Financial Data and Key Metrics Changes - GrafTech International reported a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025, with a cumulative sales volume growth of over 20% since the end of 2023 [4][5] - The company generated positive adjusted EBITDA of $13 million for the quarter and $25 million in net cash from operating activities, with an ending liquidity position of $384 million as of September [6][24][26] - A net loss of $28 million, or $1.10 per share, was reported for the third quarter, an improvement from a net loss of $36 million, or $1.40 per share, in the prior year [23][24] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a year-to-date growth of 39% in this region [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, reflecting a 7% decline compared to the prior year [16][17] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in Q3 2025, up nearly 2% year-over-year, with a global utilization rate of approximately 66% [7][8] - The U.S. steel production grew by 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] Company Strategy and Development Direction - The company is focusing on increasing sales volume and market share, improving average pricing by shifting geographic sales mix to higher price regions, and reducing costs [29][30] - GrafTech is committed to serving customers with excellence and maintaining long-term partnerships built on performance and reliability [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential catalysts for a rebound in the steel market, driven by infrastructure and defense spending [42][43] - The company remains bullish on the structural tailwinds supporting the shift towards electric arc furnace steelmaking, with significant new capacity planned in the U.S. [30][31] Other Important Information - The company achieved a 10% year-over-year reduction in cash cost per metric ton for Q3 and anticipates a cumulative reduction of over 30% since the end of 2023 [6][20][21] - GrafTech is actively assessing potential tariff outcomes and their influence on the steel industry and graphite electrode market [32][36] Q&A Session Summary Question: Expectations on deferred revenue benefits - Management indicated that the recent deferred revenue benefit is one-time in nature and there are no further deferred amounts on the balance sheet [39] Question: Current demand and pricing environment - Management acknowledged the oversupplied market but noted positive momentum in steel demand and production, which could support pricing improvements [41][43] Question: Supply into the battery-related materials market - Management highlighted the importance of trade cases and the need for non-Chinese supply chains to unlock the battery materials market [46][47] Question: Impact of tariffs on imports from India - Management expressed confidence that tariffs would support market share gains and negotiations for 2026 commitments [54][56] Question: Engagement in public-private partnerships - Management emphasized the importance of a healthy electrode industry to support the domestic steel supply chain and expressed confidence in GrafTech's role in this space [59][60] Question: U.S. pricing trends - Management noted that U.S. pricing has remained flat to slightly up compared to the prior quarter, with annual contracts limiting price movement [64]

Financial Data and Key Metrics Changes - GrafTech achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons, marking the highest sales volume performance in 12 quarters [6][19] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [32] - A net loss of $28 million or $1.1 per share was reported, an improvement from a net loss of $36 million or $1.4 per share in the prior year [32] - Cash costs per metric ton decreased by 10% year-over-year to $3,795, with a full-year guidance for a 10% decline in cash COGS per metric ton [26][28] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year, contributing significantly to overall sales volume growth [7][20] - The average selling price for the third quarter was approximately $4,200 per metric ton, reflecting a 7% decline compared to the prior year [22] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in 2025, up nearly 2% year-over-year, with a global utilization rate of approximately 66% [11] - In the U.S., steel production grew by 2% year-to-date compared to 2024, while the EU saw a 4% decrease in steel output year-to-date [12] Company Strategy and Development Direction - GrafTech is focused on increasing sales volume and market share, improving average pricing, reducing costs, and enhancing liquidity [38] - The company is strategically shifting its sales mix towards the U.S. market, which has favorable pricing dynamics [8][19] - GrafTech is committed to maintaining a disciplined approach to growth, prioritizing value over volume [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential catalysts for a rebound in the steel market, including infrastructure spending and easing financing conditions [13][39] - The company remains bullish on the long-term shift towards electric arc furnace steelmaking, which is expected to drive demand for graphite electrodes [39][40] Other Important Information - GrafTech's liquidity position improved to $384 million as of September, consisting of cash and availability under credit facilities [36] - The company is actively engaging with customers to understand their needs for the upcoming year, positioning itself for continued market share growth [15] Q&A Session Summary Question: Should we expect any other kind of deferred revenue benefits? - Management indicated that no further deferred revenue is expected, as there is nothing left on the balance sheet [49][50] Question: What do you think about the current demand and price environment? - Management noted that the market is oversupplied, making it challenging to push pricing, but there are signs of positive momentum in the steel industry [52][54] Question: Is there any way to accelerate commercial applications in the battery-related materials market? - Management stated that they are developing capabilities and have a distinct advantage with vertical integration, but the market is still developing [58][62] Question: Have you seen any material impact from the 50% tariffs on Indian material? - Management expressed confidence in continuing to grow volume in the U.S. market, viewing the tariffs as an opportunity [66][67] Question: Any updates on public-private partnerships? - Management highlighted the importance of a healthy electrode industry to support steelmaking and expressed confidence in GrafTech's role in the domestic supply chain [70][74]

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]