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NEW YORK - On Friday, GrafTech International Ltd. (NYSE:EAF) reported third-quarter revenue that exceeded analyst expectations, despite posting a wider-than-expected loss.
The graphite electrode manufacturer’s shares gained 2.13% in pre-market trading after the results.
The Brooklyn Heights, Ohio-based company reported Q3 revenue of $144 million, surpassing the consensus estimate of $141.69 million. However, the company posted an adjusted loss of $1.03 per share, significantly worse than analysts’ expectations of a $0.12 per share loss.
GrafTech achieved 9% YoY sales volume growth in the third quarter, reaching 28,800 metric tons. The company highlighted particularly strong performance in the United States, where sales volume surged 53% YoY, reflecting its strategic shift toward regions with stronger pricing dynamics.
"As we report our third quarter results, I am proud of the progress our team has made in executing our strategic priorities and navigating a complex market environment," said Timothy Flanagan, Chief Executive Officer and President. "Our focused efforts have delivered solid sales volume growth, particularly in the United States, and meaningful reductions in our production costs."
The company reported a 10% YoY reduction in cash cost of goods sold per metric ton for the quarter, demonstrating its ability to control production costs despite industry challenges. GrafTech generated positive adjusted EBITDA of $13 million, which included an $11 million non-cash benefit from resolving a long-standing commercial matter.
Looking ahead, GrafTech revised its full-year 2025 sales volume guidance to an 8-10% YoY increase, slightly down from its previous projection of 10% growth. The company cited its "disciplined approach of foregoing volume opportunities where margins are unacceptably low" as the reason for the adjustment.
The company ended the quarter with total liquidity of $384 million, which it says supports its ability to manage through near-term industry challenges while positioning for future growth opportunities.
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