US-based Metallus Inc. has announced net income of $8.9 million for the second quarter of 2026, compared to $5.4 million in the first quarter of 2026 and $3.7 million in the second quarter of 2025. Net sales for the second quarter were $341.0 million, compared to $308.3 million in the first quarter of 2026 and $304.6 million in the second quarter of 2025. The company's adjusted EBITDA for the second quarter was $29.0 million, an increase of 18 percent quarter over quarter and nine percent year over year.
Shipments totaled 174,200 tons in the second quarter, an increase of 10,400 tons or six percent quarter over quarter, and an increase of four percent year over year. Net sales per ton rose to $1,958 from $1,882 in the first quarter of 2026 and $1,816 in the second quarter of 2025, reflecting higher raw material surcharge revenue, higher average base sales prices and improved product mix. Melt utilization improved to 74 percent, up from 72 percent in the first quarter of 2026 and 71 percent in the second quarter of 2025, though the company noted that manufacturing cost performance declined sequentially as utilization fell short of plan and maintenance costs rose to address downstream asset reliability.
Aerospace and defense was the standout end-market, with shipments of 20,000 tons, an increase of 30 percent year over year from 15,400 tons, and net sales of $60.1 million, an increase of 43 percent year over year from $42.1 million. Automotive shipments rose to 74,900 tons from 69,600 tons a year earlier. Industrial and energy shipments were both modestly lower year over year at 65,200 tons and 14,100 tons respectively. The company completed commissioning of its new bloom reheat furnace during the quarter, with the roller furnace remaining on schedule, investments tied directly to expanding its aerospace and defense capability.
As of June 30, 2026, cash and cash equivalents were $108.6 million with total liquidity of $394.8 million. Operating cash flow for the quarter was $12.8 million and capital expenditures totaled $15.2 million, including $9.5 million for projects primarily funded by the US government. The company refinanced its asset-based revolving credit facility on June 30, 2026, extending the maturity to June 2031 with available capacity of $300.0 million, which remains undrawn. During the quarter Metallus received the final $11.3 million from the US Army under its $99.75 million capacity expansion funding agreement supporting munitions production, bringing total government funding received to $102.8 million.
For the third quarter of 2026, Metallus expects adjusted EBITDA to be slightly higher than both the second quarter of 2026 and the third quarter of 2025. Third quarter shipments are expected to be similar to second quarter levels, with price and mix expected to be slightly better. The company recently announced price increases effective early August for customers not covered by annual pricing agreements of $60 per ton on bar, $100 per ton on carbon seamless mechanical tubing and $160 per ton on alloy seamless mechanical tubing, with the full run rate benefit expected to be realized beginning in 2027. Lead times for bar and tube products currently extend into the late fourth quarter.
Mike Williams, Metallus chief executive officer, said, "We delivered a strong second quarter, highlighted by increased shipments, improved pricing and product mix and higher profitability both sequentially and compared with the prior year. Demand remains healthy across our key end markets, supported by a robust order book that provides strong visibility for the second half of 2026. We successfully completed the commissioning of our new bloom reheat furnace and the roller furnace remains on schedule. These investments represent important milestones in our commitment to growing our presence in the aerospace and defense market while continuing to support our long-standing automotive, industrial, energy and distribution customers."
Mr. Williams continued, "As we enter the second half of 2026, we have a healthy order book, favorable product mix, continued pricing momentum and a daily focus on operational execution. As a result, we expect that profitability will continue to improve compared to the same periods last year and cash flow generation will be positive."
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