TMST - Earnings call 4 2023

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Operator

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Metallus Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Jennifer Beeman. Jennifer, you may begin.

Jennifer Beeman

to Quarter welcome XXXX Full and Call. Conference morning, Metallus' and Fourth Year Good Director and of Metallus. Beeman, Jennifer I'm Communications Investor for Relations

Joining President Williams, Kris Mike Vice President and me Chief Commercial Executive today Officer; Officer. Chief Executive Kevin President Raketich, Westbrooks, Chief and and Vice and Financial Officer; Executive is

received of night. should our You which release, have all press a copy last was issued

the we today's forward-looking by make call, defined may SEC. conference During as statements

a variety Our release. Metallus reconciliations or factors call financial to Form details Mike. release. With website. Where actual of referenced, SEC list results implied in additional our the most its describe and from included differ Please to our to and Form is recent our turn yesterday's non-GAAP the factors over projected which in those of included release, the greater all information may and materially earnings to filings, equivalent in we I'd like including earnings of the in XX-Q, to XX-K are which GAAP that, due detail also on are Mike? available refer

Michael Williams

I everyone Jennifer, and appreciate you, joining morning. us Thank this

let by me to you first as First, Metallus. welcoming call our begin

distinguishes high-performance Our reflects change our believe expertise the in metals, exciting and we in this brand us marketplace. specialty

our will we and continue customers Metallus, markets As growth to valued our pursue established serve in and beyond.

our unwavering values As safety, we employees. embark on quality, well-being this remain committed commitment to and of and new our core chapter, to we collaboration the

in XXXX. performance financial our to Turning

pricing supported Our with This solid defense end significantly market. our contributed a environment. focus targeted teams strong and by diligently aerospace our the markets, pursued strategic imperatives profitability particularly on a strategic focus to

repurchase Safety shareholders maintaining fundamental to at remains program while sheet. strong we Additionally, a to continue capital Metallus. via priority a balance our return share

in approximately serious eliminating we year, investment XXXX million injuries. in includes comprehensive investing program with emphasis safety $XX the about on company-wide potential Over specific efforts, a an training have enhancements. kept important This a safety continuous towards informed safety our you past

Looking ahead to XXXX.

Our remains firm. safety commitment to

building a culture is safety achieved objectives. defined that through are clearly and We roles, responsibilities

practices ends to that instill free is employee ensure to from everyday every Our workday goal safety injury or incident. their

the to results. Turning

by sales As as result as net year largely scrap prices. prices. X% an declined prior base increase and XXXX operating compared relatively sales the On quarter sales in cash adjusted expected, of Shipments, fourth all shortly. full a driven alloy in year. lower and the lower as increased basis, cover EBITDA net a well Chris steady X%, flow shipments will financial details with company's sequentially remain

market in exciting end work to development we an the updates. pleased Moving I'm share to regarding do our defense.

We are million, Army after balance subject honored of details nearly to project the entered to $XXX States to a during half with into agreement subsequent currently committed for with United is presented the final agreement are have which Army. phases the funding mutual the

this funding shales. fulfill enable help addition increased a global will artillery reheat of to for Specifically, the furnace continuous demand bloom

ability agreement is Department of products $XX grades high-quality the base is a in and specialty this with For late Metallus steel Army perspective, to new shales XX,XXX expected to month testament run defense critical demand of has by reheat XXX,XXX approximately million capacity partnership recently produce demand. bar-based is specialty for versus per long-standing of month shells rate annually. support produced high-quality steel. consistently our in support per the to and a target The sales increase XXXX. furnace ramp-up incremental to This Defense our stated our of And the XXXX. a supplier

late Bloom targeting new are reheat to operational. be furnace XXXX the We ] for [

expanding market. aerospace sales our capitalize and we've We the are well end the defense positioned momentum to in on within established

