Metallus Inc (MTUS) 2025 Q1 法說會逐字稿

Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to Metallus' first quarter 2025 conference call. (Operator Instructions)

感謝您的支持。我叫卡莉，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Metallus 2025 年第一季電話會議。（操作員指示）

Thank you. I will now turn the call over to Jennifer Beeman. Please go ahead.

謝謝。現在我將把電話轉給珍妮佛·比曼。請繼續。

Good morning, and welcome to Metallus' first quarter 2025 conference call. I'm Jennifer Beeman, Director of Communications and Investor Relations for Metallus. Joining me today is Mike Williams, President and Chief Executive Officer; Kris Westbrooks, Executive Vice President and Chief Financial Officer; and Kevin Raketich, Executive Vice President and Chief Commercial Officer.

早安，歡迎參加 Metallus 2025 年第一季電話會議。我是 Metallus 傳播和投資者關係總監 Jennifer Beeman。今天與我一起出席的還有總裁兼首席執行官邁克·威廉姆斯 (Mike Williams)、執行副總裁兼首席財務官克里斯·韋斯特布魯克斯 (Kris Westbrooks) 和執行副總裁兼首席商務官凱文·拉克蒂奇 (Kevin Raketich)。

You all should have received a copy of our press release, which was issued last night. During today's conference call, we may make forward-looking statements as defined by the SEC. Our actual results may differ materially from those projected or implied due to a variety of factors, which we describe in greater detail in yesterday's release.

大家應該都已經收到我們昨晚發布的新聞稿的副本了。在今天的電話會議中，我們可能會做出美國證券交易委員會定義的前瞻性陳述。由於各種因素，我們的實際結果可能與預測或暗示的結果有重大差異，我們在昨天的發布中對此進行了更詳細的描述。

Please refer to our SEC filings, including our most recent Form 10-K and Form 10-Q and the list of factors included in our earnings release, all of which are available on the Metallus website. Where non-GAAP financial information is referenced, additional details and reconciliations to its GAAP equivalent are also included in the earnings release.

請參閱我們的 SEC 文件，包括我們最新的 10-K 表格和 10-Q 表格以及我們的收益報告中包含的因素列表，所有這些都可以在 Metallus 網站上找到。當引用非 GAAP 財務資訊時，收益報告還會包含額外的詳細資訊以及與 GAAP 等值的對帳。

With that, I'd like to turn the call over to Mike. Mike?

說完這些，我想把電話轉給麥克。麥克風？

Good morning, and we appreciate you joining us today. First, let me say that I'm encouraged by the growing demand for domestic steel and Metallus is well positioned to capitalize on this momentum. Our solid order book, strengthening spot pricing and recent market share gains reflect the confidence our customers have in us and the resilience of our business strategy.

早安，感謝您今天加入我們。首先，我要說的是，國內鋼鐵需求的不斷增長令我感到鼓舞，而 Metallus 已準備好利用這一勢頭。我們穩固的訂單、不斷加強的現貨定價和近期市場份額的成長反映了客戶對我們的信心以及我們業務策略的彈性。

Over the past several months, the trade environment has been widely discussed. We fully support the enforcement and expansion of steel tariffs. As longtime advocates, we believe these measures align with our commitment to fair trade and balancing excessive global overcapacity.

過去幾個月，貿易環境受到廣泛討論。我們全力支持實施和擴大鋼鐵關稅。作為長期的倡導者，我們相信這些措施符合我們對公平貿易和平衡全球產能過剩的承諾。

This evolving trade environment will help us meet the growing demand for US produced steel. As consumption of domestically produced steel increases, we are seeing a rise in our order bookings from new customers and existing customers. Consequently, our order backlog has increased approximately 50% from the same period a year ago.

這種不斷變化的貿易環境將幫助我們滿足對美國產鋼鐵日益增長的需求。隨著國產鋼材消費量的增加，我們看到來自新客戶和現有客戶的訂單量增加。因此，我們的訂單積壓量比去年同期增加了約50％。

At the same time, we are mindful of the potential challenges posed by the current macroeconomic uncertainty. That said, we are well positioned as a US business with a strong balance sheet and continued focus on cost management. We remain focused on execution and the factors within our control in order to deliver value to our stakeholders.

