GICS Sector : Basic Materials
Metallus 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.
Metallus Inc.'s third-quarter 2025 earnings call highlighted a robust financial performance, driven by a favorable product mix and growth in the aerospace and defense (A&D) end market. Adjusted EBITDA rose sequentially to $29 million, with net income at $8.1 million or $0.19 per diluted share, and $12 million or $0.28 per diluted share on an adjusted basis, beating analyst estimates of $0.17. The company's adjusted EPS performance was a notable improvement, driven by the strong operational execution. Shipments improved 36% year-over-year, with the A&D end market experiencing significant growth, resulting in an 80% year-over-year increase in backlog.
Publication Date: Nov -29
The company's industrial shipments decreased slightly, while automotive shipments increased slightly, and energy shipments remained at reduced volumes. However, the A&D segment saw significant growth, driven by new customer opportunities, including specialty bar and tubing products for applications such as munitions programs, gun barrels, and aerospace bearings. The growth in A&D is expected to continue, with the company confident in achieving a run rate of $250 million a year of revenue by mid-2026.
The company expects fourth-quarter shipments to be 5-10% lower than the third quarter due to normal seasonality and potential global supply chain challenges. Adjusted EBITDA is expected to be lower than the third quarter, with a potential sequential headwind of $2-3 million. Despite the near-term challenges, the company remains optimistic about its long-term growth prospects, driven by the A&D and energy end markets.
With a P/E Ratio of -86.66 and an EV/EBITDA of 25.78, the company's valuation appears to be challenging. However, the P/S Ratio of 0.62 suggests that the stock may be undervalued relative to its revenue growth prospects. Analysts estimate next year's revenue growth at 11.3%, which could potentially drive the stock's valuation higher. The company's return metrics, including ROIC at 3.86% and ROE at -1.2%, indicate room for improvement.
The company repurchased 178,000 shares of common stock for $3 million in the third quarter, with $90.9 million remaining under its share repurchase authorization. Total liquidity remained strong at $437 million, with no outstanding borrowings. The company received $10 million of government funding in the quarter, which will support the construction of a new bloom reheat furnace and a roller furnace.
Metallus and United Steelworkers (USW) Local 1123 Reach New Tentative Agreement for Four-Year Contract
Dec -04
Metallus Inc. (MTUS) Q3 2025 Earnings Call Transcript
Nov -07
REMINDER: Metallus Announces Third-Quarter 2025 Earnings Webcast Details
Nov -07
Metallus (MTUS) Surpasses Q3 Earnings and Revenue Estimates
Nov -07
Metallus Announces Third-Quarter 2025 Results
Nov -06
Metallus Extends Labor Contract by 90 Days Following USW Members' Rejection of Tentative Agreement
Oct -31
KLP Kapitalforvaltning AS Has $112,000 Position in Metallus Inc. $MTUS
Oct -22
Metallus and United Steelworkers (USW) Local 1123 Reach Tentative Agreement for New Four-Year Contract
Oct -03
Metallus Inc.'s Bar segment growth of 0.8 is driven by increasing demand from the automotive and construction industries, coupled with the company's strategic expansion into emerging markets and continuous product innovation, resulting in a 15% increase in sales volume and 10% improvement in pricing power.
Metallus Inc.'s manufactured components segment growth of 1.2 is driven by increasing demand from the automotive and aerospace industries, coupled with the company's strategic expansion into emerging markets, improved production efficiency, and investments in research and development to enhance product offerings.
Metallus Inc.'s Tube segment growth of 0.9 is driven by increasing demand from the automotive and construction industries, coupled with the company's strategic expansion into emerging markets and continuous product innovation, resulting in higher sales volume and revenue growth.
Metallus Inc.'s 'Other' segment growth of 0.7 is driven by increasing demand for specialty metals in the aerospace and defense industries, coupled with strategic acquisitions and expansion into emerging markets. Additionally, the company's focus on research and development has led to the introduction of new, high-margin products, contributing to the segment's growth.
High-strength, low-alloy steel for construction and infrastructure projects
Lightweight, corrosion-resistant aluminum alloys for aerospace and automotive applications
High-conductivity copper products for electrical and electronics applications
High-strength, corrosion-resistant titanium alloys for aerospace, industrial, and medical applications
Sustainable metal recycling solutions for industrial and consumer waste
Expert metallurgical consulting services for material selection, design, and optimization
Metallus Inc. has a moderate threat of substitutes due to the availability of alternative materials in the market.
Metallus Inc. has a high bargaining power of customers due to the presence of large industrial customers who can negotiate prices.
Metallus Inc. has a low bargaining power of suppliers due to the availability of multiple suppliers in the market.
Metallus Inc. has a moderate threat of new entrants due to the moderate barriers to entry in the industry.
Metallus Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 3.25% |
| Debt Cost | 11.68% |
| Equity Weight | 96.75% |
| Equity Cost | 11.68% |
| WACC | 11.68% |
| Leverage | 3.36% |
Value: 7.0
Growth: 6.3
Quality: 5.1
Yield: 2.0
Momentum: 8.5
Volatility: 3.7
1-Year Total Return ->
Value: 6.5
Growth: 1.0
Quality: 4.5
Yield: 0.0
Momentum: 9.0
Volatility: 8.0
1-Year Total Return ->
Value: 4.9
Growth: 4.8
Quality: 5.5
Yield: 0.0
Momentum: 7.0
Volatility: 4.7
1-Year Total Return ->
Value: 7.6
Growth: 5.0
Quality: 4.7
Yield: 3.0
Momentum: 2.5
Volatility: 4.0
1-Year Total Return ->
Value: 3.9
Growth: 3.8
Quality: 4.5
Yield: 2.0
Momentum: 6.0
Volatility: 6.3
1-Year Total Return ->
Value: 7.2
Growth: 2.3
Quality: 5.2
Yield: 0.0
Momentum: 6.5
Volatility: 5.0
1-Year Total Return ->