support the net as sales data, the the grew with saw X% with quarter our the In fourth to distribution some previous as sales total decreased inventory of from prior UAW in of dialogue the with XXXX. Shipments third blended index to the seasonality. forecast, strike and shipments XX% the the within confident on about market, an X.X% requirements. on increased contraction down customer long-term In for compared Our work representing remain prospects result declined consolidated of markets, XXXX, by as seasonality. the a compared in in in expected Industrial net further first indicating and net Defense to compared remain industrial are the line quarter and their strong through our shipments Automotive XXXX. sales XXXX We XX% XX% for industrial quarter, slower softening PMI off demand to to our hand. of industrial end the distribution is active we by XXXX In company. channel with quarter start in distributors and customers expected XX% a Aerospace

engine continue combustion while hybrid internal we However, actively many to and progress applications support making EV applications. steady with

with well by aligned are programs aggressive we vehicles may internal initiated to the the While with engines, preferences support positioned consumer full combustion EV automakers, be platforms. electric perfectly initiatives hybrid not or

declined in vital well to energy support the and remains sector, the energy demand was customer supply X% With production supply for sequential as strict soft in global focus remained elevated energy within market positioned shipments the basis. chain. steel American on We capital quarter security. levels North the fourth quarter a energy inventory the Our to in remain and discipline remaining

Moving agreement of to we I cover customer have XX% now our that approximately contracts. negotiations, book. annual price order which wrapped am our customer up pleased

times time short lead times service price remain are at are base our down. but focused level annual agreements, at to covered inventory X Lead average XX maintaining demanding Distribution of ton remain by elevated beginning lead this customers, trend is for weeks. similar at weeks customers' be and high We and product product currently XXXX Our meet levels our to to times X expected a XXXX. on quality requirements. with per relatively to customer

profitability company our at the million efforts with ongoing across reaching to enhancing aimed $XX dedication Our XXXX. by profitability continues target

target. simplification, as excellence, as process sheet operational our for and in achieving $XX way To support capital commercial as are focus improvements, leveraging our efficiency million well about Our budgeted the XXXX. balance expenditures solid of cornerstone. a have approximately safety on our X/X our we date, we To towards is manufacturing

assets our addition remain delivering to We're and people projects, in capabilities Eaton, and In We with complete other tooling component safety, CapEx. XXXX, and investing SAW value finishing our in sustainability-related investing Harrison began high-return manufactured adding while to facility; and machining to our grinding, in Ohio to projects, X additional facility committed our in investing which maintenance shareholders. including automated our lines.

program. repurchase program a in cover ongoing our allocation detail capital moment. Chris will Our strategy in our focuses repurchase also on share

sustainable As proceed along and strategic cycles. customer service committed with are and XXXX, in we we to throughout our to safety, foster advancing imperatives all business flows cash profitability prioritizing enhancing We customers our their express sincere shareholders for partnership their employees their our to enduring trust, for gratitude valued our for suppliers and and unwavering support. our for their dedication, collaboration our

over Now I would to turn to call Kris. like the

Kristopher Westbrooks

for Good proud our Thanks, our Mike. all team's We're call. thank accomplishments and of earnings joining morning, you XXXX. in

organization helped sheet. maintaining accomplishments a balance years. year. achieved and advanced us manufacturing aerospace return the a safety our high-growth the These our were in facilities important of to continuing while last market, manner, employees, to achieve shareholders all in our made Thanks suppliers strong to defense increased benefit that customers participation objectives capital our positive who and Specifically, in future and will system investments and our management

diluted Turning increase per income financial in million X% now Net $X.XX to an share. or $XX.X results. our sales from or billion Net full totaled $XX.X the year was XXXX $X.X million year, of XXXX.

