US based Metallus Inc. announced strong third quarter results, delivering continued net income and EBITDA increases. Aerospace and defense remained the primary growth driver, with shipments and sales both higher and the company securing a major Defense Logistics Agency award.
Metallus reported net income of $23.8 million for the third quarter of 2026, compared to $8.9 million in the second quarter of 2026 and $8.1 million in the third quarter of 2025. Net sales for the third quarter were $337.2 million, down one percent quarter over quarter from $341.0 million and up 10 percent year over year from $305.9 million. The company's adjusted EBITDA for the third quarter was $34.5 million, up 19 percent from $29.0 million in both the second quarter of 2026 and the third quarter of 2025.
Third quarter net income includes a gain of $15.7 million from the remeasurement of the company's benefit plans. Excluding that gain, adjusted net income for the quarter was $14.9 million, compared to $11.1 million in the second quarter of 2026 and $11.8 million in the third quarter of 2025.
Shipments totaled 165,800 tons in the third quarter, down five percent quarter over quarter from 174,200 tons, driven by lower shipments in the automotive and energy end markets, and up two percent year over year from 163,100 tons. Net sales per ton rose to $2,034, up four percent quarter over quarter from $1,958 and up eight percent year over year from $1,876, reflecting higher average base prices, increased raw material surcharge revenue and improved product mix.
Aerospace and defense continued to lead growth, with shipments of 21,900 tons, up from 20,000 tons in the second quarter and 16,300 tons a year earlier, and net sales of $66.4 million, up 41 percent year over year from $47.2 million. The company said it reached its annualized $250 million run-rate sales target for aerospace and defense during the quarter.
Metallus was also awarded a US Defense Logistics Agency (DLA) contract with an initial $125 million purchase order and a total contract value of up to $995 million over five years. As previously announced, president and chief operating officer Kristopher Westbrooks will succeed Mike Williams as chief executive officer when Williams retires at the end of 2026.
For the fourth quarter of 2026, Metallus expects adjusted EBITDA to be lower than in the third quarter. Fourth quarter shipments are expected to decrease sequentially by a high single-digit percentage due to normal year-end seasonality, while increasing compared with the fourth quarter of 2025, and price and mix are expected to be slightly lower than in the third quarter.
Annual shutdown maintenance planned for the fourth quarter is expected to reduce adjusted EBITDA by about $10 million to $15 million versus the third quarter. The company expects full-year 2026 adjusted EBITDA of $100 million to $105 million. Lead times for bar and tube products currently extend into the second quarter of 2027.
Current Metallus chief executive officer, Mike Williams, said, “We are pleased to have achieved our annualized $250 million run-rate sales target for aerospace and defense this quarter. The continued expansion of favorable product mix and disciplined pricing actions coupled with strength across all end markets allowed us to deliver the third straight quarter of year-over-year improved profitability. During the quarter, we celebrated the commissioning of new assets supporting critical defense materials, announced our planned CEO transition, and further strengthened our long-term growth outlook with a new DLA award, including an initial $125 million purchase order and a contract value of up to $995 million over five years.”
Williams continued, “The momentum we have built throughout 2026, combined with growing demand, targeted investments and continued operational execution, reinforces our confidence for another year of anticipated profitable growth as we plan for 2027.”
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