Q3 2025 Financial Performance - Q3 2025 sales decreased by 24% to $311.7 million compared to $386.9 million in Q2 2025[36] - Adjusted EBITDA for Q3 2025 was $18.3 million, compared to $21.6 million in Q2 2025[36] - Adjusted EBITDA margin increased slightly to 5.9% in Q3 2025 from 5.6% in Q2 2025[36] - The company generated $1.6 million in free cash flow in Q3 2025[14,48] Segment Performance - Silicon Metal revenue decreased to $99 million in Q3 2025, driven by a 51% decline in shipments in Europe[40] - Silicon Based Alloys revenue decreased by 17% to $92 million in Q3 2025, with a 19% decrease in shipments across all regions[43] - Manganese Based Alloys revenue decreased by 21% to $84 million in Q3 2025, due to a 21% decrease in shipments[45] Market Outlook and Trade Measures - U S preliminary Silicon Metal AD/CVD decision is positive for the industry, with preliminary CVD duties ranging from 17% to 240%[12] - Preliminary AD duties on Angola of 68% and Laos of 94%[12] - EU market was disrupted by an influx of low-priced Chinese imports[18] - The company expects trade measures to improve market trends in 2026[18,53] Strategic Initiatives - Coreshell began delivering pilot batteries to OEMs and plans commercial battery deliveries in early 2026[12,53] - The company secured a cost-competitive multi-year energy agreement in France[12,53]

Financial Data and Key Metrics Changes - The company reported a negative adjusted EBITDA of $27 million for the first quarter, a decline of $37 million compared to the previous quarter [5][25][32] - Revenue decreased by 16% sequentially, driven by a 35% decrease in silicon metal revenue and a 5% decrease in manganese-based alloys [14][23] - The adjusted EBITDA margin was negative 9%, with raw materials as a percentage of sales increasing to 77.6% from 68.2% in the prior quarter [23][25] Business Line Data and Key Metrics Changes - Silicon metal shipments declined by 27% due to weak demand and increased imports, resulting in a 35% drop in silicon metal revenue [4][15][25] - Silicon-based alloys revenue increased by 7%, driven by a 9% increase in volume, while manganese-based alloys revenues decreased by 5% due to lower prices [19][23][28] - The manganese segment showed strong demand, but delays in receiving manganese ore negatively impacted volumes [21][22] Market Data and Key Metrics Changes - The US silicon metal index pricing decreased by 9% quarter over quarter and 22% from the third quarter [5] - Imports of silicon metal into the US grew by 68,000 tons year-over-year, significantly impacting pricing and volumes [16][17] - The European market is expected to benefit from a safeguard investigation into silicon metal and alloys, with a provisional ruling expected by June [9][10] Company Strategy and Development Direction - The company is maintaining its full-year 2025 guidance, anticipating a strong adjusted EBITDA recovery in the second quarter and continued momentum in Q3 [5][32] - Regulatory trade measures are being introduced to curb low-priced imports, which are expected to stabilize the market [6][10] - The company is focusing on improving demand forecasting and supply planning through sales and operational planning initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions have remained challenging, significantly impacting first-quarter results, but expressed optimism for recovery in the second half of the year [4][5][32] - The company believes it is at or near the bottom of the current cycle and expects positive adjusted EBITDA in the second quarter [5][32] - Management highlighted the importance of trade measures in creating a more balanced market and benefiting local producers [38] Other Important Information - The company generated $5 million of free cash flow in the first quarter, driven by a $25 million reduction in working capital [28] - The dividend was increased by 8%, and the company repurchased 720,000 shares at an average price of $3.75 [29][30] - Adjusted gross debt increased to $110 million from $94 million in the prior quarter [31] Q&A Session Summary Question: How should investors think about the cadence of improvement in Q2, Q3, and Q4 in 2025? - Management indicated that the negative results were expected and in line with the budget, maintaining guidance of $100 million to $170 million for adjusted EBITDA [37][38] Question: Can you provide an update on the outlook for the Asian polysilicon market? - Management noted that while there are measures blocking exports from certain Southeast Asian countries, other countries like Indonesia may see increased business opportunities [40][42] Question: What would be needed to increase the magnitude of shareholder returns? - Management emphasized the importance of maintaining enough cash to run the company and indicated that share repurchases would depend on cash availability and market conditions [44][46]