Metallus Q1 sales beat analyst estimates

Overview

• US specialty metals maker's Q1 net sales rose 10% yr/yr, beating analyst expectations

• Adjusted EBITDA climbed 39% yr/yr, driven by higher shipments and improved manufacturing

• Company repurchased $4.3 mln in shares and invested $24.7 mln in capital expenditures

Outlook

• Metallus expects Q2 adjusted EBITDA to be modestly higher than Q1 and Q2 2025

• Company expects Q2 shipments to increase modestly, in the low single digits percentage-wise

• Metallus anticipates Q2 price and mix to be similar to Q1, with improvement in H2 2026

Result Drivers

• HIGHER SHIPMENTS - Co said net sales growth was driven by increased shipments across most end-markets

• IMPROVED MANUFACTURING - Co cited improved fixed-cost leverage from higher production volumes and higher melt utilization

• PRICING AND SURCHARGES - Higher raw material surcharge revenue per ton and increased average base sales prices contributed to sales growth

Company press release: ID:nPn79Mjqja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for Metallus Inc is $21.00, about 9.7% above its May 1 closing price of $19.14

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

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