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]

Financial Position - As of September 30, 2024, the company had liquidity of $253.8 million, consisting of $112.4 million available under the 2018 Revolving Credit Facility and cash and cash equivalents of $141.4 million[151]. - Long-term debt stood at $950.0 million and short-term debt at $0.1 million as of September 30, 2024[151]. - As of September 30, 2024, $51.5 million of cash and cash equivalents were located outside of the U.S.[152]. - The company is subject to covenants that limit its ability to incur additional indebtedness, including a senior secured first lien net leverage ratio not greater than 4.00 to 1.00[160]. - The company may need to seek other sources of funding if additional debt financing is not available on commercially reasonable terms[153]. Stock Repurchase and Dividends - The company had $99.0 million remaining under its stock repurchase authorization as of September 30, 2024, with no shares repurchased in the first nine months of 2024[170]. - The company suspended its quarterly cash dividend of $0.01 per share on August 2, 2023, with no assurance of future resumption[171]. Capital Expenditures - Capital expenditures totaled $21.5 million in the nine months ended September 30, 2024, with full-year expectations in the range of $35.0 million to $40.0 million for 2024[174]. Debt Instruments - The 2023 Senior Secured Notes bear interest at a rate of 9.875% per annum, maturing on December 15, 2028[167]. - The 2020 Senior Secured Notes bear interest at a rate of 4.625% per annum, maturing on December 15, 2028[164]. Cash Flow and Operating Activities - Net cash used in operating activities was $13.7 million in the first nine months of 2024, a decrease from a cash source of $67.3 million in the same period of 2023, primarily due to a $43.8 million increase in net loss[177]. - Cash flow provided by accounts receivable decreased by $36.8 million in the first nine months of 2024, primarily due to reduced sales[177]. - Cash flow used for income taxes decreased by $28.7 million in the first nine months of 2024, driven by reduced federal tax payments[177]. Investing and Financing Activities - Net cash used in investing activities decreased to $21.4 million in the nine months ended September 30, 2024, compared to $48.1 million in the prior year, mainly due to reduced capital expenditures[178]. - Financing activities resulted in a cash use of $0.1 million in the first nine months of 2024, down from a cash source of $18.9 million in the same period of 2023, which included $27.5 million from interest rate swap settlements[179]. Performance Metrics - The net loss for the three months ended September 30, 2024, was $36.1 million, compared to a net loss of $22.6 million in the same period of 2023, with a diluted loss per share of $0.14 versus $0.09[191]. - Adjusted net loss for the nine months ended September 30, 2024, was $73.0 million, compared to $32.2 million in the same period of 2023[191]. - Cash cost of goods sold per metric ton (MT) for the nine months ended September 30, 2024, was $4,363, down from $5,567 in the same period of 2023[198]. - Cash cost of goods sold for the nine months ended September 30, 2024, was $331.6 million, compared to $375.8 million in the same period of 2023[198]. - Sales volume for the nine months ended September 30, 2024, was 76.0 thousand MT, an increase from 67.5 thousand MT in the same period of 2023[198].

