GrafTech International Reports $40.5 Million Net Loss in Q2 2026, Revenue Declines 3%

GrafTech International Ltd. reported its financial results for the second quarter and first half of 2026, revealing a net loss of $40.5 million for the three months ending June 30, compared to a loss of $86.9 million in the same period last year. For the first half of 2026, the company recorded a net loss of $83.7 million, an improvement from a loss of $126.2 million in the first half of 2025. Revenue for the second quarter was $127.4 million, down 3% from $131.8 million in the prior year, while total revenue for the first half increased by 4% to $252.5 million from $243.7 million.

The company’s cost of goods sold (COGS) decreased by 4% to $125.3 million in the second quarter, aided by favorable inventory valuation adjustments. However, the gross loss for the quarter was $422,000, a significant decline from a gross profit of $62,000 in the same quarter of 2025. The increase in COGS for the first half was more pronounced, rising by 8% to $260.1 million, which contributed to a gross loss of $15.4 million compared to a loss of $1.6 million in the prior year. The company attributed these changes to increased sales volume and ongoing competitive pressures affecting pricing.

GrafTech's operational metrics showed a sales volume of 30.8 thousand metric tons in the second quarter, an 8% increase year-over-year, while production volume reached 33.4 thousand metric tons, resulting in a capacity utilization rate of 74%, up from 65% in the previous year. The company noted that its weighted-average realized price per metric ton decreased by 7% to approximately $3,900, reflecting ongoing competitive pressures. The company has committed over 90% of its anticipated sales volume for 2026, projecting a year-over-year increase of 5-10% in graphite electrode sales volume.

In terms of strategic developments, GrafTech drew the remaining $100 million available under its delayed draw first lien term loan facility during the second quarter, bringing its total debt to approximately $1.2 billion as of June 30, 2026. The company reported liquidity of $253 million, consisting of cash and cash equivalents of $145.4 million and $107.6 million available under its revolving credit facility. Looking ahead, GrafTech anticipates modest growth in global steel demand outside of China and plans to implement price increases on uncommitted volumes to restore more sustainable pricing levels. The company remains focused on optimizing its order book and managing costs amid ongoing geopolitical challenges affecting input prices.