Metallus Inc · Q2 2022 earnings

Briefing

Reported second-quarter 2022 results, highlighted by net sales of $415.7 million and net income of $74.5 million.

TimkenSteel reported strong second-quarter 2022 results, with net sales reaching $415.7 million and net income at $74.5 million, or $1.42 per diluted share. Adjusted EBITDA hit a record $84.2 million, driven by strong customer demand, higher base prices, and increased raw material surcharges. The company's commercial strategy is driving margin expansion, supported by product mix improvements and increased base pricing across all end markets.

• Net sales reached $415.7 million, reflecting strong customer demand, higher base prices, and increased raw material surcharges.
• Net income was $74.5 million, with a record adjusted EBITDA of $84.2 million.
• Operating cash flow was strong at $50.7 million.
• Ship tons of 208,900 increased 12,500 tons sequentially, driven by higher industrial and energy shipments.

Headline financials

Revenue & EPS history

The company expects adjusted EBITDA to remain strong in the third quarter with steady customer demand. Third quarter adjusted EBITDA is anticipated to be lower than the second quarter primarily driven by a market decline in scrap prices, which is expected to reduce surcharge revenue per ton, as well as the impacts from a recent operational disruption, which we estimate will result in melt shop downtime through mid-August. From a cash perspective, operating cash flow is anticipated to be positive in the third quarter driven by anticipated profitability and continued disciplined working capital management. Additionally, full year 2022 capital expenditures are expected to be approximately $35 million.