in Excluding XXXX certain items and share. such remeasurement net as $X.XX insurance $XX.X or diluted per adjusted losses, was recovery income million pension income

the adjusted was Additionally, $XXX EBITDA year. million for

insurance of company repurchase to share recoveries it These total, reinvest XXXX, claims we insurance is recognized X the unplanned downtime be recoveries, recognized in the complete. which million fourth In quarter. capital and as recognized insurance the return business As with relates past years. associated In via in well have $XX.X recovery million to cash the XXXX, as now program. to of $XX shareholders recoveries over our in the the was $XX.X used will the process process of million

in $X.X of net or to were quarter diluted of $XX.X loss $XX.X of a or adjusted the $XX.X reported income adjusted company million certain million Comparatively, basis, and third of $XXX.X million $XX.X in income net in the sales $X.XX of share. loss or sales adjusted pension fourth quarter Comparatively, per fourth sequential share. $XXX.X gain $XX.X quarter $X.XX $X.XX net share. million quarter $XX.X recovery XXXX other $X.XX turning of the EBITDA share. Adjusted per adjusted items, net $X.X million with an or loss diluted sales remeasurement was was fourth per loss of the diluted an sequential share. diluted a XXXX Net quarter financial of of or million per a quarter results. per net were net per or income excluding million XXXX impact with the quarter, share. On diluted fourth a income net million was the with Net diluted The in fourth decline. insurance of $XXX.X $X.XX third million loss, million Now the totaled of XXXX million $X.XX

sales of million product aerospace quarter. these negatively planned $XX.X of shutdown the of with pricing $XX.X automotive adjusted and costs impacted to were higher items material retroactive well prices, a the fourth components environment. attributed expected, decline adjusted base decrease XXXX, adjusted as melt annual $XX was in Partially EBITDA on shipments. the manufactured as and recognized raw during quarter in Also utilization, mix. Compared sequential in maintenance increased favorable quarter quarter was by offsetting higher by fourth fourth As to million the million surcharge and lower market-driven the contributing lower the scrap alloy EBITDA in EBITDA defense

Turning now XX% tons fourth or the the with tons Shipments to XXX,XXX in the a in decrease the of financial the quarter. were third results compared quarter. XX,XXX details quarter, of

to decrease decrease decrease attributed The X/X for XX%. defense sequential were driven primarily industrial been or During greater split was XX%. a We end market, customer customer the a automotive drove totaled stoppages, was majority a In estimate tons, the while or sequential quarter. Compared continued industrial have shipments Defense, back XX%. for of we quarter, of quarter, demand tons in the sequential to fourth strength fourth XX,XXX quarter market customers XXXX, energy increase sequential fourth aerospace customer the seasonality. decrease approximately fourth sequential the visibility the remained by tons inventory shipments X,XXX quarter quarter, industrial work shipments remaining XX% in was ongoing as from result of the in out of industrial XX,XXX X% quarter fourth XX,XXX customer in and forward. of comparability. by fourth Shipments the XXXX previous decrease end the shipments within the distribution. Automotive totaled in XX,XXX the fourth defense In market shipments. of periods tons higher decrease Prior aerospace in X,XXX of soft the rebalancing recast tons increased or or result going of as end quarter, tons and tons a in XX,XXX XX,XXX the a normal of energy to shipments and a to tons of demand and Aerospace the

of per Partially quarter Net favorable revenue result impacted to The pricing a items to in defense inventory downtime shipments primarily alloy aerospace X% average surcharge sales XX% sales prices XXXX As were the quarter material in market-driven fourth quarter sequentially. availability base attributed ton mid-XXXX. sales unplanned as of by these scrap in higher decline prices. fourth and decreased and realized mix. product a of lower decline retroactive fourth the was million incremental a $XXX.X shipment, the the due in offsetting lower shipments in for and the raw net negatively reminder, following were in and of

million and by in sales a of year million quarter, or of sales aerospace market. XX% sales increased fourth company total full $XX.X X% by $XXX also sales. net Regarding sequentially end XX% in the company the representing and Aerospace to increased XX% basis, total Defense the to net On Net XXXX quarter. net in defense

