US-based steelmaker Metallus has announced its financial results for the first quarter of 2026. The company reported a net income of $5.4 million for the first quarter of 2026, compared to a net loss of $14.3 million in the fourth quarter of 2025 and net income of $1.3 million in the given quarter of 2025. Net sales for the given period were $308.3 million, compared to $267.3 million in the fourth quarter of 2025, driven primarily by higher shipments across all end-markets, higher raw material surcharge revenue per ton, and an increase in average base sales prices, and $280.5 million in the first quarter of 2025.
Adjusted EBITDA for the first quarter of 2026 was $24.6 million, increasing by 39 percent year on year and rising significantly from $2.4 million in the fourth quarter of 2025.
Shipment volumes increased to 163,800 mt, an increase of 11 percent quarter over quarter and an increase of seven percent year over year. Shipments grew across all end-markets except energy on a year-over-year basis. Melt utilization improved to 72 percent in the first quarter, up from 66 percent in the fourth quarter of 2025 and 65 percent in the first quarter of 2025.
The company serves four primary end-markets: industrial, automotive, aerospace and defense, and energy. In the first quarter of 2026, industrial and automotive each accounted for approximately 67,000 ship tons, while aerospace and defense contributed 17,700 mt and energy 12,400 mt. Net sales per ton across all segments averaged $1,882, compared to $1,806 in the fourth quarter of 2025 and $1,835 in the first quarter of 2025.
During the quarter, the company received $4.9 million from the US Army as part of a previously announced $99.75 million capacity expansion funding agreement in support of the US Army's mission of ramping up munitions production. The company also received $1.0 million from JobsOhio as part of a $3.5 million grant. To date, the company has received $91.5 million in government funding related to the capacity expansion project. Capital expenditures totaled $24.7 million in the first quarter, including $18.3 million for projects primarily funded by the US government.
The company recently implemented spot price increases on both bar and seamless mechanical tubing products not covered by annual pricing agreements, with those increases taking effect at various dates throughout the second half of 2026. Lead times for bar and tube products currently extend into the late third quarter.
Looking forward, for the second quarter of 2026, the company expects adjusted EBITDA to be modestly higher than both the first quarter of 2026 and the second quarter of 2025. Second-quarter shipments are expected to increase modestly on a sequential basis, supported by continued strength in the order book and normal seasonality. Second quarter pricing and product mix are expected to be similar to the first quarter, with improvement anticipated in the second half of 2026. Manufacturing costs are expected to improve sequentially by approximately $2 million as a result of higher melt utilization.
Michael Williams, Metallus CEO, said, "In the first quarter, our order book continued to grow year-over-year, supported by strengthening demand across all our end markets. We continued to invest in the next stages of operational excellence, resulting in higher melt utilization that improved both sequentially and year over year in the first quarter. In addition, we achieved an important milestone by successfully reheating and rolling the first blooms from our new bloom reheat furnace. Looking ahead, we continue to expect improved profitability in each quarter of 2026 compared with the prior year period, driven by a strong order book, a favorable product mix, and an improving pricing environment."