GrafTech Reports Third Quarter 2025 Results
GrafTech Reports Third Quarter 2025 Results, Delivering Volume Growth and Cost Improvements
Brooklyn Heights, Ohio – GrafTech International Ltd. (NYSE: EAF) (“GrafTech” or the “Company”) today announced its unaudited financial results for the third quarter and nine months ended September 30, 2025.
Third Quarter 2025 Highlights
- Sales volume increased 9% year-over-year; up 8% for the first nine months of 2025.
- U.S. sales volume surged 53% year-over-year in Q3, reflecting progress in shifting the Company’s geographic mix toward this key market.
- Cash cost of goods sold per metric ton decreased 10% year-over-year, driven by operational efficiency.
- Positive adjusted EBITDA and free cash flow in Q3 underscore ongoing progress toward normalized profitability.
- Total liquidity stood at $384 million at quarter-end, supporting the Company’s ability to navigate near-term industry challenges.
Third Quarter 2025 Financial Summary
- Sales volume: 28.8 thousand metric tons (MT)
- Net sales: $144 million (up 10% year-over-year)
- Net loss: $28 million, or $1.10 per share
- Adjusted EBITDA: $13 million (includes $11 million non-cash benefit from resolution of a commercial matter)
- Net cash from operations: $25 million
- Adjusted free cash flow: $18 million
CEO Commentary
Our team continues to execute on strategic priorities and deliver results despite a challenging market,” said Timothy Flanagan, Chief Executive Officer and President. “Sales volumes grew solidly, especially in the U.S., and we achieved meaningful cost reductions. If we meet our full-year 2025 targets, we’ll have achieved more than 20% cumulative sales volume growth and over a 30% decline in cash cost of goods sold per ton since 2023 — clear proof of our operational discipline.
Flanagan added, Looking ahead to 2026, we’re encouraged by improving trends in the U.S. steel industry and early signs of recovery in Europe. As the global steel sector continues to shift toward electric arc furnace production and decarbonization, GrafTech is well-positioned to capture long-term growth opportunities through our vertically integrated operations and flexible regional sales strategy.
Operational Update
- Production volume: 26.6 thousand MT, with a capacity utilization rate of 63%, slightly lower due to planned maintenance in Europe.
- Weighted-average realized price: ~$4,200 per MT, down 7% from Q3 2024, reflecting competitive pricing across markets but partially offset by increased U.S. sales.
- Capacity utilization: 64% year-to-date, compared to 55% in the prior-year period.
Liquidity and Balance Sheet
As of September 30, 2025:
- Total liquidity: $384 million, including $178 million in cash and cash equivalents.
- Gross debt: $1.13 billion; net debt: $947 million.
- GrafTech has no major debt maturities until December 2029.
2025 Outlook
- Sales volume growth: Expected 8–10% year-over-year, slightly below prior guidance, due to disciplined margin management.
- Cash cost of goods sold per MT: Now expected to decline ~10% year-over-year, exceeding prior guidance.
- Capital expenditures: Approximately $40 million for 2025.
- Steel industry outlook: U.S. production expected to rise, while European recovery is supported by new trade protections.
- Long-term demand: Expected to benefit from the steel industry’s decarbonization and increasing adoption of electric arc furnace technology, as well as growing demand for petroleum needle coke in electric vehicle batteries.
Conference Call Information
GrafTech will host a conference call on October 24, 2025, at 10:00 a.m. EDT.
- Dial-in (U.S.): +1 (800) 715-9871
- International: +1 (646) 307-1963
- Conference ID: 9239453
The webcast and accompanying presentation will be available at ir.graftech.com.
About GrafTech
GrafTech International Ltd. is a leading global manufacturer of graphite electrodes essential for electric arc furnace steel production and other metallurgical applications. The Company operates one of the world’s largest ultra-high power graphite electrode manufacturing networks and is the only major producer vertically integrated into petroleum needle coke, its key raw material — providing cost and quality advantages across its operations.
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