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Income Tax Provision
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax Provision

Note 7 - 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 March 31,

 

 

 

2025

 

 

2024

 

Provision (benefit) for incomes taxes

 

$

1.6

 

 

$

6.0

 

Effective tax rate

 

 

53.3

%

 

 

20.0

%

 

Income tax expense for the three months ended March 31, 2025 was calculated using forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate of 53.3% for the three months ended March 31, 2025 was more than the rate of 20.0% for the three months ended March 31, 2024. The increase in the effective tax rate is primarily related to lower pre-tax income in the first quarter of 2025 and the impact of discrete items related to stock based compensation awards.

 

In the first quarter of 2025, the Company submitted a refund claim of $6.5 million to the Internal Revenue Service (“IRS”) for overpayments of 2024 federal estimated taxes as the estimated federal tax liability through December 31, 2024 was lower than projections made throughout the year. In May 2025, the Company received the refund claim of $6.5 million from the IRS.