同時，我們也意識到當前宏觀經濟不確定性所帶來的潛在挑戰。儘管如此，作為一家美國企業，我們擁有良好的定位，擁有強勁的資產負債表，並持續注重成本管理。我們始終專注於執行和我們控制範圍內的因素，以便為我們的利害關係人創造價值。

Switching gears to safety. Our mission is to be recognized as having the safest specialty metals operation in the world. In 2025, we plan to invest approximately $5 million to further strengthen our safety management system and upgrade equipment. I'm pleased that our past safety investments are yielding results. To date, in 2025, we have seen a year-over-year improvement in all safety metrics.

轉向安全。我們的使命是成為世界上最安全的特種金屬經營企業。2025年，我們計劃投資約500萬美元，進一步加強安全管理系統並升級設備。我很高興我們過去的安全投資正在取得成果。截至目前，2025 年，我們已經看到所有安全指標逐年改善。

Two key areas of focus, lockout/tagout/tryout and zero-incident planning are exceeding our target rates, thanks to the commitment of our employees, continuous training and supervisory oversight. We recently held our Annual Iron Shield Competition, which invites our employees and crews to submit innovative safety projects aimed at improving safety practices.

由於我們員工的奉獻、持續的培訓和監督監督，兩個重點關注領域，即鎖定/掛牌/試用和零事故規劃，正在超出我們的目標率。我們最近舉辦了年度鐵盾競賽，邀請我們的員工和工作人員提交旨在改善安全實踐的創新安全專案。

In total, over 100 projects were submitted for consideration this year. The Faircrest electric arc furnace team earned the 2024 Metallus Iron Shield Award for establishing a hands-free EAF taphole lance process, significantly improving safety.

今年共有超過 100 個項目提交審議。Faircrest 電弧爐團隊因建立免持 EAF 出鋼口噴槍工藝而榮獲 2024 年 Metallus Iron Shield 獎，該工藝顯著提高了安全性。

Historically, manual lancing posed exposure to potential hazards, but the team collaborated with a third-party to develop an automated system using a custom design mounting block, telescoping lance and push button controls. This innovation has reduced exposure by over 80%, with plans for further enhancements. Their dedication to safety and teamwork sets a new industry standard. Congratulations to the Faircrest team.

從歷史上看，手動刺穿會帶來潛在危險，但團隊與第三方合作開發了一種自動化系統，使用客製化設計的安裝塊、伸縮式刺破器和按鈕控制。這項創新已將曝光率降低了 80% 以上，並計劃進一步增強。他們對安全和團隊合作的奉獻樹立了新的行業標準。恭喜 Faircrest 團隊。

Moving to business results for the first quarter. Overall shipments increased by 17% compared with the fourth quarter, driven by higher industrial, automotive and energy shipments, partially offset by lower aerospace and defense shipments. As a result of the higher shipments and lower manufacturing costs, our sequential profitability more than doubled.

轉向第一季的經營業績。整體出貨量與第四季相比成長了 17%，這得益於工業、汽車和能源出貨量的增加，但被航空航太和國防出貨量的下降部分抵消。由於出貨量增加和製造成本降低，我們的獲利能力連續翻了一倍以上。

In the first quarter, our melt utilization improved sequentially by 9 percentage points on strong end-market demand. Although not yet to our targeted melt utilization rate, we expect further melt utilization improvement into the second quarter to support our strengthening order book. Lead times are currently 10 weeks for SBQ bars and our seamless mechanical tubing products.

第一季度，由於終端市場需求強勁，我們的熔體利用率較上季提高了 9 個百分點。儘管尚未達到我們的目標熔體利用率，但我們預計第二季熔體利用率將進一步提高，以支持我們不斷加強的訂單。目前，SBQ 棒材和無縫機械管材產品的交貨時間為 10 週。

Turning to specific markets. Shipments to our industrial customers increased by 33% sequentially, primarily driven by distributors replenishing their inventory, which helped to offset weaker mining and agricultural markets.

