GrafTech International Reports $131.2M Net Loss for Fiscal Year 2024, Implements Cost Rationalization Plan

GrafTech International Ltd. reported a net loss of $131.2 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $255.3 million in 2023. The company's revenue decreased by 13% to $538.8 million, down from $620.5 million in the previous year. This decline was primarily attributed to a decrease in the weighted-average realized price for non-long-term agreements (LTAs) and a shift in sales mix from LTAs to non-LTA sales. Despite the revenue drop, total sales volume increased by 13%, reaching approximately 103,000 metric tons, compared to 92,000 metric tons in 2023.

In response to ongoing market challenges, GrafTech implemented a cost rationalization and footprint optimization plan in February 2024, which included the indefinite suspension of production at its St. Marys, Pennsylvania facility. This decision reduced the company's production capacity from approximately 202,000 metric tons in 2023 to 178,000 metric tons in 2024. The company also reduced its workforce by about 10%, or 130 employees, as part of these initiatives. The total rationalization-related expenses amounted to $3.2 million, primarily for severance and contract terminations.

GrafTech's operational metrics showed a decrease in the weighted-average realized price for non-LTA sales, which fell by 22% to approximately $4,200 per metric ton in 2024. In contrast, the weighted-average realized price from LTAs was approximately $8,100 per metric ton. The company’s liquidity as of December 31, 2024, was reported at $464.2 million, consisting of $256.2 million in cash and cash equivalents, $108 million available under its revolving credit facility, and $100 million from its first lien term loan facility.

Looking ahead, GrafTech anticipates a modest recovery in global steel demand in 2025, projecting a low double-digit percentage increase in sales volume year-over-year. The company plans to increase prices by 15% on uncommitted volumes to address the current unsustainable pricing environment. Additionally, GrafTech expects a mid-single-digit percentage decline in cash cost of goods sold per metric ton in 2025, aiming to align costs with its long-term expectations. The company remains optimistic about the long-term growth potential driven by the electric arc furnace method of steelmaking and the increasing demand for petroleum needle coke in electric vehicle battery production.