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Here are 1-2 brief analogies to describe Metallus (MTUS):

• Metallus is like Carpenter Technology for specialty steel products.
• Metallus is like Allegheny Technologies (ATI) focusing on high-performance steel.

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• Special Bar Quality (SBQ) Steel: High-performance steel bars tailored for critical applications in various industries.
• Seamless Mechanical Tubing: Cylindrical steel products known for their uniform strength and concentricity, ideal for demanding mechanical components.
• Forged Steel Parts: Custom-engineered steel components shaped through a forging process, providing superior strength and durability.
• Bloom and Billet Steel: Semi-finished steel products used as raw material for further processing into bars, tubes, or other forms.

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Major Customers of Metallus (MTUS)

Metallus (MTUS) primarily operates on a Business-to-Business (B2B) model, selling its custom-engineered steel products, including specialty alloy steel bars, seamless mechanical tubing, and manufactured components, to other companies.

While Metallus states in its SEC filings that no single customer accounted for 10% or more of its net sales in recent years (meaning specific individual major customers are not publicly disclosed), their customer base consists of Original Equipment Manufacturers (OEMs) and their suppliers across demanding industrial markets. Their top 10 customers collectively represent a significant portion of their net sales.

Based on the industries Metallus serves and public information, major customers or representative companies in their customer base include:

• The Timken Company (TKR): A global leader in engineered bearings and power transmission products. As the former parent company of TimkenSteel (now Metallus), The Timken Company remains a significant and long-standing customer for specialty steel used in its high-performance bearings and other mechanical components.
• Heavy Equipment & Automotive Manufacturers (OEMs and Tier 1 Suppliers): Companies that produce heavy-duty trucks, construction equipment, agricultural machinery, and their component suppliers. These often require high-strength, durable steel for critical parts like axles, transmissions, and engine components. Examples of such companies include:
  • PACCAR Inc (PCAR): A leading global technology company and manufacturer of premium light, medium, and heavy-duty trucks (e.g., Kenworth, Peterbilt, DAF).
  • Caterpillar Inc. (CAT): The world's largest manufacturer of construction and mining equipment, as well as diesel and natural gas engines.
  • Deere & Company (DE): A global leader in the manufacturing of agricultural, construction, and forestry machinery.
• Industrial Component Manufacturers: These are a broad category of companies that supply critical components for various industrial machinery, precision parts, and other specialized applications requiring high-quality steel. Many of these are large private companies or divisions of larger public corporations that operate across diverse sectors.
• Energy Sector Equipment Manufacturers: Suppliers of equipment and components for oil and gas exploration, drilling, and production (e.g., downhole tools, wellhead equipment), as well as power generation equipment.

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Mike Williams, Chief Executive Officer

Mike Williams currently serves as Metallus' Chief Executive Officer, having joined the company on January 1, 2021. Prior to his role at Metallus, he was the Chief Executive Officer of Bayou Steel Group, a U.S. producer of structural steel and merchant bar. He also served as President Outokumpu Americas for Outokumpu Oyj, a global leader in the stainless steel industry. Earlier in his career, Williams held several leadership positions at U.S. Steel Corporation, including Senior Vice President North American Flat Rolled, and Senior Vice President, Strategic Planning, and Business Development. He also served as Vice President of Commercial Products at Special Metals Corporation and as Chairman and Chief Executive Officer of Ormet Corporation.

John Zaranec, Executive Vice President and Chief Financial Officer

John Zaranec joined Metallus as Executive Vice President and Chief Financial Officer in June 2025. He leads the teams responsible for financial planning and analysis, controllership, investor relations, tax, treasury, risk management, and information technology. Zaranec has over 20 years of financial experience in the manufacturing and industrial sectors. He previously served as Division Chief Financial Officer at Materion Corporation, where he led the finance strategy and function for the Performance Materials segment. His past experience at Materion also includes roles as Chief Accounting Officer, Corporate Controller, and Head of Investor Relations. He also held finance and accounting leadership positions at The Timken Company.

Kristopher R. Westbrooks, President and Chief Operating Officer

Kristopher R. Westbrooks was promoted to the newly created role of President and Chief Operating Officer, effective June 16, 2025. In this role, he leads Metallus' safety, manufacturing operations and excellence, and supply chain organizations. Westbrooks previously served as the company's Chief Financial Officer since September 2018. Before joining Metallus, he was with A. Schulman, Inc., where he held the positions of Vice President, Chief Accounting Officer, and Corporate Controller. He began his career in public accounting.

