GrafTech International Ltd. Receives NYSE Continued Listing Standards Notice: Company Takes Steps Toward Compliance
GrafTech International has received written notification from the New York Stock Exchange (NYSE) regarding its non-compliance with the NYSE’s continued listing standards. According to the notice, GrafTech’s average closing stock price for the consecutive 30 trading-day period ending April 14, 2025, fell below the $1.00 per share threshold required by the NYSE. However, this notice does not immediately lead to delisting from the NYSE, and the Company is actively taking steps to remedy the situation and regain compliance with the listing requirements.
What the Notice Means for GrafTech
The notice from the NYSE is based on a failure to meet the $1.00 per share average closing price requirement, a key aspect of the continued listing standards set by the exchange. GrafTech, in response to the notification, has confirmed its intent to take immediate action to address the deficiency and return to compliance. This action is aligned with the rules stipulated by the NYSE for such situations, which allow a company a specific period to correct the issue.
While receiving such a notice is a significant event, it is important to note that it does not result in the immediate delisting of GrafTech’s common stock from the NYSE. As part of the NYSE’s rules, the Company has six months from the date of receiving the notice to cure the deficiency and come into compliance. During this time, GrafTech must demonstrate that its stock price has both risen to at least $1.00 per share on the last trading day of any calendar month within the cure period and that its average closing price has met or exceeded $1.00 per share over the previous 30 trading-day period ending on the last trading day of that month.
Steps to Regain Compliance
GrafTech has expressed its commitment to remaining listed on the NYSE and intends to pursue all available options to regain compliance with the continued listing standards. Among the potential steps being considered is a reverse stock split, a mechanism that could boost the price of the company’s shares by reducing the number of shares outstanding. A reverse stock split, however, would require approval from GrafTech’s shareholders before it could be executed.
Should the company decide to move forward with such an option, it would likely seek approval from its stockholders at an upcoming meeting. However, other options for meeting the NYSE’s requirements remain under consideration, with the Company focusing on restoring its stock price to the $1.00 threshold as quickly as possible.
No Immediate Impact on Trading or Operations
It is crucial to note that the NYSE notice does not result in an immediate delisting of GrafTech’s common stock, and the Company’s shares will continue to be traded on the NYSE during the cure period. However, this is contingent on GrafTech’s ongoing compliance with the NYSE’s other listing standards. The company has emphasized that the notice will not affect its day-to-day operations or its reporting requirements to the U.S. Securities and Exchange Commission (SEC).
The Company’s business activities, including its production of graphite electrodes and ongoing strategic initiatives, will continue as planned during this period. Investors, partners, and stakeholders can rest assured that the management team at GrafTech remains focused on addressing the listing issue while continuing to execute the Company’s business strategy.
GrafTech’s Business and Operational Overview
GrafTech International Ltd. stands as a leader in the manufacturing of high-quality graphite electrode products, essential for the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Company operates a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, many of which are among the highest capacity facilities globally. This scale and technological advantage place GrafTech in a strong position in the marketplace, serving a broad range of industries and clients.
Additionally, GrafTech is the only large-scale graphite electrode producer that is vertically integrated into the production of petroleum needle coke, the key raw material used in graphite electrode manufacturing. This unique vertical integration provides GrafTech with a significant competitive edge by ensuring cost efficiencies and consistent quality across its product offerings.
GrafTech’s business model is designed to take advantage of its world-class manufacturing capabilities, and the Company remains committed to serving its customers with top-tier products and services. Despite the challenge posed by the NYSE notice, GrafTech’s operational focus remains on its core strengths—producing high-quality graphite electrodes and maintaining strong customer relationships.
Financial Performance and Outlook
GrafTech’s financial performance has been a key area of focus for investors and market observers. The Company has successfully navigated challenges within the steel production and metals industries, maintaining a strong position despite fluctuations in global demand for its products. Going forward, GrafTech is focusing on key strategic initiatives designed to drive long-term growth, including optimizing its manufacturing processes, expanding its customer base, and enhancing its market reach.
The Company’s future outlook will depend, in part, on the steps taken to regain compliance with the NYSE’s continued listing standards. Successfully regaining compliance would ensure that GrafTech remains listed on a major exchange, providing liquidity and visibility for its stock and allowing the Company to continue to access capital markets to fund its growth initiatives. GrafTech’s management team is confident that it can resolve the current situation within the designated cure period and that its long-term business prospects remain strong.
Impact on Shareholders and Investors
For shareholders and investors, the immediate effect of the NYSE notice is limited to the potential volatility in GrafTech’s stock price, as the company works to comply with the listing standards. The Notice itself does not suggest any fundamental weaknesses in the Company’s financial health or business model, but it may lead to heightened scrutiny of GrafTech’s stock performance in the near term.
For investors, the focus should remain on the company’s ability to execute its strategic objectives and regain compliance with the NYSE’s requirements. If GrafTech successfully regains compliance within the next six months, its stock price may stabilize, and the Company will continue its business operations without interruption. Conversely, if the Company fails to meet the NYSE’s standards within the cure period, further actions may be required, including potential delisting from the NYSE or alternative listing strategies.
In any case, GrafTech’s strong market position, combined with its focus on operational excellence and product innovation, should position the company to recover from this challenge and continue delivering value to its shareholders.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views regarding its financial projections, management plans, and expectations for future operations. These statements are based on GrafTech’s historical performance and current expectations, and they involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
Examples of forward-looking statements include, but are not limited to, the Company’s outlook for future revenue, volume, pricing, capital expenditures, and cost of goods sold. Forward-looking statements can typically be identified by the use of terms such as “will,” “may,” “plan,” “expect,” “anticipate,” “believe,” and similar expressions. The Company has made these statements based on information available at the time, but it does not undertake any obligation to publicly update or revise any of its forward-looking statements.
Investors are cautioned that various factors, including the risk of delisting from the NYSE, changes in market conditions, and other unforeseen challenges, could materially impact GrafTech’s actual performance. These risks are detailed in the Company’s most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission.
GrafTech International Ltd. is taking proactive steps to address its non-compliance with the NYSE’s continued listing standards and remains committed to regaining full compliance within the six-month cure period. The Company’s operational stability, strong market position, and ongoing strategic initiatives provide a solid foundation for its continued growth and success. While the current situation may lead to increased volatility in GrafTech’s stock price, the Company’s management team remains focused on resolving the issue while continuing to serve its customers and shareholders.
As GrafTech works toward restoring its stock price to the required threshold, investors and market participants should closely monitor the situation, keeping in mind the Company’s broader strategic objectives and its commitment to long-term value creation.