Group 1 - GrafTech International reported a quarterly loss of $0.13 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.14, but worse than a loss of $0.08 per share a year ago, indicating a 62.5% increase in loss year-over-year [1] - The company posted revenues of $130.65 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.96%, but down from $158.99 million in the same quarter last year [2] - GrafTech has surpassed consensus EPS estimates three times over the last four quarters, indicating some volatility in earnings performance [2] Group 2 - The stock has underperformed the market, losing about 5.5% since the beginning of the year, while the S&P 500 has gained 25.8% [3] - The current consensus EPS estimate for the coming quarter is -$0.13 on revenues of $132.7 million, and -$0.43 on revenues of $534.75 million for the current fiscal year [7] - The Zacks Industry Rank for Metal Products - Procurement and Fabrication is in the top 29% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Net sales for Q3 2024 were $131 million, an 18% decrease from $159 million in Q3 2023[8] - The net loss for Q3 2024 was $36 million, or $0.14 per share, compared to a net loss of $23 million, or $0.09 per share in Q3 2023[9] - Adjusted EBITDA was negative $6 million in Q3 2024, down from $1 million in Q3 2023, primarily due to lower realized prices and a shift in business mix[10] - Gross loss for Q3 2024 was $(12.074) million, compared to a gross profit of $1.389 million in Q3 2023[44] - Operating loss for Q3 2024 increased to $(26.280) million from $(18.137) million in Q3 2023[44] - Net loss for Q3 2024 was $(36.068) million, compared to $(22.621) million in Q3 2023, representing a 59.5% increase in losses[44] - Adjusted net loss for Q3 2024 was $(34.276) million, compared to $(20.866) million in Q3 2023[48] - Diluted loss per share for Q3 2024 was $(0.14), compared to $(0.09) in Q3 2023[49] Sales and Production - Sales volume increased by 9% year-over-year to 26.4 thousand metric tons in Q3 2024[13] - Production volume was 19.4 thousand metric tons in Q3 2024, a 15% decrease compared to Q3 2023 due to planned production shutdowns[15] - Net sales for Q3 2024 were $130.654 million, a decrease of 17.8% compared to $158.992 million in Q3 2023[44] - Sales volume in Q3 2024 was 26.4 thousand MT, an increase from 25.5 thousand MT in Q3 2023[53] Costs and Expenses - Cash costs on a per metric ton basis declined by 28% year-over-year in Q3 2024[6] - The company anticipates a 20% year-over-year decline in cash cost of goods sold per metric ton for the full year of 2024[18] - Cash cost of goods sold per MT decreased to $4,197 in Q3 2024 from $5,863 in Q3 2023, indicating improved cost efficiency[53] - Interest expense increased to $16.503 million in Q3 2024 from $15.719 million in Q3 2023[51] - The company reported a cash cost of goods sold per metric ton (MT) as a key measure for evaluating costs[37] Cash Flow and Liquidity - Cash flow from operating activities for Q3 2024 was $23.709 million, down from $51.495 million in Q3 2023[46] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $(13.676) million, compared to $67.269 million for the same period in 2023[46] - As of September 30, 2024, the company had liquidity of $253.8 million, consisting of cash and cash equivalents of $141.4 million[17] - The company is focused on evaluating liquidity through free cash flow and adjusted free cash flow measures[35] - Free cash flow for Q3 2024 was $19.682 million, a recovery from $(43.834) million in Q2 2024[52] Debt and Equity - As of September 30, 2024, total liabilities and stockholders' equity amounted to $1,142,998, a decrease from $1,288,889 as of December 31, 2023[40] - The company has a long-term debt of $929,313, which is slightly up from $925,511[40] - Total current liabilities decreased to $147,191 from $190,543[41] - Cash and cash equivalents decreased to $141,406 as of September 30, 2024, down from $176,878 at the end of 2023[41] - The accumulated deficit increased to $743,988 as of September 30, 2024, compared to $662,390 at the end of 2023[40] Management Focus - Adjusted EBITDA is the primary metric used by management to establish budgets and operational goals, reflecting the company's focus on operational performance[30] - The company is focusing on rationalization-related expenses, with adjustments reflecting ongoing cost management strategies[51] - The company expects a low double-digit percentage point year-over-year improvement in sales volume for the full year of 2024[17] Research and Development - Research and development expenses for Q3 2024 were $1.245 million, slightly down from $1.295 million in Q3 2023[44] Capital Expenditures - Capital expenditures in Q3 2024 were $(4.027) million, a decrease from $(8.498) million in Q3 2023[46] - Capital expenditures for Q3 2024 were $4.027 million, down from $6.979 million in Q2 2024[52]

GrafTech International (EAF) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, t ...

The Zacks Metal Products - Procurement and Fabrication industry has been witnessing a deceleration in orders of late due to subdued customer spending. The companies in the industry have been managing production levels in the wake of weak demand. Elevated input costs also continue to act as a headwind. Amid these conditions, industry players like ESAB Corporation (ESAB) , TriMas Corporation (TRS) , Northwest Pipe Company (NWPX) and GrafTech International (EAF) are poised to benefit from their proactive cost- ...

GrafTech International Ltd. (NYSE:EAF) Q2 2024 Earnings Conference Call July 26, 2024 10:00 AM ET Company Participants Mike Dillon - VP, IR and Corporate Communications Catherine Delgado - Interim CFO Tim Flanagan - CEO and President Jeremy Halford - COO Conference Call Participants Bill Peterson - JPMorgan Alex Hacking - Citi Andy Jones - UBS Abraham Landa - Bank of America Kirk Ludtke - Imperial Capital Arun Viswanathan - RBC Capital Markets Operator Good morning, ladies and gentlemen, and welcome to the ...

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 June 30, 2024 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 o ...