轉向特定市場。我們對工業客戶的出貨量較上季成長了 33%，這主要得益於分銷商補充庫存，這有助於抵消採礦業和農業市場的疲軟。

We've experienced steady distribution orders and shipments to date through April, which supported recent spot price increases for SBQ and seamless mechanical tubing products. Kris will comment on the specifics of the spot price increases shortly.

截至四月份，我們的分銷訂單和出貨量一直很穩定，這支持了近期SBQ和無縫機械管產品現貨價格的上漲。Kris 很快就會對現貨價格上漲的具體情況發表評論。

Energy shipments improved 24% on a sequential basis. Despite a relatively flat rig count since the beginning of the year, our shipments to energy customers have been increasing as we gain share in certain product categories such as coupling stock, directly resulting from the displacement of imports.

能源出貨量較上季成長24%。儘管自今年年初以來鑽機數量相對持平，但隨著我們在某些產品類別（如聯軸器庫存）中的份額增加，我們向能源客戶的出貨量一直在增加，這直接源於進口產品的替代。

We are confident that we have the right programs and service packages in place to capitalize on opportunities in the energy market. Automotive shipments improved by 9% sequentially. The sequential increase in shipments is mostly driven by seasonality.

我們相信，我們擁有正確的計劃和服務包，可以利用能源市場的機會。汽車出貨量較上季成長 9%。出貨量較上季成長主要是受季節性因素推動。

The impact of tariffs on the automotive market remains uncertain in the foreseeable future and to date, we have not experienced demand softness. However, we maintain close contact with our customers to monitor potential shifts in programs or emerging opportunities.

關稅對汽車市場的影響在可預見的未來仍不確定，到目前為止，我們還沒有經歷需求疲軟。然而，我們與客戶保持密切聯繫，以監控計劃中的潛在變化或新興機會。

As a reminder, Metallus benefits by participation on the highest running light truck and SUV automotive programs, including internal combustion, hybrid and electric vehicles, which gives us confidence to manage potential volatility in this market space.

提醒一下，Metallus 透過參與運行速度最快的輕型卡車和 SUV 汽車專案（包括內燃機、混合動力和電動車）而受益，這使我們有信心管理該市場領域的潛在波動。

In the first quarter, key aerospace and defense customers had some production start-up challenges, which resulted in a sequential decrease in aerospace and defense shipments. We expect higher aerospace and defense shipments as the industry works through these short-term supply chain challenges.

第一季度，主要航空航太和國防客戶在生產啟動方面遇到了一些挑戰，導致航空航太和國防出貨量較上月下降。隨著產業努力克服這些短期供應鏈挑戰，我們預計航空航太和國防出貨量將會增加。

As we have indicated previously, end-market demand remains strong, and we are confident in our long-term participation in this market. As we mentioned last quarter, we are expanding our participation in aerospace and defense by leveraging vacuum arc remelt steel, combined with our unique downstream processing capabilities.

正如我們先前所指出的，終端市場需求仍然強勁，我們對長期參與該市場充滿信心。正如我們上個季度所提到的，我們正在利用真空電弧重熔鋼，結合我們獨特的下游加工能力，擴大我們在航空航太和國防領域的參與。

In the first quarter, we saw significant orders for vacuum arc remelt from new and existing customers. We remain on track to hit our 2025 goal of approximately $30 million of revenue using outside VAR products, combined with our rolling and piercing capabilities and look forward to growing this business in the future.

第一季度，我們看到新舊客戶的大量真空電弧重熔訂單。我們仍有望實現 2025 年約 3,000 萬美元收入的目標，利用外部 VAR 產品，結合我們的軋製和穿孔能力，並期待未來發展這項業務。

In the first quarter, we achieved another key milestone related to the installation of new assets to support the increasing demand for artillery shells. This project remains on schedule, and we look forward to continuing to partner with the US Army in ramping up the munitions production.

