If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!When GrafTech International Ltd. (NYSE: EAF ) reported its results for the second quarter, I concluded that talks about green shoots were not yet seen in the actual results. I described the compan ...

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Financial Performance - Net sales for Q3 2025 increased by $13.3 million, or 10%, to $143.998 million compared to Q3 2024, driven by the recognition of $11.2 million of previously deferred revenue[134] - Gross profit for Q3 2025 was $10.307 million, a significant improvement of $22.381 million compared to a gross loss of $12.074 million in Q3 2024[133] - For the first nine months of 2025, net sales decreased by $16.888 million, or 4%, to $387.677 million, primarily due to a decrease in the weighted-average realized price[141] - Net loss for Q3 2025 was $28.5 million, a decrease from $36.1 million in Q3 2024, while the nine-month net loss increased to $154.7 million from $81.7 million[223] - Adjusted EBITDA for Q3 2025 was $13.0 million, compared to a loss of $6.2 million in Q3 2024, and $12.8 million for the nine months ended September 30, 2025, up from $8.5 million year-over-year[223] Expenses and Costs - Cost of goods sold decreased by $2.8 million, or 2%, to $132.041 million in Q3 2025, reflecting ongoing cost reduction initiatives[135] - Research and development expenses increased by $0.394 million, or 32%, to $1.639 million in Q3 2025, indicating a focus on innovation[133] - Selling and administrative expenses increased by $8.238 million, or 25%, to $41.673 million in the first nine months of 2025, influenced by various cost increases[145] - Interest expense rose by $8.014 million, or 49%, to $24.517 million in Q3 2025, due to new debt facilities[137] - Cash cost of goods sold for Q3 2025 was $109.3 million, compared to $110.8 million in Q3 2024, with cash cost of goods sold per MT at $3,795, down from $4,197 year-over-year[228] Cash Flow and Liquidity - As of September 30, 2025, the company had liquidity of $384.3 million, consisting of cash and cash equivalents of $177.6 million and available credit facilities[154] - Net cash used in operating activities increased by $47.0 million in the first nine months of 2025 compared to the same period in 2024, primarily due to a $43.5 million increase in cash used for working capital[198] - Free cash flow for Q3 2025 was $18.4 million, slightly down from $19.7 million in Q3 2024, while the nine-month free cash flow was $(81.2) million, worsening from $(35.2) million[227] - The company reported a net cash used in investing activities of $20.2 million for the nine months ended September 30, 2025, compared to $21.4 million for the same period in 2024[199] - The company reported a net change in cash and cash equivalents of $(81.2) million for the nine months ended September 30, 2025, compared to $(35.2) million for the same period in 2024[198] Debt and Financing - Long-term debt remained stable at $1.1 billion as of September 30, 2025, indicating a consistent capital structure[154] - The Company entered into a $2,250 million senior secured term facility and a $330 million senior secured revolving credit facility, with no outstanding term loans as of September 30, 2025[185] - The First Lien Term Loans amount to $175 million, with an additional $100 million in delayed draw commitments available until July 23, 2026[178] - As of September 30, 2025, GrafTech was in compliance with all debt covenants in the New Notes Indentures[164] - GrafTech Global issued $450 million aggregate principal amount of Existing 9.875% Notes in June 2023, with proceeds also used to repay borrowings under the 2018 Term Loan Facility[173] Shareholder Information - The Company had $99.0 million remaining under its stock repurchase authorization as of September 30, 2025, with no shares repurchased in the third quarter of 2025[192] - Loss per share for Q3 2025 was $(1.10), an improvement from $(1.40) in Q3 2024, while the nine-month loss per share increased to $(5.97) from $(3.17) year-over-year[216] - Adjusted loss per share for Q3 2025 was $(1.03), compared to $(1.33) in Q3 2024, and $(3.98) for the nine months ended September 30, 2025, up from $(2.83) in the same period last year[216] Strategic Outlook - The company plans to evaluate strategic transactions, including acquisitions and refinancing existing debt, to enhance liquidity and operational flexibility[153] - The company experienced non-cash losses from foreign currency remeasurement, impacting financial results, with adjustments totaling $1.4 million for Q3 2025[223]

