NYSE$MTUS

Metallus Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported an increase in net sales driven by higher shipments and base sales prices, resulting in positive net income and adjusted EBITDA.

TimkenSteel reported a net sales of $323.5 million and a net income of $14.4 million, or $0.30 per diluted share for Q1 2023. On an adjusted basis, net income was $20.8 million, or $0.44 per diluted share, and adjusted EBITDA was $36.0 million. The company's performance was driven by a 35% increase in shipments and strong base pricing.

  • Net sales increased by 32% compared to the fourth quarter of 2022, reaching $323.5 million.
  • Net income was $14.4 million, with an adjusted EBITDA of $36.0 million.
  • Operating cash flow was $9.8 million, with cash and cash equivalents ending at $227.4 million.
  • The company deployed $28.1 million in cash to repurchase common shares and convertible notes.

Headline financials

Total Revenue

$324M

Previous: $352M-8.1%
EPS (adj)

$0.44

Previous: $0.92-52.2%
Ship Tons

172.9K

Previous: 196.4K-12.0%
Capital Expenditures

-$10.6M

Previous: -$6.5M-63.1%
Free Cash Flow

$3.8M

Previous: $30.6M-87.6%
Net Income

$14.4M

Previous: $37.1M-61.2%
Operating Income

$19.5M

Previous: $41.2M-52.7%
Gross Profit

$40.4M

Previous: $60M-32.7%
Cash & Equivalents

$227M

Previous: $240M-5.2%
Total Assets

$1.14B

Previous: $1.19B-4.3%
Stock-Based Comp

$2.6M

Previous: $2.1M+23.8%

Revenue & EPS history

Metallus · Revenue · Quarterly

$324M

Q1 2023-8.1%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Metallus · $196M total across 3 segments · Q1 2023

  • Industrial
    $144M-17.9%
  • Energy
    $46.2M+84.8%
  • Other
    $5.8M-26.6%

Forward guidance

TimkenSteel expects to report a sequential increase in adjusted EBITDA in the second quarter of 2023.

Tailwinds

  • Ship tons are expected to sequentially increase in the second quarter with customer orders booking into the third quarter.
  • Base price per ton is anticipated to remain strong for the remainder of 2023.
  • The company expects an average melt utilization rate of approximately 75 percent for the second quarter.
  • Inflationary pressure is anticipated to be stable on commodities, consumables and other manufacturing costs.
  • Operating cash flow is expected to be positive in the second quarter, primarily driven by anticipated profitability.

Headwinds

  • Annual shutdown maintenance is planned for the second half of 2023 at a cost of approximately $14 million.
  • The company continues to seek additional insurance recoveries related to unplanned downtime in the second half of 2022, although the timing and amount of potential additional recoveries are uncertain at this time.
  • Planned capital expenditures are expected to be approximately $45 million in 2023, consistent with previous guidance.

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 2023

Historical avgQ1 2023

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro