GrafTech International (EAF) Q2 2025 earnings summary

Executive summary

• Achieved 12% year-over-year and 16% sequential sales volume growth in Q2 2025, reaching the highest level since Q3 2022, with strong U.S. performance and cost reductions.

• Net sales declined 4% year-over-year to $131.8M–$132M due to lower realized prices, despite higher volumes.

• Net loss widened to $86.9M–$87M, or $0.34 per share, including a $43M non-cash tax charge from a valuation allowance.

• Adjusted EBITDA was $3M–$3.4M, down from $12.7M–$14M in Q2 2024, reflecting lower prices and a prior-year legal fee benefit.

• Liquidity remained strong at $366.5M–$367M, supporting operations amid industry challenges.

Financial highlights

• Q2 2025 net sales: $131.8M–$132M (down 4% year-over-year); net loss: $86.9M–$87M; adjusted EBITDA: $3M–$3.4M.

• Adjusted net loss for Q2 2025 was $42M–$42.2M; adjusted loss per share was $0.16.

• Cash costs per metric ton declined 13% year-over-year to $3,754 in Q2 2025.

• Cash used in operating activities was $53M in Q2 and $85.4M in H1 2025, mainly due to higher working capital needs.

• Liquidity as of June 30, 2025: $366.5M–$367M, including $158.5M–$159M in cash and $208M in available credit facilities.

Outlook and guidance

• Management expects ~10% full-year 2025 sales volume growth, with a 7–9% year-over-year decline in cash cost of goods sold per MT, exceeding prior guidance.

• Second-half 2025 adjusted EBITDA is anticipated to be near breakeven; full-year capital expenditures projected at ~$40M.

• Working capital impact expected to be favorable to cash flow for full year 2025.

• Announced 15% price increase for uncommitted 2025 volume; pricing environment remains unsustainably low.

• Long-term demand expected to grow with EAF steelmaking and EV battery supply chain development.