第一季度，我們實現了另一個重要里程碑，即安裝新資產以支援日益增長的砲彈需求。該項目仍在按計劃進行，我們期待繼續與美國陸軍合作，提高彈藥產量。

Our capital allocation strategy remains unchanged, prioritizing strategic investments that drive long-term profitable growth, along with our ongoing share repurchase program.

我們的資本配置策略保持不變，優先考慮推動長期獲利成長的策略投資，以及我們正在進行的股票回購計畫。

To summarize, there is uncertainty in the trade environment and macroeconomic landscape, but we remain cautiously optimistic given our US based business model and participation in growing specialty metal programs.

總而言之，貿易環境和宏觀經濟狀況存在不確定性，但鑑於我們基於美國的商業模式和參與日益增長的特種金屬項目，我們仍然保持謹慎樂觀。

We will continue executing our business strategy while prioritizing safety, delivering outstanding customer service and making strategic capital investments to further support sustainable profitability, generate strong cash flow and create shareholder value.

我們將繼續執行我們的業務策略，同時優先考慮安全，提供卓越的客戶服務並進行策略資本投資，以進一步支持永續獲利能力，產生強勁的現金流並創造股東價值。

Now, I'd like to turn the call over to Kris.

現在，我想把電話轉給克里斯。

Thanks, Mike. Good morning and thank you for joining our first quarter earnings call.

謝謝，麥克。早安，感謝您參加我們的第一季財報電話會議。

I'm pleased that we started off the year with a sequential improvement in shipments, net sales and profitability. We continue to invest in the business while also maintaining a strong balance sheet. From a financial results perspective, first quarter net sales totaled $280.5 million, a sequential increase of $40 million or 17%.

我很高興看到我們今年的出貨量、淨銷售額和獲利能力都取得了連續成長。我們繼續對業務進行投資，同時保持強勁的資產負債表。從財務表現來看，第一季淨銷售額總計 2.805 億美元，季增 4,000 萬美元，成長 17%。

The increase in net sales was primarily driven by higher shipments of 22,700 tons, with increases across all end markets, except aerospace and defense, or A&D for short. Although A&D shipments declined on a sequential basis during the first quarter, driven by customer start-up delays, we expect shipments to A&D customers to increase during the second quarter and demand to remain strong for the foreseeable future.

淨銷售額的成長主要得益於 22,700 噸的出貨量增加，除航空航太和國防（簡稱 A&D）外，所有終端市場均出現成長。儘管由於客戶啟動延遲，第一季 A&D 出貨量較上季下降，但我們預計第二季對 A&D 客戶的出貨量將會增加，並且在可預見的未來需求仍將保持強勁。

Net income in the first quarter was $1.3 million, or $0.03 per diluted share. On an adjusted basis, net income for the quarter was $3.2 million, or $0.07 per diluted share. Adjusted EBITDA was $17.7 million in the first quarter, a sequential increase of $9.4 million.

第一季淨收入為 130 萬美元，即每股收益 0.03 美元。經調整後，本季淨收入為 320 萬美元，即每股攤薄收入 0.07 美元。第一季調整後 EBITDA 為 1,770 萬美元，季增 940 萬美元。

In addition to the previously discussed 17% increase in first quarter shipments, manufacturing costs declined by $12.5 million on a sequential basis. The improvement in manufacturing costs was driven by increased cost absorption on higher production volume as well as lower planned annual maintenance shutdown costs.

除了前面討論過的第一季出貨量成長 17% 之外，製造成本較上季下降了 1,250 萬美元。製造成本的改善是由於產量增加而導致的成本吸收增加以及計劃年度維護停工成本降低。

Additionally, the team continues to carefully manage their costs and drive operational efficiencies. Also contributing to the higher adjusted EBITDA was an increase in the raw material surcharge revenue per ton as a result of higher scrap and alloy prices.

