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Sep 30, 2024
Metallus Q3 2024 Earnings Report
Metallus reported a net loss of $5.9 million on net sales of $227.2 million.
Key Takeaways
Metallus reported Q3 2024 net sales of $227.2 million and a net loss of $5.9 million, or a loss of $0.13 per diluted share. Adjusted net loss was $4.4 million, or a loss of $0.09 per diluted share, and adjusted EBITDA was $6.1 million. The company remains on track with investments to increase capacity in support of the U.S. Army’s mission of ramping up munitions production.
Net sales were $227.2 million with a net loss of $5.9 million and adjusted EBITDA of $6.1 million.
Invested $17.6 million in capital expenditures and deployed $20.1 million to repurchase shares.
Total liquidity was strong at $496.8 million as of September 30, 2024.
The company is on track with investments to increase capacity in support of the U.S. Army’s mission of ramping up munitions production.
Revenue by Segment
Forward Guidance
The company expects adjusted EBITDA to increase modestly on a sequential basis in the fourth quarter of 2024.
Positive Outlook
- Fourth-quarter shipments are expected to be a slight increase from the third quarter.
- Lead times from customer order to shipment have increased in recent months, with bar product lead times in December and tube product lead times in January.
- Fourth-quarter product mix is expected to be favorable compared with the third quarter on higher aerospace & defense shipments, while base price per ton is anticipated to remain relatively steady.
Challenges Ahead
- The company expects the fourth-quarter average melt utilization rate to be similar to the third quarter, as the company continues to balance production with demand and completes planned annual melt shop shutdown maintenance.
- Planned annual shutdown maintenance was completed in October at a cost of approximately $6 million, relatively consistent with the level of shutdown maintenance completed in the third quarter.
- Capital expenditures are expected to be approximately $65 million in 2024, inclusive of approximately $15 million of capital expenditures funded by the U.S. government.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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