GrafTech International(EAF)2025-04-25 11:05Sales Performance - Total sales volume grew 2% year-over-year for Q1 2025, with expectations of a low-double digit percentage increase for the full year, resulting in approximately 25% cumulative growth since 2023[4] - Sales volume in the United States increased by 25% year-over-year for Q1 2025, with expectations to outpace this growth rate for the full year[4] - Net sales for Q1 2025 were $112 million, an 18% decrease from $137 million in Q1 2024, primarily due to lower weighted-average realized prices[6] - Net sales decreased to $111,839 thousand in Q1 2025 from $136,584 thousand in Q1 2024, representing a decline of approximately 18.1%[40] Financial Losses - Net loss for Q1 2025 was $39 million, or $0.15 per share, compared to a net loss of $31 million, or $0.12 per share, in Q1 2024[7] - Adjusted net loss for Q1 2025 was $(34,155) thousand, compared to $(25,161) thousand in Q1 2024, reflecting a worsening in adjusted financial performance[43] - Net loss for Q1 2025 was $(39,351) thousand, compared to $(30,869) thousand in Q1 2024, marking an increase in net loss of approximately 27.5%[40] Cost Management - Cash costs per metric ton decreased by 21% year-over-year and 11% sequentially from Q4 2024, with a projected mid-single digit percentage decline for the full year 2025[4] - Cash cost of goods sold per metric ton was $3,652 in Q1 2025, down from $4,595 in Q1 2024, indicating improved cost efficiency[46] - The cash cost of goods sold per MT is a key measure for evaluating costs on a per metric ton basis[34] Liquidity and Capital Expenditures - Total liquidity as of March 31, 2025, was $421 million, supporting the company's ability to manage near-term industry challenges[11] - Capital expenditures for 2025 are anticipated to be approximately $40 million, with a favorable net impact of working capital on cash flow performance[16] - Cash and cash equivalents decreased from $256,248,000 as of December 31, 2024, to $214,283,000 as of March 31, 2025, a decrease of about 16.4%[38] Operational Performance - Adjusted EBITDA was negative $4 million in Q1 2025, down from $0.2 million in Q1 2024, reflecting lower realized prices despite reduced cash costs[7] - Adjusted EBITDA is used as a primary metric for managing business and evaluating performance, reflecting operational profitability[28] - Operating loss improved to $(18,210) thousand in Q1 2025 from $(21,361) thousand in Q1 2024, reflecting a reduction in operational losses[40] Market Conditions - The company expects a low-double digit percentage increase in sales volume for 2025, driven by a focus on regaining market share[13] - The pricing environment remains challenging, with a planned 15% price increase for uncommitted 2025 volume[14] Asset and Liability Management - Total current assets decreased from $636,797,000 as of December 31, 2024, to $618,543,000 as of March 31, 2025, a decline of approximately 2.0%[38] - Total liabilities increased from $1,224,274,000 as of December 31, 2024, to $1,207,753,000 as of March 31, 2025, reflecting a decrease of approximately 1.3%[38] - Long-term debt remained relatively stable, increasing slightly from $1,086,915,000 to $1,088,863,000, an increase of about 0.2%[38] - The accumulated deficit increased from $793,453,000 as of December 31, 2024, to $832,452,000 as of March 31, 2025, an increase of approximately 4.9%[38] Cash Flow Analysis - Net cash used in operating activities was $(32,186) thousand in Q1 2025, significantly higher than $(530) thousand in Q1 2024, indicating increased cash outflow[42] - Free cash flow and adjusted free cash flow are critical measures for evaluating liquidity, with adjusted free cash flow accounting for debt modification costs[32] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures for investors to assess financial performance and debt-service capabilities[29] - Total non-GAAP adjustments pre-tax for Q1 2025 amounted to $6,563 thousand, compared to $7,279 thousand in Q1 2024, showing a reduction in adjustments[43]