GrafTech International (NYSE:EAF) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsKirk Ludtke - Managing DirectorMichael Dillon - VP of Investor RelationsRory O'Donnell - CFOTimothy Flanagan - CEOConference Call ParticipantsAbraham Landa - Senior Research AnalystArun Viswanathan - AnalystBennett Moore - AnalystOperatorMy name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to GrafTech International's fourth quarter 2025 earnings ...

Financial Data and Key Metrics Changes - In 2025, the company achieved a 6% increase in sales volume year-over-year, despite a challenging market environment marked by global overcapacity and subdued steel production trends [4][5] - The average selling price for the fourth quarter was approximately $4,000 per metric ton, reflecting a 9% decline year-over-year and a 5% sequential decline from the third quarter [17] - The company reported a net loss of $65 million or $2.50 per share for the fourth quarter, compared to a net loss of $49 million or $1.92 per share in the prior year [21] Business Line Data and Key Metrics Changes - The U.S. sales volume grew by 48% for the full year and by 83% in the fourth quarter, indicating a successful shift towards regions with stronger pricing fundamentals [5][17] - The company's production volume for the fourth quarter was approximately 28,000 metric tons, resulting in a capacity utilization rate of 60% [16] Market Data and Key Metrics Changes - Global steel production outside of China was 843 million tons in 2025, up less than 1% compared to the prior year, with a global utilization rate of approximately 67% [8][9] - In North America, steel production increased by 1% in 2025, driven by a 3% year-over-year growth in the United States [9] Company Strategy and Development Direction - The company aims to grow sales volume by 5%-10% year-over-year in 2026, with a continued focus on shifting geographic mix towards the U.S. [26][27] - Management is evaluating opportunities for trade or policymaking support and potential strategic partnerships to enhance efficiency and long-term value creation [15] Management Comments on Operating Environment and Future Outlook - The management highlighted the need for structural changes in the supply chain to address the overcapacity issue in the graphite electrode industry, which threatens long-term viability [14][36] - There are indicators of a rebound in the steel market, with projected global steel demand growth of 3.5% year-over-year for 2026 [10][11] Other Important Information - The company ended 2025 with a liquidity position of $340 million, which includes $138 million in cash, enabling it to maintain stability amid industry challenges [7][24] - The total recordable incident rate improved to 0.41 in 2025, representing the best safety performance on record for the company [7] Q&A Session Summary Question: Has aggressive competitor pricing worsened, particularly in the U.S.? - Management noted that pricing pressure is observed globally, driven by imports and aggressive pricing behaviors from competitors, particularly from China and India [42][45] Question: Is it reasonable to assume that realized pricing will be lower in 2026? - Management refrained from providing specific price guidance but indicated that pricing levels heading into 2026 are not better than those observed in 2025 [46] Question: How does the company plan to win back market share amid aggressive pricing? - The company will focus on enhancing its value proposition through R&D and customer partnerships, while being selective in regions where price competition is fierce [56] Question: What is the company's liquidity position to navigate the downturn? - The company has $340 million in liquidity and has taken decisive actions to preserve and enhance this liquidity amid ongoing market challenges [65] Question: What is the impact of Indian tariffs on the U.S. market? - Management expressed confidence in their position heading into 2026, despite the reduction of tariffs on Indian imports, anticipating overall volume growth [71] Question: What is the current supply picture of graphite electrodes coming out of China? - Management indicated that Chinese exports continue to pressure the global market, with significant overcapacity affecting pricing dynamics [78]