Financial Data and Key Metrics Changes - GrafTech International reported a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025, with a cumulative sales volume growth of over 20% since the end of 2023 [4][5] - The company generated positive adjusted EBITDA of $13 million for the quarter and $25 million in net cash from operating activities, with an ending liquidity position of $384 million as of September [6][24][26] - A net loss of $28 million, or $1.10 per share, was reported for the third quarter, an improvement from a net loss of $36 million, or $1.40 per share, in the prior year [23][24] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a year-to-date growth of 39% in this region [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, reflecting a 7% decline compared to the prior year [16][17] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in Q3 2025, up nearly 2% year-over-year, with a global utilization rate of approximately 66% [7][8] - The U.S. steel production grew by 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] Company Strategy and Development Direction - The company is focusing on increasing sales volume and market share, improving average pricing by shifting geographic sales mix to higher price regions, and reducing costs [29][30] - GrafTech is committed to serving customers with excellence and maintaining long-term partnerships built on performance and reliability [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential catalysts for a rebound in the steel market, driven by infrastructure and defense spending [42][43] - The company remains bullish on the structural tailwinds supporting the shift towards electric arc furnace steelmaking, with significant new capacity planned in the U.S. [30][31] Other Important Information - The company achieved a 10% year-over-year reduction in cash cost per metric ton for Q3 and anticipates a cumulative reduction of over 30% since the end of 2023 [6][20][21] - GrafTech is actively assessing potential tariff outcomes and their influence on the steel industry and graphite electrode market [32][36] Q&A Session Summary Question: Expectations on deferred revenue benefits - Management indicated that the recent deferred revenue benefit is one-time in nature and there are no further deferred amounts on the balance sheet [39] Question: Current demand and pricing environment - Management acknowledged the oversupplied market but noted positive momentum in steel demand and production, which could support pricing improvements [41][43] Question: Supply into the battery-related materials market - Management highlighted the importance of trade cases and the need for non-Chinese supply chains to unlock the battery materials market [46][47] Question: Impact of tariffs on imports from India - Management expressed confidence that tariffs would support market share gains and negotiations for 2026 commitments [54][56] Question: Engagement in public-private partnerships - Management emphasized the importance of a healthy electrode industry to support the domestic steel supply chain and expressed confidence in GrafTech's role in this space [59][60] Question: U.S. pricing trends - Management noted that U.S. pricing has remained flat to slightly up compared to the prior quarter, with annual contracts limiting price movement [64]

GrafTech International (NYSE:EAF) Q3 2025 Earnings Call October 24, 2025 10:00 AM ET Company ParticipantsMike Dillon - VP Investor RelationsJay Spencer - Managing DirectorRory O'Donnell - CFOTim Flanagan - CEOConference Call ParticipantsArun Viswanathan - AnalystBennett Moore - AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to GrafTech third quarter 2025 earnings conference call ...

