GrafTech International(US:EAF)2025-10-24 17:02Financial 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]