v3.26.1
Income Tax Provision
 6 Months Ended
Jun. 30, 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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Provision (benefit) for incomes taxes

 

$

3.0

 

 

$

4.9

 

 

$

5.6

 

 

$

6.5

 

Effective tax rate

 

 

25.2

%

 

 

57.0

%

 

 

28.1

%

 

 

56.5

%

Income tax expense for the three months ended June 30, 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 and six months ended June 30, 2026 was 25.2% and 28.1%, respectively, compared to a rate of 57.0% and 56.5% for the prior year. The decrease in the effective tax rate for the three and six months ended June 30, 2026 is primarily related to higher pre-tax income and the limitations on the tax deductibility of the loss on extinguishment of debt on the Convertible Senior Notes in the prior year.

For the six months ended June 30, 2026, Metallus made no U.S. federal tax payments, $0.3 million in state and local tax payments, and $0.1 million in foreign tax payments. For the six months ended June 30, 2025, Metallus made no U.S. federal tax payments, $0.3 million in state and local tax payments, and $0.2 million in foreign tax payments.

For the six months ended June 30, 2026, Metallus received $2.2 million in U.S. federal tax refunds, $3.2 million in state and local tax refunds, and no foreign tax refunds. For the six months ended June 30, 2025, Metallus received $6.5 million in U.S. federal tax refunds, no state and local tax refunds, and no foreign tax refunds.