growth forward further in defense a and to targeted aerospace look mentioned, we Mike sharing for area the As future. company, of and is the updates

of the shutdown costs melt Turning annual to with in lower combined result now with of quarter, third Planned higher a in fourth quarter a for $X.X planned balance to melt in by quarter with maintenance increased maintenance manufacturing. the cost expense. the the demand, sequentially shutdown Manufacturing absorption, XX% inventory million shop fourth and the resulted utilization in compared rate in quarter. XX% as downtime

company's percentage funded we XX%. experienced in planned XX% Positive compared on $XX.X a XX% partially markets effective gears basis. Switching rate of effective would returns losses fourth the to a estimate the taxes. tax at downtime, in company's million the met the Excluding of year. we the full of the XXXX. and to status fourth XXXX for income XXXX estimate company In pension that be rate quarter XXXX, asset tax XXXX, at earlier The taxes the the have utilization the mid-XXs been year. will of XX% the totaled accounting quarter cash end the funded of in From in offset in perspective, XX% plans end equity the with status helped the was was

also million Additionally, the $XX required a funded we of to contributed pension a approximately contributions in the contributions which decline status. In of expect approximately required in rate to reduction in the first discount includes $XX million, quarter. XXXX, make

similar XXXX, total We expense. the medical expense excluding Regarding in to remeasurement. pension XXXX to be retiree and of impact anticipate

all ongoing actions, salary million. track liabilities plan. end participant transfer remaining of company we're of responsibility to future of on will all the payments. insurance we In the previously annuitize mid-XXXX, the benefit terminated derisking majority to salary a related $XXX plan rated thereafter, pension liability assume highly In pension Shortly XXXX, insurance the and to company. terms the salary assets expect company's At for pension totaled the pension plan

to and liquidity. Moving on cash flow

profitability quarter, XXth capital. fourth driven consecutive and was cash million, by the cash flow. operating generating levels positive operating working the of During This quarter, $XX.X flow marks company's lower

and Capital $XX.X of year, full million expenditures XXXX Mike for guidance. operating line For with capital the million Planned generally quarter year, previously the $XX $XXX.X generated approximately in in in the full fourth cash the previously expenditures stated $XX.X are mentioned. totaled company million. flow as million

CapEx we've safety XXXX Looking million at investment projects, XXXX. to a following the $X important the of budget, in allocated components significant CapEx

the highlighted at our finishing growth totaled million our support and Harrison In to in facility, automated facility X also and facility inline line approximately earlier. at automotive CapEx at Southwest and that automated in XXXX Harrison Mike manufactured lines components $XX Our new grinding projects saw, our Ohio.

these late of of benefits from We XXXX realizing return begin with investments expect our XXXX excess of cost early to capital. in rates in and

CapEx the budget. majority of the Lastly, the XXXX CapEx remainder maintenance and tooling of represent

Bloom shell government the our Mike the expectation CapEx is reheat Additionally, as this to excited team cover ramp. It's is of $XX requirements investment. will for our announced. support continuous will U.S. project launch this Army's XXXX investment and furnace cost total approximately the discussed artillery production The that just our that million funding

CapEx such, will sales million As investment Furnace CapEx Bloom XXXX. guidance the this required base Reheat of demand-dependent. for for estimate approximately $XX is excluded from incremental support our We annually,

X moment return the the significant forward activity to a and our Additionally, footprint. We're wanted future of updates will on to while Reheat perspective, growth XXXX cast providing Bloom recap products From asset years. rolling the over late be share to new for to past the the the increase spend program repurchase a in project shareholder for quarters. process prior efficiency our I to reducing carbon investment operational look all targeting

progress make per price program. XXXX, average XXXX. Throughout continued shares and was million program repurchased of a generate million our repurchase company's $XX As repurchase leadership's ability $XX.X resulting the December company towards and share authorization balance during additional initial authorized to sheet cash XXXX on sustainable for of while the million in in $XX million, stock strong XXXX. an company Board maintaining of senior exhausted confidence was share Board share. XXXX, and total, a program and the In program its repurchase share flow. the $XX.XX through-cycle X.X repurchase end repurchase This That a reflected an in reminder, profitability repurchase common authorized its the to

