- GrafTech International Ltd. (EAF, Financial) reported a 2% increase in total sales volume year-over-year for Q1 2025.
- The company achieved a 21% reduction in cash costs per metric ton year-over-year in the first quarter of 2025.
- Net loss for Q1 2025 was $39 million, or $0.15 per share.
GrafTech International Ltd. (EAF) has released its unaudited financial results for the first quarter of 2025. The company reported a 2% year-over-year increase in total sales volume, reaching 24.7 thousand metric tons (MT). Sales volume in the United States saw significant growth of 25%, affirming GrafTech’s strategy to shift its business focus to this lucrative region.
Despite the increase in sales volume, GrafTech faced a net loss of $39 million, or $0.15 per share, compared to a net loss of $31 million, or $0.12 per share, in the first quarter of 2024. The adjusted EBITDA was reported as negative $4 million, a drop from $0.2 million in the same period last year.
The company successfully reduced its cash costs per metric ton by 21% year-over-year and 11% sequentially from Q4 2024. These reductions were attributed to ongoing cost-optimization initiatives and favorable adjustments related to prior inventory valuations. However, the weighted-average realized price per MT decreased by 20%, primarily due to the completion of previous long-term sales agreements and prevailing competitive pressures.
Total liquidity at the end of Q1 2025 was $421 million, supporting the company's operational needs amidst industry-wide challenges. GrafTech’s production volume increased by 10%, managing costs through balanced production strategies aligned with sales volume expectations.
Looking ahead, GrafTech projects a low-double-digit year-over-year increase in sales volume for the full year 2025, while continuing to focus on cost reduction initiatives. Despite facing challenging global trade conditions, the company's Monterrey, Mexico facility remains USMCA compliant, which allows them to meet U.S. customer demands without tariffs.
CEO Timothy Flanagan remains optimistic about long-term demand growth fueled by the steel industry's transition toward electric arc furnace steelmaking. GrafTech plans to leverage its competitive advantages, such as its vertical integration into petroleum needle coke production, to capitalize on future opportunities in the electric vehicle market.
