GrafTech International Reports Decline in Q1 2025 Financial Performance

GrafTech International Ltd. reported a decline in financial performance for the first quarter of 2025, with net sales totaling $111.8 million, down 18% from $136.6 million in the same period of 2024. The company experienced a gross loss of $1.7 million compared to a gross loss of $1.3 million in the prior year. The operating loss improved slightly to $18.2 million from $21.4 million, while the net loss increased to $39.4 million, or $0.15 per share, compared to a net loss of $30.9 million, or $0.12 per share, in the previous year. The increase in net loss was attributed to higher interest expenses, which surged by 91% to $29.8 million, largely due to new debt incurred in 2024.

In terms of operational metrics, GrafTech's sales volume for graphite electrodes rose by 2% to 24.7 thousand metric tons, while production volume increased by 10% to 28.5 thousand metric tons. The weighted-average realized price for graphite electrodes fell by 20% to approximately $4,100 per metric ton, reflecting competitive pressures and the completion of long-term agreements in 2024. The company has strategically shifted more sales volume to the U.S. market, which has shown stronger pricing dynamics.

GrafTech's balance sheet as of March 31, 2025, showed total assets of $1.2 billion, a slight decrease from $1.2 billion at the end of 2024. Current liabilities increased to $148.6 million from $139.9 million, while long-term debt remained stable at approximately $1.1 billion. The company reported liquidity of $420.9 million, consisting of cash and cash equivalents of $214.3 million and available credit under its revolving credit facility. The company continues to manage its working capital and capital expenditures, projecting full-year capital expenditures of around $40 million.

Looking ahead, GrafTech anticipates a low-double-digit percentage increase in sales volume for 2025, driven by a focus on regaining market share and optimizing its order book. However, the company acknowledges ongoing challenges in pricing dynamics across most regions, which remain unsustainably low. To address this, GrafTech has communicated plans to increase prices by 15% on uncommitted 2025 volumes. The company is also focused on improving its cost structure, projecting a mid-single-digit percentage decline in cash cost of goods sold per metric ton for the year.

Overall, GrafTech's management remains optimistic about the long-term growth potential of the electric arc furnace steel production industry, which is expected to drive demand for graphite electrodes. The company is well-positioned to benefit from this growth due to its vertical integration into petroleum needle coke, a key raw material for its products.