Kevin Raketich, Executive Vice President and Chief Commercial Officer

Kevin Raketich was named Executive Vice President and Chief Commercial Officer in May 2022. He most recently served as Executive Vice President of Sales, Marketing, and Business Development for Metallus Inc. Since joining the company in 1990, he has held various positions in manufacturing, marketing, and strategy, including leadership of the global steering business segment when the steel business was part of The Timken Company.

Kris Syrvalin, Executive Vice President, General Counsel and Chief Human Resources Officer

Kris Syrvalin was named Executive Vice President, General Counsel and Chief Human Resources Officer in May 2022. In this role, she is responsible for the legal, ethics and compliance, and human resources functions. Syrvalin most recently served as Executive Vice President, General Counsel and Secretary of Metallus Inc. She has extensive experience advising corporations, senior management, and boards of directors on matters such as corporate and securities law, corporate finance, corporate governance, executive compensation, employee benefits, employment law, and mergers and acquisitions.

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The key risks to Metallus's business include its exposure to cyclical end markets, volatility in raw material and energy prices, and uncertainties related to labor relations.

1. Exposure to Cyclical End Markets and Fluctuating Demand: Metallus is significantly exposed to cyclical industries such as automotive and construction, which directly influence the demand for its steel products. The company has experienced declines in sales and shipments due to reduced demand across various end markets. For instance, in Q3 2024, Metallus reported a 23% drop in net sales attributed to reduced shipments and lower scrap prices, and "weak demand across the majority of our end markets drove lower shipments" in 2024, resulting in "disappointing financial performance".
2. Volatility in Raw Material and Energy Prices: The cost of key raw materials, such as coking coal, and energy expenses, particularly electricity, pose ongoing operating risks for Metallus. Fluctuations in these prices can impact production costs and pressure profit margins. For example, there was an "over 12% surge in coking coal prices in 2024". Management actively manages energy contracts to mitigate exposure, but these remain significant cost challenges.
3. Labor Relations and Contract Negotiation Uncertainties: Metallus faces risks associated with labor relations, specifically ongoing negotiations with its unionized workforce. In October 2025, members of the United Steelworkers (USW) Local 1123 did not ratify a tentative labor agreement, leading to an extension of the existing contract. Such uncertainties can impact operational stability and potentially lead to increased labor costs depending on the outcome of future negotiations.

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The clear emerging threat for Metallus (MTUS) is the rapid emergence and increasing market adoption of "green steel" or ultra-low carbon steel. This is driven by significant global investments in new, lower-emission production technologies (such as hydrogen direct reduced iron) and strong, committed demand from major industrial and automotive customers who are prioritizing the decarbonization of their supply chains. Companies like H2 Green Steel are already securing substantial funding and signing off-take agreements with prominent automotive manufacturers (e.g., Mercedes-Benz, BMW, Volvo) for near-zero-emission steel, with production slated to begin in the coming years. If Metallus cannot quickly adapt its production processes to meet these evolving low-carbon standards and offer competitive "green" products, it risks losing significant market share among customers with aggressive decarbonization targets, as they shift their procurement towards suppliers of environmentally superior steel.

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Metallus (symbol: MTUS) operates in markets for high-performance specialty metals, primarily focusing on special bar quality (SBQ) steel and seamless mechanical tubing. The company also produces manufactured and precision steel components.

Addressable Markets:

• Special Bar Quality (SBQ) Steel:

  The global market for Special Bar Quality (SBQ) steel was valued at approximately USD 28.98 billion in 2024 and is projected to grow to about USD 39.46 billion by 2033. Another estimate places the global SBQ steel market size at USD 31.18 billion in 2025, expected to reach USD 47.42 billion by 2035. North America represents a significant portion of this market, accounting for over 45% of the global SBQ steel market revenue in 2022. The European SBQ steel market alone was valued at USD 8.79 billion in 2023, with projections to reach USD 15.30 billion by 2032.

