v3.26.1
Income Tax Provision
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Tax Provision

Note 8 - Income Tax Provision

Metallus’ provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior-year tax liabilities, are recorded during the periods in which they occur.

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Provision (benefit) for incomes taxes

 

$

2.6

 

 

$

1.6

 

Effective tax rate

 

 

32.5

%

 

 

53.3

%

 

Income tax expense for the three months ended March 31, 2026 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate for the three months ended March 31, 2026 was 32.5% compared to 53.3% in the three months ended March 31, 2025. The decrease in the effective tax rate for the three months ended March 31, 2026 is primarily related to higher pre-tax income and the impact of discrete items related to stock based compensation awards.

For the three months ended March 31, 2026 and 2025, there were $1.8 million of state and local income tax refunds. For the three months ended March 31, 2026, there were no tax payments. In April 2026, the Company received a $2.2 million refund from the Internal Revenue Service (“IRS”) for overpayments of 2024 federal estimated taxes.