Gold prices steady ahead of Fed decision; weekly weakness noted
BROOKLYN HEIGHTS, Ohio - On Friday, GrafTech International Ltd. (NYSE:EAF) reported second-quarter earnings that missed analyst expectations, despite achieving its highest sales volume since third-quarter 2022.
The graphite electrode manufacturer’s shares fell 2.22% in pre-market trading following the earnings release.
The company reported an adjusted loss of $0.16 per share for the second quarter, worse than the analyst estimate of $0.13 per share. Revenue came in at $132 million, slightly below the consensus estimate of $132.65 million but representing a 17.9% increase from the previous quarter. Compared to the same period last year, revenue declined 4% as higher sales volume was offset by lower weighted-average realized prices.
GrafTech’s sales volume grew 12% YoY to 28,600 metric tons in the second quarter, with particularly strong growth in the United States, where volumes increased 38% YoY. The company achieved positive adjusted EBITDA of $3.5 million, compared to 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 reduced its cash costs per metric ton by 13% YoY and now projects a 7-9% YoY decline in cash costs for the full year 2025, exceeding its previous guidance of a mid-single digit percentage point decline.
GrafTech ended the quarter with $367 million in total liquidity, including $159 million in cash and cash equivalents. The company continues to expect approximately 10% YoY increase in sales volume for 2025, which would result in cumulative sales volume growth of about 25% since the end of 2023.
Net loss for the quarter was $87 million, or $0.34 per share, including a $43 million non-cash income tax expense related to a valuation allowance against certain deferred tax assets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.