share repurchases and shares surrendered for taxes [219]. Capital and Investments - The Company invested $64.3 million in capital investments for improved safety and equipment automation [162]. - The company expects capital expenditures to be approximately $125 million in 2025, including about $90 million funded by the U.S. government [205]. - Capital expenditures for 2024 were $64.3 million, an increase from $51.6 million in 2023, indicating ongoing investment in production capabilities [286]. Liquidity and Debt - Total liquidity as of December 31, 2024 was $458.6 million, including cash and cash equivalents of $240.7 million [162]. - As of December 31, 2024, total liquidity available was $458.6 million, down from $539.4 million in 2023 [202]. - The company has a credit facility capacity of $400.0 million, which remains undrawn as of December 31, 2024 [191]. - The principal balance of Convertible Senior Notes due 2025 was $5.5 million as of December 31, 2024, after repurchases throughout the year [200]. - The company believes its cash balance and projected cash generated from operations will be sufficient to meet liquidity needs for at least the next twelve months [203]. - The company repurchased approximately 2.0 million common shares at a cost of $37.6 million, reducing diluted shares outstanding by 3.0 million shares [162]. Taxation - The provision for income taxes for the year ended December 31, 2024, was $3.3 million, a decrease of $23.7 million from $27.0 million in 2023, primarily due to lower pre-tax net income [183]. - The effective tax rate for 2024 was 72.2%, an increase of 44.2% compared to 28.0% in 2023 [183]. - As of December 31, 2024, the company had a net deferred tax liability of $14.3 million, down from $15.0 million in 2023 [346]. Pension and Benefits - A net loss of $10.3 million from the remeasurement of all pension and postretirement benefit plans was recognized for the year ended December 31, 2024 [178]. - Total pension contributions for 2025 are expected to be approximately $65 million, following contributions of $42.8 million in the twelve months ended December 31, 2024 [206]. - The Company's aggregate defined benefit pension and other postretirement benefit obligation was $617.2 million as of December 31, 2024, exceeding the fair value of plan assets of $446.0 million, resulting in an unfunded obligation of $171.2 million [260]. - For the year ended December 31, 2024, net periodic pension expense was $18.4 million, while postretirement benefit income was $4.0 million [240]. Company Changes and Governance - The Company changed its name to Metallus Inc. on February 26, 2024, reflecting its expertise in high-performance specialty metals [162]. - The Company has been audited by Ernst & Young LLP since 2012, with an unqualified opinion on its financial statements for the year ended December 31, 2024 [256]. - The Company adopted ASU 2023-07 for segment reporting, enhancing reportable segment disclosure requirements effective January 1, 2024 [323].