Financial Data and Key Metrics Changes - In 2025, GrafTech International reported a full-year sales volume increase of 6% despite a challenging graphite electrode industry environment marked by global overcapacity and subdued steel production trends [4][5] - The company achieved an 11% reduction in cash cost of goods sold per metric ton for the full year, resulting in a cumulative reduction of 31% since the end of 2023 [6][20] - The liquidity position at year-end 2025 was $340 million, including $138 million in cash, which exceeded expectations [8][24] Business Line Data and Key Metrics Changes - In the U.S., sales volume grew by 48% for the full year and by 83% in the fourth quarter year-over-year, reflecting a successful shift towards regions with stronger pricing fundamentals [5][18] - The average selling price for the fourth quarter was approximately $4,000 per metric ton, representing a 9% decline year-over-year due to competitive pricing dynamics [18][19] Market Data and Key Metrics Changes - Global steel production outside of China was 843 million tons in 2025, with a utilization rate of approximately 67% [9][10] - In North America, steel production increased by 1% in 2025, driven by a 3% growth in the U.S. [10] - The EU experienced a 3% decrease in steel output compared to 2024, with utilization rates averaging just over 60% [10][11] Company Strategy and Development Direction - GrafTech's strategy includes focusing on value-focused growth rather than volume, walking away from low-margin opportunities [5][16] - The company aims to grow sales volume by 5%-10% year-over-year in 2026, with a continued shift towards the U.S. market [27] - Management is evaluating opportunities for optimizing manufacturing and potential strategic partnerships to enhance efficiency and long-term value creation [16][36] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing challenges in the graphite electrode industry due to overcapacity and aggressive competitor pricing, which threaten long-term viability [13][14] - There are signs of potential rebound in steel demand, with projections of 3.5% growth globally outside of China in 2026 [11][12] - The company remains committed to maintaining product quality and safety while navigating market challenges [26][36] Other Important Information - GrafTech's total recordable incident rate improved to 0.41 in 2025, marking the best safety performance on record [8] - The company is actively assessing trade policies and their impact on the graphite electrode market, particularly in relation to U.S. tariffs [32][34] Q&A Session Summary Question: Has aggressive competitor pricing worsened, particularly in the U.S.? - Management noted that pricing pressure is global, driven by imports and aggressive pricing behavior from competitors, particularly from China and India [41][42] Question: Is it reasonable to assume that realized pricing will be lower in 2026? - Management refrained from providing specific price guidance but indicated that pricing levels heading into 2026 are not better than those observed in 2025 [45] Question: How does GrafTech plan to win back market share amidst competitive pricing? - The company will focus on its value proposition, emphasizing quality and service, while being selective in regions where price competition is fierce [53][54] Question: What is GrafTech's ability to pivot its needle coke capacity towards EV battery production? - Management expressed a heightened focus on both graphite electrode production and potential involvement in the supply chain for anode materials for EVs, indicating readiness to partner with others in this space [56][58] Question: What is GrafTech's liquidity position and plans for navigating downturns? - The company has $340 million in liquidity and plans to continue taking decisive actions to preserve and enhance liquidity during downturns [62][63]

Stock of GrafTech International Ltd. (EAF) is moving down about 30 percent on Friday morning trading following the announcement of fourth-quarter financial results, reporting wider loss.Net loss for the quarter increased to $65.116 million from last year's $49.476 million.The company's shares are currently trading at $10.95 on the , down 30.27 percent. The stock opened at $10.10 and has climbed as high as $12.49 so far in today's session. Over the past year, it has traded in a range of $5.50 to $20.32.Net ...

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Q4 2025 Results February 6, 2026 NYSE: EAF www.graftech.com Today's Presenters Tim Flanagan Chief Executive Officer and President Rory O'Donnell Chief Financial Officer and Senior Vice President 2 Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation and related discussions may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our cur ...