• Seamless Mechanical Tubing (Seamless Steel Tubes/Pipes):

  The global seamless pipe market was valued at approximately USD 255.0 billion in 2024 and is anticipated to reach USD 405.44 billion by 2033. Another source indicates the global seamless pipes market size was USD 263.90 billion in 2024, with an expected increase to USD 405.00 billion by 2032. Focusing specifically on seamless steel tubes, the global market size was USD 62.14 billion in 2024 and is projected to grow to USD 103.10 billion by 2031. North America is a major contributor to this market, holding more than 40% of the global revenue with a market size of USD 24.86 billion in 2024. The U.S. mechanical tube & pipe market alone was valued at USD 2.44 billion in 2023, with a projected growth to USD 2.99 billion by 2032.

• Precision Steel Components (Cold Finished Iron and Steel Bars and Bar Size Shapes):

  The global market for cold finished iron and steel bars and bar size shapes, which includes precision components, is estimated to be USD 13.2 billion in 2025 and is projected to grow to USD 23.5 billion by 2035. The global stainless steel bars and bar-size shapes market, another relevant category for precision components, was valued at USD 23 billion in 2024 and is expected to reach USD 36.2 billion by 2034. The U.S. market for stainless steel bars and bar-size shapes alone accounted for over USD 2.6 billion in revenue in 2024.

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Metallus (MTUS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Expansion in the Aerospace and Defense Sector: Metallus has a strategic focus on the aerospace and defense market, which is projected for significant growth. The company reported an approximately 80% year-over-year increase in its aerospace and defense backlog as of Q3 2025 and aims to achieve a $250 million annual run-rate in this segment by mid-2026. This growth is supported by new program awards from strategic customers and investments in production capacity.
2. Strategic Capital Investments and Operational Enhancements: Metallus is undertaking substantial capital expenditures, including a $120 million plan for full-year 2025, to invest in automation, quality control systems, and new facilities such as a bloom reheat furnace and roller furnace. These investments, partly supported by government funding, are crucial for meeting stringent aerospace standards, driving manufacturing efficiency, and supporting future growth. The company has also secured a long-term supply agreement for vacuum arc remelt (VAR) steel, indicating growth in specialized product offerings.
3. New Customer Acquisition and Market Share Gains: The company successfully acquired over two dozen new customers in 2025, which is anticipated to contribute to future business expansion. Metallus also notes increased inquiries for 2026, with tariffs potentially influencing buying strategies and favoring domestic production.
4. Strategic Price Increases and Favorable Product Mix: Metallus has been implementing price increases on its special bar quality (SBQ) and seamless mechanical tubing products, with some taking effect through the fourth quarter of 2025. A favorable product mix, particularly driven by higher aerospace and defense shipments, contributed to increased net sales in Q3 2025.
5. Anticipated Recovery in Energy and Industrial Markets: While the energy market has experienced subdued conditions, Metallus expects growth in this sector as domestic production increases and new liquefied natural gas (LNG) plants come online. The company also saw slight sequential increases in industrial shipments during the first half of 2025, suggesting potential for broader market recovery.

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Share Repurchases

• Metallus (formerly TimkenSteel) has actively engaged in share repurchases, with TimkenSteel authorizing a $50 million program in December 2021.
• In September 2024, Metallus Inc. announced a new $100 million share repurchase program with no expiration date.
• For the full year 2024, Metallus repurchased 2.0 million common shares for $37.6 million and also repurchased convertible notes, contributing to a 25% reduction (13.5 million shares) in diluted shares outstanding since early 2022 through Q3 2025.

Inbound Investments

• Metallus secured committed funding of $99.75 million from the U.S. Army for capacity expansion to enhance munitions production capabilities, with $82 million received through September 2025.
• In 2024, the company received $53.5 million in government funding, which included a $3.5 million grant from JobsOhio.
• This government funding is primarily designated for strategic investments such as a new bloom reheat furnace at the Faircrest facility and a new roller furnace at the Gambrinus facility.

Capital Expenditures

• Metallus (formerly TimkenSteel) has consistently invested in capital expenditures, with $16.9 million in 2020, a budget of $40 million for 2022, and approximately $50 million planned for 2023.
• In 2024, capital expenditures totaled $64.3 million, including $8.0 million for U.S. government-funded projects.
• For the full year 2025, planned capital expenditures are approximately $120 million to $125 million, with $90 million funded by the U.S. government, primarily focused on enhancing defense sector capabilities, including a new bloom reheat furnace and a new roller furnace.