GrafTech International (EAF) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw 14% year-over-year sales volume growth to 28.1 thousand MT, with net sales up 12% to $125.1 million, driven by higher volumes but offset by a 5% decline in realized prices due to competitive pressures.

• Net loss for Q1 2026 was $43 million ($1.66 per share), with adjusted EBITDA at negative $14 million and adjusted free cash flow at negative $27 million, reflecting ongoing pricing pressures and higher costs.

• Strategic priorities include disciplined commercial execution, cost structure improvement, strong liquidity, price increases on uncommitted volume, and supporting trade cases to address unfair imports.

• Over 85% of anticipated 2026 volume is already committed, providing strong order book visibility.

• Recognized a $12.3 million pre-tax gain from the sale of previously divested landfill assets.

Financial highlights

• Net sales reached $125.1 million in Q1 2026, up 12% year-over-year, with sales volume at 28.1 thousand MT and production volume at 29.4 thousand MT (65% capacity utilization).

• Average selling price in Q1 was $3,900/MT, down 5% year-over-year; cash cost of goods sold per MT was $3,848, up from $3,652 in the prior year.

• Q1 net loss was $43 million ($1.66/share); adjusted EBITDA was negative $14 million, down from negative $4 million prior year.

• Adjusted free cash flow was negative $27 million, improved from negative $40 million in Q1 2025.

• Liquidity stood at $329 million as of March 31, 2026, including $120 million in cash; total debt was $1.1 billion.

Outlook and guidance

• Expects graphite electrode sales volume to increase 5–10% year-over-year in 2026, with over 85% of anticipated volume already committed.

• Cash cost guidance maintained for a low single-digit improvement over 2025, targeting $3,600–$3,700 per ton.

• Price increases of $600–$1,200/MT on uncommitted volume expected to impact results mainly in the second half of 2026.

• Full-year capital expenditures projected at $35 million.

• Modest year-over-year reduction in cash COGS expected.