GrafTech International(EAF) - 2024 Q4 - Annual Results

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].