Q3 2025 Performance Highlights - Total sales volume grew by 9% year-over-year and 8% year-to-date[11] - Sales volume in the United States achieved 53% year-over-year growth[11] - Cash costs per metric ton declined by 10% year-over-year[11, 32] - Adjusted EBITDA was $13 million[31, 32] Production and Sales - Q3 2025 production volume increased by 37% compared to Q3 2024[25] - Q3 2025 net sales increased by 10% compared to Q3 2024[25] - Q3 2025 sales volume was 28800 metric tons[24] Cost Performance - Cash cost of goods sold per MT decreased to $3738 in Q3 2025[27, 29] Financial Position - The company had a liquidity of $384 million as of September 30, 2025[35]

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]

Core Insights - GrafTech International Ltd. reported strong sales volume growth and cost reductions in Q3 2025, achieving a 9% year-over-year increase in sales volume and a 10% reduction in cash cost of goods sold per metric ton [5][8][4] - The company generated positive adjusted EBITDA and free cash flow, reflecting progress towards normalized profitability levels [9][8] - GrafTech's liquidity position remains strong, with total liquidity of $384 million as of September 30, 2025, supporting its ability to navigate industry challenges [13][4] Financial Performance - Net sales for Q3 2025 were $144 million, a 10% increase from $131 million in Q3 2024, driven by higher sales volume and the recognition of $11 million in previously deferred revenue [6][5] - The net loss for Q3 2025 was $28 million, or $1.10 per share, an improvement from a net loss of $36 million, or $1.40 per share, in Q3 2024 [7][6] - Adjusted EBITDA for Q3 2025 was $13 million, compared to a negative $6 million in Q3 2024, aided by cost reductions and deferred revenue recognition [8][6] Operational Metrics - Sales volume for Q3 2025 was 28.8 thousand metric tons, a 9% increase year-over-year, with a significant 53% growth in the U.S. market [10][5] - Production volume was 26.6 thousand metric tons, resulting in a capacity utilization rate of 63% [11][10] - The weighted-average realized price for graphite electrodes was approximately $4,200 per metric ton, reflecting a 7% decrease compared to Q3 2024 [10][11] Outlook and Strategic Initiatives - The company expects an 8-10% year-over-year increase in sales volume for 2025, reflecting a disciplined approach to margin management [16][4] - GrafTech anticipates a 10% year-over-year decline in cash cost of goods sold per metric ton for 2025, exceeding previous guidance [18][4] - Long-term demand for graphite electrodes is expected to grow due to the steel industry's transition to electric arc furnace technology and decarbonization trends [20][4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [2] - Investing in bargain stocks with recent price momentum may be a safer approach [3] Group 2: GrafTech International (EAF) Analysis - GrafTech International (EAF) has shown significant price momentum with a four-week price change of 31.2% [4] - EAF has gained 23.4% over the past 12 weeks, indicating strong long-term momentum [5] - EAF has a Momentum Score of A, suggesting it is an opportune time to invest [6] Group 3: Earnings Estimates and Valuation - EAF has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - EAF is trading at a Price-to-Sales ratio of 0.85, indicating it is reasonably valued [7] Group 4: Additional Investment Opportunities - Besides EAF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Various Zacks Premium Screens are available to help identify potential winning stocks based on different investing styles [9]

Core Viewpoint - GrafTech International Ltd. will hold its Third Quarter 2025 Earnings Conference Call on October 24, 2025, to discuss financial results and current business initiatives [1] Financial Results - The financial results for the third quarter ended September 30, 2025, will be released on October 24, 2025, before market open [1] Conference Call Details - The earnings conference call and webcast will take place at 10:00 a.m. (EDT) [1] - The call will be hosted by senior management [1]

Company Overview - GrafTech International (EAF) shares increased by 6% to $13.46 in the last trading session, with a notable trading volume, contributing to a 35.1% gain over the past four weeks [1] Industry Insights - According to the American Iron and Steel Institute, domestic raw steel production rose by 6.5% year-over-year to 1,764,000 net tons for the week ending September 13, 2025. The domestic steel output is expected to see modest growth in 2025, driven by increased adoption of the electric arc furnace method, which will enhance demand for graphite electrodes, benefiting GrafTech [2] Financial Performance Expectations - GrafTech is projected to report a quarterly loss of $1.25 per share, reflecting a year-over-year change of +3.9%. Revenue is anticipated to reach $142.5 million, marking a 9.1% increase from the same quarter last year [3] - The consensus EPS estimate for GrafTech has remained stable over the past 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Market Position - GrafTech holds a Zacks Rank of 3 (Hold) and is part of the Zacks Metal Products - Procurement and Fabrication industry. In comparison, Kaiser Aluminum (KALU), another company in the same industry, saw a 2.1% decline in its last trading session [5] - Kaiser Aluminum's consensus EPS estimate has also remained unchanged at $0.8, representing a year-over-year change of +56.9%, and it currently holds a Zacks Rank of 2 (Buy) [6]

Financial Data and Key Metrics Changes - The meeting discussed the approval of a reverse stock split of the company's issued common stock at a ratio of not less than one for seven and not greater than one for fifteen, which indicates a strategic move to potentially enhance share value and reduce the number of outstanding shares [9][10]. Business Line Data and Key Metrics Changes - No specific data or metrics related to individual business lines were provided during the meeting [15]. Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [15]. Company Strategy and Development Direction and Industry Competition - The company is focusing on a reverse stock split as part of its strategic initiatives, which may reflect a response to market conditions and an effort to improve its stock performance [9][10]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [15]. Other Important Information - The meeting was conducted virtually, and stockholders were encouraged to submit questions throughout the session [4][5]. - The proposal for the reverse stock split received at least 66 and two-thirds percent of the voting power in favor, indicating strong support from shareholders [12]. Q&A Session Summary Question: No questions were submitted during the meeting - The CEO invited stockholders to ask questions, but there were no inquiries made [14].