Financial Data and Key Metrics Changes - GrafTech achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons, marking the highest sales volume performance in 12 quarters [6][19] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [32] - A net loss of $28 million or $1.1 per share was reported, an improvement from a net loss of $36 million or $1.4 per share in the prior year [32] - Cash costs per metric ton decreased by 10% year-over-year to $3,795, with a full-year guidance for a 10% decline in cash COGS per metric ton [26][28] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year, contributing significantly to overall sales volume growth [7][20] - The average selling price for the third quarter was approximately $4,200 per metric ton, reflecting a 7% decline compared to the prior year [22] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in 2025, up nearly 2% year-over-year, with a global utilization rate of approximately 66% [11] - In the U.S., steel production grew by 2% year-to-date compared to 2024, while the EU saw a 4% decrease in steel output year-to-date [12] Company Strategy and Development Direction - GrafTech is focused on increasing sales volume and market share, improving average pricing, reducing costs, and enhancing liquidity [38] - The company is strategically shifting its sales mix towards the U.S. market, which has favorable pricing dynamics [8][19] - GrafTech is committed to maintaining a disciplined approach to growth, prioritizing value over volume [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential catalysts for a rebound in the steel market, including infrastructure spending and easing financing conditions [13][39] - The company remains bullish on the long-term shift towards electric arc furnace steelmaking, which is expected to drive demand for graphite electrodes [39][40] Other Important Information - GrafTech's liquidity position improved to $384 million as of September, consisting of cash and availability under credit facilities [36] - The company is actively engaging with customers to understand their needs for the upcoming year, positioning itself for continued market share growth [15] Q&A Session Summary Question: Should we expect any other kind of deferred revenue benefits? - Management indicated that no further deferred revenue is expected, as there is nothing left on the balance sheet [49][50] Question: What do you think about the current demand and price environment? - Management noted that the market is oversupplied, making it challenging to push pricing, but there are signs of positive momentum in the steel industry [52][54] Question: Is there any way to accelerate commercial applications in the battery-related materials market? - Management stated that they are developing capabilities and have a distinct advantage with vertical integration, but the market is still developing [58][62] Question: Have you seen any material impact from the 50% tariffs on Indian material? - Management expressed confidence in continuing to grow volume in the U.S. market, viewing the tariffs as an opportunity [66][67] Question: Any updates on public-private partnerships? - Management highlighted the importance of a healthy electrode industry to support steelmaking and expressed confidence in GrafTech's role in the domestic supply chain [70][74]

GrafTech International (NYSE:EAF) Q3 2025 Earnings Call October 24, 2025 10:00 AM ET Speaker5Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to GrafTech International's third quarter 2025 earnings conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a que ...

NYSE: EAF www.graftech.com Today's Presenters Tim Flanagan Chief Executive Officer and President Q3 2025 Results October 24, 2025 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 Q3 2025 were $144 million, a 10% increase compared to $131 million in Q3 2024[6] - Net loss for Q3 2025 was $28 million, or $1.10 per share, compared to a net loss of $36 million, or $1.40 per share, in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $13 million, a significant improvement from negative $6 million in Q3 2024[8] - Net sales for Q3 2025 reached $143.998 million, an increase from $130.654 million in Q3 2024, while net sales for the nine months ended September 30, 2025, were $387.677 million, down from $404.565 million in the same period last year[42] - The company reported a net loss of $28.482 million for Q3 2025, compared to a net loss of $36.068 million in Q3 2024, and a net loss of $154.719 million for the nine months ended September 30, 2025, compared to $81.689 million in the same period last year[42] - Basic loss per share for Q3 2025 was $1.10, an improvement from $1.40 in Q3 2024, while the nine-month basic loss per share was $5.97, compared to $3.17 in the same period last year[42] - Operating loss for Q3 2025 was $5.116 million, significantly improved from an operating loss of $26.280 million in Q3 2024, with a nine-month operating loss of $37.879 million compared to $50.320 million last year[42] Sales and Volume - Sales volume grew 9% year-over-year for Q3 2025, with a total of 28.8 thousand MT sold[4] - The company expects an 8-10% year-over-year increase in sales volume for 2025, reflecting a disciplined approach to margin management[14] - Sales volume in Q3 2025 was 28.8 thousand metric tons, an increase from 26.4 thousand metric tons in Q3 2024[50] Cash Flow and Liquidity - Net cash provided by operating activities for Q3 2025 was $25 million, compared to $24 million in Q3 2024[8] - Cash flow from operating activities for Q3 2025 was $24.700 million, compared to $23.709 million in Q3 2024, while the nine-month cash flow from operations was negative at $(60.722) million, down from $(13.676) million last year[44] - The company experienced a net change in cash and cash equivalents of $18.595 million for Q3 2025, compared to $19.679 million in Q3 2024, ending the period with cash and cash equivalents of $177.635 million[44] - Free cash flow for Q3 2025 was $18.4 million, compared to a negative free cash flow of $57.1 million in Q2 2025[49] - Adjusted free cash flow for Q3 2025 was $18.4 million, an improvement from an adjusted free cash flow of $(53.3) million in Q2 2025[49] Costs and Expenses - A 10% year-over-year decline in cash cost of goods sold per metric ton is anticipated for 2025, exceeding previous guidance[16] - Cash cost of goods sold for Q3 2025 was $109.3 million, with a cash cost of goods sold per metric ton of $3,795, reflecting a decrease from $4,197 in Q3 2024[50] - Total cost of goods sold for Q3 2025 was $132.0 million, down from $134.9 million in Q3 2024[50] - The company reported a cash cost of goods sold per MT, which is a critical measure for evaluating costs on a per metric ton basis[36] - Research and development expenses increased to $1.639 million in Q3 2025 from $1.245 million in Q3 2024, and for the nine months, R&D expenses were $4.866 million compared to $4.319 million last year[42] Assets and Liabilities - Total current assets decreased from $636,797,000 as of December 31, 2024, to $569,782,000 as of September 30, 2025, representing a decline of approximately 10.5%[40] - Cash and cash equivalents decreased from $256,248,000 as of December 31, 2024, to $177,635,000 as of September 30, 2025, a reduction of about 30.7%[40] - Total liabilities increased from $1,224,274,000 as of December 31, 2024, to $1,107,835,000 as of September 30, 2025, indicating a decrease of approximately 9.5%[40] - Long-term debt remained relatively stable, increasing slightly from $1,086,915,000 to $1,092,759,000, an increase of about 0.5%[40] - The accumulated deficit increased from $793,453,000 as of December 31, 2024, to $947,832,000 as of September 30, 2025, reflecting an increase of approximately 19.5%[40] Strategic Outlook - The steel industry's transition towards electric arc furnace technology is expected to drive long-term demand for graphite electrodes[18] - The company plans to maintain capital expenditures at approximately $40 million for 2025[17] - The company plans to continue optimizing its cost structure and footprint as part of its strategic initiatives announced in February 2024[51] - The company has a significant reliance on the global steel industry, particularly the electric arc furnace steel industry, which may impact future performance[29] - The company is subject to various risks including supply chain disruptions and fluctuations in foreign currency exchange rates, which could materially affect financial results[29] - Adjusted EBITDA is the primary metric used by management to establish budgets and operational goals, indicating a focus on operational performance[31]

