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]

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]

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 Performance - Q2 2025 sales volume increased by 12% year-over-year and 16% sequentially compared to Q1 2025[15] - Q2 2025 production volume increased by 10% compared to Q2 2024[30] - Q2 2025 net sales decreased by 4% compared to Q2 2024, due to lower weighted-average realized prices[30] - Q2 2025 adjusted EBITDA was $3 million[33] - Q2 2025 adjusted free cash flow was negative $53 million[33] - Q2 2025 cash costs per metric ton declined by 13% year-over-year[33] Steel Industry - Q2 2025 global steel production, excluding China, was 210 million tons, compared to 212 million tons in Q2 2024[27] - Steel capacity utilization rates in Q2 2025 were 67% globally (ex-China) and 77% in the U S[24] Liquidity and Debt - The company's liquidity as of June 30, 2025, was $367 million[36] - The company has substantially no debt maturities until December 2029[36]