Financial Data and Key Metrics Changes - The company reported a full-year sales volume increase of 6% despite a challenging graphite electrode industry environment marked by global overcapacity and subdued steel production trends [4][5] - The cash cost of goods sold per metric ton decreased by 11% year-over-year, with a cumulative reduction of 31% since the end of 2023 [6][19] - The company ended 2025 with a liquidity position of $340 million, including $138 million in cash, which exceeded expectations [7][24] Business Line Data and Key Metrics Changes - In the U.S., sales volume grew by 48% for the full year and 83% in the fourth quarter compared to the prior year, reflecting a successful shift towards regions with stronger pricing fundamentals [5][17] - The average selling price for the fourth quarter was approximately $4,000 per metric ton, representing a 9% decline year-over-year due to competitive pricing dynamics [17][18] Market Data and Key Metrics Changes - Global steel production outside of China was 843 million tons in 2025, with a utilization rate of approximately 67% [8][9] - In North America, steel production increased by 1%, driven by a 3% growth in the U.S., while the EU saw a 3% decrease in steel output [9][10] Company Strategy and Development Direction - The company aims to grow sales volume by 5%-10% year-over-year in 2026, with a continued focus on shifting geographic mix towards the U.S. [26][27] - Management is evaluating opportunities for optimizing manufacturing, trade support, and strategic partnerships to enhance efficiency and long-term value creation [15][66] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing challenges in the graphite electrode market due to overcapacity and aggressive competitor pricing, which threaten long-term viability [12][14] - There are indicators of a rebound in steel demand projected for 2026, with a 3.5% growth forecasted globally outside of China [10][11] Other Important Information - The company achieved its best safety performance on record with a total recordable incident rate of 0.41 in 2025 [7] - The company is committed to maintaining product quality and environmental responsibility while navigating market challenges [26][36] Q&A Session Summary Question: Has aggressive competitor pricing worsened, particularly in the U.S.? - Management noted that pricing pressure is observed globally, driven by imports from China and India, which are flooding the market with low-priced exports [42][47] Question: Is it reasonable to assume that realized pricing will be lower in 2026? - Management refrained from providing specific price guidance but indicated that pricing levels heading into 2026 are not better than those in 2025 [48] Question: How does the company plan to win back market share amidst aggressive pricing? - The company will focus on its value proposition, emphasizing quality and customer service, while being selective in regions where price competition is fierce [58] Question: What is the company's position regarding the development of supply chains for anode materials? - Management expressed a heightened focus on establishing supply chains for anode materials and is well-positioned to assist in this area [60][61] Question: How much liquidity does the company have to navigate the downturn? - The company has $340 million in liquidity and has taken decisive actions to preserve and enhance this liquidity during the downturn [66]

Financial Data and Key Metrics Changes - In 2025, the company achieved a 6% increase in sales volume year-over-year, despite a challenging market environment marked by global overcapacity and subdued steel production trends [4][5] - The average selling price for the fourth quarter was approximately $4,000 per metric ton, reflecting a 9% decline year-over-year and a 5% sequential decline from the third quarter [17] - The company reported a net loss of $65 million or $2.50 per share for the fourth quarter, compared to a net loss of $49 million or $1.92 per share in the prior year [21] Business Line Data and Key Metrics Changes - The U.S. sales volume grew by 48% for the full year and by 83% in the fourth quarter, indicating a successful shift towards regions with stronger pricing fundamentals [5][17] - The company's production volume for the fourth quarter was approximately 28,000 metric tons, resulting in a capacity utilization rate of 60% [16] Market Data and Key Metrics Changes - Global steel production outside of China was 843 million tons in 2025, up less than 1% compared to the prior year, with a global utilization rate of approximately 67% [8][9] - In North America, steel production increased by 1% in 2025, driven by a 3% year-over-year growth in the United States [9] Company Strategy and Development Direction - The company aims to grow sales volume by 5%-10% year-over-year in 2026, with a continued focus on shifting geographic mix towards the U.S. [26][27] - Management is evaluating opportunities for trade or policymaking support and potential strategic partnerships to enhance efficiency and long-term value creation [15] Management Comments on Operating Environment and Future Outlook - The management highlighted the need for structural changes in the supply chain to address the overcapacity issue in the graphite electrode industry, which threatens long-term viability [14][36] - There are indicators of a rebound in the steel market, with projected global steel demand growth of 3.5% year-over-year for 2026 [10][11] Other Important Information - The company ended 2025 with a liquidity position of $340 million, which includes $138 million in cash, enabling it to maintain stability amid industry challenges [7][24] - The total recordable incident rate improved to 0.41 in 2025, representing the best safety performance on record for the company [7] Q&A Session Summary Question: Has aggressive competitor pricing worsened, particularly in the U.S.? - Management noted that pricing pressure is observed globally, driven by imports and aggressive pricing behaviors from competitors, particularly from China and India [42][45] Question: Is it reasonable to assume that realized pricing will be lower in 2026? - Management refrained from providing specific price guidance but indicated that pricing levels heading into 2026 are not better than those observed in 2025 [46] Question: How does the company plan to win back market share amid aggressive pricing? - The company will focus on enhancing its value proposition through R&D and customer partnerships, while being selective in regions where price competition is fierce [56] Question: What is the company's liquidity position to navigate the downturn? - The company has $340 million in liquidity and has taken decisive actions to preserve and enhance this liquidity amid ongoing market challenges [65] Question: What is the impact of Indian tariffs on the U.S. market? - Management expressed confidence in their position heading into 2026, despite the reduction of tariffs on Indian imports, anticipating overall volume growth [71] Question: What is the current supply picture of graphite electrodes coming out of China? - Management indicated that Chinese exports continue to pressure the global market, with significant overcapacity affecting pricing dynamics [78]