Metallus Hits Aerospace Run-Rate as Profit Rises

The Tip Desk · November 10, 2026 · 3 min read

Net income reached $23.8 million, or $0.55 a share, as adjusted EBITDA rose 19% to $34.5 million.

Metallus (MTUS), a Canton, Ohio producer of specialty metals, reported third-quarter 2026 net sales of $337.2 million, up 10% from a year earlier, and net income of $23.8 million, or $0.55 a share, compared with $8.1 million, or $0.19 a share, in the third quarter of 2025.

Adjusted EBITDA was $34.5 million, up 19% both sequentially and year over year. The company said it achieved its annualized $250 million run-rate sales target for aerospace & defense in the quarter and described a third straight quarter of year-over-year improved profitability.

Sequential sales slipped 1% from $341.0 million in the second quarter. Metallus said the decrease was driven primarily by lower shipments in automotive and energy, partially offset by higher average base sales prices and improved mix from higher aerospace & defense volumes. Ship tons fell 8,400 tons, or 5%, to 165,800 tons. Versus a year earlier, shipments rose 2%, which the company attributed to aerospace & defense and energy.

Melt utilization was 76%, excluding an approximate three percentage point impact of electricity curtailments, compared with 74% in both the second quarter of 2026 and the prior-year third quarter. Manufacturing cost performance declined sequentially, the company said, due to planned shutdown timing, electricity curtailments and higher operating costs to support demand.

On an adjusted basis, third-quarter net income was $14.9 million, or $0.35 a share. GAAP net income included a $15.7 million gain from remeasurement of benefit plans, net, among other items. Gross profit was $36.3 million.

The company was awarded a U.S. Defense Logistics Agency contract with an initial $125 million purchase order and a contract value of up to $995 million over five years. Chief executive officer Mike Williams said the award, along with commissioning of new assets supporting critical defense materials, further strengthened the long-term growth outlook in aerospace & defense.

Operating cash flow totaled $6.8 million in the third quarter, which the company said was driven by profitability and largely offset by higher inventory. Capital expenditures were $13.1 million, including $4.9 million for projects primarily funded by the U.S. government. Cash and cash equivalents were $98.6 million as of September 30, 2026, with total liquidity of $388.7 million. Metallus repurchased 0.2 million common shares for $3.6 million, leaving $78.2 million remaining under its authorized program.

Kristopher Westbrooks, president and chief operating officer, will succeed Williams as chief executive officer upon Williams’ retirement at the end of the year.

The company expects fourth-quarter adjusted EBITDA to be lower than the third quarter. Annual shutdown maintenance is planned for the fourth quarter and is expected to unfavorably impact adjusted EBITDA by approximately $10 to $15 million versus the third quarter. Fourth-quarter shipments are expected to decrease sequentially by a high-single-digit percentage, primarily due to normal year-end seasonality, while increasing compared with the prior-year fourth quarter. Price/mix is expected to be slightly lower than the third quarter. Metallus announced price increases effective early October of $60 per ton on bar and quench and temper seamless mechanical tubing for customers not covered by annual pricing agreements.

Full-year 2026 adjusted EBITDA is expected to be between $100 million and $105 million. Planned capital expenditures remain at approximately $70 million in 2026, inclusive of $35 million of capital expenditures partially funded by the U.S. government. An adjusted effective income tax rate between 27 and 30 percent is expected for the full year.