GrafTech's Q2 2025: Key Contradictions in Market Share, Pricing Strategies, and Supply Chain Dynamics

U.S. market share and growth opportunities, pricing environment and outlook, pricing environment and expectations, supply chain flexibility and tariff management are the key contradictions discussed in GrafTech International Ltd.'s latest 2025Q2 earnings call.



Sales Volume and Market Share Growth:
- GrafTech reported a 12% year-over-year increase in sales volume for the second quarter, with 16% sequential growth.
- The company's capacity utilization rate increased to 65%, the highest level in nearly 3 years.
- This growth was driven by a strategic initiative to increase sales volume and regain market share, focusing on higher-priced regions.

Cost Reduction and Operational Efficiency:
- GrafTech achieved a 13% year-over-year decline in cash COGS per metric ton in the second quarter.
- The company expects to exceed its initial cost reduction guidance for the full year.
- These improvements were achieved through disciplined execution, leveraging innovations in raw material usage, and strategic procurement.

Pricing and Geographic Mix Strategy:
- GrafTech's average selling price increased to approximately $4,200 per metric ton, up 8% from the fourth quarter of 2024.
- The company successfully shifted a significant portion of its volume to the U.S., with a 38% year-over-year increase in sales in this region.
- This strategy was implemented to capture higher selling prices, reflecting the realities of the global pricing environment and flat demand.

Cash Flow and Liquidity Improvement:
- GrafTech generated positive EBITDA for the first time since the second quarter of 2022, with total liquidity of $367 million at the end of the quarter.
- The company's strong cash flow performance exceeded expectations, driven by cost savings and proactive working capital management.
- This improvement supports GrafTech's ability to manage through near-term industry challenges and positions it for long-term growth.