此外，該團隊繼續謹慎管理成本並提高營運效率。由於廢料和合金價格上漲，每噸原料附加費收入增加，也是調整後 EBITDA 增加的原因之一。

Partially offsetting these items was unfavorable price mix during the quarter, driven by a variety of factors, including lower base prices, as well as a higher mix of automotive and distribution shipments, combined with lower A&D shipments.

部分抵消了這些項目的影響的是本季度不利的價格組合，這是由多種因素造成的，包括較低的基礎價格，以及汽車和分銷出貨量較高，而 A&D 出貨量較低。

Now switching gears to pensions. In the first quarter, the company made $52.6 million of required pension contributions, of which the majority related to the US bargaining plan. During the month of April, we made $5.9 million of required pension contributions and estimate an additional $10 million of required contributions in the second half of 2025.

現在轉向退休金。第一季度，該公司繳納了 5,260 萬美元的強制性退休金供款，其中大部分與美國談判計劃有關。4 月份，我們繳納了 590 萬美元的強制性退休金繳款，預計 2025 年下半年還將繳納 1,000 萬美元的強制性退休金繳款。

Following this elevated level of required pension contributions in 2025, the company is estimating a significant reduction in future required contributions, subject to future investment performance, actuarial assumptions and funding laws.

隨著 2025 年退休金繳款要求的提高，該公司估計未來所需繳款將大幅減少，但取決於未來的投資績效、精算假設和融資法規。

Overall, the net underfunded pension and post-retirement benefit liability totaled approximately $120 million as of March 31, 2025, a significant reduction from prior years. We continue to actively manage the pension and we'll provide further updates as available.

總體而言，截至 2025 年 3 月 31 日，退休金和退休後福利淨缺額負債總額約為 1.2 億美元，與前幾年相比大幅減少。我們將繼續積極管理退休金，並將及時提供進一步的更新資訊。

Moving to cash flow. During the first quarter, operating cash flow was an outflow of $38.9 million, driven by the previously mentioned required pension contributions. As expected, working capital was a use of cash, driven by significantly higher sales activity to start the year.

轉向現金流。第一季度，營運現金流出 3,890 萬美元，主要受前面提到的強制性退休金繳款影響。正如預期的那樣，營運資本是現金的使用，這受到年初銷售活動大幅增加的推動。

At the end of the first quarter, the company's cash and cash equivalents balance was $180.3 million, including $44.5 million of government-funded cash on hand for future investments. I'll provide further details on government funding and the related investments shortly.

第一季末，該公司的現金和現金等價物餘額為1.803億美元，其中包括4,450萬美元的政府資助現金，用於未來投資。我將很快提供有關政府資金和相關投資的更多詳細資訊。

Capital expenditures totaled $27.5 million during the quarter, including approximately $14 million of CapEx that was supported by government funding. For the full-year 2025, we continue to forecast approximately $125 million of CapEx, consistent with previous guidance and inclusive of approximately $90 million of CapEx funded by the US government.

本季資本支出總計 2,750 萬美元，其中包括由政府資金支持的約 1,400 萬美元的資本支出。對於 2025 年全年，我們繼續預測資本支出約為 1.25 億美元，與先前的指引一致，其中包括美國政府資助的約 9,000 萬美元的資本支出。

In terms of taxes, cash taxes are expected to be minimal in the second quarter. However, the second quarter effective tax rate will likely be more than the statutory rate as a result of the upcoming convertible note settlement, which I'll discuss shortly.

稅收方面，預計第二季現金稅收將很少。然而，由於即將進行的可轉換票據結算，第二季的實際稅率可能會高於法定稅率，我將很快討論這一點。

As it relates to government funding, during the first quarter, the company received $11.9 million of cash from the government as part of the previously announced $99.75 million funding agreement in support of the US Army's mission of increasing munitions production. The milestone which drove the first quarter government funding payments was the finalization of the permitting and asset design for the new roller furnace to be located at our Gambrinus facility.

