Metallus Inc. reported third‑quarter 2025 revenue of $305.9 million, a 35% year‑over‑year increase that exceeded consensus estimates of $301.5 million by $4.4 million, or 1.5 percentage points. The lift was driven by a 12% rise in aerospace and defense sales, which grew to $140 million, and a 9% increase in the company’s specialty steel segment, while auto and industrial revenue remained flat.
The company posted GAAP earnings per share of $0.19, slightly above the $0.17 consensus estimate, and adjusted earnings per share of $0.28, a $0.11 or 64% beat of the $0.17 forecast. The adjusted EPS beat was largely a result of disciplined cost management and higher melt utilization—72% in Q3 versus 71% in Q2—allowing Metallus to absorb raw‑material price swings while maintaining a 9.5% adjusted EBITDA margin, up 9% sequentially to $29.0 million.
Segment analysis shows aerospace and defense revenue accounted for 46% of total sales, up 12% from the prior quarter, reflecting continued demand for high‑performance specialty steels in U.S. military programs. The specialty steel segment, which includes vacuum‑arc remelt and high‑strength alloys, grew 9% as new defense contracts were signed. Auto and industrial segments were largely flat, offsetting the gains in aerospace and defense.
Operationally, Metallus completed a $10 million investment from the U.S. Army under a $99.75 million funding agreement, earmarked for a new bloom‑reheat furnace and a roller‑hearth heat‑treat furnace. The capital‑expenditure plan is expected to increase production capacity by 15% and reduce per‑unit costs through higher throughput. The company also repurchased 178,000 shares at a total cost of $3.0 million, reinforcing its commitment to shareholder returns while maintaining a liquidity position of $436.9 million.
Management highlighted that while aerospace and defense demand remains robust, the company faces headwinds in the energy and industrial markets, and ongoing labor negotiations with the United Steelworkers could lead to higher benefit costs in Q4. Despite these challenges, Metallus remains confident in its growth trajectory, citing strong government contracts and a debt‑free balance sheet as key pillars for sustained profitability.
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