XX, million December of authorization. the $XX.X a remaining its As company of under had repurchase balance share XXXX,

XX.X% When with and shares note convertible note fourth activity common significant resulted reduction the in XXXX repurchases combined in and of repurchase the and convertible diluted compared to outstanding XXXX, XXXX. stock quarter a

the cash exhausting and our the We the last prefer repurchase were income continued are strength program balance supported cash committed the to million as year. generated and to share equivalents authorization of balances interest continue nearly the $XX and as cash generation. At we by $XXX.X remaining XXXX, progress and sheet company's flexibility the million, end of cash flow forward, of of the

We through profitability of total us million at end our execute $XXX.X to sheet through-cycle by strength expect with share balance cash the and on investing supported of positive returning liquidity strategy. the opportunity growth, shareholders a sheet, flow XXXX, maintaining of the capital expected in continue to our balance to allocation profitable strong combined operating to capital repurchases. This includes continued and provide

quarter be a quarter fourth shipments From now to are than commercial first the outlook. quarter. the Turning to perspective, XXXX first lower of slightly expected

While and times the aerospace remains April energy start currently at of demand distribution market we and the soft, shipments. expect to levels lead for inventory and defense Lead extend products the remain automotive in steady times elevated May. to year product X strength continued and our extend

As agreement adapt it selling annual be the evolving of XX% the order book of by to being targeted outcome targeted approximately to price negotiations by conditions. to prices, pricing Mike company to agreements the XX% customer agreements. we covered on market us XXXX, price flexibility provide covering In our order the of covered commented relates base XX% to annual plus annual book. Historically,

the XXXX average retroactive approximately a base of result of of to full sequential completed XXXX on the is year for dependent. Price/mix base given ton million per mix be similar As average the are basis, for expected full XXXX price be a that increases. includes fourth price year sales first expected to price $XX in the unfavorable quarter quarter sales negotiations, per price agreements ton to

first approximately sequentially expected Scrap expected Manufacturing the XXXX. Busheling index. Operationally, completion melt an maintenance first is in costs shutdown in quarter. increase of to decline melt in in of to to are million be expected to utilization quarter ton the first per XX% #X the is of annual due be fourth revenue approximately $XX the surcharge quarter, Additionally, quarter the higher giving shop in sequentially

Given lower quarter. quarter these slightly company elements, fourth EBITDA than the the adjusted anticipates to be first

for by of business supporting To wrap outlook returning a in to long-term defense, our to in your Thanks new questions. business brand. up. with encouraged pursuing of We'd aerospace for Metallus growth and actively to now Metallus. We the very interest shareholders. level our all like investing service, high customers remain committed while and targeted call our We're our strategically under capital in open

Operator

first comes the John Sidoti. of from Your Instructions] line from question [Operator Franzreb

John Franzreb

I'd quarter. layer like provide of to what reconstructed start was segment so color the with the little bit Industrial you down us fourth the demand the depth of of sequentially? on sort profile? you maybe of Could going on a Can was give why much in

Michael Williams

where seeing is service channels in Sure, to we're industrial the John. Predominantly, distribution a the market. slowdown

OEM inventory they're historical average. steady. at Our was -- you business the months The distribution compared of number of or the of direct to pretty the -- days look if inventory, high

is we cycles what normal with these start rates. distributors inventory more you'll typically, off, will to buying So then see see and return at work activity like the the the this

is The participate we saw we that to prices. price chose activity. And chasing we that lower purchases other some aspect in some saw for that certain volume deterioration in competitors not

