GrafTech International Reports Significant Decline in Q2 2025 Financial Performance

GrafTech International Ltd. reported a significant decline in its financial performance for the second quarter of 2025, with net sales of $131.8 million, down 4% from $137.3 million in the same period last year. The company experienced a net loss of $86.9 million, compared to a loss of $14.8 million in the prior year, reflecting a 489% increase in losses. For the first half of 2025, net sales totaled $243.7 million, an 11% decrease from $273.9 million in the first half of 2024, while the net loss for the period rose to $126.2 million from $45.6 million.

The decline in revenue was attributed to a decrease in the weighted-average realized price of graphite electrodes, which fell by 12% year-over-year, despite a 12% increase in sales volume to 28.6 thousand metric tons. The company noted that competitive pressures and the completion of long-term agreements in 2024 contributed to the pricing challenges. Additionally, selling and administrative expenses surged by 160% to $13.3 million, largely due to prior year reimbursements of legal fees that inflated the comparative figures.

GrafTech's operational metrics showed a production volume increase of 10% to 29.4 thousand metric tons in the second quarter. The company is focusing on shifting sales to the U.S. market, where pricing remains stronger. As part of its strategic initiatives, GrafTech plans to increase prices by 15% on uncommitted 2025 volumes to improve profitability. The company also anticipates a 7-9% decline in cash costs of goods sold per metric ton for the full year, exceeding previous guidance.

In terms of liquidity, GrafTech reported $366.5 million as of June 30, 2025, comprising $158.5 million in cash and cash equivalents and $208 million in available credit. The company’s total debt stood at approximately $1.1 billion, with no significant changes in its debt structure since the end of 2024. GrafTech remains committed to managing its working capital and capital expenditures, projecting full-year capital expenditures of around $40 million.

Looking ahead, GrafTech expects demand for graphite electrodes to remain flat in most regions, with modest growth anticipated in U.S. steel production driven by electric arc furnace methods. The company is positioning itself to regain market share and improve profitability through strategic pricing and operational efficiencies, while also navigating the challenges posed by geopolitical uncertainties and competitive market dynamics.