GrafTech International(EAF) - 2025 Q3 - Quarterly Results

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]