Metallus Inc. (NYSE: MTUS) and United Steelworkers Local 1123 reached a new tentative four‑year labor agreement on January 16, 2026. The deal covers roughly 1,200 bargaining employees at the company’s Canton, Ohio plant and extends the current contract through February 12, 2026, giving Metallus additional time to finalize terms with union members before a formal vote.
The agreement follows two prior rejections—one on October 30 and another on December 18, 2025—though the company did not disclose the specific reasons for those earlier setbacks. By securing a tentative agreement, Metallus aims to avoid operational disruptions and maintain workforce stability while it continues negotiations, a critical step given the company’s focus on expanding aerospace and defense production capacity and its recent debt‑free status.
Metallus has been transitioning from a traditional steel producer to a specialty‑materials provider for the aerospace and defense sector. The company’s debt‑to‑equity ratio was 0% as of September 2025, and it remains debt‑free. Despite a negative EPS of –$0.19 and a net margin of –0.73% as of January 16, 2026, Metallus has posted four consecutive quarters of sales and margin growth, driven in part by improved melt utilization and strategic investments in high‑margin defense contracts. The company has secured significant funding from the U.S. Army for munitions programs and aims to lift aerospace and defense product sales to $250 million by mid‑2026.
CEO Mike Williams said the tentative contract “reflects our ongoing effort to balance both the needs of our employees and the priorities of the company. The tentative contract offers a fair and reasonable resolution, and we value the constructive cooperation from all parties to reach a solution that benefits our employees, maintains job stability, and supports Metallus’ future success.” The agreement is expected to provide a stable labor environment that supports the company’s strategic pivot and helps mitigate headwinds such as pricing pressure in legacy steel markets.
The tentative agreement positions Metallus to capitalize on growing demand for specialty materials in defense and aerospace, where the company’s higher‑margin products can offset the lower profitability of its traditional steel operations. By securing workforce stability, Metallus can focus on scaling its defense contracts, improving operational efficiency, and maintaining its debt‑free balance sheet, all of which are key to sustaining long‑term growth in a competitive market.
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