UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from______ to ______ Commission file number: 1-13888 GRAFTECH INTERNATIONAL LTD. (Exact name of registrant as specified in its charter) Delaware 27-2496053 (State ...

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) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this maker of graphite products would post a loss of $0.14 per share when it actually produced a loss of $0.13, delivering a surprise of 7.14%.Over the last four quarters, ...

EXHIBIT 99.1 1 • Grew total sales volume 2% year-over-year for the first quarter of 2025; while continuing to expect a low-double digit percentage point year-over-year increase in our sales volume for 2025 on a full-year basis, which would result in cumulative sales volume growth of approximately 25% since 2023. • Grew sales volume in the United States 25% year-over-year for the first quarter of 2025; expect to outpace this growth rate for sales volume in the United States for 2025 on a full-year basis, ref ...

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]

Financial Performance - In Q4 2024, GrafTech achieved a 13% year-over-year increase in sales volume to 27.2 thousand MT, despite a 2% decrease in net sales to $134 million compared to Q4 2023[5][9]. - The company reported a net loss of $49 million, or $0.19 per share, for Q4 2024, an improvement from a net loss of $217 million, or $0.85 per share, in Q4 2023[10][12]. - Adjusted EBITDA for Q4 2024 was negative $7 million, an improvement from negative $22 million in Q4 2023, reflecting a 25% reduction in cash costs per metric ton[11][13]. - Net sales for Q4 2024 were $134.2 million, a decrease of 2.1% from $137.1 million in Q4 2023[47]. - Gross loss for Q4 2024 was $(10.4) million compared to a gross loss of $(19.7) million in Q4 2023[47]. - Operating loss for the year ended December 31, 2024, was $(75.2) million, significantly improved from $(214.4) million in 2023[47]. - Net loss for Q4 2024 was $(49.5) million, a reduction from $(217.4) million in Q4 2023[47]. - Basic loss per share for Q4 2024 was $(0.19), compared to $(0.85) in Q4 2023[47]. - Cash flow from operating activities for Q4 2024 was $(26.4) million, down from $9.3 million in Q4 2023[50]. - Adjusted net loss for Q4 2024 was $(33.1) million, compared to $(68.6) million in Q4 2023[51]. - Free cash flow for Q4 2024 was $(39.209) million, down from $19.682 million in Q3 2024 and $3.539 million in Q4 2023[54]. - Adjusted EBITDA for Q4 2024 was $(6.859) million, an improvement from $(21.572) million in Q4 2023[53]. Liquidity and Capital Structure - GrafTech ended 2024 with total liquidity of $464 million, consisting of cash and cash equivalents of $256 million and availability under credit facilities[5][17]. - As of December 31, 2024, gross debt is reported at $1.1 billion, with net debt calculated at $844 million after accounting for cash and cash equivalents of $256 million[8]. - The company reported cash and cash equivalents of $256.2 million as of December 31, 2024, an increase from $176.9 million in 2023[45]. - The total stockholders' equity shifted from a positive $78.2 million in 2023 to a negative $78.9 million in 2024, indicating a deterioration in equity position[45]. - Long-term debt increased from $925.5 million in 2023 to $1.09 billion in 2024, indicating a significant rise in financial leverage[45]. - The accumulated deficit grew from $662.4 million in 2023 to $793.5 million in 2024, highlighting ongoing financial challenges[45]. Sales and Pricing Strategy - The weighted-average realized price for non-LTA volume in Q4 2024 was approximately $3,900 per MT, a decrease of about 19% compared to Q4 2023[15]. - For 2025, GrafTech anticipates a low double-digit percentage increase in sales volume year-over-year, with over 60% of anticipated sales volume already committed[19]. - The company plans to increase prices by 15% on uncommitted volume for 2025 to address the unsustainably low pricing environment[20]. - GrafTech expects a mid-single digit percentage decline in cash cost of goods sold per MT for 2025 compared to 2024, supported by ongoing cost structure improvements[21]. Capital Expenditures and Investments - Full year 2025 capital expenditures are anticipated to be approximately $40 million, with a favorable net impact from working capital expected[22]. - Capital expenditures for the year ended December 31, 2024, totaled $(34.3) million, compared to $(54.0) million in 2023[50]. - Capital expenditures in Q4 2024 totaled $(12.792) million, compared to $(4.027) million in Q3 2024 and $(5.753) million in Q4 2023[54]. Market Outlook and Industry Trends - Long-term demand growth for graphite electrodes is anticipated due to the steel industry's decarbonization efforts and increased utilization of electric arc furnaces[23]. - The company faces various risks, including dependence on the global steel industry and potential disruptions in supply chains, which could materially affect financial results[31][32]. Non-GAAP Measures and Adjustments - Adjusted EBITDA is used as a primary metric for evaluating operational performance, although it does not account for working capital changes or capital expenditures[36][38]. - Total non-GAAP adjustments pre-tax for Q4 2024 amounted to $20.5 million, reflecting various expenses including stock-based compensation and goodwill impairment[51].