John Franzreb

relative context the to lot Maybe about going of to Well, think revenue. currently to to artillery finish questions, business. got aerospace Fair the context end that defense there. markets? business rest did but much in how And the total a business of you the of artillery just of gears enough. margin actually And some of shift provide I'm how also and other you the is a capacity XXXX there's in here Can I production contribution segment. bunch I

Michael Williams

but between the is Sure, I the some and have there Army. can new do say you U.S. give be foresight confidentiality this to with some there, partnership I color

able or to difficult the the we to providing shells. majority it's for the It's careful defense what service So predominantly to we not to is products. In information of operations finishing and very complex, the funding manufacturing, Actually, be aerospace and U.S. Department artillery shell have itself. the warhead manufacture grades us capacity, these to the make Defense about around specialty that very we through defense sales our don't those to What will our Army, to of share. more what I complex be regards very the federal debottleneck to that share you and manufacture. really is difficult grades from is we're government rolling is tell of

it's satisfy investment debottleneck, -- word defense to to Army's supply I So the term. purely the the capacity to U.S. the strategy long meet to use get demand chain

John Franzreb

Okay.

it's now. that growth what at to XXXX. I'm assume capacity sizable Is say in a So that business We in hearing? fair you're shouldn't

Michael Williams

place look in Kris investments million revenue seeing at happen to -- around run is Again, you the which we -- provided of the growth the assets get full expected occur assets that the $XX what those we've up. what the The that are end will our products rate not statistics upgraded -- we made, when until if call, be. to the or percent in would the look into ramp on debottleneck, the defense of additional you XXXX for and assets the XXXX as get seen

John Franzreb

one And I and back into Perfect. queue. last I'll get question, guess

Given XXXX? given that's rate still to Or XX%. has conditions? that the the Is something to that current year, achievable maybe your right hitting are pushed targeted your thoughts what in the of that melt slow for XX% expect you about been start

Michael Williams

it's achievable. I think

are assets really in good shape. Our

that Our right us. now, at now demand just right workforce there can trained. the been has rate was We commercially, It's demand if run that well for is the not there.

to demand. rate is really utilization customer Our aligned

Operator

of Our from KeyBanc next line Gibbs question comes Phil from Capital Markets. the

Philip Gibbs

to the the CapEx $XX the making of growth what's you're talk and you core year, investments being then maybe break budget somewhat maybe spend. about the bit Can XXXX But some million? become this expenditures alluded business? the you that little I out in think perhaps safety equivalent to the a

Michael Williams

Sure.

made -- the significant plan for last CapEx around our around investment year because is of -- So actually last less safety we year investment this year. is the than

sustainability we focused targets. what -- some probably sustainability last achieve making we're our modest spent ongoing about on of that investments safety. year So to There's half around it's

I really think the targeted growth quality, lowering CapEx. is CapEx XX manufacturing improving where about of rest majority costs, remainder the yields, to of focused the around then is the to regards maintenance improving And of is balance productivity. That's in improving towards

Philip Gibbs

heavy the to ask the wanted I think, on I retroactive Is majority the heavier the a the of retroactive first then fourth experienced question just then that a in Pretty even So the little maybe mobile in on what outlook the And demand adjustments. is business? for quarter, quarter. firstly, question 'XX? And than on mobile pricing third in you the bit secondly, adjustments. in And then secondly, outlook.

