Financing Arrangements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financing Arrangements | Note 11 - Financing Arrangements For a detailed discussion of the Company's long-term debt and credit arrangements, refer to “Note 12 - Financing Arrangements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company has no outstanding debt as of March 31, 2026. Credit Agreement On September 30, 2022, the Company, as borrower, and certain domestic subsidiaries of the Company, as subsidiary guarantors (the “Subsidiary Guarantors”), entered into a Fourth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (collectively, the “Lenders”), which further amended and restated the Company’s existing secured Third Amended and Restated Credit Agreement, dated as of October 15, 2019.
As of March 31, 2026, the amount available under the Amended Credit Agreement was $270.7 million, reflective of the Company’s asset borrowing base with no outstanding borrowings. Additionally, the Company is in compliance with all covenants outlined in the Amended Credit Agreement.
Interest (Income) Expense, net The following table provides the components of interest (income) expense, net for the three months ended March 31, 2026 and 2025:
Interest expense for the three months ended March 31, 2026 is primarily driven by capital lease obligations. Interest income primarily relates to interest earned on cash invested in a money market fund and deposits with financial institutions. As of March 31, 2026, the carrying value of the Company's money market investment was $12.6 million, which approximates the fair value. The Company had $42.6 million in cash invested in a money market fund as of March 31, 2025. The money market fund is a cash equivalent and is included in cash and cash equivalents on the Consolidated Balance Sheets. The fund consists of highly liquid investments with an average maturity of three months or less and falls within Level 1 of the fair value hierarchy as defined by applicable accounting guidance. Additionally, as of March 31, 2026 and 2025, the Company had $59.6 and $126.9 million, respectively, of cash held in other accounts which generate interest income at a rate similar to the money market fund. Treasury Shares On December 20, 2021, Metallus announced that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common shares. On November 2, 2022, the Board of Directors authorized an additional $75.0 million towards its share repurchase program and on May 6, 2024 the Board of Directors authorized an additional $100.0 million. The share repurchase program is intended to return capital to shareholders while also offsetting dilution from annual equity compensation awards. The share repurchase program does not require the Company to acquire any dollar amount or number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. These authorizations reflect the continued confidence of the Board and senior leadership in the Company’s ability to generate sustainable through-cycle profitability while maintaining a strong balance sheet and cash flow. For the three months ended March 31, 2026, the Company repurchased approximately 0.3 million common shares in the open market at an aggregate cost of $4.3 million, which equates to an average repurchase price of $15.55 per share. As of March 31, 2026, the Company had a balance of $85.4 million remaining on its authorized share repurchase program. For the three months ended March 31, 2025, the Company repurchased approximately 0.4 million common shares at an aggregate cost of $5.6 million in the open market, which equates to an average repurchase price of $14.23 per share. |
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