Note 4 – Government Funding

On February 27, 2024, the Company entered into an agreement with the United States Army ("U.S. Army"). The agreement provides for $99.75 million in funding to support the U.S. Army's mission of increasing munitions production for national security in the upcoming years. The agreement supports the commissioning of two major assets: a continuous bloom reheat furnace and a roller hearth heat treat furnace. For the three and six months ended June 30, 2026, the Company received the final $11.3 million and $17.2 million, respectively, in funding related this agreement. For the three and six months ended June 30, 2025, the Company received $5.1 million and $18.0 million, respectively. The Company recorded the funding as a current liability on the Consolidated Balance Sheets and as investing within the Consolidated Cash Flows. For the three and six months ended June 30, 2026 and

2025, capital spending related to assets associated with this agreement was $9.5 million and $27.8 million in 2026 and $15.3 million and $29.3 million in 2025, respectively.

For further details, refer to Metallus' “Note 2 - Significant Accounting Policies” in its annual report on Form 10K for the year ended December 31, 2025.