Michael Williams

I the Yes. is mean, Sure. predominantly with. retroactive pricing over

Then in I do outlook, again, around out that flat right was it's be the But engaged, impact negotiation I see think we're weeks second fourth year-over-year. steady. to still were now. an there strike we would that we basically expect the most automotive several quarter We that from of there's small X nature. for as quarter say pricing pretty said we it's other but the they agreements the that pretty do that in were pretty our have steady. the in customer But -- we in perspective, effect out.

big all EV million is demand we hybrid, is focus and of at slower very a those. launching rates build think there's on around You still this are but year. The units strong The X there. this because that of still ICE rate. in mix at And then play forecasted their XX.X we look now programs positive

demand word be high going think good rates automotive I closely. this So to interest be customer using are year. we good. watch it Base refrain seems great, the is to and what we still the there, and from

Operator

from Your Capital Dave next of Stonegate the question line from Storms comes Markets

Seth Rosenfeld

with savings there. of some the cost linear know mentioned on I savings the cost plans Just XX% initiatives you're we would look of make initiatives. of way the of are this could think there trajectory? about remainder the that some kind Or a little you we a lumpier? there start hoping of Should

Michael Williams

of would year. the that of of achieve the end because fairly say to Actually, materialize most majority by these I will we're that target remaining I making CapEx remaining this the would to is linear it's tied the investments say

-- around productivity reduction. other guess we much more that's not work, so have Now That's investment. efforts I of quality more CapEx cost hard and

-- working throughout we'll continue this we're work to year. that So

the is think remaining large savings coming these of is investments us. CapEx for I majority from investments

Seth Rosenfeld

the hitting Is just Understood. And of maybe overall then How thinking But book, that should of to just with by about touched be order this on XX% quarter? expect decline? we game a goal inventory of that? it. you kind for we remainder next kind the should the waiting

Michael Williams

Yes.

I the it starting they within distribution say short way inventory -- decades they levels higher before the already that lead is can a customers -- it, there's get what distribution being We work industry. I'd a in want customers need the there's Dave, get -- kind the to very down. the We've lead of short months been time. off. in see a can times, of supply. inventories the work those they'll what So They're describe many this so of That in happen. here will we're And when chain, over in approximately channels. supply of specifically in about over month inventoried

So and down, patterns what demand back there going that they requirements to would I they'll work as historical go say, ordering forward. are

Operator

comes the [Operator Instructions] of Your from next question Franzreb Sidoti. from line John

John Franzreb

Yes.

Just a XX%. level to to quick targeted curious behind XX% was I'm take pricing decision? down about from What the decision prenegotiated follow-ups. the couple of that

Michael Williams

into agreements. trying quarter, was there fourth rolled to we to -- in the not price chase spot which for those there be declining the annual prices. pressure market, Again, And chose there was then was out some

through up rest the the ended year. we with spot So XX% of on be contract, remaining the will and pricing

John Franzreb

about the XX being Should there the that Okay. discussion the process? update today, us Got line year months? And Can expect here it. time was something additional in an Any M&A original maybe been give believe XX active be to X market. on months. about of would ago a helpful. coming I you in more we was color kind

Michael Williams

an individual the ball to regards M&A in can't for What that's on -- to built we do have primarily my M&A assess activity. doesn't analytics forecast processes M&A. I targets. what's happen and the We've focused did the to required tools we Yes. going crystal is

will have possibilities I our comparatives, that published to a specialty want end We balance defense -- the or it we're be footprint. and commitment aligned It our And aligned we I but with any It firm getting imperatives. strategic when will sheet it's of our metals. markets pipelines particularly to with the strategic happen, be in our aligned capability tell are will you with will which can't opportunities you grow of aerospace that not it of will threaten really going with involved focused that be in certain around strategic, products. with give expanding way. our is in, aligned

John Franzreb

Okay.

to are to acquisition? You an to how took that. curious willing my lever up do was follow-up I you

Michael Williams

and Well, about have John, now. year a been talking for you I

the I because of about balance I constantly protecting our you talk type of got think an sheet. strong idea person conservative I am

Operator

Okay.

We remarks. at turn have to back further I no Beeman the this queue for Jennifer in time. closing our over questions will now call

Jennifer Beeman

Thanks, participation, and concludes call. Thank call. may you you and our now your concludes that This everyone, us conference today, for today's joining for disconnect.

Metallus (MTUS) 28 Feb 242023 Q4 Earnings call transcript