Core Viewpoint - The situation surrounding GrafTech (NYSE: EAF) is highly uncertain due to depressed graphite electrode prices, reported losses, poor governance, and an elevated debt load, despite debt extension providing some time for the company [1]. Group 1 - GrafTech is facing challenges with its graphite electrode prices, which are currently depressed [1]. - The company has reported losses, indicating financial difficulties [1]. - Governance issues have been highlighted as a concern for GrafTech [1]. - The company's debt load is elevated, adding to the uncertainty of its situation [1].

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and comprehensive notes on accounting policies, segment reporting, debt, and other financial details [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section details the unaudited condensed consolidated financial statements and related notes, covering financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This section presents the company's financial position, detailing assets, liabilities, and stockholders' deficit at specific reporting dates | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $158,543 | $256,248 | | Total current assets | $566,451 | $636,797 | | Total assets | $1,112,026 | $1,224,274 | | LIABILITIES AND STOCKHOLDERS' DEFICIT (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :------------ | :---------------- | | Total current liabilities | $114,426 | $139,929 | | Long-term debt | $1,090,811 | $1,086,915 | | Total stockholders' deficit | $(168,435) | $(78,902) | | Total liabilities and stockholders' deficit | $1,112,026 | $1,224,274 | - Total assets decreased by **$112.2 million (9.2%)** from **$1,224.3 million** at December 31, 2024, to **$1,112.0 million** at June 30, 2025. Cash and cash equivalents saw a significant decrease of **$97.7 million (38.1%)**[17](index=17&type=chunk) - Total stockholders' deficit increased by **$89.5 million (113.5%)** from **$(78.9) million** at December 31, 2024, to **$(168.4) million** at June 30, 2025, primarily due to net losses[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(unaudited)) This section details the company's financial performance, including net sales, gross profit, operating loss, net loss, and comprehensive loss over specified periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $131,840 | $137,327 | $243,679 | $273,911 | | Gross profit (loss) | $62 | $3,976 | $(1,647) | $2,664 | | Operating loss | $(14,553) | $(2,679) | $(32,763) | $(24,040) | | Net loss | $(86,886) | $(14,752) | $(126,237) | $(45,621) | | Basic loss per share | $(0.34) | $(0.06) | $(0.49) | $(0.18) | | Comprehensive loss | $(64,937) | $(22,940) | $(91,742) | $(64,534) | - Net sales decreased by **4%** for Q2 2025 and **11%** for 6M 2025 compared to the respective prior-year periods[20](index=20&type=chunk) - Net loss significantly widened, increasing by **489%** to **$(86.9) million** for Q2 2025 and by **177%** to **$(126.2) million** for 6M 2025, primarily driven by higher interest expense and income tax expense[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities for the reported periods | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(85,422) | $(37,385) | | Net cash used in investing activities | $(14,157) | $(17,410) | | Net cash used in financing activities | $(264) | $(117) | | Net change in cash and cash equivalents | $(99,843) | $(54,912) | | Cash and cash equivalents at end of period | $158,543 | $120,726 | - Net cash used in operating activities increased by **$48.0 million** in the first six months of 2025 compared to the same period in 2024, primarily due to a **$32.0 million** increase in cash used for working capital, particularly inventories[185](index=185&type=chunk) - Capital expenditures decreased to **$14.2 million** for the first six months of 2025 from **$17.5 million** in the prior year period[23](index=23&type=chunk)[186](index=186&type=chunk) [Condensed Consolidated Statements of Stockholders' (Deficit) Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20(Deficit)%20Equity%20(unaudited)) This section details changes in stockholders' (deficit) equity, including net loss, foreign currency adjustments, and stock-based compensation impacts | Equity Component (in thousands) | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :------------------------------ | :---------------- | :------------- | :------------ | | Total Stockholders' (Deficit) Equity | $(78,902) | $(105,340) | $(168,435) |\n| Net loss (Q1 2025) | | $(39,351) | | | Net loss (Q2 2025) | | | $(86,886) | | Foreign currency translation adjustments | | $12,596 | $21,981 | | Stock-based compensation | | $580 | $1,842 | - The total stockholders' deficit significantly increased from **$(78.9) million** at December 31, 2024, to **$(168.4) million** at June 30, 2025, primarily due to net losses incurred during the period[26](index=26&type=chunk) - Accumulated other comprehensive loss improved from **$(43.4) million** at December 31, 2024, to **$(8.9) million** at June 30, 2025, largely driven by positive foreign currency translation adjustments[26](index=26&type=chunk)[80](index=80&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies and specific financial items [(1) Organization and Summary of Significant Accounting Policies](index=10&type=section&id=(1)%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) This