Metallus shares plunged 6.73% amid escalating labor tensions as workers rejected second proposed contract.

Metallus shares plunged 6.73% in pre-market trading on Dec. 22, 2025, amid escalating labor tensions as workers rejected a second proposed contract, deepening uncertainty for the steelmaker.

The decline follows the United Steelworkers’ rejection of a tentative agreement on Dec. 19, prolonging a standoff that has spooked investors. The stock’s volatility intensified after a 4.2% drop on Dec. 20, with shares briefly rebounding in after-hours trading before resuming downward pressure. Analysts attribute the selloff to fears of potential strikes, production delays, and rising labor costs, which threaten the company’s operational stability.

Despite the near-term turmoil, a positive medium-term outlook persists, with a consensus price target of $24 implying over 38% upside from current levels. However, the firm’s fundamentals remain mixed, reporting $1.08 billion in annual revenue against a $1.3 million net loss. Management now faces urgent pressure to resolve the labor dispute, as unresolved tensions risk further eroding investor confidence and obscuring progress on core business metrics.

Investors are closely monitoring Metallus for signs of a labor agreement that could stabilize operations and restore confidence in the company’s strategic direction. The stock has underperformed in recent days, but analysts remain cautiously optimistic about its ability to recover, provided the company can secure a contract that balances the interests of both workers and shareholders.

Looking ahead, the key challenge for Metallus will be managing the human capital risk associated with its workforce. A prolonged standoff could not only disrupt production schedules but also deter new investment, particularly in a market that is already wary of industrial sector volatility.