Q2 2026 Ferroglobe PLC Earnings Call Transcript
Key Points
- Ferroglobe PLC (GSM) reported a 7% sequential increase in total shipments to 188,000 tonnes, driven by a 34% rise in silicon metal volumes, and a 9% revenue increase to $379 million.
- Adjusted EBITDA improved by $10 million quarter-over-quarter to $13 million, with free cash flow turning positive at $20 million, up from negative $16 million in Q1.
- The company is successfully expanding its critical materials platform, having completed industrial-scale test production of ferromolybdenum and demonstrated magnesium production capability, targeting markets worth over $750 million annually in North America.
- Trade protection measures are yielding results, with the ITC's final decision imposing anti-dumping duties on Australian and Norwegian imports into the US, and manganese safeguards driving a 25% increase in index prices since implementation.
- Manganese-based alloys remain a consistent performer, with adjusted EBITDA rising to $30 million in Q2, up from $10 million in Q1, and margins improving to 12%.
- The company is progressing on its Venezuela restart plan, having applied for a US permit in late June, which could provide access to 120,000 tonnes of low-cost capacity and enhance flexibility for the US market.
- Silicon metal segment remains unprofitable, with an adjusted EBITDA loss of $2.7 million in Q2, as prices declined 6% sequentially due to continued pressure from low-priced Chinese and Angolan imports.
- Silicon-based alloy pricing is weak, with US and EU index prices declining 2% and 6% respectively in Q2, and the European market is challenged by dumping of silicon metal substituting for ferrosilicon.
- The European silicon metal market is still under significant pressure from imports, with volumes and prices remaining below 2024 levels, and the expected EU investigation into Chinese and Angolan dumping has not yet been initiated.
- The company's overall adjusted EBITDA margin remains low at 3.5%, reflecting ongoing market headwinds and pricing pressures across key segments.
- CapEx increased to $17 million in Q2, primarily due to a planned charcoal investment in Spain, which could strain cash flows if market conditions do not improve.
- The company has paused its share buyback program due to the current market environment, limiting shareholder return options despite the stock's valuation.
Good morning, ladies and gentlemen, and welcome to Ferroglobe's second quarter 2026 earnings call. (Operator Instructions) As a reminder, this conference call may be recorded. I would now like to turn the call over to Alex Rotonen, Ferroglobe's Vice President of Investor Relations. You may begin.
Good morning, everyone, and thank you for joining Ferroglobe's second-quarter 2026 conference call. Joining me today are Marco Levi, our Chief Executive Officer; and Beatriz Garcia-Cos, our Chief Financial Officer. Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to slide 2 at this time.
Statements made by management during this conference call that are forward-looking are based on current expectations. Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and the exhibits to those filings, which are available at ferroglobe.com.
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