GrafTech International Ltd. (NYSE:EAF) reported weaker-than-expected fourth-quarter results on Friday, as ongoing pricing pressure across the graphite electrode market continued to weigh on performance.
The Ohio-based manufacturer’s shares slumped more than 20.33% in pre-market trading following the release.
GrafTech posted a fourth-quarter net loss of $65.1 million, or $2.50 per share, widening from a loss of $49.5 million, or $1.92 per share, a year earlier. Revenue fell 13% year over year to $116.5 million, as lower weighted-average realized prices offset largely flat sales volumes.
Adjusted EBITDA for the quarter came in at negative $21.9 million, including a $12 million non-cash inventory valuation adjustment. The company also reported negative adjusted free cash flow of $39.3 million for the period.
“Looking back on 2025, I am proud of how our team navigated a challenging environment with discipline and determination,” said Timothy Flanagan, Chief Executive Officer and President. “We achieved notable successes, including a 6% increase in our full-year sales volume despite a flat demand environment globally, led by 48% sales volume growth in the United States.”
For the full year 2025, GrafTech recorded a net loss of $219.8 million, or $8.45 per share, compared with a $131.2 million loss in 2024. Annual revenue declined 6% to $504.1 million, as higher shipment volumes were more than offset by weaker pricing.
The company ended the quarter with total liquidity of $340 million, including $138 million in cash and cash equivalents, providing a financial buffer as it works through ongoing industry headwinds.
Looking ahead, GrafTech expects sales volumes to rise 5–10% year over year in 2026, with roughly 65% of expected volumes already secured in its order book. For the first quarter of 2026, management forecasts sales volumes to be about 10% higher than a year earlier.
However, the company cautioned that “industry-wide pricing levels remain unsustainably low” and that “challenging pricing dynamics, most notably aggressive competitor pricing behavior, increased further during the fourth quarter of 2025.”