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US specialty steel producer Metallus has been awarded an indefinite delivery/indefinite quantity contract by the US Defense Logistics Agency (DLA) with a maximum ceiling value of $995 million to supply steel for critical defense applications, the company said on Tuesday September 29.
Key takeaways:
- Major defense opportunity: Metallus secured a five-year contract with the US Defense Logistics Agency (DLA) with a maximum ordering value of $995 million, equivalent to roughly 83% of its 2025 revenue, although purchases are not guaranteed.
- Munitions-focused demand: The initial $125 million order covers high-quality bar-based steel products used in munitions, reinforcing Metallus’ long-standing role in supplying materials for artillery, mortar and missile applications.
- Growing emphasis on domestic supply chains: The award highlights increasing US government demand for domestically produced specialty steel as defense programs prioritise supply-chain security and US-based manufacturing capacity.
The contract has a five-year ordering period and allows the DLA to purchase material through delivery orders issued during the term. Metallus noted that the $995 million ceiling represents the maximum amount that may be ordered and does not constitute a commitment by the agency to purchase that volume of material.
The company also received an initial delivery order valued at approximately $125 million on September 29. Metallus said it has up to 24 months to fulfill each delivery order issued under the contract.
The initial order of $125 million is just over 10% of Metallus’ 2025 revenue of $1.2 billion, while the contract’s $995 million ceiling approaches 83% of the company’s 2025 sales, underscoring the potential size of the defense opportunity, although the ceiling value is not a guaranteed purchase commitment.
US-made specialty steel to support military readiness
According to the Metallus, the contract covers specialty steel produced entirely in the United States and will support the DLA’s mission to supply materials for military readiness.
“This award, along with the initial delivery order, represents another key step in the continued transformation of Metallus,” Chief Executive Officer Mike Williams said.
“Our momentum within the defense market reflects Metallus’ proven ability to produce specialty steel products that meet the rigorous performance, quality and traceability requirements of critical defense applications,” Williams added.
Jenna Johnson, senior manager, finance and investor relations, confirmed in an email to Fastmarkets on Tuesday that the 5-year contract is for “high-quality bar-based products used in munitions.”
Contract covers steel products used in munitions applications
Metallus has previously said publicly it supplies specialty steel, seamless tubing and bar products for artillery shells, mortar rounds, missile systems and other aerospace and defense applications.
The DLA is an agency within in the US Department of Defense and supports all branches of the US military, including the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard.
In its prior public disclosures, Metallus said its steel products most clearly tied to defense work are special bar quality (SBQ) steel, alloy steel bar products, artillery-shell steel, mortar-shell steel, artillery-shell canister tubing, seamless mechanical tubing for weapons systems, specialty steels used in missile and rocket applications, gun-barrel steels and related components.
Looking at prior company statements, the strongest public evidence points to artillery and mortar shell production.
In February 2024, Metallus announced a nearly $100 million agreement with the US Army to expand capacity for “high-quality bar-based products” used in artillery shells. Williams said the investment would help meet growing demand for artillery shells and support the Army’s long-term munitions strategy.
In March 2025 the company reported increased demand from aerospace and defense markets due in part to a ramp-up in production of artillery shell canister tubing for US Army munitions.
In May 2026, Metallus reported improved quarter-on-quarter shipments and a significantly stronger order book with increased opportunities in both the industrial and defense sectors being key drivers heading into the rest of the year.
In August 2026, Metallus said it had supplied specialty steel for the US Army artillery and mortar shell applications for more than 30 years and was commissioning new equipment to strengthen the domestic munitions supply.
Missile, rocket and advanced weapons programmes drive specialty steel demand
Metallus’ posted information on its aerospace and defense business indicate that its specialty steels are used in missile and rocket motor casings, nozzles, tail components, bombs and warheads, artillery and mortar bodies, and gun barrels.
The company has also discussed growing participation in defense programs requiring vacuum arc remelt (VAR) and vacuum induction melt (VIM) steels and said those products support major defense customers involved in US military missile programs.
Domestic steel supply chain security remains a key defense priority
Metallus manufactures specialty steel products, including alloy steel bar, seamless mechanical tubing and manufactured components, from its operations in Canton, Ohio. The company serves the industrial, automotive, aerospace and defense, and energy sectors.
The contract award is the latest indication of growing government demand for domestically produced specialty steel products amid increasing emphasis on supply-chain security and US-based manufacturing for defense applications.
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