NYSE$MTUS

Metallus Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

TimkenSteel's financial performance improved with increased net sales and record profitability.

TimkenSteel reported Q2 2021 net sales of $327.3 million and net income of $54.0 million, or $0.98 per diluted share. On an adjusted basis, net income was $52.5 million, or $0.96 per diluted share, and adjusted EBITDA was $71.0 million. The company saw continued strength in most end markets despite semiconductor related customer outages.

  • Net sales of $327.3 million increased 20 percent sequentially on continued strength in industrial end-market demand.
  • Record profitability with net income of $54.0 million and adjusted EBITDA of $71.0 million.
  • Operating cash flow of $39.2 million resulted in further expansion of total liquidity.
  • Ship tons of 214,200 increased 11 percent sequentially as a result of higher industrial and energy shipments despite an approximate 16,000 ton decrease related to the semiconductor chip shortage in the automotive market during the quarter.

Headline financials

Total Revenue

$327M

Previous: $154M+112.5%
EPS (adj)

$0.96

Previous: -$0.31+409.7%
Ship Tons

214.2K

No prior period
Capital Expenditures

-$3.8M

Previous: -$9.6M+60.4%
Free Cash Flow

$50.2M

Previous: -$24.9M+301.6%
Net Income

$54M

Previous: -$15.3M+452.9%
Operating Income

$37.4M

Previous: -$21.1M+277.3%
Gross Profit

$67.2M

Previous: -$4M+1780.0%
Cash & Equivalents

$115M

Previous: $75.5M+52.6%
Total Assets

$1.06B

Previous: $1B+5.9%
Stock-Based Comp

$1.8M

Previous: $1.6M+12.5%

Revenue & EPS history

Metallus · Revenue · Quarterly

$327M

Q2 2021+112.5%vs Q2 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Metallus · $194M total across 3 segments · Q2 2021

  • Industrial
    $174M
  • Energy
    $13.2M
  • Other
    $7.6M

Forward guidance

Given continued strength in end market demand, the company expects third quarter ship tons to be similar to second-quarter levels. While the company’s order book is full for the remainder of 2021, periodic automotive customer manufacturing outages due to the semiconductor chip shortage may negatively impact third quarter automotive shipments.

Tailwinds

  • Melt utilization is expected to be at or above 85 percent during the third quarter.

Headwinds

  • Annual shutdown maintenance was completed at the company’s rolling and finishing operations during the third quarter at a cost of approximately $5 million.
  • In the fourth quarter, annual shutdown maintenance is planned at the Faircrest melt shop at a cost of approximately $5 million.
  • The company anticipates $2 million to $3 million of incremental cost in the second half of 2021 associated with labor agreement negotiations.

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 Q2 2021

Historical avgQ2 2021

+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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