Ferroglobe Reports Strong Third Quarter 2024 Financial Results

Core Viewpoint - Ferroglobe PLC reported its financial results for Q3 2024, highlighting a positive adjusted EBITDA of $60 million, a net cash position of $32 million, and ongoing efforts to enhance sustainability through an upcoming ESG report [1][16]. Financial Performance - Adjusted EBITDA for Q3 2024 was $60.4 million, representing a 5% increase from Q2 2024 and a 42% decrease year-over-year [2][13]. - Net income for Q3 2024 was $18.8 million, down 46% from Q2 2024 and down 54% from Q3 2023 [2][12]. - Sales for Q3 2024 totaled $433.5 million, a decrease of 4% from Q2 2024 but an increase of 4% compared to Q3 2023 [2][5]. Product Category Highlights - Silicon metal revenue in Q3 2024 was $193.6 million, down 5.1% from Q2 2024, with shipments decreasing by 9.5% [7]. - Silicon-based alloys revenue was $101.8 million, a decrease of 3.3% from Q2 2024, with adjusted EBITDA dropping 76.9% [8]. - Manganese-based alloys revenue was $89.7 million, down 8.5% from Q2 2024, but up 52.1% year-over-year, with adjusted EBITDA increasing by 101.4% [10]. Market and Regulatory Environment - The U.S. Department of Commerce imposed significant duties on ferrosilicon imports from Russia, Brazil, Kazakhstan, and Malaysia, which may create opportunities for Ferroglobe in the U.S. market [3]. - The company anticipates improved demand in the U.S. ferrosilicon market in 2025 due to these regulatory changes [3]. Cash Flow and Capital Management - The company generated $11.1 million in cash flow from operations in Q3 2024, with total working capital increasing to $528.6 million [14][16]. - Ferroglobe repurchased approximately 117,000 shares at an average price of $4.22 per share and paid a quarterly cash dividend of $0.013 per share [1][16]. Sustainability Initiatives - Ferroglobe is preparing to issue an ESG report that will outline its decarbonization targets, aiming for a reduction of scope 1 and 2 carbon emissions by at least 26% by 2030 from a 2020 baseline [4].