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Metallus Announces Fourth-Quarter and Full-Year 2024 Results
MTUSMetallus(MTUS) Prnewswire·2025-02-27 21:10

Core Viewpoint - Metallus reported a net loss of 21.4millionforQ42024,withnetsalesof21.4 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 240.5million,a6240.5 million, a 6% increase from 227.2 million in Q3 2024, but a 27% decrease from 328.1millioninQ42023[1][12].−ThenetlossforQ42024was328.1 million in Q4 2023 [1][12]. - The net loss for Q4 2024 was 21.4 million, or 0.50perdilutedshare,comparedtoanetlossof0.50 per diluted share, compared to a net loss of 5.9 million, or 0.13perdilutedshareinQ32024,andanetincomeof0.13 per diluted share in Q3 2024, and a net income of 1.3 million, or 0.03perdilutedshareinQ42023[1][2][3].−AdjustedEBITDAforQ42024was0.03 per diluted share in Q4 2023 [1][2][3]. - Adjusted EBITDA for Q4 2024 was 8.3 million, compared to 6.1millioninQ32024and6.1 million in Q3 2024 and 35.7 million in Q4 2023 [1][2][3]. Yearly Overview - For the full year 2024, net income was 1.3million,asignificantdeclinefrom1.3 million, a significant decline from 69.4 million in 2023, with adjusted net income of 25.1millioncomparedto25.1 million compared to 89.8 million in 2023 [7][11]. - Total net sales for 2024 were 1.1billion,down201.1 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 10.3millionsequentiallyinQ42024duetolowercostabsorptionandinventorymanagementchallenges[12].CashFlowandLiquidity−AsofDecember31,2024,cashandcashequivalentswere10.3 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 458.6million[8][11].−OperatingcashflowforQ42024was458.6 million [8][11]. - Operating cash flow for Q4 2024 was 13.9 million, with a total of 40.3millionforthefullyear[8][11].StrategicInitiatives−Thecompanyreceived40.3 million for the full year [8][11]. Strategic Initiatives - The company received 7.0 million from the U.S. Army as part of a 99.75millionfundingagreementforcapacityexpansion,contributingtoatotalof99.75 million funding agreement for capacity expansion, contributing to a total of 53.5 million in government funding for 2024 [9][11]. - Metallus repurchased 7.8millionofconvertiblenotesandapproximately0.2millioncommonsharesfor7.8 million of convertible notes and approximately 0.2 million common shares for 3.5 million in Q4 2024, with a total of 37.6millionspentonsharerepurchasesfortheyear[10][11].FutureOutlook−ThecompanyanticipatesimprovedprofitabilityinQ12025,drivenbystrongercustomerorderpatternsandhigheraverageweeklyorderscomparedtothesecondhalfof2024[5][18].−Plannedcapitalexpendituresfor2025areapproximately37.6 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].