NYSE$MTUS

Metallus Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

TimkenSteel reported third-quarter results with increased net sales and net income compared to the previous year.

TimkenSteel reported a strong third quarter with net sales of $343.7 million and net income of $50.1 million. The company achieved record adjusted EBITDA of $72.0 million and strong operating cash flow of $53.8 million. Demand environment remains robust, and the first half of 2022 order book is filling up in a strong pricing environment.

  • Net sales increased 5 percent sequentially to $343.7 million.
  • Net income reached $50.1 million with adjusted EBITDA of $72.0 million.
  • Operating cash flow was strong at $53.8 million, a 37 percent sequential improvement.
  • Total liquidity reached a record $444.4 million.

Headline financials

Total Revenue

$344M

Previous: $206M+66.9%
EPS (adj)

$1.04

Previous: -$0.38+373.7%
Ship Tons

212.7K

Previous: 154.3K+37.8%
Capital Expenditures

-$7.3M

Previous: -$13M+43.8%
Free Cash Flow

$42.8M

Previous: -$26.9M+259.1%
Net Income

$50.1M

Previous: -$13.9M+460.4%
Operating Income

$38.3M

Previous: -$21M+282.4%
Gross Profit

$66.7M

Previous: -$2.4M+2879.2%
Cash & Equivalents

$172M

Previous: $74.8M+129.9%
Total Assets

$1.12B

Previous: $984M+13.5%
Stock-Based Comp

$1.9M

Previous: $1.6M+18.8%

Revenue & EPS history

Metallus · Revenue · Quarterly

$344M

Q3 2021+66.9%vs Q3 2020
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Metallus · $210M total across 3 segments · Q3 2021

  • Industrial
    $182M+100.7%
  • Energy
    $20.4M+191.4%
  • Other
    $7.8M+52.9%

Forward guidance

The company expects fourth quarter ship tons to be lower than third-quarter levels due to lower melt utilization from the Faircrest melt shop maintenance shutdown and potential automotive customer manufacturing outages.

Tailwinds

  • Melt utilization is expected to be at or above 75 percent during the fourth quarter.

Headwinds

  • Fourth quarter shipments will be negatively impacted by lower melt utilization as a result of the recently completed annual Faircrest melt shop maintenance shutdown.
  • Periodic automotive customer manufacturing outages due to the semiconductor chip shortage may negatively impact fourth quarter mobile shipments.
  • Annual Faircrest shutdown maintenance was completed in the fourth quarter at a cost of approximately $5 million.
  • A labor agreement ratification bonus will be paid to employees during the fourth quarter at a cost of approximately $2 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 Q3 2021

Historical avgQ3 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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