Core Viewpoint - GrafTech International (EAF) is anticipated to report a year-over-year increase in earnings despite lower revenues, which could significantly influence its near-term stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The earnings report is scheduled for release on February 7, 2025, and could lead to a stock price increase if the results exceed expectations, while missing estimates may result in a decline [2]. - The consensus estimate indicates a quarterly loss of $0.14 per share, reflecting a year-over-year change of +48.2%, with expected revenues of $136.28 million, down 0.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections [4]. - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% for GrafTech [10]. Zacks Rank and Predictive Power - GrafTech currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat based on the combination of a negative Earnings ESP [11]. - Historical performance shows that GrafTech has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +7.14% when it reported a loss of $0.13 instead of the expected loss of $0.14 [12][13]. Conclusion - While GrafTech does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions related to the stock ahead of the earnings release [16].

Financial Data and Key Metrics Changes - In Q3 2024, the company reported a net loss of $36 million or $0.14 per share, with adjusted EBITDA at negative $6 million compared to positive $1 million in Q3 2023 [42] - Net sales decreased by 18% year-over-year, driven by lower pricing and a shift in the business mix from long-term agreements (LTA) to non-LTA volumes [39] - Cash costs per metric ton decreased by 28% year-over-year, with cash COGS per metric ton at just under $4,200, leading to an updated full-year guidance for a 20% year-over-year decline [20][45] Business Line Data and Key Metrics Changes - Sales volume increased by 9% year-over-year and 13% year-to-date, despite a soft demand environment [14][12] - The company sold 26,000 metric tons in Q3 2024, with approximately 23,000 metric tons from non-LTA sales at an average price of $4,100 per metric ton, and 3,000 metric tons from LTAs at $7,700 per metric ton [37] - Initial trials of new 800-millimeter electrodes were successful, indicating potential for future growth in this niche market [18] Market Data and Key Metrics Changes - Global steel production outside of China declined by 2% year-over-year, with North America seeing a 5% decrease in steel production [32][33] - The global steel capacity utilization rate outside of China fell to 65%, the lowest in seven quarters [32] - The company expects a slow recovery in global steel market demand, with projected growth of 3% for steel demand outside of China in 2025 [60] Company Strategy and Development Direction - The company is focused on improving liquidity through a new financing transaction, which includes a $275 million delayed draw term loan and an extension of existing debt maturities [24][49] - The strategic flexibility gained from the financing will allow the company to pursue growth opportunities, particularly in the Seadrift asset, which is critical for long-term growth [13][28] - The company aims to capitalize on the transition to electric arc furnace steelmaking, which is expected to drive demand for graphite electrodes [63][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current challenging environment in the steel industry but remains optimistic about long-term growth opportunities [59] - The company anticipates low double-digit sales volume growth in 2025, driven by market recovery and customer engagement strategies [16][40] - Management emphasized the importance of a healthy pricing environment for the sustainability of the graphite electrode industry [62] Other Important Information - The company ended Q3 2024 with total liquidity of approximately $254 million, consisting of $141 million in cash and $112 million available under the revolving credit facility [48] - The anticipated demand growth for petroleum needle coke, a key raw material, is expected to benefit the company due to its vertical integration [66][68] Q&A Session Summary Question: Near-term environment and pricing dynamics - Management noted a steady decline in spot pricing, with current weighted average pricing at about $4,150 per ton, while needle coke prices have remained stable [75][76] Question: Cost control and growth expectations - Management highlighted significant progress in controlling costs, with expectations for continued cost reductions and increased volumes in 2025 [80][83] Question: Production and sales strategy - Management confirmed that production and sales will align moving forward, with plans to rebuild inventory in line with growth expectations [101][102] Question: Outlook for global steel utilization rates - Management expects a gradual recovery in sales volume and demand, with low double-digit growth anticipated for 2025 [104][106] Question: Footprint and asset management - Management expressed confidence in the current asset portfolio and indicated that any changes would depend on long-term market conditions [114][116]