Liquidity and Cash Flow - As of December 31, 2025, the company had liquidity of $340.0 million, consisting of $101.6 million from the 2018 Revolving Credit Facility, $100.0 million from the Initial First Lien Term Loan Facility, and $138.4 million in cash and cash equivalents[239]. - The company reported a net cash used in operating activities of $81.6 million in 2025, an increase of $41.5 million compared to 2024, primarily due to a $40.2 million decrease in cash provided by working capital[246]. - Cash flow used for inventories was $8.6 million in 2025, contrasting with cash flow provided by inventories of $68.8 million in 2024, indicating a significant shift in working capital management[246]. - The company experienced a cash use of $0.3 million in financing activities in 2025, compared to a cash source of $155.7 million in 2024, largely due to previous debt issuance[248]. Debt and Financing - The company had long-term debt of $1.1 billion as of December 31, 2025, consistent with the previous year[239]. - The company issued New 4.625% Notes in an aggregate principal amount of $498.2 million and New 9.875% Notes in an aggregate principal amount of $446.2 million on December 23, 2024, as part of a debt exchange[251]. - The New 4.625% Notes will pay interest of 4.625% semiannually, while the New 9.875% Notes will pay interest of 9.875% semiannually[252][253]. - The Initial First Lien Term Loans amount to $175 million, with an additional $100 million available through Delayed Draw Commitments, expected to be drawn before July 23, 2026[270]. - The 2018 Revolving Credit Facility has an availability of $101.6 million as of December 31, 2025, down from $108.0 million in 2024[278]. - The First Lien Term Loans bear interest at a rate of Term SOFR plus 6.00% per annum or ABR plus 5.00% per annum, with a ticking fee of 3.75% per annum on undrawn Delayed Draw Commitments[273][274]. - As of December 31, 2025, there were no outstanding term loans under the 2018 Term Loan Facility, following repayment with proceeds from the Existing 9.875% Notes issuance[276]. - 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[278][281]. - Approximately $1.8 million aggregate principal amount of Existing 4.625% Notes and $3.8 million of Existing 9.875% Notes remain outstanding following the Exchange Offer[264][269]. - The Existing 4.625% Notes Indenture and Existing 9.875% Notes Indenture contain covenants limiting the ability to incur additional indebtedness or engage in certain transactions[262][267]. - GrafTech was in compliance with all debt covenants as of December 31, 2025 and 2024[263][268]. - As of December 31, 2025, total contractual obligations amount to $1,466,279, including long-term debt of $1,125,000 and interest payments of $341,279[282]. - The company anticipates pension plan contributions of $4,027, with total contractual and other obligations reaching $1,470,306[282]. Revenue Recognition - The company recognizes revenue when control of promised goods is obtained, primarily through short-term and multi-year purchase agreements with steel manufacturers[290]. - Performance obligations are satisfied at a point in time when control of graphite electrodes is transferred to the customer, with variable consideration recognized up to its unconstrained amount[292]. - The company’s revenue recognition process follows a five-step model to ensure accurate reporting of revenue from contracts with customers[291]. Asset Management and Impairment - The company tested its long-lived assets for impairment as of December 31, 2025, and determined that their carrying value was recoverable[285]. - A valuation allowance of $92.2 million is established against certain deferred tax assets (DTAs), including $69.9 million for U.S. DTAs and $20.3 million for Switzerland DTAs[289]. - The company assesses the need for valuation allowances against deferred tax assets based on positive and negative evidence, including earnings history and cumulative losses[287]. Pension and Other Obligations - Future contributions to pension plans will depend on regulatory requirements and the plans' funded ratios, with funding anticipated from cash on hand or generated from operations[283]. - The company has issued letters of credit totaling $13.8 million under the 2018 Revolving Credit Facility as of December 31, 2025[283].

Core Viewpoint - GrafTech International (EAF) has experienced a significant decline of 50.4% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts predicting better earnings than previously estimated [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - EAF's current RSI reading is 23.28, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for EAF have increased by 0.1% over the last 30 days, which typically correlates with price appreciation [7]. - EAF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Financial Data and Key Metrics Changes - The company 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 cash cost of goods sold per metric ton decreased by 11% year-over-year, with a cumulative reduction of 31% since the end of 2023 [6][19] - The company ended 2025 with a liquidity position of $340 million, including $138 million in cash, which exceeded expectations [7][24] Business Line Data and Key Metrics Changes - In the U.S., sales volume grew by 48% for the full year and 83% in the fourth quarter compared to the prior year, reflecting a successful shift towards regions with stronger pricing fundamentals [5][17] - 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 [17][18] 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% [8][9] - In North America, steel production increased by 1%, driven by a 3% growth in the U.S., while the EU saw a 3% decrease in steel output [9][10] 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 optimizing manufacturing, trade support, and strategic partnerships to enhance efficiency and long-term value creation [15][66] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing challenges in the graphite electrode market due to overcapacity and aggressive competitor pricing, which threaten long-term viability [12][14] - There are indicators of a rebound in steel demand projected for 2026, with a 3.5% growth forecasted globally outside of China [10][11] Other Important Information - The company achieved its best safety performance on record with a total recordable incident rate of 0.41 in 2025 [7] - The company is committed to maintaining product quality and environmental responsibility while navigating market challenges [26][36] 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 from China and India, which are flooding the market with low-priced exports [42][47] 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 in 2025 [48] Question: How does the company plan to win back market share amidst aggressive pricing? - The company will focus on its value proposition, emphasizing quality and customer service, while being selective in regions where price competition is fierce [58] Question: What is the company's position regarding the development of supply chains for anode materials? - Management expressed a heightened focus on establishing supply chains for anode materials and is well-positioned to assist in this area [60][61] Question: How much liquidity does the company have to navigate the downturn? - The company has $340 million in liquidity and has taken decisive actions to preserve and enhance this liquidity during the downturn [66]

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]

Core Viewpoint - GrafTech International Ltd. reported a significant decline in stock price following the announcement of its fourth-quarter financial results, which revealed a wider net loss compared to the previous year [1]. Financial Performance - The net loss for the fourth quarter increased to $65.116 million from $49.476 million in the same quarter last year [1]. - Net sales declined to $116.5 million, down from $134.2 million in the previous year [2]. Stock Performance - The company's shares are currently trading at $10.95, reflecting a decrease of 30.27 percent [1]. - The stock opened at $10.10 and reached a high of $12.49 during the trading session [1]. - Over the past year, the stock has traded within a range of $5.50 to $20.32 [1].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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]

Core Viewpoint - GrafTech International Ltd. reported its unaudited financial results for the quarter and year ended December 31, 2025, highlighting a flat sales volume year-over-year for Q4 2025, but a 6% growth in sales volume for the full year [1]. Group 1: Financial Performance - Sales volume for Q4 2025 was flat compared to the same period last year [1]. - Full-year sales volume increased by 6% [1]. - In the United States, sales volume grew by 83% year-over-year for Q4 2025 and by 48% for the full year [1].