GrafTech Q2 2025 Earnings: Net Sales Miss Estimates, Revenue at $132 Million, EPS -$0.34

GrafTech International Ltd reported Q2 2025 earnings with net sales of $132 million, missing estimates, and a net loss of $87 million. The company faced challenges due to a decrease in realized prices and competitive pressures. Despite this, GrafTech achieved a 13% year-over-year reduction in cash costs per metric ton and reported positive EBITDA. The company remains focused on increasing sales volume in the US and driving long-term demand for graphite electrodes.

GrafTech International Ltd reported its Q2 2025 earnings with net sales of $132 million, falling short of estimates, and a net loss of $87 million. The company faced challenges due to a decrease in realized prices and competitive pressures. Despite these setbacks, GrafTech achieved a 13% year-over-year reduction in cash costs per metric ton and reported positive EBITDA. The company remains focused on increasing sales volume in the US and driving long-term demand for graphite electrodes.

The earnings call highlighted several key points. GrafTech's net loss of $87 million for the quarter was a significant contrast to the adjusted EBITDA of $3 million, down from $14 million in the same period last year. The company's revenue of $132 million was slightly below the forecast of $132.65 million, while the earnings per share (EPS) came in at -$0.16, missing the forecast of -$0.13. These results reflect ongoing operational challenges.

The market reacted negatively to the earnings report, with GrafTech's stock price decreasing by 5.19% in pre-market trading. The stock closed at $1.35, a notable decrease from its last close. This movement reflects investor concerns over the company's financial performance and future outlook.

GrafTech has revised its full-year cost savings guidance, projecting a 7-9% decline in cash COGS per metric ton. The company expects to increase sales volume by 10% in 2025 and anticipates full-year EBITDA to be at or slightly above breakeven. GrafTech remains optimistic about the structural tailwinds supporting the shift towards electric arc furnace steelmaking.

The company faces several risks and challenges, including supply chain disruptions, market saturation, macroeconomic pressures, competition from other steelmaking technologies, and fluctuations in raw material costs. Despite these challenges, GrafTech is focused on strategic initiatives such as cost reductions and market share expansion, particularly in the US and Western Europe.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-graftech-q2-2025-reports-net-loss-stock-dips-93CH-4154027