GrafTech International to implement 1-for-10 reverse stock split and reduce authorized shares

GrafTech International Ltd. (NYSE:EAF), currently trading with a market capitalization of $259 million and facing significant operational challenges according to InvestingPro data, announced Thursday that it will implement a 1-for-10 reverse stock split of its common stock, effective at 12:01 a.m. Eastern Time on Friday. The move follows approval by stockholders at a special meeting held on August 14, as described in a press release statement and detailed in a filing with the Securities and Exchange Commission. The decision comes as the company grapples with challenging market conditions, with InvestingPro analysis showing a concerning -42.5% year-to-date price return and negative EBITDA of -$30.2 million in the last twelve months.

As a result of the reverse stock split, every ten shares of GrafTech’s common stock issued and outstanding or held as treasury stock prior to the effective time will automatically be combined into one share. No action is required by stockholders. Holders entitled to fractional shares will have their holdings rounded up to the next whole share; no cash will be paid for fractional shares.

In connection with the reverse split, GrafTech will also reduce its number of authorized shares. The authorized shares of common stock will decrease from 3,000,000,000 to 300,000,000, and authorized preferred shares will be reduced from 300,000,000 to 30,000,000. The par value of both common and preferred stock will remain at $0.01 per share.

The company stated that the terms of equity awards under its Omnibus Equity Incentive Plan, including exercise prices and the number of shares issuable, will be adjusted proportionally to reflect the reverse stock split. The total number of shares available for future grants under the plan will also be reduced in line with the split. According to InvestingPro’s comprehensive analysis, which includes over 30 additional financial metrics and insights available to subscribers, GrafTech operates with a significant debt burden of $1.09 billion and faces profitability challenges with negative returns on assets and equity.

GrafTech’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange under the same ticker symbol, EAF, on Friday. The new CUSIP number for the common stock will be 384313 607.

This information is based on a press release statement and the company’s Form 8-K filing with the SEC.

In other recent news, GrafTech International Ltd reported a net loss of $87 million for the second quarter of 2025, equating to a loss of $0.34 per share. This performance included an adjusted EBITDA of $3 million, which was a decrease from $14 million in the same quarter last year. The company’s earnings per share came in at -$0.16, missing analysts’ expectations of -$0.13, and revenue was slightly below forecasts at $132 million compared to the anticipated $132.65 million. Additionally, GrafTech’s Board of Directors approved a 1-for-10 reverse stock split, scheduled to take effect on August 29, 2025. In terms of leadership changes, Jeremy S. Halford, the Executive Vice President and Chief Operating Officer, announced his resignation effective September 12, 2025, to pursue another opportunity. BMO Capital recently raised its price target for GrafTech to $1.50 from $1.00, citing an improved outlook due to positive EBITDA in the second quarter, attributed to better pricing, market share gains, and cost management. These developments reflect ongoing adjustments and strategic decisions within GrafTech International.

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