section describes the company's business, its reportable segment, and the impact of recently adopted and pending accounting pronouncements - GrafTech International Ltd. is a leading manufacturer of **high-quality graphite electrode products**, essential for **electric arc furnace (EAF) steel production**, and is substantially vertically integrated into **petroleum needle coke**[29](index=29&type=chunk) - The company's only reportable segment is **Industrial Materials**, comprising graphite electrodes and petroleum needle coke products[29](index=29&type=chunk) - The adoption of **ASU 2023-07 (Segment Reporting)** did not materially impact consolidated financial statements. **ASU 2023-09 (Income Taxes)** will result in additional disclosures for FY2025 but no impact on financial position, results, or cash flows. **ASU 2024-03 (Expense Disaggregation)** is being assessed for impact[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [(2) Revenue from Contracts with Customers](index=11&type=section&id=(2)%20Revenue%20from%20Contracts%20with%20Customers) This section disaggregates revenue by product type and notes changes in revenue presentation, reflecting the company's sales performance | Product Type (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Graphite Electrodes | $119,440 | $124,807 | $220,702 | $248,794 | | By-products and other | $12,400 | $12,520 | $22,977 | $25,117 | | Total Revenues | $131,840 | $137,327 | $243,679 | $273,911 | - Graphite electrode revenue decreased by **4.3%** for Q2 2025 and **11.3%** for 6M 2025 compared to the prior year periods[37](index=37&type=chunk) - The company updated its disaggregated revenue presentation, no longer showing **long-term agreement (LTA) revenues** separately due to their immaterial amount[37](index=37&type=chunk) [(3) Segment Reporting](index=12&type=section&id=(3)%20Segment%20Reporting) This section confirms the company operates as a single Industrial Materials segment, with graphite electrodes as the primary revenue source, and outlines performance evaluation criteria - GrafTech operates as a single reportable segment, **Industrial Materials**, which manufactures **graphite electrodes** and utilizes internally produced **petroleum needle coke**[41](index=41&type=chunk) - Over **90%** of external revenues are derived from **graphite electrode sales**[41](index=41&type=chunk) - The chief operating decision maker evaluates segment performance based on **net income or losses**[42](index=42&type=chunk) [(4) Intangible Assets](index=13&type=section&id=(4)%20Intangible%20Assets) This section details the company's finite-lived intangible assets, including trade names, technology, and customer relationships, and their associated amortization expense | Intangible Asset Category (in thousands) | June 30, 2025 Net Carrying Amount | December 31, 2024 Net Carrying Amount | | :--------------------------------------- | :-------------------------------- | :------------------------------------ | | Trade names | $3,872 | $4,274 | | Technology | $5,414 | $6,687 | | Customer relationships | $21,316 | $23,437 | | Total finite-lived intangible assets | $30,602 | $34,398 | - Total finite-lived intangible assets decreased by **$3.8 million** from December 31, 2024, to June 30, 2025[44](index=44&type=chunk) - Amortization expense for intangible assets was **$1.9 million** for Q2 2025 and **$3.8 million** for 6M 2025[44](index=44&type=chunk) [(5) Debt and Liquidity](index=13&type=section&id=(5)%20Debt%20and%20Liquidity) This section outlines the company's long-term debt structure and available liquidity, including credit facilities, as of the reporting period | Long-Term Debt (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Initial First Lien Term Loans due 2029 | $175,000 | $175,000 | | New 4.625% Second Lien Notes due 2029 | $498,245 | $498,245 | | New 9.875% Second Lien Notes due 2029 | $446,167 | $446,167 | | Total long-term debt | $1,090,811 | $1,086,915 | - Total long-term debt remained relatively stable at approximately **$1.09 billion** as of June 30, 2025[45](index=45&type=chunk) - The company had **$100 million** available under its Delayed Draw First Lien Term Loan Facility and **$108 million** availability under its 2018 Revolving Credit Facility as of June 30, 2025[46](index=46&type=chunk)[47](index=47&type=chunk) [(6) Inventories](index=14&type=section&id=(6)%20Inventories) This section provides a breakdown of inventories by component, highlights changes, and discusses lower of cost or market valuation adjustments | Inventory Component (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Raw materials and supplies | $89,721 | $78,386 | | Work in process | $136,039 | $122,590 | | Finished goods | $30,166 | $30,265 | | Total Inventories | $255,926 | $231,241 | - Total inventories increased by **$24.7 million (10.7%)** from December 31, 2024, to June 30, 2025, driven by increases in raw materials and work in process[50](index=50&type=chunk) - The company recorded **lower of cost or market (LCM)** inventory valuation adjustments of **$1.9 million** for Q2 2025 and **$4.7 million** for 6M 2025[50](index=50&type=chunk) [(7) Interest Expense](index=14&type=section&id=(7)%20Interest%20Expense) This section details the components of interest expense, including debt interest and