GrafTech International Q4 2025 Earnings Highlights
GrafTech International Ltd. (NYSE: EAF) disclosed its fourth-quarter and full-year 2025 financial results, revealing a net loss of $65.1 million for the quarter amid flat sales volumes and pricing pressures in the graphite electrode market.
Quarterly Financial Performance
Net sales reached $116.5 million in Q4 2025, down 13% from $134.2 million in the prior-year quarter. Sales volume remained steady at 27.1 thousand metric tons (MT), while production volume increased to 27.8 thousand MT, achieving 60% capacity utilization.
The company posted a net loss of $65.1 million, or $2.50 per diluted share, compared to a $49.5 million loss, or $1.92 per share, in Q4 2024. Adjusted EBITDA stood at negative $21.9 million, influenced by a $12 million non-cash inventory valuation adjustment. Cash cost of goods sold per MT fell 2% year-over-year to $4,019.
Net cash used in operating activities totaled $20.9 million, with adjusted free cash flow at negative $39.3 million.
Full-Year 2025 Results
For the full year, net sales declined 6% to $504.1 million from $538.8 million in 2024. Sales volume grew 6% to 109.2 thousand MT, driven by 48% growth in the U.S. market. The annual net loss widened to $219.8 million, or $8.45 per share, from $131.2 million, or $5.09 per share.
Adjusted EBITDA was negative $9.1 million, versus positive $1.6 million in 2024. Cash cost of goods sold per MT dropped 11% to $3,807, reflecting ongoing cost efficiencies. Total liquidity ended at $340 million, including $138 million in cash.
Management Commentary
CEO Timothy Flanagan stated, “We achieved notable successes, including a 6% increase in our full-year sales volume despite a flat demand environment globally, led by 48% sales volume growth in the United States. In addition, we achieved an 11% year-over-year reduction in our cash cost of goods sold per metric ton for 2025.”
Flanagan added that the company maintains strong liquidity to navigate industry challenges and is positioned for growth.
2026 Outlook
GrafTech anticipates 5-10% sales volume growth in 2026, with Q1 up about 10% year-over-year. Around 65% of projected volume is committed. Cash costs per MT are expected to decline in the low single digits, with capital expenditures around $35 million.
Executives highlighted improving steel industry trends outside China and long-term opportunities in steel decarbonization and battery materials.
