GrafTech International Reports Q4 Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy EAF?
Source: seekingalpha
- Earnings Miss: GrafTech International reported a Q4 non-GAAP EPS of -$2.45, missing estimates by $1.29, indicating significant challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $116.46 million fell 13.2% year-over-year and missed expectations, reflecting weak market demand and increased competition, which may pressure future performance.
- Sales Volume Stability: While Q4 sales volume remained flat year-over-year, a 6% increase for the full year demonstrates resilience in a challenging market environment, particularly highlighted by strong performance in the U.S. market.
- U.S. Market Growth: Sales volume in the U.S. surged 83% year-over-year in Q4 and 48% for the full year, indicating the company’s successful strategic shift towards this key region, which is likely to strengthen its market position moving forward.
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Analyst Views on EAF
Wall Street analysts forecast EAF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EAF is 16.67 USD with a low forecast of 14.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 15.690
Low
14.00
Averages
16.67
High
21.00
Current: 15.690
Low
14.00
Averages
16.67
High
21.00
About EAF
GrafTech International Ltd. is a manufacturer of graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Company has a portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, which are located in Calais, France; Pamplona, Spain; Monterrey, Mexico, and St. Marys, Pennsylvania. Its segment, Industrial Materials, is comprised of two major product categories: graphite electrodes and petroleum needle coke products. Graphite electrodes are an industrial consumable product used primarily in EAF steel production, one of the two primary methods of steel production and the steelmaking technology used by all mini mills. Petroleum needle coke, a crystalline form of carbon derived from decant oil, is the key raw material it uses in the production of graphite electrodes. It sells its graphite electrodes primarily through its direct sales force, independent sales representatives, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GRAFTECH REPORTS Q4 ADJUSTED NET LOSS OF USD 63.886 MILLION
- Financial Overview: The adjusted net income for the company is reported at USD 63.886 million.
- Performance Metrics: This figure reflects the company's financial performance and profitability for the specified period.
See More
GRAFTECH REPORTS Q4 SALES OF $116.457 MILLION
- Sales Performance: GRAFTECH reported Q4 sales of USD 116.457 million.
- Financial Overview: The sales figure reflects the company's performance in the fourth quarter of the fiscal year.
See More
GrafTech International to Announce Q4 Earnings on February 6
- Earnings Announcement Date: GrafTech International is set to release its Q4 earnings on February 6 before the market opens, drawing significant attention to its performance amid the current economic climate.
- Declining EPS Expectations: The consensus EPS estimate stands at -$1.16, reflecting a staggering 792.3% year-over-year decline, indicating substantial profitability challenges that could impact investor confidence.
- Modest Revenue Growth: Despite the poor EPS outlook, GrafTech's revenue is projected at $140 million, representing a 4.3% year-over-year increase, suggesting some resilience in sales performance.
- Historical Performance Review: Over the past two years, GrafTech has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, demonstrating a degree of adaptability in navigating market fluctuations.
See More
GrafTech International Q4 2025 Earnings Call Insights
- Market Challenges Intensify: CEO Timothy Flanagan highlighted that the graphite electrode industry is facing significant challenges, including global overcapacity and aggressive competitor behavior, leading to subdued sales growth, particularly in the U.S., despite a 6% increase in overall sales volume for the year.
- Cost Control Effectiveness: The company reported an 11% reduction in cash cost of goods sold per metric ton, achieving a cumulative reduction of 31% over two years, driven by enhanced procurement strategies and disciplined production scheduling, ensuring financial stability amid industry difficulties.
- Strong Liquidity Position: GrafTech ended the year with a liquidity position of $340 million, including $138 million in cash, allowing the company to maintain operational stability and address future uncertainties despite ongoing industry challenges.
- Cautious 2026 Outlook: The company anticipates a 5% to 10% growth in sales volume for 2026, with approximately 65% of this volume already committed, reflecting confidence in future market conditions, although management remains cautious regarding pricing recovery.
See More
GrafTech International Reports Q4 Earnings Miss
- Earnings Miss: GrafTech International reported a Q4 non-GAAP EPS of -$2.45, missing estimates by $1.29, indicating significant challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $116.46 million fell 13.2% year-over-year and missed expectations, reflecting weak market demand and increased competition, which may pressure future performance.
- Sales Volume Stability: While Q4 sales volume remained flat year-over-year, a 6% increase for the full year demonstrates resilience in a challenging market environment, particularly highlighted by strong performance in the U.S. market.
- U.S. Market Growth: Sales volume in the U.S. surged 83% year-over-year in Q4 and 48% for the full year, indicating the company’s successful strategic shift towards this key region, which is likely to strengthen its market position moving forward.