Core Insights - GrafTech International Ltd. reported strong sales volume growth and cost reductions in Q3 2025, achieving a 9% year-over-year increase in sales volume and a 10% reduction in cash cost of goods sold per metric ton [5][8][4] - The company generated positive adjusted EBITDA and free cash flow, reflecting progress towards normalized profitability levels [9][8] - GrafTech's liquidity position remains strong, with total liquidity of $384 million as of September 30, 2025, supporting its ability to navigate industry challenges [13][4] Financial Performance - Net sales for Q3 2025 were $144 million, a 10% increase from $131 million in Q3 2024, driven by higher sales volume and the recognition of $11 million in previously deferred revenue [6][5] - The net loss for Q3 2025 was $28 million, or $1.10 per share, an improvement from a net loss of $36 million, or $1.40 per share, in Q3 2024 [7][6] - Adjusted EBITDA for Q3 2025 was $13 million, compared to a negative $6 million in Q3 2024, aided by cost reductions and deferred revenue recognition [8][6] Operational Metrics - Sales volume for Q3 2025 was 28.8 thousand metric tons, a 9% increase year-over-year, with a significant 53% growth in the U.S. market [10][5] - Production volume was 26.6 thousand metric tons, resulting in a capacity utilization rate of 63% [11][10] - The weighted-average realized price for graphite electrodes was approximately $4,200 per metric ton, reflecting a 7% decrease compared to Q3 2024 [10][11] Outlook and Strategic Initiatives - The company expects an 8-10% year-over-year increase in sales volume for 2025, reflecting a disciplined approach to margin management [16][4] - GrafTech anticipates a 10% year-over-year decline in cash cost of goods sold per metric ton for 2025, exceeding previous guidance [18][4] - Long-term demand for graphite electrodes is expected to grow due to the steel industry's transition to electric arc furnace technology and decarbonization trends [20][4]