GrafTech International(EAF) - 2025 Q4 - Annual Results

Financial Performance - Net sales for Q4 2025 were $116 million, a decrease of 13% compared to $134 million in Q4 2024, primarily due to a decline in weighted-average realized prices[9] - Net loss for Q4 2025 was $65 million, or $2.50 per share, compared to a net loss of $49 million, or $1.92 per share, in Q4 2024[10] - Adjusted EBITDA for Q4 2025 was negative $22 million, worsening from negative $7 million in Q4 2024, largely due to lower realized prices[10] - Gross loss for Q4 2025 was $24,337 thousand, compared to a gross loss of $10,443 thousand in Q4 2024, indicating a significant decline in profitability[51] - Operating loss for the year ended December 31, 2025, was $77,066 thousand, slightly higher than the operating loss of $75,225 thousand for the previous year[51] - Net loss for Q4 2025 was $65,116 thousand, compared to a net loss of $49,476 thousand in Q4 2024, representing a 31.5% increase in losses year-over-year[51] - Basic loss per share for Q4 2025 was $2.50, compared to $1.92 in Q4 2024, reflecting a worsening financial position[51] - Adjusted net loss for Q4 2025 was $63,886 thousand, compared to $33,143 thousand in Q4 2024, indicating a deterioration in adjusted financial performance[55] - Free cash flow for Q4 2025 was $(39.265) million, compared to $(39.209) million in Q4 2024, indicating continued cash flow challenges[59] Sales and Production - Sales volume for Q4 2025 was 27.1 thousand MT, flat year-over-year, while full-year sales volume grew 6% to 109.2 thousand MT[15] - Production volume for Q4 2025 was 27.8 thousand MT, resulting in a capacity utilization rate of 60%[17] - The company anticipates a 5-10% year-over-year increase in sales volume for 2026, with approximately 65% of the anticipated volume already committed[22] - The company expects a modest increase in global demand for graphite electrodes in 2026, driven by improving steel industry trends[21] - Sales volume in Q4 2025 was 27.1 thousand MT, a slight decrease from 27.2 thousand MT in Q4 2024[60] Liquidity and Capital Expenditures - Total liquidity at the end of Q4 2025 was $340 million, consisting of cash and cash equivalents of $138 million and availability under credit facilities[18] - Capital expenditures for 2026 are anticipated to be approximately $35 million, adequate to maintain current asset utilization levels[26] - Capital expenditures for the year ended December 31, 2025, totaled $38,885 thousand, an increase from $34,309 thousand in 2024[53] - Capital expenditures in Q4 2025 were $18.371 million, up from $12.792 million in Q4 2024, indicating increased investment in operations[59] Debt and Assets - GrafTech reported a gross debt of $1,125 million as of December 31, 2025, with cash and cash equivalents of $138 million, resulting in a net debt of $987 million[33] - Total current assets decreased from $636,797 thousand in 2024 to $484,534 thousand in 2025, reflecting a decline of approximately 24%[49] - The company's total assets decreased from $1,224,274 thousand in 2024 to $1,028,789 thousand in 2025, a reduction of about 16%[49] - GrafTech's accumulated deficit increased from $793,453 thousand in 2024 to $1,012,948 thousand in 2025, indicating a rise of approximately 28%[49] - GrafTech's stockholders' deficit increased from $78,902 thousand in 2024 to $259,628 thousand in 2025, reflecting a significant decline in equity[49] Cost Management - The company achieved an 11% reduction in cash cost of goods sold per metric ton for the full year 2025 compared to 2024[13] - GrafTech's cash cost of goods sold per metric ton is a critical measure for evaluating costs, which is calculated by excluding certain expenses from the total cost of goods sold[45] - Cash cost of goods sold for Q4 2025 was $108.904 million, with a cash cost of goods sold per MT of $4,019, slightly lower than $4,086 in Q4 2024[60] Research and Development - Research and development expenses for the year ended December 31, 2025, were $6,475 thousand, up from $5,706 thousand in 2024, highlighting ongoing investment in innovation[51] Operational Risks - The company is subject to various risks, including dependence on the global steel industry and potential disruptions in manufacturing operations[35] - The company is focusing on cost rationalization and footprint optimization, which may impact future financial performance[61] Performance Metrics - The company emphasizes the importance of adjusted EBITDA as a key performance metric, which excludes non-operational items to provide a clearer view of operational profitability[41] - Adjusted EBITDA for Q4 2025 was $(21.900) million, a decrease from $13.013 million in Q3 2025 and $(6.859) million in Q4 2024[58]