就政府資助而言，第一季度，該公司從政府獲得了 1,190 萬美元現金，這是先前宣布的 9,975 萬美元資助協議的一部分，旨在支持美國陸軍增加彈藥產量的任務。推動第一季政府資金支付的里程碑是最終確定位於我們 Gambrinus 工廠的新輥道爐的許可和資產設計。

During the first quarter, the company also received an additional $1 million from JobsOhio as part of the previously announced $3.5 million grant. In April, the company received an additional $5.1 million in government funding upon the delivery of the in-line saws to our Harrison facility, which will support the new automated grinding line.

第一季度，該公司還從 JobsOhio 獲得了額外的 100 萬美元資助，作為先前宣布的 350 萬美元資助的一部分。今年 4 月，該公司向哈里森工廠交付了直列鋸，並獲得了額外的 510 萬美元政府資助，用於支持新的自動磨削生產線。

To date, through the end of April, the company has received $71.5 million of government funding. Receipt of the remaining approximately $32 million of committed government funding is expected throughout 2025 and into 2026 as mutually agreed upon milestones are achieved. As a reminder, this funding will substantially pay for the new bloom reheat furnace at the company's Faircrest facility as well as the other assets I just mentioned.

截至 4 月底，該公司已獲得 7,150 萬美元的政府資助。隨著雙方商定的里程碑的實現，預計將在 2025 年至 2026 年收到剩餘的約 3,200 萬美元的政府承諾資金。提醒一下，這筆資金將主要用於支付該公司 Faircrest 工廠的新鋼坯再加熱爐以及我剛才提到的其他資產。

Switching gears to shareholder return activities. In the first quarter, the company repurchased 395,000 shares of its common stock for $5.6 million. In April, the company repurchased 96,000 shares of its common stock for $1.2 million.

轉向股東回報活動。第一季度，該公司以 560 萬美元回購了 395,000 股普通股。4 月份，該公司以 120 萬美元回購了 96,000 股普通股。

At the end of April, the company had a balance of $96 million remaining under its share repurchase authorization. As it relates to convertible notes, during the first quarter, we received a notice of conversion from the holder of the remaining $5.5 million of convertible notes.

截至四月底，該公司股票回購授權餘額為 9,600 萬美元。至於可轉換票據，在第一季度，我們收到了剩餘 550 萬美元可轉換票據持有人的轉換通知。

The final cash settlement amount will be calculated using a 50-day volume-weighted average stock price, leading up to the June 16 settlement date. As of March 31, 2025, the fair value of the outstanding convertible notes was $9.7 million.

最終現金結算金額將根據截至 6 月 16 日結算日的 50 天成交量加權平均股價計算。截至 2025 年 3 月 31 日，未償還可轉換票據的公允價值為 970 萬美元。

Similar to prior convertible note repurchases, the difference between the settlement amount and principal amounts will be recognized as a loss on extinguishment of debt and will be excluded from adjusted EBITDA.

與先前的可轉換票據回購類似，結算金額與本金之間的差額將被確認為債務清償損失，並將不計入調整後的 EBITDA。

Since the inception of common share repurchases in early 2022, combined with the convertible note repurchases to date, we reduced diluted shares outstanding by a significant 23% compared to the fourth quarter of 2021.

自 2022 年初開始普通股回購以來，加上迄今為止的可轉換票據回購，與 2021 年第四季相比，我們的稀釋流通股數量大幅減少了 23%。

Following settlement of the convertible notes in June, the company will be debt-free and well positioned for the future. Our balance sheet remains strong and is supported by a total liquidity of $432 million at the end of March.

六月可轉換票據結算後，該公司將擺脫債務，為未來做好充分準備。我們的資產負債表依然強勁，3 月底的總流動資金為 4.32 億美元。

Turning now to the outlook. We anticipate second quarter adjusted EBITDA to be higher than the first quarter. Commercially, second quarter shipments are expected to modestly increase on a sequential basis, primarily due to higher A&D shipments.