Financial Performance - Net sales for Q4 2025 were $116 million, a decrease of 13% compared to $134 million in Q4 2024, primarily due to a decline in weighted-average realized prices[9] - Net loss for Q4 2025 was $65 million, or $2.50 per share, compared to a net loss of $49 million, or $1.92 per share, in Q4 2024[10] - Adjusted EBITDA for Q4 2025 was negative $22 million, worsening from negative $7 million in Q4 2024, largely due to lower realized prices[10] - Gross loss for Q4 2025 was $24,337 thousand, compared to a gross loss of $10,443 thousand in Q4 2024, indicating a significant decline in profitability[51] - Operating loss for the year ended December 31, 2025, was $77,066 thousand, slightly higher than the operating loss of $75,225 thousand for the previous year[51] - Net loss for Q4 2025 was $65,116 thousand, compared to a net loss of $49,476 thousand in Q4 2024, representing a 31.5% increase in losses year-over-year[51] - Basic loss per share for Q4 2025 was $2.50, compared to $1.92 in Q4 2024, reflecting a worsening financial position[51] - Adjusted net loss for Q4 2025 was $63,886 thousand, compared to $33,143 thousand in Q4 2024, indicating a deterioration in adjusted financial performance[55] - Free cash flow for Q4 2025 was $(39.265) million, compared to $(39.209) million in Q4 2024, indicating continued cash flow challenges[59] Sales and Production - Sales volume for Q4 2025 was 27.1 thousand MT, flat year-over-year, while full-year sales volume grew 6% to 109.2 thousand MT[15] - Production volume for Q4 2025 was 27.8 thousand MT, resulting in a capacity utilization rate of 60%[17] - The company anticipates a 5-10% year-over-year increase in sales volume for 2026, with approximately 65% of the anticipated volume already committed[22] - The company expects a modest increase in global demand for graphite electrodes in 2026, driven by improving steel industry trends[21] - Sales volume in Q4 2025 was 27.1 thousand MT, a slight decrease from 27.2 thousand MT in Q4 2024[60] Liquidity and Capital Expenditures - Total liquidity at the end of Q4 2025 was $340 million, consisting of cash and cash equivalents of $138 million and availability under credit facilities[18] - Capital expenditures for 2026 are anticipated to be approximately $35 million, adequate to maintain current asset utilization levels[26] - Capital expenditures for the year ended December 31, 2025, totaled $38,885 thousand, an increase from $34,309 thousand in 2024[53] - Capital expenditures in Q4 2025 were $18.371 million, up from $12.792 million in Q4 2024, indicating increased investment in operations[59] Debt and Assets - GrafTech reported a gross debt of $1,125 million as of December 31, 2025, with cash and cash equivalents of $138 million, resulting in a net debt of $987 million[33] - Total current assets decreased from $636,797 thousand in 2024 to $484,534 thousand in 2025, reflecting a decline of approximately 24%[49] - The company's total assets decreased from $1,224,274 thousand in 2024 to $1,028,789 thousand in 2025, a reduction of about 16%[49] - GrafTech's accumulated deficit increased from $793,453 thousand in 2024 to $1,012,948 thousand in 2025, indicating a rise of approximately 28%[49] - GrafTech's stockholders' deficit increased from $78,902 thousand in 2024 to $259,628 thousand in 2025, reflecting a significant decline in equity[49] Cost Management - The company achieved an 11% reduction in cash cost of goods sold per metric ton for the full year 2025 compared to 2024[13] - GrafTech's cash cost of goods sold per metric ton is a critical measure for evaluating costs, which is calculated by excluding certain expenses from the total cost of goods sold[45] - Cash cost of goods sold for Q4 2025 was $108.904 million, with a cash cost of goods sold per MT of $4,019, slightly lower than $4,086 in Q4 2024[60] Research and Development - Research and development expenses for the year ended December 31, 2025, were $6,475 thousand, up from $5,706 thousand in 2024, highlighting ongoing investment in innovation[51] Operational Risks - The company is subject to various risks, including dependence on the global steel industry and potential disruptions in manufacturing operations[35] - The company is focusing on cost rationalization and footprint optimization, which may impact future financial performance[61] Performance Metrics - The company emphasizes the importance of adjusted EBITDA as a key performance metric, which excludes non-operational items to provide a clearer view of operational profitability[41] - Adjusted EBITDA for Q4 2025 was $(21.900) million, a decrease from $13.013 million in Q3 2025 and $(6.859) million in Q4 2024[58]

BROOKLYN HEIGHTS, Ohio--(BUSINESS WIRE)--GrafTech International Ltd. (NYSE: EAF) ("GrafTech," the "Company," "we," or "our") today announced its unaudited financial results for the quarter and year ended December 31, 2025. Highlights Sales volume was flat year-over-year for the fourth quarter of 2025; sales volume grew 6% on a full-year basis. Grew sales volume in the United States 83% year-over-year for the fourth quarter of 2025 and 48% on a full-year basis, reflecting our strategy to activel. ...

Core Viewpoint - GrafTech International is facing significant financial challenges as it prepares to release its quarterly earnings, with Wall Street projecting an EPS of -$1.27 and revenue of $140 million, indicating potential difficulties in achieving earnings expectations [1][2][6] Financial Performance - The anticipated earnings for GrafTech show a year-over-year improvement in revenues, but concerns remain about the company's ability to exceed earnings expectations [2] - GrafTech's financial metrics include a negative P/E ratio of -19.90, indicating negative earnings, and a price-to-sales ratio of 0.78, suggesting the stock is valued at 78 cents per dollar of sales [3][6] - The enterprise value to sales ratio stands at 2.62, providing insight into the company's valuation relative to its revenue [3] Liquidity and Financial Position - GrafTech maintains a strong liquidity position with a current ratio of 4.22, indicating sufficient current assets to cover liabilities [4][6] - However, the company has a negative debt-to-equity ratio of -5.87, reflecting a negative equity position and highlighting financial hurdles that need to be addressed [4][6] Upcoming Earnings Call - The upcoming earnings call is critical for investors, as management's discussion of business conditions will significantly influence future earnings expectations [5] - The sustainability of any immediate price changes will depend on the company's ability to tackle its financial challenges and leverage revenue growth [5]

The Zacks Metal Products - Procurement and Fabrication industry remains well-positioned supported by healthy, strong demand across its varied end markets. Recent expansion in the manufacturing sector instils optimism. Strategic pricing and cost-control initiatives are expected to help companies maintain margins despite the impact of tariffs.  Companies in the industry like TriMas Corp. (TRS) , GrafTech International (EAF) and NN Inc. (NNBR) are expected to gain from these trends and their efforts to gain ma ...