Second Tentative Agreement between Metallus and United Steelworkers (USW) Local 1123 Voted Down

Rhea-AI Summary

Metallus (NYSE: MTUS) confirmed that members of United Steelworkers Local 1123 voted not to ratify the second tentative agreement on Dec 18, 2025, after the company and union leadership reached the deal on Dec 4, 2025. The company said it is disappointed and will continue negotiating in good faith.

Highlights of the proposed but rejected agreement included historic wage increases, comprehensive healthcare with no copay or coinsurance increases, added paid parental leave and personal time, and improved retirement contributions. The current contract was extended through Jan 29, 2026 and covers approximately 1,200 bargaining employees at Canton, Ohio.

Positive

• Proposed historic wage increases across the agreement
• Comprehensive healthcare with no copay or coinsurance increases
• Added paid parental leave and improved retirement contributions

Negative

• Second tentative agreement not ratified on Dec 18, 2025
• Bargaining remains unresolved for about 1,200 Canton employees
• Current contract extended only until Jan 29, 2026

Key Figures

Bargaining employees 1,200 employees Canton, Ohio operations covered by current agreement

Contract extension end January 29, 2026 Expiration of extended labor agreement covering USW Local 1123

Current share price $18.72 Pre-news price on NYSE for MTUS

52-week high $19.19 52-week high level prior to this news

52-week low $10.78 52-week low level prior to this news

Market capitalization $792,576,550 Equity value before this news

Price vs 52-week high -2.45% Distance from 52-week high prior to news

200-day moving average $15.37 MTUS trading above this level pre-news

Market Reality Check

$17.16 Last Close

Volume Volume 288,846 is slightly below the 20-day average of 310,955 (relative volume 0.93). normal

Technical Shares at $18.72 are trading above the 200-day MA of $15.37 and 2.45% below the 52-week high of $19.19.

Peers on Argus

Peer moves were mixed, with Radius Recycling (RDUS) down 0.03%, NWPX down 1.24%, Algoma Steel (ASTL) up 0.45%, Luda Technology (LUD) down 5.29%, and Olympic Steel (ZEUS) up 2.27%, suggesting today’s -1.63% move in MTUS is more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 04	Labor agreement reached	Positive	+0.5%	New four-year tentative labor agreement with USW Local 1123.
Nov 07	Earnings webcast details	Neutral	-1.4%	Announcement of Q3 2025 earnings webcast timing and access.
Nov 06	Q3 2025 earnings	Positive	-4.1%	Stronger Q3 sales and profitability with solid liquidity and funding.
Oct 30	Labor deal rejected	Negative	-0.2%	USW rejection of tentative deal; 90-day contract extension to Jan. 29, 2026.
Oct 17	Earnings date set	Neutral	-0.4%	Scheduling announcement for upcoming Q3 2025 earnings call.

Pattern Detected

Labor contract headlines have previously produced mild reactions, while a positive Q3 earnings report saw a larger negative move, indicating occasional divergence from fundamental news.

Recent Company History

Over the last few months, Metallus has balanced labor negotiations and improving fundamentals. On Oct. 30, 2025, USW members first rejected a tentative agreement, though the contract was extended through Jan. 29, 2026 for about 1,200 Canton employees. A new tentative four-year contract announced on Dec. 4, 2025 saw a modest 0.52% gain. Q3 2025 results on Nov. 6, 2025 reported net sales of $305.9M and net income of $8.1M, yet the stock fell 4.06%. Today’s second rejection continues that labor uncertainty theme.

Market Pulse Summary

This announcement highlights continued labor uncertainty as USW Local 1123 members voted down a second tentative agreement, even as the current contract for about 1,200 Canton employees remains extended through January 29, 2026. Metallus reiterated its focus on long-term company health and competitive compensation. In recent months, the company reported Q3 2025 net sales of $305.9M and net income of $8.1M, so observers may watch how ongoing negotiations intersect with operational performance and capital deployment.

AI-generated analysis. Not financial advice.

CANTON, Ohio, Dec. 18, 2025 /PRNewswire/ -- Metallus (NYSE: MTUS), a leader in high-quality specialty metals, manufactured components, and supply chain solutions, today confirmed that members of the United Steelworkers (USW) Local 1123 have voted to not ratify the second tentative labor agreement that was reached between the company and union leadership on December 4, 2025.

"We are deeply disappointed by the outcome of this vote," said Mike Williams, chief executive officer of Metallus. "Before casting their votes, our bargaining employees had opportunities to attend information sessions to better understand the proposed agreement. This agreement, which was voted down despite support from the union's local bargaining committee and international representatives, was designed to provide excellent compensation and benefits while ensuring the long-term health of Metallus. We will continue to negotiate in good faith and remain committed to working toward a resolution that supports both our employees and the company's future."

Highlights of the proposed agreement included:

• Historic wage increases over the life of the agreement, including annual raises and additional premiums for specialized roles.
• Comprehensive healthcare coverage including high-quality medical, prescription, dental, and vision benefits with minimal employee cost and no increases in copays or coinsurance.
• Enhanced work-life benefits by adding paid parental leave, additional personal time, and improved retirement contributions.

The current agreement had previously been extended until January 29, 2026 and covers approximately 1,200 bargaining employees at the company's Canton, Ohio operations.

ABOUT METALLUS INC.
Metallus (NYSE: MTUS) manufactures high-performance specialty metals from recycled scrap metal in Canton, OH, serving demanding applications in industrial, automotive, aerospace & defense and energy end-markets. The company is a premier U.S. producer of alloy steel bars (up to 16 inches in diameter), seamless mechanical tubing and manufactured components. In the business of making high-quality steel for more than 100 years, Metallus' proven expertise contributes to the performance of our customers' products. The company employs approximately 1,850 people and had sales of $1.1 billion in 2024. For more information, please visit us at www.metallus.com. 

FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking" statements within the meaning of the federal securities laws. You can generally identify the company's forward-looking statements by words such as "will," "anticipate," "aspire," "believe," "could," "estimate," "expect," "forecast," "outlook," "intend," "may," "plan," "possible," "potential," "predict," "project," "seek," "target," "should," "would," "strategy," or "strategic direction" or other similar words, phrases or expressions that convey the uncertainty of future events or outcomes. The company cautions readers that actual results may differ materially from those expressed or implied in forward-looking statements made by or on behalf of the company due to a variety of factors, such as: (1) the effects of fluctuations in customer demand on sales, product mix and prices in the industries in which the company operates, including the ability of the company to respond to rapid changes in customer demand including but not limited to changes in domestic and worldwide political and economic conditions due to, among other factors, U.S. and foreign trade policies and the impact on economic conditions, changes in customer operating schedules due to supply chain constraints or unplanned work stoppages, the ability of customers to obtain financing to purchase the company's products or equipment that contains its products, the effects of customer bankruptcies or liquidations, the impact of changes in industrial business cycles, and whether conditions of fair trade exist in U.S. markets; (2) changes in operating costs, including the effect of changes in the company's manufacturing processes, changes in costs associated with varying levels of operations and manufacturing capacity, availability of raw materials and energy, the company's ability to mitigate the impact of fluctuations in raw materials and energy costs and the effectiveness of its surcharge mechanism, changes in the expected costs associated with product warranty claims, changes resulting from inventory management, cost reduction initiatives and different levels of customer demands, the effects of unplanned work stoppages, availability of skilled labor and changes in the cost of labor and benefits; (3) the success of the company's operating plans, announced programs, initiatives and capital investments, the consistency to meet demand levels following unplanned downtime, and the company's ability to maintain appropriate relations with the union that represents its associates in certain locations in order to avoid disruptions of business; (4) whether the company is able to successfully implement actions designed to improve profitability on anticipated terms and timetables and whether the company is able to fully realize the expected benefits of such actions; (5) the company's pension obligations and investment performance; (6) with respect to the company's ability to achieve its sustainability goals, including its 2030 environmental goals, the ability to meet such goals within the expected timeframe, changes in laws, regulations, prevailing standards or public policy, the alignment of the scientific community on measurement and reporting approaches, the complexity of commodity supply chains and the evolution of and adoption of new technology, including traceability practices, tools and processes; (7) availability of property insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; (8) the availability of financing and interest rates, which affect the company's cost of funds and/or ability to raise capital; (9) the impacts from any repurchases of our common shares, including the timing and amount of any repurchases; (10) competitive factors, including changes in market penetration, increasing price competition by existing or new foreign and domestic competitors, the introduction of new products by existing and new competitors, and new technology that may impact the way the company's products are sold or distributed; (11) deterioration in global economic conditions, or in economic conditions in any of the geographic regions in which the company conducts business, including additional adverse effects from global economic slowdown, terrorism or hostilities, including political risks associated with the potential instability of governments and legal systems in countries in which the company or its customers conduct business, and changes in currency valuations; (12) the impact of global conflicts on the economy, sourcing of raw materials, and commodity prices; (13) climate-related risks, including environmental and severe weather caused by climate changes, and legislative and regulatory initiatives addressing global climate change or other environmental concerns; (14) unanticipated litigation, claims or assessments, including claims or problems related to intellectual property, product liability or warranty, employment matters, regulatory compliance and environmental issues and taxes, among other matters; (15) cyber-related risks, including information technology system failures, interruptions and security breaches; (16) the potential impact of pandemics, epidemics, widespread illness or other health issues; and (17) with respect to the equipment investments to support the U.S. Army's mission of ramping up munitions production in the coming years, whether the funding awarded to support these investments is received on the anticipated timetable, whether the company is able to successfully complete the installation and commissioning of the new assets on the targeted budget and timetable, and whether the anticipated increase in throughput is achieved. Further, this news release represents our current policy and intent and is not intended to create legal rights or obligations. Certain standards of measurement and performance contained in this news release are developing and based on assumptions, and no assurance can be given that any plan, objective, initiative, projection, goal, mission, commitment, expectation or prospect set forth in this news release can or will be achieved. Inclusion of information in this news release is not an indication that the subject or information is material to our business or operating results.

Additional risks relating to the company's business, the industries in which the company operates, or the company's common shares may be described from time to time in the company's filings with the SEC. All of these risk factors are difficult to predict, are subject to material uncertainties that may affect actual results and may be beyond the company's control. Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered to be a complete list. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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SOURCE Metallus Inc.

FAQ

What happened with Metallus (MTUS) and USW Local 1123 on Dec 18, 2025?

Union members voted to not ratify the second tentative agreement on Dec 18, 2025.

What were the key terms in the rejected Metallus (MTUS) tentative agreement?

The proposal included historic wage increases, comprehensive healthcare with no copay increases, paid parental leave, and improved retirement contributions.

How many employees are affected by the Metallus (MTUS) labor vote?

The vote affects approximately 1,200 bargaining employees at the Canton, Ohio operations.

What is the status of the current Metallus (MTUS) contract after the vote?

The existing agreement was extended and now runs through Jan 29, 2026.

When was the second tentative agreement between Metallus (MTUS) and the union reached?

Company and union leadership reached the second tentative agreement on Dec 4, 2025.

Will Metallus (MTUS) continue negotiations after the vote?

The company said it will continue to negotiate in good faith toward a resolution supporting employees and the company.