The American company Metalllus Inc. announced a net profit of $8.9 million for the second quarter of 2026, compared with $5.4 million in the first quarter of 2026 and $3.7 million in the second quarter of 2025. Net sales for the second quarter were $341.0 million, compared to $308.3 million in the first quarter of 2026 and $304.6 million in the second quarter of 2025. The company's adjusted EBITDA for the second quarter was $29.0 million, an increase of 18% compared to the previous quarter and nine% year-on-year.
Shipments in the second quarter totaled 174,200 tons, an increase of 10,400 tons, or six percent, from the previous quarter and four percent year-on-year. Net sales per tonne increased to US$ 1,958 from US$1,882 in the first quarter of 2026 and US$1,816 in the second quarter of 2025, reflecting higher revenues from feedstock surcharges, higher average base selling prices and an improved product range. The melt utilization rate increased to 74 percent, compared with 72 percent in the first quarter of 2026 and 71 percent in the second quarter of 2025, although the company noted that production costs consistently decreased as usage levels fell short of plan and maintenance costs increased to improve the reliability of production assets.
The aerospace and defense industries were the main end market, with shipments totaling 20,000 tons, up 30 percent from the same period last year (15,400 tons), and net sales totaling $60.1 million, up 43 percent from the same period last year ($42.1 million). Car shipments increased to 74,900 tons from 69,600 tons a year earlier. Supplies of industrial products and energy resources were slightly lower year-on-year and amounted to 65,200 tons and 14,100 tons, respectively. During the quarter, the company completed the commissioning of its new bloom heating furnace, while the roller furnace remained on schedule, investments were directly related to the expansion of the company's aerospace and defense capabilities.
As of June 30, 2026, cash and cash equivalents totaled US$ 108.6 million and total liquidity was US$ 394.8 million. Operating cash flow for the quarter was $12.8 million and capital expenditures were $15.2 million, including $9.5 million for projects funded primarily by the U.S. government. The company refinanced its asset-based revolving credit facility on June 30, 2026, extending the maturity to June 2031 with $300.0 million of available financing remaining unused. During the quarter, Metalllus received the last $11.3 million from the U.S. Army as part of a $99.75 million facility expansion financing agreement in support of ammunition production, bringing the total amount of government funding received to $102.8 million.
In the third quarter of 2026, Metalllus expects adjusted EBITDA to be marginally higher than in the second quarter of 2026 and the third quarter of 2025. The volume of shipments in the third quarter is expected to be the same as in the second quarter, with prices and assortment slightly better. The company recently announced price increases starting in early August for customers not subject to annual pricing agreements of $60 per ton of bar, $100 per ton of carbon seamless mechanical pipes, and $160 per ton of alloy seamless mechanical pipes, with the benefits of full operation expected to be realized starting since 2027. The terms of bar and pipe products are extended at the end of IV quarter.
Mike Williams, Metalllus chief executive officer, said: "We delivered a strong second quarter, highlighted by increased shipments, improved pricing and product mix, and increased profitability both sequentially and year-over-year. Demand remains high in all our countries. The main end markets are sales, which is facilitated by a significant volume of orders, which ensures high visibility for the second half of 2026. We have successfully completed the commissioning of our new bloom heating furnace, and the roller furnace is operating on schedule. These investments represent important milestones in our quest to expand our presence in the aerospace and defense markets, while continuing to support our long-standing projects in the automotive, industrial, energy, and distribution customers."
Mister. Williams continued, "As we enter the second half of 2026, we have a large order portfolio, a profitable product range, stable price dynamics, and a daily focus on operational execution. As a result, we expect profitability to continue to improve compared to the same periods last year, and cash flow generation to be positive."
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