GrafTech International Ltd. (NYSE:EAF) saw its shares drop 2.22% in pre-market trading Friday after reporting second-quarter results that fell short of analyst forecasts, despite delivering its strongest sales volume since Q3 2022.
The graphite electrode maker posted an adjusted loss of $0.16 per share, underperforming Wall Street’s estimate of a $0.13 loss. Revenue for the quarter was $132 million—slightly under the consensus of $132.65 million—but still up 17.9% from the previous quarter. Compared to the prior year, however, revenue declined 4%, as higher volume was offset by softer average realized prices.
GrafTech recorded a 12% year-over-year rise in sales volume to 28,600 metric tons in Q2, with the U.S. market showing particular strength—a 38% increase in volumes compared to the same period last year. The company returned to positive adjusted EBITDA, reaching $3.5 million, after reporting a loss in the previous quarter.
“We continue to deliver on our key commercial, operational and financial objectives and targets, reflecting strong execution of our strategic initiatives and our absolute focus on managing all areas within our control,” said Timothy Flanagan, Chief Executive Officer and President.
The company cut its cash cost per metric ton by 13% from a year ago and now anticipates a 7–9% year-over-year reduction in full-year 2025 cash costs—outpacing its earlier mid-single digit forecast.
GrafTech ended the second quarter with $367 million in total liquidity, including $159 million in cash and equivalents. Management still expects full-year 2025 sales volumes to rise about 10% year-over-year, which would mark a roughly 25% cumulative increase since the end of 2023.
The company posted a net loss of $87 million, or $0.34 per share, which included a $43 million non-cash tax expense tied to a valuation allowance on deferred tax assets.
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