Ferroglobe (GSM) Q1 2026 earnings summary

Executive summary

• First quarter 2026 saw strong ferroalloy shipment growth in the U.S. and EU, with silicon-based alloys volumes up 18% and manganese-based alloys up 6%, supported by trade measures and European safeguards.

• Strategic focus on critical materials, battery materials investments (Coreshell), and domestic supply chains in the U.S. and EU, with growth opportunities from Venezuelan operations and new supply agreements.

• Market conditions expected to improve in the second half of 2026, aided by enhanced EU steel safeguards and sustained U.S. steel and aluminum demand.

• Adjusted EBITDA was $3.3 million, down from $14.6 million in Q4 2025, reflecting margin compression from higher costs.

• Net loss attributable to the parent improved to $7.1 million from $81.0 million in the prior quarter.

Financial highlights

• Q1 2026 revenue increased 6% year-over-year to $348 million, driven by a 7% rise in shipments to 177,000 tons; sales reached $347.7 million, up 5.6% sequentially.

• Adjusted EBITDA declined to $3.3 million, and free cash flow was negative $16.4 million, impacted by higher costs and working capital investments.

• Adjusted diluted EPS was $(0.07), slightly down from $(0.06) in the previous quarter.

• Net debt was $54.6 million at quarter end, with cash of $96.4 million.

• Dividend payout increased 7% to $3 million, with the next dividend of $0.015 per share scheduled for June 29th.

Outlook and guidance

• Pricing for silicon-based alloys and manganese alloys expected to strengthen in the second half of 2026 as trade measures take full effect and inventories normalize.

• U.S. region expected to outperform in the second half, with EU silicon metal protection anticipated and strong shipment volumes projected.

• Cost pressures from logistics and energy expected to persist in Q2 but fade in the second half of the year.

• Strategic focus on diversifying product mix and evaluating a restart of Venezuelan operations.