See More
GrafTech International Highlights 2025 Financial Results
- Sales Volume Growth: GrafTech achieved a 6% increase in sales volume for 2025, with a remarkable 48% growth in the U.S. market, indicating the company's ability to seize market opportunities even in a challenging environment, thereby enhancing its competitive position in North America.
- Effective Cost Control: The company reported an 11% year-over-year reduction in cash cost of goods sold per metric ton for 2025, reflecting ongoing efforts in production efficiency and cost management, which helps maintain a degree of profitability despite declining overall sales revenue.
- Stable Liquidity: As of December 31, 2025, GrafTech maintained liquidity of $340 million, providing a solid financial foundation for future growth despite industry challenges, showcasing the company's financial health.
- Optimistic Outlook: The company anticipates a slight increase in global demand for graphite electrodes in 2026 and aims for a 5-10% year-over-year sales volume growth, demonstrating confidence in its market share and customer value proposition, even amid intense pricing competition.
See More
GRAFTECH REPORTS Q4 ADJUSTED NET LOSS OF USD 63.886 MILLION
- Financial Overview: The adjusted net income for the company is reported at USD 63.886 million.
- Performance Metrics: This figure reflects the company's financial performance and profitability for the specified period.
See More
GRAFTECH REPORTS Q4 SALES OF $116.457 MILLION
- Sales Performance: GRAFTECH reported Q4 sales of USD 116.457 million.
- Financial Overview: The sales figure reflects the company's performance in the fourth quarter of the fiscal year.
See More
GrafTech International to Announce Q4 Earnings on February 6
- Earnings Announcement Date: GrafTech International is set to release its Q4 earnings on February 6 before the market opens, drawing significant attention to its performance amid the current economic climate.
- Declining EPS Expectations: The consensus EPS estimate stands at -$1.16, reflecting a staggering 792.3% year-over-year decline, indicating substantial profitability challenges that could impact investor confidence.
- Modest Revenue Growth: Despite the poor EPS outlook, GrafTech's revenue is projected at $140 million, representing a 4.3% year-over-year increase, suggesting some resilience in sales performance.
- Historical Performance Review: Over the past two years, GrafTech has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, demonstrating a degree of adaptability in navigating market fluctuations.
See More
GrafTech International Q4 2025 Earnings Call Insights
- Market Challenges Intensify: CEO Timothy Flanagan highlighted that the graphite electrode industry is facing significant challenges, including global overcapacity and aggressive competitor behavior, leading to subdued sales growth, particularly in the U.S., despite a 6% increase in overall sales volume for the year.
- Cost Control Effectiveness: The company reported an 11% reduction in cash cost of goods sold per metric ton, achieving a cumulative reduction of 31% over two years, driven by enhanced procurement strategies and disciplined production scheduling, ensuring financial stability amid industry difficulties.
- Strong Liquidity Position: GrafTech ended the year with a liquidity position of $340 million, including $138 million in cash, allowing the company to maintain operational stability and address future uncertainties despite ongoing industry challenges.
- Cautious 2026 Outlook: The company anticipates a 5% to 10% growth in sales volume for 2026, with approximately 65% of this volume already committed, reflecting confidence in future market conditions, although management remains cautious regarding pricing recovery.
See More
GrafTech International Reports Q4 Earnings Miss
- Earnings Miss: GrafTech International reported a Q4 non-GAAP EPS of -$2.45, missing estimates by $1.29, indicating significant challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $116.46 million fell 13.2% year-over-year and missed expectations, reflecting weak market demand and increased competition, which may pressure future performance.
- Sales Volume Stability: While Q4 sales volume remained flat year-over-year, a 6% increase for the full year demonstrates resilience in a challenging market environment, particularly highlighted by strong performance in the U.S. market.
- U.S. Market Growth: Sales volume in the U.S. surged 83% year-over-year in Q4 and 48% for the full year, indicating the company’s successful strategic shift towards this key region, which is likely to strengthen its market position moving forward.
See More
GrafTech International Highlights 2025 Financial Results
- Sales Volume Growth: GrafTech achieved a 6% increase in sales volume for 2025, with a remarkable 48% growth in the U.S. market, indicating the company's ability to seize market opportunities even in a challenging environment, thereby enhancing its competitive position in North America.
- Effective Cost Control: The company reported an 11% year-over-year reduction in cash cost of goods sold per metric ton for 2025, reflecting ongoing efforts in production efficiency and cost management, which helps maintain a degree of profitability despite declining overall sales revenue.
- Stable Liquidity: As of December 31, 2025, GrafTech maintained liquidity of $340 million, providing a solid financial foundation for future growth despite industry challenges, showcasing the company's financial health.
- Optimistic Outlook: The company anticipates a slight increase in global demand for graphite electrodes in 2026 and aims for a 5-10% year-over-year sales volume growth, demonstrating confidence in its market share and customer value proposition, even amid intense pricing competition.
See More
