NYSE$MTUS

Metallus Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported net sales and net income for the first quarter of 2022, driven by strong customer demand and higher base prices.

TimkenSteel reported first-quarter 2022 net sales of $352.0 million and net income of $37.1 million, or $0.70 per diluted share. On an adjusted basis, first-quarter 2022 net income was $48.6 million, or $0.92 per diluted share, and adjusted EBITDA was $65.3 million.

  • Net sales of $352.0 million in the first quarter reflect strength in customer demand and higher base prices.
  • Net income of $37.1 million with adjusted EBITDA of $65.3 million.
  • Operating cash flow of $13.3 million.
  • The company expects to report a sequential increase in adjusted EBITDA and positive operating cash flow in the second quarter of 2022.

Headline financials

Total Revenue

$352M

Previous: $274M+28.7%
EPS (adj)

$0.92

Previous: $0.43+114.0%
Ship Tons

196.4K

Previous: 193.4K+1.6%
Melt Utilization

81.0%

No prior period
Capital Expenditures

-$6.5M

Previous: -$2.3M-182.6%
Free Cash Flow

$30.6M

Previous: $7.5M+308.0%
Net Income

$37.1M

Previous: $9.8M+278.6%
Operating Income

$41.2M

Previous: $4.8M+758.3%
Gross Profit

$60M

Previous: $30.7M+95.4%
Cash & Equivalents

$240M

Previous: $116M+107.3%
Total Assets

$1.19B

Previous: $1.05B+13.2%
Stock-Based Comp

$2.1M

Previous: $1.8M+16.7%

Revenue & EPS history

Metallus · Revenue · Quarterly

$352M

Q1 2022+28.7%vs Q1 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Metallus · $208M total across 3 segments · Q1 2022

  • Industrial
    $175M+40.3%
  • Energy
    $25M+224.7%
  • Other
    $7.9M+3.9%

Forward guidance

The company expects to report a sequential increase in adjusted EBITDA and positive operating cash flow in the second quarter of 2022.

Tailwinds

  • Customer demand remains solid across all end markets, as evidenced by a full order book through the end of the third quarter of 2022.
  • Expect a sequential increase in second-quarter shipments.
  • Expect second-quarter base price per ton to be similar to slightly higher, compared with the first quarter of 2022.
  • Expect a second-quarter sequential increase in surcharge revenue per ton as a result of higher scrap and alloy prices.
  • Melt utilization is expected to be above 85 percent during the second quarter.

Headwinds

  • Periodic customer manufacturing disruptions may continue to negatively impact shipments.
  • Inflationary pressure is anticipated to continue on commodities, consumables and other manufacturing costs.
  • Operating cash flow is expected to be positive in the second quarter primarily driven by profitability and continued disciplined working capital management.
  • Capital expenditures are expected to be approximately $40 million in 2022, consistent with previous guidance.
  • The company cautions readers that actual results may differ materially from those expressed or implied in forward-looking statements made by or on behalf of the company due to a variety of factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.6%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

42%

22 / 52 earnings

Positive

+80.9%

Q4 2015

Best reaction

-16.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.6%+8.3%
Q4 2025-16.6%-18.1%-29.2%
Q3 2025-1.7%-6.8%+0.9%
Q1 2025-11.1%+2.5%+7.4%
Q4 2024-8.0%-10.6%-13.4%
Q3 2024-4.1%-3.6%+0.4%
Q2 2024-8.6%-12.6%-20.5%
Q1 2024+10.7%+11.3%+9.6%
Q4 2023-0.2%+1.3%+9.1%
Q3 2023-2.5%+0.0%+1.8%
Q2 2023-9.6%-6.3%-3.3%
Q1 2023+5.4%+6.9%+12.0%
Q4 2022+1.7%+1.0%-0.9%
Q3 2022+12.2%+14.1%+16.4%
Q2 2022-2.9%-1.1%-12.1%
Q1 2022-9.5%-13.8%+18.5%
Q4 2021+14.3%+16.2%+56.3%
Q3 2021+5.3%+10.2%+0.6%
Q2 2021+12.0%+31.8%+4.2%
Q1 2021+0.2%+11.1%+15.5%
Q4 2020-4.4%-0.7%+28.4%
Q3 2020+1.8%+15.5%+29.2%
Q2 2020+2.7%+5.9%-8.7%
Q1 2020+30.0%+26.2%+70.8%
Q4 2019-5.9%-7.8%-41.0%
Q3 2019+13.2%-13.9%+8.7%
Q2 2019-3.0%-9.9%-25.3%
Q1 2019+6.7%-1.7%-28.8%
Q4 2018+12.0%+3.1%-15.3%
Q3 2018+15.4%+5.4%+0.5%
Q2 2018-14.9%-23.8%-23.6%
Q1 2018+0.6%-2.2%+1.9%
Q4 2017-11.2%-14.3%-12.7%
Q3 2017-12.4%-22.1%-17.6%
Q2 2017-2.0%+1.1%-5.7%
Q1 2017-8.3%-9.9%-16.6%
Q4 2016+13.9%+20.0%+11.7%
Q3 2016-4.2%-7.9%+48.7%
Q2 2016-15.0%-22.7%-15.7%
Q1 2016-1.4%
Q4 2015+80.9%
Q3 2015-2.8%
Q2 2015-6.5%
Q1 2014+1.9%
Q1 2015+6.7%
Q4 2014-3.4%
Q4 2012-3.4%
Q3 2013-0.6%
Q3 2014-0.3%
Q4 2013-1.9%
Q2 2013-1.9%
Q2 2014+10.4%
Q1 2013

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