NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against GrafTech International Ltd. (NYSE: EAF) on behalf of long-term stockholders following a class action complaint that was filed against GrafTech on January 25, 2024 with a Class Period from  February 8, 2019 through August 3, 2023. Our investigation concerns whether the board of directors of GrafTech have breached their fiduciary duties to the ...

Financial Performance - Net sales decreased by $24.7 million, or 18%, to $111.8 million for the first quarter of 2025 compared to the same period in 2024[113] - Operating loss improved by $3.2 million, or 15%, to $18.2 million in the first quarter of 2025 compared to the first quarter of 2024[113] - Net loss increased by $8.5 million, or 27%, to $39.4 million for the first quarter of 2025 compared to the same period in 2024[113] - Adjusted EBITDA for Q1 2025 was $(3,672) thousand, a decrease from $194 thousand in Q1 2024[191] - Net loss for the three months ended March 31, 2025, was $(39,351) thousand, compared to $(30,869) thousand in Q1 2024[191] - Free cash flow for the three months ended March 31, 2025, was $(42,467) thousand, compared to $(11,041) thousand in Q1 2024[195] Cost of Goods Sold - Cost of goods sold also decreased by $24.4 million, or 18%, to $110.8 million, with a favorable impact of $7.2 million from prior inventory write-downs[114] - Cost of goods sold decreased from $135,204 thousand in Q1 2024 to $110,765 thousand in Q1 2025, representing a reduction of approximately 18.1%[196] - Cash cost of goods sold per metric ton (MT) improved from $4,595 in Q1 2024 to $3,652 in Q1 2025, a decrease of about 20.6%[196] - Cash cost of goods sold totaled $90,206 thousand in Q1 2025, down from $110,742 thousand in Q1 2024, indicating a reduction in production costs[196] Debt and Liquidity - As of March 31, 2025, the company had liquidity of $420.9 million, consisting of cash and cash equivalents of $214.3 million[126] - Long-term debt remained stable at $1.1 billion as of March 31, 2025, consistent with the previous quarter[126] - The company was in compliance with all debt covenants as of March 31, 2025, and December 31, 2024[143][148] - The 2018 Revolving Credit Facility has a financial covenant requiring a Senior Secured First Lien Net Leverage Ratio of no more than 4.00 to 1.00[162] - The company may incur additional debt or issue equity securities to provide liquidity, but there is no guarantee of access to credit or capital markets on satisfactory terms[168] Capital Expenditures - Capital expenditures totaled $10.3 million for the three months ended March 31, 2025, with an expectation of approximately $40.0 million for the full year 2025[167] - Capital expenditures for Q1 2025 were $10,281 thousand, slightly down from $10,511 thousand in Q1 2024, showing a stable investment approach[195] Interest and Tax Expenses - Interest expense surged by $14.2 million, or 91%, to $29.8 million due to new debt facilities and associated costs[117] - The effective tax rate for the first quarter of 2025 was 15.5%, compared to 12.0% in the first quarter of 2024[118] Stock and Dividends - The company suspended its quarterly cash dividend of $0.01 per share, with no assurance of future resumption[164] - The company has $99 million remaining under its stock repurchase authorization as of March 31, 2025, with no shares repurchased in Q1 2025[163] Strategic Outlook - The company expects to evaluate strategic transactions, including acquisitions and joint ventures, to enhance growth opportunities[123] - The company believes it has adequate liquidity to meet its needs for at least the next twelve months[126] - The cash flow is expected to fluctuate significantly between quarters due to various factors, including customer order patterns and working capital requirements[128]

Q1 2025 Results April 25, 2025 NYSE: EAF www.graftech.com Forward-Looking Statements If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this presentation and in our A ...

GrafTech International (EAF) Q1 2025 Earnings Call April 25, 2025 10:00 AM ET Company Participants Michael Dillon - Vice President of Investor Relations & CommunicationsTimothy Flanagan - CEO, President & DirectorJeremy Halford - EVP, COORory O’Donnell - SVP & CFOBennett Moore - Vice President, Equity ResearchKirk Ludtke - Managing DirectorAbraham Landa - Director Conference Call Participants Alex Hacking - Equity Research Analyst - Metals & MiningArun Viswanathan - Senior Equity Analyst Operator Good morni ...

