GrafTech International (NYSE:EAF) Issues Quarterly Earnings Results

Key Points

• GrafTech reported a quarterly EPS loss of ($2.05), missing estimates and posting a net loss of $43 million with adjusted EBITDA of -$14M and adjusted FCF of -$27M, though liquidity of about $329 million gives short‑term runway and management says each $100/mt ASP improvement ≈ $12M EBITDA.
• Management announced a price increase of $600–$1,200 per metric ton (region‑dependent) with >85% of anticipated 2026 volume committed and most pricing benefit expected in H2 2026, while Q1 sales rose 14% y/y (U.S. +37%) and utilization was 65%.
• U.S. trade remedies are progressing (ITC found reasonable indication of injury and Commerce probes continue), which could support domestic pricing and supply, but meaningful input‑cost and geopolitical risk—particularly decant oil (~25% of production cost) and higher energy costs—could raise COGS and force further price moves if sustained.

GrafTech International (NYSE:EAF - Get Free Report) posted its quarterly earnings results on Friday. The company reported ($2.05) earnings per share for the quarter, missing analysts' consensus estimates of ($1.25) by ($0.80), Zacks reports. The company had revenue of $125.10 million during the quarter, compared to analyst estimates of $120.60 million.

Here are the key takeaways from GrafTech International's conference call:

• GrafTech announced a price increase of $600–$1,200 per metric ton (region-dependent) and says >85% of anticipated 2026 volume is committed, with most of the pricing benefit expected to materialize in the second half of 2026 and set the stage for 2027 negotiations.
• U.S. trade actions are progressing — the ITC found a reasonable indication of injury from imports and Commerce will continue its probes (countervailing duties potentially by end‑July, antidumping mid‑September) — actions that could reduce unfair imports and support domestic pricing and supply security.
• Input‑cost and geopolitical risk is meaningful — decant oil (~25% of production cost) plus electricity/nat‑gas (~10–15%) face upward pressure from the Middle East conflict, which could raise needle‑coke and cash COGS and require additional electrode price moves if sustained.
• Q1 financials show a net loss of $43 million and adjusted EBITDA of negative $14 million, cash used in operations $15 million, adjusted FCF negative $27 million, but liquidity of about $329 million (including credit availability) and a $35 million CapEx plan provide runway; management notes each $100/mt ASP improvement ≈ $12M EBITDA.
• Operational momentum and secular demand drivers — Q1 sales rose 14% y/y (U.S. sales +37%), production utilization was 65%, and GrafTech highlights vertical integration (Seadrift) and regional manufacturing as competitive advantages to capture rising EAF steel and graphite demand.

GrafTech International Trading Down 0.2%

Shares of NYSE EAF traded down $0.02 during midday trading on Friday, hitting $8.48. 656,254 shares of the company's stock were exchanged, compared to its average volume of 344,905. GrafTech International has a 12-month low of $4.92 and a 12-month high of $20.32. The business's fifty day moving average price is $7.00 and its two-hundred day moving average price is $12.08. The company has a market cap of $220.45 million, a price-to-earnings ratio of -1.00 and a beta of 1.63.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of GrafTech International in a research note on Tuesday, April 14th. Wall Street Zen lowered shares of GrafTech International from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Royal Bank Of Canada decreased their price objective on GrafTech International from $21.00 to $10.00 and set a "sector perform" rating for the company in a report on Tuesday, February 10th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of GrafTech International in a research note on Tuesday, April 21st. Five equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and an average target price of $11.75.

Institutional Trading of GrafTech International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. increased its holdings in GrafTech International by 10.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 5,673,093 shares of the company's stock worth $5,518,000 after buying an additional 546,177 shares in the last quarter. Marshall Wace LLP boosted its holdings in shares of GrafTech International by 132.8% during the 2nd quarter. Marshall Wace LLP now owns 2,782,531 shares of the company's stock valued at $2,699,000 after purchasing an additional 1,587,052 shares during the last quarter. Jane Street Group LLC boosted its holdings in shares of GrafTech International by 357.6% during the 2nd quarter. Jane Street Group LLC now owns 1,678,655 shares of the company's stock valued at $1,633,000 after purchasing an additional 1,311,797 shares during the last quarter. Sender Co & Partners Inc. grew its position in shares of GrafTech International by 169.2% during the second quarter. Sender Co & Partners Inc. now owns 1,286,455 shares of the company's stock valued at $1,251,000 after purchasing an additional 808,615 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of GrafTech International by 26.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,122,722 shares of the company's stock worth $17,413,000 after purchasing an additional 236,738 shares during the last quarter. Hedge funds and other institutional investors own 92.83% of the company's stock.

GrafTech International Company Profile

GrafTech International NYSE: EAF is a leading global manufacturer of graphite electrodes and other specialty graphite products used primarily in electric arc furnaces (EAFs) for steel production. The company's core offerings include ultrahigh-power, high-power and regular power electrodes, along with related accessories such as graphite shapes and heterogeneous carbon materials. These products play a critical role in steelmaking by conducting the high electrical currents required to melt scrap steel efficiently and with reduced environmental impact compared to traditional blast furnace methods.

With a manufacturing footprint spanning North America, Europe and Asia, GrafTech serves steel producers and foundries worldwide.

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