GrafTech (EAF) Reports 12% Sales Growth, 13% Cash Cost Reduction, and 10% Full-Year Sales Volume Increase.

GrafTech International Ltd (EAF) reported a 12% increase in sales volume for Q2 2025, a 13% decrease in cash costs per metric ton, and a net loss of $87 million. Despite this, the company anticipates a 10% rise in full-year sales volume for 2025. Analysts predict an average target price of $1.15, with estimates ranging from $0.80 to $2.00. The brokerage consensus indicates a "Hold" status for GrafTech.

GrafTech International Ltd. (NYSE: EAF) has released its unaudited financial results for the second quarter and six months ended June 30, 2025. The company reported a 12% increase in sales volume year-over-year, a 13% reduction in cash costs per metric ton, and a net loss of $87 million. Despite these figures, GrafTech anticipates a 10% rise in full-year sales volume for 2025. Analysts predict an average target price of $1.15, with estimates ranging from $0.80 to $2.00. The brokerage consensus indicates a "Hold" status for GrafTech.

Key Highlights:

- Sales Volume: GrafTech's sales volume increased by 12% year-over-year for the second quarter of 2025, reaching 28.6 thousand metric tons. This marks GrafTech's highest sales volume performance since the third quarter of 2022.
- Cash Costs: The company achieved a 13% year-over-year reduction in cash costs per metric ton for the second quarter of 2025. GrafTech now projects a 7-9% year-over-year decline in its cash costs per metric ton for 2025 on a full-year basis.
- Net Loss: GrafTech reported a net loss of $87 million for the second quarter of 2025, or $0.34 per share, compared to a net loss of $15 million, or $0.06 per share, for the same period in 2024. The net loss included a $43 million non-cash income tax expense related to the establishment of a full valuation allowance against the Company’s United States and Switzerland deferred tax assets.
- Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2025 was $3 million, compared to $14 million for the second quarter of 2024. This decline primarily reflected lower weighted-average realized prices, partially offset by a 13% reduction in cash costs on a per metric ton basis.
- Liquidity: GrafTech ended the second quarter of 2025 with total liquidity of $367 million, consisting of cash and cash equivalents of $159 million, $108 million of availability under its revolving credit facility, and $100 million of availability under its senior secured first lien delayed draw term loans.

Outlook:

GrafTech expects demand for graphite electrodes in the near term to remain relatively flat in most regions, with the exception of the United States, where steel production is expected to increase modestly. The company anticipates achieving an approximate 10% year-over-year increase in its sales volume for 2025 on a full-year basis. GrafTech also plans to increase prices by 15% on 2025 volume that was not yet committed as of the date of the announced price increase.

Analysts' Views:

Analysts predict an average target price of $1.15 for GrafTech, with estimates ranging from $0.80 to $2.00. The brokerage consensus indicates a "Hold" status for GrafTech.

References:
[1] https://www.businesswire.com/news/home/20250724885736/en/GrafTech-Reports-Second-Quarter-2025-Results