Metallus reported 2Q:25 adjusted EPS of $0.20, better than the $0.18 consensus and our $0.16 EPS estimate, largely due to worse than expected price/mix benefits. On the call, management conveyed an optimistic outlook for 3Q:25, with orders up 200% versus a year ago and visibility through October. However, there are costs being incurred that merit monitoring. The company is set to begin negotiations with the United Steelworkers. Costs associated will be realized in the P&L. A new electricity contract was signed resulting in higher energy costs. Potential offsets include price increases, manufacturing efficiency programs and better melt utilization. Management continues to highlight Aerospace & Defense (A&D) opportunities. The company says it thinks it can achieve at least $250 million in revenue from this higher margin market in 2026 compared to $134.9 million in 2024. Collectively, we take a more cautious view of the profit profile until we have better clarity. As a result, we lower our EPS estimates to $0.59 (from $0.81) in 2025 and $1.48 (from $1.63) in 2026. Metallus also retired its remaining convertible preferred and is now debt free, At the end of 2Q:25, the company had net cash of $190.8 million ($4.41 per share). Our lower profit outlook takes our price target to $18 (from $20), which is based on a constant 12x our revised 2026 EPS estimate of $1.48 (was $1.63). Our moderate risk rating recognizes the cyclicality in the company's end markets and the notable customer concentration, offset by diversification efforts, a clean balance sheet and cost-saving initiatives.