Q2 2025 GrafTech International Ltd Earnings Call Transcript
Key Points
- GrafTech International Ltd (EAF) achieved a 12% year-over-year increase in sales volume for the second quarter, marking the highest level since Q3 2022.
- The company improved its capacity utilization rate to 65%, the highest in nearly three years.
- GrafTech International Ltd (EAF) reported a 13% year-over-year decline in cash COGS per metric ton, exceeding initial cost reduction guidance.
- The company generated positive EBITDA for the first time since the second quarter of the previous year.
- GrafTech International Ltd (EAF) increased its sales volume in the United States by 38% year-over-year, significantly boosting its market share in its most profitable region.
- GrafTech International Ltd (EAF) faced challenging pricing dynamics due to increased low-price graphite electrode exports from China, resulting in excess capacity globally.
- The company reported a net loss of $87 million for the second quarter, including a $43 million non-cash income tax charge.
- Average selling prices declined by 12% year-over-year, largely due to the completion of higher-priced long-term agreements and persistent industry-wide pricing challenges.
- Cash used in operating activities was $53 million for the second quarter, reflecting significant cash interest payments.
- The company experienced a $45 million build in networking capital through the first six months of the year, driven by inventory as production exceeded sales volumes.
Good morning, ladies and gentlemen, and welcome to GrafTech's second quarter 2025 earnings conference call and webcast. (Operator Instructions)
I would now like to turn the conference call over to Mike Dillon, Vice President, Investor Relations, and Treasurer. Please go ahead.
Thank you, Jenny. Good morning, and welcome to GrafTech International's second quarter 2025 earnings call. On with me today are Tim Flanagan, Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Rory O'Donnell, Chief Financial Officer.
Tim will begin with opening comments. Jeremy will then discuss safety, the commercial environment, sales, and operational matters. Rory will review our quarterly results and other financial details, and Tim will close with additional comments on our outlook. We will then open the call to questions.
Turning to our next slide. As a reminder, some of the matters discussed on this call may include forward-looking statements regarding, among other
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