US-based Metallus reported net income of $23.8 million for the third quarter of 2026, up from $8.9 million in the previous quarter. The company also secured a contract with the US Defense Logistics Agency (DLA), including an initial $125 million purchase order and a potential total value of up to $995 million over five years.
Third-quarter net sales were $337.2 million, down 1% from the second quarter but up 10% year over year. Adjusted EBITDA rose 19% both sequentially and year over year to $34.5 million. Net income included a $15.7 million gain from remeasurement of benefit plans; adjusted net income excluding the gain was $14.9 million.
Shipments totaled 165,800 tons, down 5% from the previous quarter and up 2% year over year. Metallus attributed the sequential decline to lower shipments to the automotive and energy markets. Net sales per ton increased 4% quarter over quarter and 8% year over year to $2,034, reflecting higher prices, raw-material surcharges and a more favorable product mix.
Aerospace and defense remained the main growth driver. Shipments to those markets rose to 21,900 tons, compared with 20,000 tons in the second quarter and 16,300 tons a year earlier. Sales increased 41% year over year to $66.4 million. Metallus said it reached its annualized $250 million sales run-rate target for aerospace and defense during the quarter.
“We achieved our annualized $250 million sales run-rate target for aerospace and defense. A growing share of higher-value products, disciplined pricing and strength across all end markets helped us deliver a third consecutive quarter of improved year-over-year profitability,” Metallus CEO Mike Williams said.
The company expects fourth-quarter adjusted EBITDA to be lower than in the third quarter. Shipments are forecast to fall by a high single-digit percentage because of normal seasonality, while remaining above the fourth quarter of 2025. Prices and product mix are expected to be slightly lower. Planned annual maintenance is expected to reduce adjusted EBITDA by about $10 million to $15 million from the third-quarter level. Metallus forecast full-year 2026 adjusted EBITDA of $100 million to $105 million. Lead times for bar and tube products currently extend into the second quarter of 2027.
As previously announced, president and chief operating officer Kristopher Westbrooks will succeed Williams as CEO when he retires at the end of 2026.
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