modification costs, and explains the period-over-period changes | Interest Expense Component (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest incurred on debt | $22,539 | $17,110 | $45,071 | $34,205 | | Debt modification costs | $931 | $0 | $6,292 | $0 | | Total interest expense | $25,418 | $15,609 | $55,259 | $31,235 | - Total interest expense increased significantly by **63%** for Q2 2025 and **77%** for 6M 2025, primarily due to interest on the Initial First Lien Term Loan Facility and debt modification costs[51](index=51&type=chunk)[52](index=52&type=chunk) - Debt modification costs of **$0.9 million** for Q2 2025 and **$6.3 million** for 6M 2025 were expensed as incurred[52](index=52&type=chunk) [(8) Commitments and Contingencies](index=14&type=section&id=(8)%20Commitments%20and%20Contingencies) This section addresses ongoing legal proceedings, the write-off of the Tax Receivable Agreement liability, and a significant Brazilian income tax assessment - The company is involved in ongoing legal proceedings, including **Brazil Clause IV litigation** and **securities and derivative class action lawsuits**, but does not believe their ultimate disposition will have a material adverse effect on financial position, results of operations, or cash flows at this stage[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - The **Tax Receivable Agreement liability** of **$3.8 million** was written off in Q2 2025 due to the recording of a full valuation allowance against U.S. deferred tax assets, as related foreign tax credits are unlikely to be utilized[59](index=59&type=chunk)[60](index=60&type=chunk) - GrafTech Brasil Participações Ltda. received a **$32.6 million** income tax assessment notice from the Brazilian IRS for 2019-2020, which the company intends to vigorously defend[61](index=61&type=chunk) [(9) Income Taxes](index=16&type=section&id=(9)%20Income%20Taxes) This section details income tax expense, effective tax rates, the impact of valuation allowances on deferred tax assets, and the evaluation of new tax legislation | Income Tax Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense (benefit) | $51,207 | $(592) | $43,995 | $(4,793) | | Loss before income taxes | $(35,679) | $(15,344) | $(82,242) | $(50,414) | | Effective tax rate | (143.5)% | 3.9% | (53.5)% | 9.5% | - The effective tax rate for Q2 2025 and 6M 2025 was significantly impacted by the recording of a full valuation allowance of **$34.2 million** against U.S. deferred tax assets and **$8.4 million** against Switzerland deferred tax assets[63](index=63&type=chunk)[66](index=66&type=chunk) - The company is evaluating the potential future impact of the recently enacted **One Big Beautiful Bill Act (OBBBA)** on its consolidated financial statements[67](index=67&type=chunk) [(10) Fair Value Measurements and Derivative Instruments](index=17&type=section&id=(10)%20Fair%20Value%20Measurements%20and%20Derivative%20Instruments) This section describes the company's use of foreign currency, commodity, and interest rate derivatives to manage market risks, including notional amounts and sensitivity analysis - GrafTech uses **foreign currency derivatives**, **commodity derivative contracts**, and **interest rate swaps** to manage exposure to fluctuations in currency exchange rates, commodity prices, and interest rates[68](index=68&type=chunk) | Derivative Type (in thousands) | Notional Amount June 30, 2025 | Notional Amount December 31, 2024 | | :----------------------------- | :---------------------------- | :-------------------------------- | | Designated as hedges: Foreign currency derivatives | $5,740 | $0 | | Not designated as hedges: Foreign currency derivatives | $24,059 | $11,918 | - A **10%** appreciation or depreciation in the U.S. dollar against foreign currencies would result in a **$1.2 million** decrease or increase, respectively, in the fair value of the foreign currency hedge portfolio as of June 30, 2025[223](index=223&type=chunk) [(11) Accumulated Other Comprehensive Loss](index=19&type=section&id=(11)%20Accumulated%20Other%20Comprehensive%20Loss) This section details the components of accumulated other comprehensive loss, primarily foreign currency translation adjustments, and their impact on the overall balance | Component (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Foreign currency translation adjustments, net of tax | $(8,996) | $(43,573) | | Foreign currency derivatives, net of tax | $132 | $214 | | Total accumulated other comprehensive loss | $(8,864) | $(43,359) | - Total accumulated other comprehensive loss improved from **$(43.4) million** at December 31, 2024, to **$(8.9) million** at June 30, 2025, primarily due to positive foreign currency translation adjustments[80](index=80&type=chunk) [(12) Loss per Share](index=20&type=section&id=(12)%20Loss%20per%20Share) This section presents basic and diluted loss per share, explaining the impact of net losses and the exclusion of anti-dilutive securities from calculations | Loss per Share Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss (in thousands) | $(86,886) | $(14,752) | $(126,237) | $(45,621) | | Basic loss per share | $(0.34) | $(0.06) | $(0.49) | $(0.18) | | Diluted loss per share | $(0.34) | $(0.06) | $(0.49) | $(0.18) | - Basic and diluted loss per share increased significantly to **$(0.34)** for Q2 2025 and **$(0.49)** for 6M 2025, compared to **$(0.06)** and **$(0.18)** respectively in the prior year periods[81](index=81&type=chunk) - Potentially dilutive securities were excluded from diluted loss per share calculations due to the company's net loss, making their inclusion **anti-dilutive**[82](index=82&type=chunk)[83](index=83&type=chunk) [(13) Stock-Based Compensation](index=20&type=section&id=(13)%20Stock-Based%20Compensation) This section details equity awards granted, the recognition of stock-based compensation expense, and the remaining unrecognized compensation cost for unvested awards - The company granted **3,680,476 RSUs** and **1,702,363 performance-based restricted stock units (PSUs)** to employees, and **297,901 deferred share units (DSUs)** and **953,332 deferred RSUs (DRSUs)** to non-employee directors in the first six months of 2025[84](index=84&type=chunk) - Stock-based compensation expense was **$1.8 million** for Q2 2025 and **$2.4 million** for 6M 2025, with the majority recorded in selling and administrative expense[87](index=87&type=chunk)[88](index=88&type=chunk) - Unrecognized compensation cost related to unvested awards was approximately **$10.8 million** as of June 30, 2025[89](index=89&type=chunk) [(14) Supplementary Balance Sheet Detail](index=21&type=section&id=(14)%20Supplementary%20Balance%20Sheet%20Detail) This section provides additional balance sheet details, specifically regarding obligations under the Supplier Finance Program - GrafTech Mexico participates in a **Supplier Finance Program (SFP)**, with **$4.8 million** in SFP obligations included in accounts payable as of June 30, 2025[90](index=90&type=chunk)[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and operational results, covering key performance indicators, market outlook, capital structure, liquidity, and non-GAAP financial measures [Company Overview and Operational Update](index=22&type=section&id=Company%20Overview%20and%20Operational%20Update) This section provides an overview of the company's business as a graphite electrode manufacturer and details key operational metrics like sales volume and realized prices - GrafTech is a leading manufacturer of **high-quality graphite electrodes** for **EAF steel production**, vertically integrated into **petroleum needle coke**[93](index=93&type=chunk) | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Sales volume (MT) | 28.6k | 25.5k | +12% | | Production volume (MT) | 29.4k | 26.8k | +10% | | Weighted-average realized price (per MT) | ~$4,200 | ~$4,773 | -12% | - The weighted-average realized price decreased by **12% YoY** in Q2 2025 but increased **2%** sequentially from Q1 2025, with efforts to shift sales to the U.S. to mitigate competitive pressures[96](index=96&type=chunk) [Outlook](index=22&type=section&id=Outlook) This section outlines the company's expectations for graphite electrode demand, sales volume, cost of goods sold, and long-term market trends - The company expects demand for **graphite electrodes** to remain relatively flat in most regions, with modest growth in the U.S. steel production driven by **EAF**[98](index=98&type=chunk) - GrafTech anticipates an approximate **10% year-over-year increase in sales volume** for 2025, aiming to regain market share[99](index=99&type=chunk) - The company expects a **7-9% year-over-year decline in cash cost of goods sold per MT** for 2025, exceeding previous guidance, and anticipates second-half 2025 **adjusted EBITDA to be near breakeven**[101](index=101&type=chunk) - Longer term, the company is confident in increased **EAF steelmaking adoption** due to decarbonization efforts and accelerating demand for **petroleum needle coke for lithium-ion batteries**[104](index=104&type=chunk) [Capital Structure and Liquidity](index=23&type=section&id=Capital%20Structure%20and%20Liquidity) This section details the company's capital structure, including total debt, and its liquidity position, comprising cash and available credit facilities | Metric (in thousands) | June 30, 2025 | | :-------------------- | :------------ | | Cash and cash equivalents | $158,543 | | 2018 Revolving Credit Facility availability | $108,000 | | Initial First Lien Term Loan Facility availability | $100,000 | | Total liquidity | $366,543 | | Total debt | ~$1,100,000 | - The company had **$366.5 million** in liquidity as of June 30, 2025, consisting of cash and available credit facilities[105](index=105&type=chunk) [Key Financial Measures](index=23&type=section&id=Key%20Financial%20Measures) This section presents key financial performance indicators, including net sales, net loss, loss per share, and adjusted EBITDA for the reported periods | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $131,840 | $137,327 | $243,679 | $273,911 | | Net loss | $(86,886) | $(14,752) | $(126,237) | $(45,621) | | Loss per share | $(0.34) | $(0.06) | $(0.49) | $(0.18) | | Adjusted EBITDA | $3,471 | $14,493 | $(201) | $14,687 | - Adjusted EBITDA decreased significantly to **$3.5 million** for Q2 2025 (from **$14.5 million** in Q2 2024) and turned negative to **$(0.2) million** for 6M 2025 (from **$14.7 million** in 6M 2024)[108](index=108&type=chunk) [Key Operating Measures](index=23&type=section&id=Key%20Operating%20Measures) This section highlights key operational metrics, including sales volume, production volume, production