What caused EAF's Q3 2024 EPS to underperform?

GrafTech International Ltd.'s (EAF) Q3 2024 EPS underperformance can be attributed to several key factors:

1. **Challenging Commercial Environment**: The company is operating in a challenging part of the cycle with weak graphite electrode demand and low industry-wide capacity utilization rates. This has resulted in a decline in net sales and adjusted EBITDA.
2. **Pricing Pressures**: The weighted average price for non-LTA sales decreased by 23% year-over-year, leading to a significant decline in revenue. This reduction in pricing has had a direct impact on the company's profitability.
3. **Shift in Business Mix**: The shift in the mix of business from long-term agreements (LTA) to non-LTA volume has also contributed to the decline in net sales and adjusted EBITDA.
4. **Cost Reductions**: While the company has implemented aggressive cost-cutting measures, achieving an 18% reduction in cash costs per metric ton in the first half of 2024 compared to the same period in 2023, these cost savings may not have been sufficient to offset the negative impacts of the challenging commercial environment and pricing pressures.

In conclusion, GrafTech's Q3 2024 EPS underperformance is primarily due to the company's operation in a challenging commercial environment, pricing pressures, shift in business mix and cost reductions.