GrafTech International (EAF) Q1 2025 Earnings Call April 25, 2025 10:00 AM ET Company Participants Michael Dillon - Vice President of Investor Relations & CommunicationsTimothy Flanagan - CEO, President & DirectorJeremy Halford - EVP, COORory O’Donnell - SVP & CFOBennett Moore - Vice President, Equity ResearchKirk Ludtke - Managing DirectorAbraham Landa - Director Conference Call Participants Alex Hacking - Equity Research Analyst - Metals & MiningArun Viswanathan - Senior Equity Analyst Operator Good morni ...

Core Insights - GrafTech International reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.15, representing an earnings surprise of 13.33% [1] - The company posted revenues of $111.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.28% and down from $136.58 million year-over-year [2] - GrafTech shares have declined approximately 62.2% since the beginning of the year, contrasting with the S&P 500's decline of 6.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $131.4 million, and for the current fiscal year, it is -$0.57 on revenues of $535.35 million [7] - The estimate revisions trend for GrafTech is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Metal Products - Procurement and Fabrication industry, to which GrafTech belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GrafTech's stock performance [5]

Sales Performance - Total sales volume grew 2% year-over-year for Q1 2025, with expectations of a low-double digit percentage increase for the full year, resulting in approximately 25% cumulative growth since 2023[4] - Sales volume in the United States increased by 25% year-over-year for Q1 2025, with expectations to outpace this growth rate for the full year[4] - Net sales for Q1 2025 were $112 million, an 18% decrease from $137 million in Q1 2024, primarily due to lower weighted-average realized prices[6] - Net sales decreased to $111,839 thousand in Q1 2025 from $136,584 thousand in Q1 2024, representing a decline of approximately 18.1%[40] Financial Losses - Net loss for Q1 2025 was $39 million, or $0.15 per share, compared to a net loss of $31 million, or $0.12 per share, in Q1 2024[7] - Adjusted net loss for Q1 2025 was $(34,155) thousand, compared to $(25,161) thousand in Q1 2024, reflecting a worsening in adjusted financial performance[43] - Net loss for Q1 2025 was $(39,351) thousand, compared to $(30,869) thousand in Q1 2024, marking an increase in net loss of approximately 27.5%[40] Cost Management - Cash costs per metric ton decreased by 21% year-over-year and 11% sequentially from Q4 2024, with a projected mid-single digit percentage decline for the full year 2025[4] - Cash cost of goods sold per metric ton was $3,652 in Q1 2025, down from $4,595 in Q1 2024, indicating improved cost efficiency[46] - The cash cost of goods sold per MT is a key measure for evaluating costs on a per metric ton basis[34] Liquidity and Capital Expenditures - Total liquidity as of March 31, 2025, was $421 million, supporting the company's ability to manage near-term industry challenges[11] - Capital expenditures for 2025 are anticipated to be approximately $40 million, with a favorable net impact of working capital on cash flow performance[16] - Cash and cash equivalents decreased from $256,248,000 as of December 31, 2024, to $214,283,000 as of March 31, 2025, a decrease of about 16.4%[38] Operational Performance - Adjusted EBITDA was negative $4 million in Q1 2025, down from $0.2 million in Q1 2024, reflecting lower realized prices despite reduced cash costs[7] - Adjusted EBITDA is used as a primary metric for managing business and evaluating performance, reflecting operational profitability[28] - Operating loss improved to $(18,210) thousand in Q1 2025 from $(21,361) thousand in Q1 2024, reflecting a reduction in operational losses[40] Market Conditions - The company expects a low-double digit percentage increase in sales volume for 2025, driven by a focus on regaining market share[13] - The pricing environment remains challenging, with a planned 15% price increase for uncommitted 2025 volume[14] Asset and Liability Management - Total current assets decreased from $636,797,000 as of December 31, 2024, to $618,543,000 as of March 31, 2025, a decline of approximately 2.0%[38] - Total liabilities increased from $1,224,274,000 as of December 31, 2024, to $1,207,753,000 as of March 31, 2025, reflecting a decrease of approximately 1.3%[38] - Long-term debt remained relatively stable, increasing slightly from $1,086,915,000 to $1,088,863,000, an increase of about 0.2%[38] - The accumulated deficit increased from $793,453,000 as of December 31, 2024, to $832,452,000 as of March 31, 2025, an increase of approximately 4.9%[38] Cash Flow Analysis - Net cash used in operating activities was $(32,186) thousand in Q1 2025, significantly higher than $(530) thousand in Q1 2024, indicating increased cash outflow[42] - Free cash flow and adjusted free cash flow are critical measures for evaluating liquidity, with adjusted free cash flow accounting for debt modification costs[32] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures for investors to assess financial performance and debt-service capabilities[29] - Total non-GAAP adjustments pre-tax for Q1 2025 amounted to $6,563 thousand, compared to $7,279 thousand in Q1 2024, showing a reduction in adjustments[43]