capacity, and capacity utilization rates | Metric (in thousands, except utilization) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales volume (MT) | 28.6 | 25.5 | 53.3 | 49.6 | | Production volume (MT) | 29.4 | 26.8 | 57.9 | 52.8 | | Production capacity (MT) | 45.0 | 45.0 | 90.0 | 90.0 | | Capacity utilization | 65% | 60% | 64% | 59% | - Sales volume increased by **12%** for Q2 2025 and **7.5%** for 6M 2025 compared to the prior year periods[114](index=114&type=chunk) - Capacity utilization improved to **65%** for Q2 2025 (from **60%**) and **64%** for 6M 2025 (from **59%**)[114](index=114&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=24&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030,%202024) This section provides a detailed comparative analysis of the company's financial performance for the three months ended June 30, 2025, versus the prior year | Metric (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------- | :----------- | :----------- | :----------- | :--------- | | Net sales | $131,840 | $137,327 | $(5,487) | (4)% | | Gross profit | $62 | $3,976 | $(3,914) | (98)% | | Operating loss | $(14,553) | $(2,679) | $(11,874) | 443% | | Selling and administrative expenses | $13,267 | $5,098 | $8,169 | 160% | | Interest expense | $25,418 | $15,609 | $9,809 | 63% | | Net loss | $(86,886) | $(14,752) | $(72,134) | 489% | - Net sales decreased by **$5.5 million (4%)** due to lower weighted-average realized prices, partially offset by increased sales volume[116](index=116&type=chunk) - Selling and administrative expenses increased by **$8.2 million (160%)**, primarily due to a **$9.2 million** legal fee reimbursement in Q2 2024, making the underlying expenses lower in Q2 2025[119](index=119&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=26&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030,%202024) This section provides a detailed comparative analysis of the company's financial performance for the six months ended June 30, 2025, versus the prior year | Metric (in thousands) | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :-------------------- | :----------- | :----------- | :----------- | :--------- | | Net sales | $243,679 | $273,911 | $(30,232) | (11)% | | Gross (loss) profit | $(1,647) | $2,664 | $(4,311) | (162)% | | Operating loss | $(32,763) | $(24,040) | $(8,723) | 36% | | Selling and administrative expenses | $27,889 | $20,375 | $7,514 | 37% | | Interest expense | $55,259 | $31,235 | $24,024 | 77% | | Net loss | $(126,237) | $(45,621) | $(80,616) | 177% | - Net sales decreased by **$30.2 million (11%)** primarily due to a decrease in weighted-average realized price, partially offset by increased sales volume[126](index=126&type=chunk) - Cost of goods sold decreased by **$26.5 million (10%)**, benefiting from cost reduction initiatives and a **$5.5 million** favorable impact from prior period LCM inventory write-downs[127](index=127&type=chunk) [Effects of Changes in Currency Exchange Rates](index=27&type=section&id=Effects%20of%20Changes%20in%20Currency%20Exchange%20Rates) This section analyzes the impact of fluctuations in currency exchange rates on the company's net sales and cost of goods sold - Changes in currency exchange rates resulted in increases of **$2.2 million** in net sales for Q2 2025 and **$1.3 million** for 6M 2025[133](index=133&type=chunk) - The impact on cost of goods sold was an increase of **$3.0 million** for Q2 2025 and **$0.6 million** for 6M 2025[133](index=133&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position, total debt, capital allocation strategies, and capital expenditure plans - As of June 30, 2025, liquidity was **$366.5 million**, comprising **$158.5 million** in cash and cash equivalents, **$108.0 million** from the 2018 Revolving Credit Facility, and **$100.0 million** from the Initial First Lien Term Loan Facility (Delayed Draw Commitments)[136](index=136&type=chunk) - The company's total debt was approximately **$1.1 billion** as of June 30, 2025[138](index=138&type=chunk) - The Board of Directors suspended the quarterly cash dividend of **$0.01 per share** on August 2, 2023, and no shares were repurchased in Q2 or 6M 2025, with **$99.0 million** remaining under the stock repurchase authorization[177](index=177&type=chunk)[178](index=178&type=chunk) - Capital expenditures totaled **$14.2 million** in the first six months of 2025, with a full-year expectation of approximately **$40.0 million**[181](index=181&type=chunk) [Cash Flow](index=33&type=section&id=Cash%20Flow) This section analyzes the company's cash flows from operating, investing, and financing activities, highlighting changes in operating cash usage | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(85,422) | $(37,385) | | Net cash used in investing activities | $(14,157) | $(17,410) | | Net cash used in financing activities | $(264) | $(117) | | Net change in cash and cash equivalents | $(99,843) | $(54,912) | - Net cash used in operating activities increased by **$48.0 million** in the first six months of 2025, primarily due to a **$32.0 million** increase in cash used for working capital, driven by higher inventories[185](index=185&type=chunk) [Non-GAAP financial measures](index=33&type=section&id=Non-GAAP%20financial%20measures) This section defines and reconciles non-GAAP financial measures, including