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]

Financial Data and Key Metrics Changes - GrafTech achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025 [4][14] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [24] - Net cash from operating activities was $25 million, with adjusted free cash flow of $18 million, strengthening liquidity to $384 million as of the end of September [6][26] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a total year-to-date increase of 39% [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, representing a 7% decline compared to the prior year [16][24] - Cash costs per metric ton were $3,795, reflecting a 10% year-over-year decline [18][20] 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 [7][8] - In 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] - World Steel projects a 1.8% growth in U.S. steel demand for 2026 and a 3.2% growth in Europe [9][10] Company Strategy and Development Direction - GrafTech aims to increase sales volume and market share while improving average pricing by shifting geographic sales mix to higher price regions [29][30] - The company is focused on disciplined, value-focused growth rather than volume for volume's sake, especially in light of challenging pricing dynamics [15][16] - Long-term, GrafTech is bullish on the shift towards electric arc furnace steelmaking, which is expected to drive demand for graphite electrodes [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of recovery in the steel market, driven by infrastructure spending and trade actions [42][43] - The company remains committed to maintaining a culture of safety and achieving zero injuries [12][13] - Management highlighted the importance of trade protection measures and their potential positive impact on the steel industry and graphite electrode demand [10][32] Other Important Information - GrafTech's liquidity position includes $178 million in cash and $107 million available under its revolving credit facility [26][27] - The company is on track for a cumulative reduction of over 30% in cash costs per metric ton since the end of 2023 [6][21] Q&A Session Summary Question: Should we expect any other kind of deferred revenue benefits? - Management indicated that the recent deferred revenue recognition was a one-time event and no further benefits are expected [39] Question: What are the current demand and price environment dynamics? - Management noted that the market is oversupplied, making it challenging to push pricing, but there are signs of positive momentum in steel demand [41][42] Question: What is the status of GrafTech's engagement in the battery-related materials market? - Management stated that while there is excess capacity, the market is still developing, and they are positioned to support raw material supply for battery production [46][47] Question: Have the tariffs on Indian material had any impact on imports? - Management expressed confidence that the tariffs would support their market position and negotiations moving forward [54] 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 [58][60] Question: Has U.S. pricing improved sequentially from the prior quarter? - Management indicated that U.S. pricing is flat to slightly up compared to the prior quarter, with annual contracts limiting price movement [64]

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]

Financial Data and Key Metrics Changes - GrafTech International achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025 [4][14] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [24] - Net cash from operating activities was $25 million, with adjusted free cash flow of $18 million, strengthening liquidity to $384 million as of the end of September [6][26] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a cumulative sales volume growth of over 20% since the end of 2023 [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, representing a 7% decline compared to the prior year [16][24] - Cash costs per metric ton were $3,795, reflecting a 10% year-over-year decline, with expectations for a full-year decline of approximately 10% in cash COGS per metric ton for 2025 [19][24] 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 [7] - In the U.S., steel production grew 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] - World Steel projects a 1.8% growth in U.S. steel demand for 2026 and a 3.2% growth in Europe, driven by infrastructure investment and defense spending [9][10] Company Strategy and Development Direction - The company is focused 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 building long-term partnerships based on performance and reliability [11][30] - The company is well-positioned to capitalize on the expected growth in electric arc furnace (EAF) steel production, particularly in the U.S. and EU [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential recovery in the steel market, citing early signs of rebound and positive momentum in steel production and demand [7][29] - The company remains bullish on the structural tailwinds supporting the shift towards EAF steelmaking, with significant new capacity planned in the U.S. [30][31] - Management highlighted the importance of trade protection measures and their potential positive impact on the steel industry and graphite electrode demand [10][32] Other Important Information - The company reported a net loss of $28 million for the third quarter, an improvement from a net loss of $36 million in the prior year [24] - GrafTech's liquidity position includes $178 million in cash and $107 million available under its revolving credit facility, with no borrowings outstanding [26][27] - The company is committed to maintaining a culture of safety, aiming for zero injuries and strong safety performance [12] 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 the recent recognition was a one-time event related to a long-standing receivable [39] Question: What are the current demand and price environment dynamics? - Management noted that the market is oversupplied, making it challenging to push pricing, but expressed optimism for future pricing improvements due to positive momentum in the steel industry [41][42] Question: What is the status of GrafTech's engagement in the battery-related materials market? - Management stated that while there is excess capacity, the market is still developing, and they are positioned to support partners in the battery supply chain [44][45] Question: Have the tariffs on Indian material impacted imports into the U.S.? - Management believes the tariffs present an opportunity for GrafTech, as they expect to continue gaining market share in the U.S. [47][48] Question: Any updates on public-private partnerships? - Management emphasized the importance of a healthy electrode industry to support the steel sector and expressed confidence in GrafTech's role in the domestic supply chain [51][54]

Q3 2025 Performance Highlights - Total sales volume grew by 9% year-over-year and 8% year-to-date[11] - Sales volume in the United States achieved 53% year-over-year growth[11] - Cash costs per metric ton declined by 10% year-over-year[11, 32] - Adjusted EBITDA was $13 million[31, 32] Production and Sales - Q3 2025 production volume increased by 37% compared to Q3 2024[25] - Q3 2025 net sales increased by 10% compared to Q3 2024[25] - Q3 2025 sales volume was 28800 metric tons[24] Cost Performance - Cash cost of goods sold per MT decreased to $3738 in Q3 2025[27, 29] Financial Position - The company had a liquidity of $384 million as of September 30, 2025[35]

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]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks with recent price momentum may be a safer approach [3] Group 2: GrafTech International (EAF) Analysis - GrafTech International (EAF) has shown significant price momentum with a four-week price change of 31.2% [4] - EAF has gained 23.4% over the past 12 weeks, indicating strong long-term momentum [5] - EAF has a Momentum Score of A, suggesting it is an opportune time to invest [6] Group 3: Earnings Estimates and Valuation - EAF has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - EAF is trading at a Price-to-Sales ratio of 0.85, indicating it is reasonably valued [7] Group 4: Additional Investment Opportunities - Besides EAF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Various Zacks Premium Screens are available to help identify potential winning stocks based on different investing styles [9]

Core Viewpoint - GrafTech International Ltd. will hold its Third Quarter 2025 Earnings Conference Call on October 24, 2025, to discuss financial results and current business initiatives [1] Financial Results - The financial results for the third quarter ended September 30, 2025, will be released on October 24, 2025, before market open [1] Conference Call Details - The earnings conference call and webcast will take place at 10:00 a.m. (EDT) [1] - The call will be hosted by senior management [1]