現在來談談展望。我們預計第二季調整後的 EBITDA 將高於第一季。從商業角度來看，第二季出貨量預計將環比小幅成長，主要原因是 A&D 出貨量增加。

Lead times currently extend to July for both bar and tube products. Additionally, as Mike mentioned, we recently implemented spot price increases on SBQ and seamless mechanical tube products not covered by annual pricing agreements, which is about 30% of our order book.

目前棒材和管材產品的交貨期均延長至 7 月。此外，正如 Mike 所提到的，我們最近對年度定價協議未涵蓋的 SBQ 和無縫機械管產品實施了現貨價格上漲，這約占我們訂單的 30%。

Specifically, for SBQ spot orders effective April 28, prices increased by $60 per ton for standard products and $120 per ton for thermally treated products. For seamless mechanical tubing spot orders effective July 7, prices will increase by $100 per ton.

具體來說，對於 4 月 28 日生效的 SBQ 現貨訂單，標準產品價格每噸上漲 60 美元，熱處理產品價格每噸上漲 120 美元。7月7日起生效的無縫機械管現貨訂單，價格將每噸上漲100美元。

Operationally, melt utilization is expected to increase in the second quarter and result in better manufacturing cost absorption, driven by improved operational performance and supported by an increasing order book. The organization remains cost disciplined, carefully managing spending while also maintaining assets at optimal levels.

從營運角度來看，受營運績效改善和訂單增加的推動，預計第二季熔體利用率將會增加，從而更好地吸收製造成本。該組織保持成本紀律，謹慎管理支出，同時將資產維持在最佳水平。

As we progress through the second quarter, we're encouraged by the increased level of inquiries and order activity from both new and existing customers. We're committed to our operating plan to ensure we deliver quality products to our customers while also driving an increase in our profitability.

隨著第二季的進展，新舊客戶的諮詢和訂單活動數量不斷增加，這令我們感到鼓舞。我們致力於我們的營運計劃，以確保我們向客戶提供優質的產品，同時提高我們的獲利能力。

As a US-based metals producer with a strong balance sheet, we're well positioned for future success. Thanks to all of our employees, customers and suppliers for their continued support.

作為一家擁有強大資產負債表的美國金屬生產商，我們為未來的成功做好了準備。感謝我們所有員工、客戶和供應商的持續支持。

To wrap up, thanks for your interest in Metallus. We'd now like to open the call for questions.

總而言之，感謝您對 Metallus 的關注。我們現在開始提問。

(Operator Instructions) Samuel McKinney, KeyBanc Capital Markets.

（操作員指示）Samuel McKinney，KeyBanc 資本市場。

Hi. Good morning. At 1Q '25 shipments up about 17% sequentially, a strong figure, well ahead of normal seasonality. We've been hearing a lot about pull forward demand to get ahead of tariffs during this earnings cycle. And I was curious if you could frame up how much of that volume boost has to do with that dynamic?

你好。早安.25 年第一季的出貨量較上季成長約 17%，這是一個強勁的數據，遠遠超過正常的季節性。我們聽到很多關於在獲利週期內提前需求以領先關稅的消息。我很好奇，您是否可以解釋一下音量提升與動態有多少關係？

Very little actually because most of those orders were placed in Q4 and the tariffs didn't really go in effect until April. So in that shipment, increase was very little actually none trying to hedge the tariffs. It really was market share gains that we achieved in negotiations for 2025 and increasing spot buys from distributors restocking their inventory after year-end.

實際上很少，因為大多數訂單都是在第四季度下達的，而關稅直到四月才真正生效。因此，在那批貨物中，增幅很小，實際上沒有試圖對沖關稅。我們在 2025 年的談判中確實取得了市場份額的成長，並且增加了分銷商在年底後補充庫存的現貨購買量。

Okay. That's helpful. And then, Mike, you touched on this earlier, but I wanted to dig in more. I know the energy market has been heavily affected by imports, but you had solid volume momentum in the first quarter. Could you talk about what you're hearing from customers in that segment and what cadence you're looking for in the months ahead?