adjusted EBITDA, adjusted net loss, free cash flow, and cash cost of goods sold per MT - The company uses non-GAAP financial measures such as **EBITDA**, **adjusted EBITDA**, **adjusted net loss**, **adjusted loss per share**, **free cash flow**, **adjusted free cash flow**, and **cash cost of goods sold per MT** to evaluate performance and facilitate period-to-period comparisons[188](index=188&type=chunk)[189](index=189&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) | Non-GAAP Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Adjusted net loss | $(42,247) | $(13,564) | $(76,402) | $(38,725) | | Adjusted loss per share | $(0.16) | $(0.05) | $(0.30) | $(0.15) | | Adjusted EBITDA | $3,471 | $14,493 | $(201) | $14,687 | | Free cash flow | $(57,145) | $(43,834) | $(99,612) | $(54,875) | | Adjusted free cash flow | $(53,337) | $(43,834) | $(93,611) | $(54,875) | | Cash cost of goods sold per MT | $3,754 | $4,315 | $3,707 | $4,451 | - Cash cost of goods sold per MT decreased by **13%** for Q2 2025 and **16.8%** for 6M 2025, reflecting ongoing cost structure enhancement initiatives[214](index=214&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, primarily from changes in interest rates, currency exchange rates, and energy commodity prices, and describes the use of derivative financial instruments to manage these risks. It also includes a sensitivity analysis for potential impacts of market rate changes - GrafTech is exposed to market risks from fluctuations in **interest rates**, **currency exchange rates**, **energy commodity prices**, and **commercial energy rates**[217](index=217&type=chunk)[219](index=219&type=chunk) - The company uses **foreign currency derivatives** (forward exchange contracts and purchased currency options) to manage currency exchange rate exposures[220](index=220&type=chunk) - A hypothetical **10%** appreciation or depreciation in the U.S. dollar against foreign currencies would result in a **$1.2 million** decrease or increase, respectively, in the fair value of the foreign currency hedge portfolio as of June 30, 2025[223](index=223&type=chunk) - A hypothetical **100 basis point increase** in interest rates would have increased interest expense by **$0.4 million** in Q2 2025[223](index=223&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that management, including the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective. It also states that there were no material changes in internal control over financial reporting during the quarter - Management concluded that the company's **disclosure controls and procedures** were effective as of June 30, 2025[227](index=227&type=chunk) - There were no changes in **internal control over financial reporting** during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect internal control over financial reporting[228](index=228&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, updated risk factors, other information, a list of exhibits, and the official signature for the report [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section details the company's involvement in various legal proceedings, including ongoing litigation in Brazil related to wage increase provisions and securities and derivative class action lawsuits in the U.S. District Court for the Northern District of Ohio. The company asserts that the ultimate disposition of these matters is not expected to have a material adverse effect on its financial condition - The company is involved in ongoing **Brazil Clause IV litigation** regarding wage increase provisions from 1989-1990, with the Brazilian Supreme Court ruling in favor of the employees' union in 2019. GrafTech Brazil has successfully appealed related state court rulings, and intends to vigorously defend its position[232](index=232&type=chunk) - A **securities class action complaint** was filed on January 25, 2024, alleging material misrepresentations related to the temporary suspension of the Monterrey, Mexico facility. **Derivative actions** were also filed on June 9, 2025, alleging breaches of fiduciary duty based on similar facts[233](index=233&type=chunk)[234](index=234&type=chunk) - At this stage, the company cannot determine if these legal matters would reasonably be expected to have a **material adverse effect** on its financial condition[235](index=235&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section updates and refers to the risk factors disclosed in the Annual Report on Form 10-K, specifically highlighting the risk associated with the company's non-compliance with NYSE continued listing requirements regarding minimum share price. It discusses the proposed reverse stock split as a measure to address this and the potential impacts of delisting - The company's common stock does not currently comply with the **NYSE's minimum share price standard** for continued listing[240](index=240&type=chunk) - GrafTech is seeking stockholder approval for a **reverse stock split** to address the **NYSE $1.00 minimum bid price requirement**, with a Special Meeting of Stockholders expected on August 14, 2025[241](index=241&type=chunk) - A **delisting from the NYSE**, for this or any other reason, could materially affect the company's ability to raise capital, its business, and the price of its common stock[241](index=241&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025 - No directors or officers adopted, modified, or terminated **Rule 10b5-1** or **non-Rule 10b5-1 trading arrangements** during the fiscal quarter ended June 30, 2025[243](index=243&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Certificate of Incorporation, By-Laws, certifications from the CEO and CFO (pursuant to Rule 13a-14(a) and Section 906 of Sarbanes-Oxley Act), and the Inline XBRL financial information - The exhibits include corporate governance documents (**Certificate of Incorporation**, **By-Laws**), certifications from the CEO and CFO (**Rule 13a-14(a)** and **Section 906**), and financial information formatted in **Inline XBRL**[246](index=246&type=chunk)[247](index=247&type=chunk) [SIGNATURE](index=43&type=section&id=SIGNATURE) This section contains the signature of Rory O'Donnell, Chief Financial Officer and Senior Vice President (Principal Financial Officer and Principal Accounting Officer), certifying the filing of the report on behalf of GrafTech International Ltd. on July 25, 2025 - The report was signed by **Rory O'Donnell, Chief Financial Officer and Senior Vice President**, on behalf of GrafTech International Ltd. on July 25, 2025[251](index=251&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net loss of $87 million or $0.34 per share for the second quarter, which included a $43 million non-cash income tax charge [32] - Adjusted EBITDA was $3 million, down from $14 million in the same quarter of the previous year, primarily due to lower average selling prices [33] - Cash costs per metric ton are expected to decline by 7% to 9% year over year, with a revised full-year cash cost guidance of approximately $3,950 per metric ton [34][36] Business Line Data and Key Metrics Changes - Sales volume increased by 12% year over year and reached approximately 29,000 metric tons, marking the highest sales volume performance in 11 quarters [28][30] - The average selling price for the second quarter was approximately $4,200 per metric ton, reflecting a nearly 8% increase compared to the fourth quarter of the previous year [13][30] - The company achieved a capacity utilization rate of 65%, the highest level in nearly three years [8][26] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 210 million tons in the second quarter, down 1% year over year, resulting in a global utilization rate of approximately 67% [24] - In North America, steel production was down 1% year to date, while U.S. production grew by 1% year to date through June [25] - The company increased its sales volume in the U.S. by 38% year over year, contributing significantly to its average selling price [12][30] Company Strategy and Development Direction - The company aims to increase sales volume, regain market share, improve average pricing, reduce costs, and strengthen its financial foundation [6][39] - A strategic focus is placed on shifting sales volume towards regions with higher selling prices, particularly in the U.S. [11][12] - The company is committed to building long-term customer relationships and enhancing its competitive positioning through operational efficiency and cost management [7][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering to normalized levels of profitability, despite current challenges in pricing dynamics and market demand [9][32] - The company anticipates continued growth in the U.S. market due to favorable tariff conditions and an expected increase in steel production [19][40] - Management highlighted the importance of ongoing investments in research and development to maintain a competitive edge in the graphite electrode market [31][47] Other Important Information - The company ended the second quarter with total liquidity of $367 million, consisting of cash and available credit facilities [37] - The impact of U.S. tariffs on cash costs is expected to be less than 1% for 2025, reflecting effective management of global trade uncertainties [18][21] - The company is actively monitoring developments in the needle coke market and anticipates future improvements driven by domestic supply chain initiatives [60][62] Q&A Session Summary Question: Current U.S. market share and potential for further growth - The U.S. and Americas represent over 50% of overall revenue, with a year-over-year share increase of 31% [51] Question: Impact of Chinese anti-dumping duties on local needle coke prices - The recent rulings are expected to support medium to long-term developments in the supply chain, but immediate pricing impacts are not anticipated [52][53] Question: Pricing environment outlook - The pricing environment remains competitive, but there are signs of price stability and potential for recovery in the latter half of the year [56][57] Question: Needle coke supply and demand outlook - The needle coke market remains flat, with no immediate catalysts for change, but future developments in Western supply chains are expected to drive improvements [58][59] Question: Expectations for positive EBITDA trajectory - Positive EBITDA is anticipated to continue, with some fluctuations expected in the second half of the year due to seasonal factors [61][64] Question: State of discussions regarding anode materials - The company is actively exploring partnership opportunities and remains well-positioned to participate in the anode materials market [70][72]