NYSE$MTUS

Metallus Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a net sales increase driven by higher shipments and base sales prices, with net income of $28.9 million.

TimkenSteel reported second-quarter 2023 net sales of $356.6 million and net income of $28.9 million, or $0.62 per diluted share. The company's performance was driven by increased shipments and base sales prices, as well as a rise in average raw material surcharge revenue per ton.

  • Net sales increased by 10% compared to the first quarter of 2023, reaching $356.6 million.
  • Net income was $28.9 million, with an adjusted EBITDA of $50.5 million.
  • Operating cash flow was $13.3 million, with cash and cash equivalents totaling $221.9 million at the end of the quarter.
  • The company deployed $11.4 million to repurchase common shares and $8.1 million for capital expenditures.

Headline financials

Total Revenue

$357M

Previous: $416M-14.2%
EPS (adj)

$0.60

Previous: $1.29-53.5%
Ship Tons

177.5K

Previous: 208.9K-15.0%
Melt Utilization

75.0%

Previous: 84.0%-10.7%
Capital Expenditures

-$18.7M

Previous: -$10M-87.0%
Free Cash Flow

$10.2M

Previous: $64.5M-84.2%
Net Income

$28.9M

Previous: $74.5M-61.2%
Operating Income

$35.9M

Previous: $59.8M-40.0%
Gross Profit

$53.7M

Previous: $81.4M-34.0%
Cash & Equivalents

$222M

Previous: $239M-7.0%
Total Assets

$1.15B

Previous: $1.22B-5.7%
Stock-Based Comp

$2.9M

Previous: $2.2M+31.8%

Revenue & EPS history

Metallus · Revenue · Quarterly

$357M

Q2 2023-14.2%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Metallus · $220M total across 3 segments · Q2 2023

  • Industrial
    $169M-18.9%
  • Energy
    $45.9M-0.9%
  • Other
    $5M-39.8%

Forward guidance

The company expects adjusted EBITDA to remain strong in the third quarter of 2023.

Tailwinds

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

Headwinds

  • Annual shutdown maintenance is planned for the second half of 2023 at a cost of approximately $12 million.

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 2023

Historical avgQ2 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

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