Core Viewpoint - Performance in 2025 was negatively impacted by low demand and increased imports from China and Angola in the European silicon metal market [1] Group 1: Market Dynamics - Predatory imports from China and Angola doubled and quadrupled respectively in the European silicon metal market [1] - Management secured critical trade safeguards in the EU and anti-dumping duties in the U.S., expected to reduce import volumes and restore domestic market share [1] Group 2: Operational Adjustments - Operational flexibility was enhanced by converting three furnaces from silicon metal to ferrosilicon to capitalize on better economics and trade-protected segments [1] - A new 10-year French energy agreement starting in 2026 provides competitive pricing and the ability to operate year-round, improving fixed-cost leverage [1] Group 3: Financial Management - The company maintained a solid balance sheet through a hiring freeze, discretionary spending cuts, and a 20% reduction in capital expenditures [1] Group 4: Strategic Investments - Strategic investments in the silicon-rich EV battery sector via Corcel reached $10 million, with initial shipments to defense and robotics customers expected in Q1 2026 [1]

Financial Data and Key Metrics Changes - Fourth quarter sales increased by 6% to $329 million compared to the previous quarter, driven by strong volumes in silicon-based and manganese-based alloys [12][19] - Adjusted EBITDA declined by 20% from the prior quarter to $15 million, with an Adjusted EBITDA margin of 4% [19][22] - Free cash flow for the fourth quarter was -$19 million, while for the full year, free cash flow was -$12 million [22][23] Business Line Data and Key Metrics Changes - Silicon metal revenue decreased by 3% sequentially to $96 million, with shipments down by 3% to 33,000 tons [20] - Silicon-based alloys revenue grew by 12% to $104 million, with a 19% increase in volumes to 51,000 tons [20] - Manganese-based alloys revenue increased by 10% to $93 million, driven by a 16% increase in volumes to 81,000 tons [21] Market Data and Key Metrics Changes - In Europe, ferrosilicon index prices rose by 22% following the implementation of safeguards, while U.S. prices retreated by 4% [16][19] - The European market for manganese is expected to grow by 3% in 2026, supported by strong demand from steel customers [18] - The U.S. silicon market is anticipated to grow modestly, with improvements expected in the second half of 2026 [8][15] Company Strategy and Development Direction - The company is focusing on optimizing production by converting furnaces from silicon metal to ferrosilicon to capitalize on improving market conditions [6][9] - A new competitive 10-year energy agreement in France is expected to enhance operational flexibility and reduce costs [9][27] - The company is investing in long-term opportunities, including advanced silicon-rich EV batteries, reflecting a commitment to innovation and strategic growth [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that 2025 faced significant external challenges, but strategic progress was made, particularly with trade measures in the EU and U.S. [4][26] - The outlook for 2026 is optimistic, with expected revenue growth to a range of $1.5 billion to $1.7 billion, a 20% increase at the midpoint over 2025 [11][12] - Management emphasized the importance of demand recovery and the impact of trade actions on future performance [40][63] Other Important Information - The company increased its dividend by 7% to $0.015 per share starting in the first quarter of 2026, reflecting confidence in its financial position [11][24] - The net debt position increased to $30 million in 2025, but the company maintains a solid financial position to support growth [24][68] Q&A Session Summary Question: Volume expectations across the three businesses for 2026 - Management indicated that safeguards in Europe will free up 25% of imports, creating opportunities for local producers [34] Question: Component of minimum prices with EU safeguards for ferroalloys - Management noted that demand is critical for price recovery, with expectations of improved steel demand in Europe in the second half of 2026 [39] Question: EU's appetite to revisit inclusion of silicon metal in safeguards - Management explained that the exclusion was due to energy footprint concerns and opposition from the chemical industry [54] Question: High-level breakdown of end market exposure - Management stated that 70%-80% of the business is protected, with only 20% exposed to silicon metal in Europe [62] Question: Working capital perspective and CapEx expectations - Management expects continued release of working capital and similar levels of CapEx in 2026 compared to 2025 [66][69]

Financial Data and Key Metrics Changes - Fourth quarter sales grew 6% over the prior quarter to $329 million, while adjusted EBITDA declined 20% to $15 million [12][18] - Adjusted EBITDA margin decreased to 4%, driven by lower prices and elevated costs [18] - For the full year, adjusted EBITDA was $28 million, down from $154 million in 2024, with a significant impact from price decline and reduced volumes [21][22] Business Line Data and Key Metrics Changes - Silicon metal revenue declined 3% sequentially to $96 million, with shipments down to 33,000 tons [19] - Silicon-based alloys revenue grew 12% to $104 million, driven by a 19% increase in volumes to 51,000 tons [19] - Manganese-based alloys revenue increased 10% to $93 million, with a 16% volume increase to 81,000 tons [20] Market Data and Key Metrics Changes - In Europe, ferrosilicon index prices jumped approximately 20% after the EU safeguard announcement, while U.S. prices retreated modestly [7][15] - The European Commission's safeguards target a 25% reduction in imports, creating opportunities for domestic producers [4][5] - U.S. ferrosilicon market outlook improved due to antidumping duties on imports from Brazil, Kazakhstan, and Malaysia [5] Company Strategy and Development Direction - The company is focusing on optimizing production by converting furnaces from silicon metal to ferrosilicon in response to market dynamics [6][9] - A new competitive 10-year energy agreement in France is expected to enhance operational flexibility and earnings potential [9] - Continued investment in Coreshell for advanced silicon-rich EV batteries reflects the company's commitment to long-term growth opportunities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting revenue to improve to a range of $1.5 billion to $1.7 billion, a 20% increase at the midpoint over 2025 [11] - The company anticipates considerable growth in most segments, driven by strong volume growth in silicon-based and manganese-based alloys [12] - Management highlighted the importance of demand recovery in Europe and the U.S. for future pricing and volume expectations [37][38] Other Important Information - The company increased its dividend by 7% to $0.015 per share starting in Q1 2026, reflecting confidence in business performance [11][24] - The company executed selective share repurchases, acquiring 1.3 million shares at an average price of $3.55 per share [11][24] - The balance sheet remains strong, with a net debt position of $30 million, supporting growth initiatives [24] Q&A Session Summary Question: Volume expectations across the three businesses for 2026 - Management indicated that safeguards in Europe will free up 25% of imports, creating opportunities for local producers [33] - Expectations for gains in ferrosilicon volumes in the U.S. are based on improving customer demand [34] Question: EU's appetite to revisit silicon metal safeguards - Management noted that the exclusion of silicon metal from safeguards was due to its higher energy footprint and relative import levels [50][52] - The company is actively working on new measures for silicon metal in Europe and has submitted data to the European Commission [53] Question: Context on EU carbon credits - Management explained that the CBAM currently impacts only high carbon ferromanganese and discussed the complexities of CO2 emissions calculations [40][41] Question: Working capital and CapEx expectations - Management expects to continue releasing working capital while maintaining a similar level of CapEx as in 2025 [62][66]