Key Highlights

  • Third-quarter 2026 Revenue came to $337.2 million, rising 10% compared with $305.9 million one year prior.
  • Profit totaled $23.8 million, equal to $0.55 per diluted share, against $8.1 million, which was $0.19 per share, in the prior-year period.
  • Adjusted EBITDA came in at $34.5 million, a 19% gain sequentially and a 19% gain annually.
  • A contract with the United States Defense Logistics Agency could reach $995 million across five years, starting with a $125 million initial order.
  • Management anticipates full-year adjusted EBITDA in a band from $100 million up to $105 million.

Bottom Line Almost Triples While Top Line Climbs 10% Annually

Metallus (NYSE:MTUS) released its third-quarter 2026 report on Nov 2, 2026, which covers the period ending Sep 30, 2026. Sales amounted to $337.2 million, compared with $305.9 million in the year-earlier quarter and sitting 1% below the second quarter's $341.0 million. Net Income came to $23.8 million, equal to $0.55 for each diluted share, against $8.1 million ($0.19 per share) last year and $8.9 million for the quarter before.

Adjusted Earnings reached $14.9 million, equal to $0.35 per share, against $11.8 million a year before. Those adjusted figures leave out a $15.7 million pre-tax gain tied to remeasuring benefit plans. Adjusted EBITDA came to $34.5 million, versus $29.0 million for each of the previous quarter and the year-earlier quarter.

The company produces specialty metal products from recycled scrap at its plant in Canton, Ohio, turning out items like alloy steel bars and tubing without seams.

Higher Prices and Product Mix Counter a 5% Quarter-over-Quarter Shipment Decline

Shipments totaled 165,800 tons, a decline of 8,400 tons, or 5%, versus the second quarter, primarily because automotive and energy volumes were lower. Pricing and product mix drove the 10% yearly sales increase.

Gross profit reached $36.3 million, up from $35.0 million last year, while SG&A decreased to $23.8 million, down from $24.5 million. Utilization in melt operations was 76% before an estimated three-point effect from electricity curtailments, against 74% in each comparison period.

Defense Logistics Agency Award of Up to $995 Million Supports the Growth Outlook

During the quarter, the aerospace and defense Business hit its $250 million annualized run rate target. The company also secured a contract with the U.S. Defense Logistics Agency worth as much as $995 million across five years, starting with a $125 million initial purchase order.

Leadership indicated that order Backlog expansion provides visibility through 2027. Delivery timelines for bar and tube items stretch to the second quarter of 2027. A $60-per-ton price increase on bar products and seamless mechanical tubing that has been quench-and-tempered began in early October for buyers without annual contracts.

Annual Maintenance Shutdown Set to Pull Fourth-Quarter Adjusted EBITDA Lower

Cash from operations totaled $6.8 million, since higher inventory soaked up most of the profit. Capex reached $13.1 million, of which $4.9 million went to projects largely financed by the U.S. government. The firm bought back 0.2 million shares at a cost of $3.6 million, which leaves $78.2 million available under its authorization.

Shipments should fall at a high single-digit rate on year-end seasonality. The yearly maintenance shutdown is anticipated to lower adjusted EBITDA by roughly $10 million to $15 million compared with the third quarter. For all of 2026, adjusted EBITDA is expected to fall within a $100 million to $105 million span, while capital expenditures should approach $70 million.