Metallus Net Income Rises to $8.9 Million on Higher Shipments
The metals producer reported net sales of $341.0 million for the second quarter, an 11% increase from the previous period.
Metallus (MTUS), the metals producer, reported net income of $8.9 million for the second quarter. The result followed a period of sequential growth in both top-line revenue and operational throughput.
Net sales rose 11% sequentially to $341.0 million from $308.3 million in the first quarter of 2026, and increased 12% year-over-year from $304.6 million in the second quarter of 2025. Adjusted EBITDA grew 18% sequentially to $29.0 million from $24.6 million in the prior quarter, and rose 9% year-over-year from $26.5 million.
Ship tons increased 6% sequentially to 174,200 tons, representing an addition of 10,400 tons. The 4% year-over-year increase in shipments was driven by the automotive and aerospace and defense end-markets. Melt utilization improved to 74% in the second quarter, up from 72% in the first quarter and 71% in the second quarter of 2025.
Manufacturing cost performance declined sequentially in the second quarter. The decline was due to higher maintenance costs and lower-than-expected fixed-cost absorption, which differed from the sequential improvement recorded in the first quarter.
Operating cash flow shifted to a positive $12.8 million in the second quarter, compared to an outflow of $26.9 million in the first quarter. The company also received the final $11.3 million of a $99.75 million U.S. Army capacity expansion funding agreement, bringing total government funding received to $102.8 million.
Metallus guides adjusted EBITDA for the third quarter of 2026 to be slightly higher than both the second quarter of 2026 and the third quarter of 2025. The company announced price increases in early August 2026, including $60 per ton on bar, $100 per ton on carbon seamless mechanical tubing, and $160 per ton on alloy seamless mechanical tubing, with full run rate benefit expected in 2027.
On June 30, 2026, the company refinanced its asset-based revolving credit facility, extending the maturity date to June 2031 with $300.0 million in available capacity. Metallus repurchased 0.2 million common shares for $3.6 million during the second quarter, following a repurchase of 0.3 million shares for $4.3 million in the first quarter.