Liquidity and Cash Flow - As of December 31, 2024, the company had liquidity of $464.2 million, consisting of $108.0 million available under the 2018 Revolving Credit Facility, $100.0 million under the Initial First Lien Term Loan Facility, and cash and cash equivalents of $256.2 million[250]. - The company reported a net cash used in operating activities of $40.1 million for 2024, a significant decrease from a cash source of $76.6 million in 2023, primarily due to reduced cash provided by working capital[260]. - Cash flow used in investing activities was $34.2 million for 2024, compared to $53.8 million in 2023, driven by reduced capital expenditures[261]. - Net cash provided by financing activities was $155.7 million in 2024, an increase from $18.7 million in 2023, mainly due to the issuance of $175.0 million of First Lien Term Loans[262]. - The company experienced a decrease in cash flow provided by inventories and accounts receivable, primarily due to reduced sales in the fourth quarter of 2024 compared to the same period in 2023[260]. Debt and Financing - The company had gross long-term debt of $1.1 billion as of December 31, 2024, up from $950.0 million in 2023[250]. - The company completed financing transactions to extend the maturities on its outstanding debt during the fourth quarter of 2024[253]. - The company issued New 4.625% Notes and New 9.875% Notes in aggregate principal amounts of $498.2 million and $446.2 million, respectively, on December 23, 2024[265]. - The Initial First Lien Term Loans amount to $175 million, with an additional $100 million available through Delayed Draw Commitments until July 23, 2026[286]. - The First Lien Term Loans bear interest at a rate equal to Term SOFR plus 6.00% per annum or ABR plus 5.00% per annum, with a 2.00% floor[288]. - Following the Exchange Offer, approximately $1.8 million of Existing 4.625% Notes and $3.8 million of Existing 9.875% Notes remain outstanding[279][285]. - The Existing 4.625% Notes were issued at an aggregate principal amount of $500 million, with proceeds used to partially repay borrowings under the 2018 Term Loan Facility[275]. - The First Lien Term Loans mature on December 23, 2029, and are secured by perfected first-priority security interests in the collateral[287]. - GrafTech Global must offer to repurchase the New 9.875% Notes if specific changes in control occur or if certain assets are sold[281]. - The New Notes Indentures contain covenants that limit the ability to incur additional indebtedness or engage in certain transactions[271]. - The total contractual obligations as of December 31, 2024, amounted to $1,559.864 million, with long-term debt accounting for $1,125 million[297]. - The Company had no outstanding term loans under the 2018 Term Loan Facility as of December 31, 2024[294]. Dividend and Stock Repurchase - The company suspended its quarterly cash dividend of $0.01 per share on August 2, 2023, with no assurance of resuming future dividend payments[255]. - The company authorized a stock repurchase program totaling $250.0 million, with $99.0 million remaining under the authorization as of December 31, 2024[254]. Compliance and Covenants - As of December 31, 2024, GrafTech Global was in compliance with all debt covenants in the New Notes Indentures, maintaining a pro forma consolidated total net leverage ratio of no greater than 2.50 to 1.00[271]. - As of December 31, 2024, the availability under the 2018 Revolving Credit Facility was $108.0 million, down from $112.4 million in 2023[294]. - The 2018 Revolving Credit Facility matures on November 30, 2028, with a financial covenant requiring a Senior Secured First Lien Net Leverage Ratio of no more than 4.00 to 1.00[296]. - The Company must not have more than $100 million of unrestricted cash and cash equivalents after borrowing under the 2018 Revolving Credit Facility[293]. - The Company has complied with all debt covenants as of December 31, 2024[296]. Tax and Deferred Assets - As of December 31, 2024, the Company had deferred tax assets (DTAs) of $52.4 million in the U.S., with a valuation allowance of $19.3 million against certain DTAs[303][304]. - The Company is required to make estimated interest payments on its Existing 9.875% Notes and Existing 4.625% Notes through December 15, 2028, totaling $434.864 million[297]. Other Financial Details - The 2018 Revolving Credit Facility includes a commitment fee of 0.25% per annum on undrawn commitments[295]. - As of December 31, 2024, there were $7.4 million of letters of credit drawn against the 2018 Revolving Credit Facility[294].