Financial Performance - Fourth-quarter 2024 net sales were $240.5 million, a 6% increase from $227.2 million in the third quarter 2024, but a 27% decrease compared to $328.1 million in the fourth quarter 2023[7][10]. - Full-year 2024 net income was $1.3 million, or $0.03 per diluted share, down from $69.4 million, or $1.47 per diluted share, in 2023; adjusted net income for 2024 was $25.1 million, or $0.57 per diluted share[9][11]. - Adjusted EBITDA for the fourth quarter 2024 was $8.3 million, while full-year adjusted EBITDA was $77.7 million, compared to $169.0 million in 2023[7][9]. - Net sales for Q4 2024 were $240.5 million, a decrease of 26.6% compared to $328.1 million in Q4 2023[25]. - Gross profit for Q4 2024 was $10.9 million, down 73.7% from $41.4 million in Q4 2023[25]. - Net loss for Q4 2024 was $21.4 million, compared to a net income of $1.3 million in Q4 2023[25]. - Basic earnings per share for Q4 2024 were $(0.50), a decline from $0.03 in Q4 2023[25]. - Total net income for the year 2024 was $1.3 million, significantly lower than $69.4 million in 2023[25]. - Adjusted net loss for the three months ended December 31, 2024, was $3.3 million, compared to an adjusted net income of $16.5 million in the same period of 2023[35]. - Adjusted EBITDA for the year ended December 31, 2024, was $77.7 million, with an adjusted EBITDA margin of 7.2%[49]. Operational Metrics - Ship tons in the fourth quarter 2024 were 130,200, a 9% increase sequentially but a 17% decrease year-over-year; full-year ship tons totaled 555,500, down 19% from 2023[10][11]. - The aerospace & defense segment saw a 17% increase in net sales to $134.9 million for the full year 2024, representing 12% of total consolidated net sales[11]. - The company reported a total of 130.2 thousand ship tons for the three months ended December 31, 2024, down from 157.6 thousand ship tons in the same period of 2023, indicating a decrease of about 17.3%[60]. - Base sales for the year ended December 31, 2024, were $864.4 million, compared to $1,022.1 million in 2023, reflecting a decline of approximately 15.4%[61]. - The company’s net sales per ton for the year ended December 31, 2024, was $1,951, compared to $1,992 in 2023, a decrease of about 2.1%[61]. Costs and Expenses - Manufacturing costs increased by $10.3 million sequentially in the fourth quarter due to lower cost absorption, with melt utilization declining to 56% from 60% in the third quarter[10]. - Selling, general & administrative expenses (SG&A) for Q4 2024 were $20.4 million, slightly down from $22.7 million in Q4 2023[25]. - The company reported a loss on extinguishment of debt of $9.4 million for the year ended December 31, 2024[25]. - The company incurred a loss on extinguishment of debt amounting to $9.4 million for the three months ended December 31, 2024[49]. - Business transformation costs incurred during the year were associated with strategic evaluations for targeted growth and diversification through acquisitions[36]. - Business transformation costs for 2024 amounted to $2.0 million, reflecting the company's focus on strategic growth through acquisitions[43]. - IT transformation costs were reported at $5.1 million for 2024, aimed at modernizing legacy IT systems and reducing operating costs[44]. Liquidity and Capital Expenditures - Cash and cash equivalents at the end of 2024 were $240.7 million, with total liquidity of $458.6 million[10][12]. - Planned capital expenditures for 2025 are approximately $125 million, including $90 million funded by the U.S. government[16]. - Total liquidity as of December 31, 2024, was $458.6 million, down from $539.4 million as of December 31, 2023, a decrease of about 15%[63]. - Capital expenditures for the three months ended December 31, 2024, were $15.2 million, slightly lower than $15.4 million in the same period of 2023[29]. Balance Sheet Highlights - Total assets decreased from $1,175.3 million in 2023 to $1,116.7 million in 2024, a decline of approximately 5.0%[28]. - Total current assets decreased from $656.8 million in 2023 to $587.3 million in 2024, a decline of about 10.6%[28]. - Cash and cash equivalents decreased from $280.6 million in 2023 to $240.7 million in 2024, a decline of approximately 14.3%[28]. - Accounts receivable, net of allowances, increased from $811.3 million in 2023 to $908.1 million in 2024, an increase of about 11.9%[28]. - Total liabilities increased from $1,175.3 million in 2023 to $1,126.2 million in 2024, an increase of approximately 4.3%[28]. - Current liabilities decreased from $481.4 million in 2023 to $281.5 million in 2024, a decline of about 41.7%[28]. - Shareholders' equity decreased from $690.5 million in 2023 to $675.3 million in 2024, a decline of approximately 2.2%[28]. - Inventories, net decreased from $228.0 million in 2023 to $219.8 million in 2024, a decline of about 3.0%[28]. - Operating lease right-of-use assets remained relatively stable, with a slight increase from $11.4 million in 2023 to $11.7 million in 2024[28]. - Intangible assets, net increased from $2.7 million in 2023 to $3.4 million in 2024, an increase of approximately 25.9%[28]. Future Outlook - The company expects first-quarter 2025 adjusted EBITDA to be higher than in the fourth quarter 2024, with anticipated increases in shipments and improved melt utilization rates[15]. - Future performance may be affected by the company's ability to achieve its sustainability goals and manage risks related to supply chains and labor costs[25]. - The company is undergoing a multi-year IT transformation initiative aimed at reducing operating costs and increasing information security[37]. - The company is undergoing a multi-year IT transformation initiative to enhance information security and capitalize on market opportunities[54]. - The company plans to continue monitoring market conditions and adjust surcharges accordingly to align with cost fluctuations[58].

