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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].

Core Viewpoint - GrafTech International is facing significant financial challenges as it prepares to release its quarterly earnings, with Wall Street projecting an EPS of -$1.27 and revenue of $140 million, indicating potential difficulties in achieving earnings expectations [1][2][6] Financial Performance - The anticipated earnings for GrafTech show a year-over-year improvement in revenues, but concerns remain about the company's ability to exceed earnings expectations [2] - GrafTech's financial metrics include a negative P/E ratio of -19.90, indicating negative earnings, and a price-to-sales ratio of 0.78, suggesting the stock is valued at 78 cents per dollar of sales [3][6] - The enterprise value to sales ratio stands at 2.62, providing insight into the company's valuation relative to its revenue [3] Liquidity and Financial Position - GrafTech maintains a strong liquidity position with a current ratio of 4.22, indicating sufficient current assets to cover liabilities [4][6] - However, the company has a negative debt-to-equity ratio of -5.87, reflecting a negative equity position and highlighting financial hurdles that need to be addressed [4][6] Upcoming Earnings Call - The upcoming earnings call is critical for investors, as management's discussion of business conditions will significantly influence future earnings expectations [5] - The sustainability of any immediate price changes will depend on the company's ability to tackle its financial challenges and leverage revenue growth [5]

Core Viewpoint - The Zacks Metal Products - Procurement and Fabrication industry is well-positioned due to strong demand across various end markets and recent manufacturing sector expansion, with strategic pricing and cost-control initiatives expected to help maintain margins despite tariff impacts [1][4]. Industry Overview - The industry consists of metal processing and fabrication service providers that transform metal into parts and components used in various sectors, employing processes such as forging, stamping, and welding [3]. - Key raw materials include plate metal, formed metal, tube stock, and welding wire, serving markets like construction, aerospace, automotive, and electronics [3]. Current Trends - The manufacturing index returned to expansion with a reading of 52.6% in January 2026, and the New Orders Index showed growth at 57.1%, indicating a recovery in the industry [4]. - Companies are implementing strategic pricing adjustments and cost-reduction initiatives to counter rising labor, freight, and fuel costs, while diversifying supplier bases to mitigate tariff impacts [5]. Future Growth Catalysts - Emphasis on automation and cost-effective technical solutions is expected to drive future growth, supported by innovation and product development [6]. - Growth in end-use sectors like manufacturing and aerospace, along with industrialization in developing economies, presents long-term demand opportunities [6]. Industry Performance - The Zacks Metal Products - Procurement and Fabrication industry ranks 55, placing it in the top 23% of 244 Zacks industries, indicating positive near-term prospects [7]. - Over the past year, the industry has grown by 50%, outperforming its sector's 15.5% rise and lagging behind the Zacks S&P 500 composite's 17.3% increase [9][10]. Valuation Metrics - The industry currently trades at a trailing 12-month EV/EBITDA ratio of 10.79X, significantly lower than the S&P 500's 19.05X and the Industrial Products sector's 19.78X [13]. - Historical trading ranges show the industry has fluctuated between 4.58X and 13.46X over the past five years, with a median of 7.76X [18]. Company Highlights - **TriMas Corp. (TRS)**: The company is focusing on its packaging segment, benefiting from strong demand and product innovation, with a projected 20.2% year-over-year earnings growth for fiscal 2026 [19][20]. - **GrafTech International (EAF)**: The company reported a 9% year-over-year sales volume increase, with a strong focus on the U.S. market and an expected 8-10% sales volume growth for 2025 [23][24]. - **NN Inc. (NNBR)**: The company is on track for record adjusted EBITDA and has a strong pipeline of new programs, with a projected long-term earnings growth of 45% [26][27].

Core Viewpoint - GrafTech International Ltd. will hold its Fourth Quarter and Full Year 2025 Earnings Conference Call on February 6, 2026, to discuss financial results and current business initiatives [1] Group 1: Earnings Conference Call Details - The earnings conference call will take place at 10:00 a.m. (EST) on February 6, 2026 [1] - Financial results for the fourth quarter and year ended December 31, 2025, will be released before market open on the same day [1] - The conference call can be accessed via dial-in numbers for the U.S. and international participants, with a specific conference ID provided [2] Group 2: Company Overview - GrafTech is a leading manufacturer of high-quality graphite electrode products, essential for electric arc furnace steel production and other metal industries [3] - The company has a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, among the highest capacity in the world [3] - GrafTech is uniquely positioned as the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, providing competitive advantages in product quality and cost [3]

Industry Overview - The Zacks Metal Products - Procurement and Fabrication industry is experiencing strong demand across various end markets, with improvements in order levels and strategic pricing expected to help maintain margins despite tariff impacts [1][2][4] - The industry primarily includes metal processing and fabrication service providers that transform metal into parts and components used in sectors such as construction, aerospace, automotive, and more [3] Current Trends - The Institute for Supply Management's manufacturing index showed a slight increase to 49.1% in September from 48.7% in August, indicating a potential recovery in the industry [4] - The Production Index registered 50.3%, reflecting growth in fabricated metal products, while new orders showed renewed demand momentum despite overall contraction in the New Orders Index [4] Strategic Initiatives - Companies are implementing strategic pricing adjustments, cost-reduction initiatives, and productivity enhancements to tackle rising labor, freight, and fuel costs [5] - Diversification of supplier bases and modifications to supply chains are also being pursued to mitigate tariff impacts [5] Growth Catalysts - Emphasis on automation and cost-effective technical solutions is positioning the industry for future growth, with expected demand increases in manufacturing, aerospace, and automotive sectors [6] - Rapid industrialization in developing economies presents additional long-term growth opportunities [6] Industry Performance - The Zacks Metal Products - Procurement and Fabrication industry ranks 19, placing it in the top 8% of 243 Zacks industries, indicating positive near-term prospects [7] - Over the past year, the industry has grown 15.4%, lagging behind the sector's 20.5% rise but outperforming the Zacks S&P 500 composite's 3.5% increase [10] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 17.38X, compared to the S&P 500's 17.93X and the Industrial Products sector's 19.57X [13] Company Highlights - **Century Aluminum (CENX)**: Investing $50 million to restart over 50,000MT of idled production, expected to boost U.S. aluminum production by nearly 10% [19] - **Ardagh Metal Packaging (AMBP)**: Anticipating 3% growth in shipments and has raised its adjusted EBITDA guidance for 2025 to $720-$735 million [24] - **TriMas Corporation (TRS)**: Forecasting consolidated sales growth at the higher end of the 8-10% range for full-year 2025, driven by strong demand in its packaging segment [28] - **GrafTech International (EAF)**: Sales volume rose 9% year-over-year, with a strong focus on the U.S. market and an expected 8-10% increase in sales volume for 2025 [32]

Group 1 - GrafTech International Ltd. reported its second-quarter results, indicating that discussions about potential recovery were not reflected in the actual financial performance [1] - The company is recognized as a leader in the investment group "Value In Corporate Events," which focuses on identifying opportunities in IPOs, mergers & acquisitions, and earnings reports [1] - The service provides coverage of 10 major corporate events each month, aiming to find the best investment opportunities [1]

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