好的。這很有幫助。然後，麥克，你之前提到了這一點，但我想深入探討。我知道能源市場受到進口的嚴重影響，但第一季的銷售勢頭強勁。您能否談談您從該領域客戶那裡聽到了什麼，以及您在未來幾個月尋求什麼樣的節奏？

Yeah. I mean, our expectation is that our energy product demand will continue to increase as that industry or end market is really trying to source domestically because they have been historically heavy importers.

是的。我的意思是，我們預計我們的能源產品需求將繼續增加，因為該行業或終端市場確實試圖在國內採購，因為他們歷來都是重要的進口國。

There is still a little bit of foreign import overhang down in some of the Houston area. And as that's getting worked off, we continue to expect our order book demand from our energy customers and new customers to continue to increase.

休士頓部分地區仍存在少量外國進口過剩的情況。隨著這項工作的完成，我們預計來自能源客戶和新客戶的訂單需求將繼續增加。

(Operator Instructions) Dave Storms, Stonegate.

（操作員指示）戴夫·斯托姆斯（Dave Storms），Stonegate。

Good morning, guys. Within the A&D, are there additional details you can give us on the customer manufacturing start-up challenges?

大家早安。在 A&D 領域，您能否向我們提供有關客戶製造啟動挑戰的更多詳細資訊？

Yeah. So you have a new facility that's been constructed. And that facility going through the commissioning process ran into difficulties. I'm not going to get into the details even though we're quite aware of the details because I don't want to speak for someone else. But as they overcome, they kind of rebooted their commissioning process and our understanding is progress is being made.

是的。所以你有一個已建成的新設施。該設施在調試過程中遇到了困難。儘管我們很清楚細節，但我不會談論細節，因為我不想代表別人發言。但隨著他們克服困難，他們重新啟動了調試流程，我們的理解是他們正在取得進展。

And later this year, we should start to see that new facility begin to order from us, and we look forward to that. However, we've also gotten a number of new inquiries from -- not only within the United States, but outside of the United States for our uniquely positioned munition grades that we make. So we're pretty excited about that.

今年晚些時候，我們應該會看到新工廠開始向我們訂購，我們對此充滿期待。然而，我們也收到了許多新的詢問——不僅來自美國國內，而且來自美國境外，對我們生產的具有獨特定位的彈藥等級也有所詢問。所以我們對此感到非常興奮。

And then we've also won a number of other, what I would call, military applications, and those will begin to ramp up in the second half of the year. That's a variety from gun barrels to different types of, I guess, I call them missiles. So we're pretty excited about the progress we're making. We've got new customers. We've got new applications.

然後，我們還贏得了許多其他我稱之為軍事的申請，這些申請將在今年下半年開始增加。這些物品種類繁多，從槍管到不同類型的物品，我猜，我稱之為飛彈。因此，我們對所取得的進展感到非常興奮。我們有新客戶。我們有新的應用程式。

The vacuum arc remelt products that we are now promoting and selling, we've gotten significant orders. And we're working through a number of qualifications with new customers to ramp up our sales in that area, and we're highly confident of meeting our interim target of over $30 million of new sales in those product lines.

我們現在推廣和銷售的真空電弧重熔產品已經獲得了大量訂單。我們正在與新客戶進行一系列資格認證，以提升我們在該領域的銷售額，我們非常有信心實現這些產品線新銷售額超過 3000 萬美元的中期目標。

And then how do you feel about current production capacity given the strengthening order book?

那麼，鑑於訂單不斷增加，您對目前的生產能力有何看法？

We have plenty of capacity.

我們有足夠的產能。

There are no further questions at this time. I'll now turn the call back over to Jennifer Beeman for closing remarks.

目前沒有其他問題。現在我將把電話轉回給詹妮弗·比曼 (Jennifer Beeman) 做結束語。

Great. Thank you, everyone, for joining us, and that concludes our call today.

偉大的。感謝大家的參與，今天的電話會議到此結束。

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。