Core Viewpoint - Metallus reported a net loss of $21.4 million for Q4 2024, with net sales of $240.5 million, reflecting a challenging market environment and lower demand across most end markets [1][4][12]. Financial Performance - Q4 2024 net sales were $240.5 million, a 6% increase from $227.2 million in Q3 2024, but a 27% decrease from $328.1 million in Q4 2023 [1][12]. - The net loss for Q4 2024 was $21.4 million, or $0.50 per diluted share, compared to a net loss of $5.9 million, or $0.13 per diluted share in Q3 2024, and a net income of $1.3 million, or $0.03 per diluted share in Q4 2023 [1][2][3]. - Adjusted EBITDA for Q4 2024 was $8.3 million, compared to $6.1 million in Q3 2024 and $35.7 million in Q4 2023 [1][2][3]. Yearly Overview - For the full year 2024, net income was $1.3 million, a significant decline from $69.4 million in 2023, with adjusted net income of $25.1 million compared to $89.8 million in 2023 [7][11]. - Total net sales for 2024 were $1.1 billion, down 20% from $1.362 billion in 2023, primarily due to lower shipments and average raw material surcharge revenue [7][12]. Operational Insights - Ship tons in Q4 2024 were 130,200, a 9% increase from Q3 2024 but a 17% decrease from Q4 2023, indicating a mixed performance across different end markets [12]. - Manufacturing costs increased by $10.3 million sequentially in Q4 2024 due to lower cost absorption and inventory management challenges [12]. Cash Flow and Liquidity - As of December 31, 2024, cash and cash equivalents were $240.7 million, with total liquidity of $458.6 million [8][11]. - Operating cash flow for Q4 2024 was $13.9 million, with a total of $40.3 million for the full year [8][11]. Strategic Initiatives - The company received $7.0 million from the U.S. Army as part of a $99.75 million funding agreement for capacity expansion, contributing to a total of $53.5 million in government funding for 2024 [9][11]. - Metallus repurchased $7.8 million of convertible notes and approximately 0.2 million common shares for $3.5 million in Q4 2024, with a total of $37.6 million spent on share repurchases for the year [10][11]. Future Outlook - The company anticipates improved profitability in Q1 2025, driven by stronger customer order patterns and higher average weekly orders compared to the second half of 2024 [5][18]. - Planned capital expenditures for 2025 are approximately $125 million, including $90 million funded by the U.S. government [18].

CANTON, Ohio, Feb. 5, 2025 /PRNewswire/ -- Metallus (NYSE: MTUS), a leader in high-quality specialty metals, manufactured components, and supply chain solutions, will release its fourth-quarter and full-year 2024 results on Thursday, February 27, after the market closes on the New York Stock Exchange. The company will provide live Internet listening access to its conference call with the financial community scheduled for Friday, February 28, 2025, at 9:00 a.m. ET. The live conference call will be broadcast ...

Metallus Inc. (NYSE:MTUS) Q3 2024 Earnings Conference Call November 8, 2024 9:00 AM ET Company Participants Jennifer Beeman - Director Communications & IR Mike Williams - President and CEO Kris Westbrooks - EVP and CFO Conference Call Participants John Franzreb - Sidoti and Company Robert Lynch - Stonegate Capital Partners Operator Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2024 Metallus Inc. Earnings Call ...

Metallus Inc. (NYSE:MTUS) Q3 2024 Earnings Conference Call November 8, 2024 9:00 AM ET Company Participants Jennifer Beeman - Director Communications & IR Mike Williams - President and CEO Kris Westbrooks - EVP and CFO Conference Call Participants John Franzreb - Sidoti and Company Robert Lynch - Stonegate Capital Partners Operator Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2024 Metallus Inc. Earnings Call ...