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $49 million or $0.19 per share, with adjusted EBITDA improving to negative $7 million from negative $22 million in Q4 2023 [37] - Cash COGS per metric ton decreased by 23% year-over-year to approximately $4,290, exceeding the previous guidance of a 20% decline [40][39] - Total liquidity at the end of 2024 was $464 million, a $210 million increase from Q3 2024, with no borrowings outstanding under the revolving credit facility [45][46] Business Line Data and Key Metrics Changes - Sales volume in Q4 2024 was 27,000 metric tons, a 13% increase year-over-year, while production volume was 25,000 metric tons with a capacity utilization rate of 55% [29][30] - The weighted average realized price for non-LTA sales in Q4 was approximately $3,900 per metric ton, reflecting a 19% year-over-year decline [30] - The company anticipates a low-double-digit percentage increase in sales volume for 2025, building on the 13% increase achieved in 2024 [32] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 207 million tons in Q4 2024, remaining flat compared to Q4 2023 [27] - North American steel production decreased by 4% in 2024, while EU steel output increased by 3% [28] - The company expects demand for graphite electrodes to remain relatively flat in key regions in the near term, despite modest growth projections for global steel demand in 2025 [19][51] Company Strategy and Development Direction - The company is focused on regaining market share through enhanced customer engagement and the introduction of new products, such as the 800-millimeter electrode [10][11] - A price increase of 15% on uncommitted volumes for 2025 has been communicated to customers to restore profitability [23][24] - The company is committed to managing costs while also investing in technical capabilities and customer value propositions to support long-term growth [49][50] Management's Comments on Operating Environment and Future Outlook - Management noted geopolitical uncertainties, particularly regarding potential tariffs impacting the North American supply chain, and is preparing various responses [18][19] - The outlook for 2025 includes modest growth in global steel demand, with expectations of continued decarbonization efforts driving long-term demand for electric arc furnace (EAF) steel production [51][54] - Management remains cautious about near-term industry trends but is optimistic about long-term growth opportunities in the graphite electrode market [51][56] Other Important Information - The company successfully completed a financing transaction that extended debt maturities to December 2029, enhancing its financial foundation [15][47] - The company is actively managing working capital levels, having reduced working capital by $40 million in 2024, following a $108 million reduction in 2023 [14][43] Q&A Session Summary Question: What was the benefit of the LCM inventory adjustment for the full year? - The full year benefit for 2025 is estimated to be around $16 million to $17 million, with a fourth quarter benefit of approximately $2 million to $3 million [62][63] Question: How will potential tariffs impact production and commitments? - The company is prepared to adjust its supply chain and production across various facilities to minimize the impact of tariffs, with flexibility to redirect production as needed [74][75] Question: What has been the customer feedback on the 15% price hike? - Initial customer reactions indicate an understanding of the need for the price increase, recognizing the importance of maintaining a healthy supply chain [94][92] Question: When could the price hikes start to reflect in results? - The first deliveries reflecting the price increase are expected in the second quarter of 2025, as negotiations for uncommitted volumes are ongoing [98] Question: What is the current pricing trend for needle coke? - Needle coke pricing remains largely unchanged, with super premium coke priced between $1,000 to $1,300 per metric ton, but a long-term view anticipates a shortage [99][100] Question: How is market share recovery progressing? - The company has made significant progress in regaining market share, particularly in the U.S., by focusing on customer engagement and value-added services [106][108]

Core Viewpoint - GrafTech International reported a quarterly loss of $0.13 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.14, and an improvement from a loss of $0.27 per share a year ago, indicating a positive earnings surprise of 7.14% [1][2] Financial Performance - The company posted revenues of $134.22 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.52%, and down from $137.15 million in the same quarter last year [2] - Over the last four quarters, GrafTech has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - GrafTech shares have declined approximately 13.9% since the beginning of the year, contrasting with the S&P 500's gain of 3.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $129 million, and for the current fiscal year, it is -$0.48 on revenues of $571.45 million [7] Industry Outlook - The Metal Products - Procurement and Fabrication industry, to which GrafTech belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GrafTech's stock performance [5]