GrafTech International Ltd (EAF) News & EventsEAFNews & EventsGrafTech International Ltd

GrafTech Expects 5-10% Increase in Graphite Electrode Sales Volume for 2026

"Global steel demand, outside of China, is projected to grow modestly in 2026, with anticipated growth in most of our key commercial regions. In the United States, modest demand growth, coupled with favorable trade policies, has driven a 6% increase in steel production year-to-date. In Europe, while steel production is flat year-to-date, the steel market outlook is improving, reflecting recently approved increases in trade protections. Supported by these favorable steel production trends, demand for graphite electrodes is expected to improve modestly in 2026. For GrafTech, with more than 90% of our anticipated volume already committed in our order book, we continue to expect a 5-10% year-over-year increase in graphite electrode sales volume for 2026 as we continue to gain market share. While demand trends are improving, current industry-wide pricing levels do not reflect the indispensable nature of graphite electrodes for electric arc furnace steelmaking. As a result, we are taking deliberate actions to restore more sustainable pricing and improve our profitability. These include the previously announced price increases of $600 to $1,200 per MT on uncommitted volume, actively supporting graphite electrode trade cases in key jurisdictions, including the United States and Brazil, and continuing to optimize our order book by prioritizing higher-value regions while foregoing volume opportunities where margins are unacceptably low. Since announcing our price increases near the end of the first quarter of 2026, we have secured customer commitments at weighted-average prices that are more than 15% above those for comparable commitments entered into during the first quarter of 2026. On costs, geopolitical developments continue to impact key input costs, including oil-based raw materials, energy and logistics. However, reflecting our ongoing cost improvement initiatives, we expect to offset these headwinds. Accordingly, we continue to expect a low single-digit percentage-point decline in our cash cost of goods sold per MT for 2026 compared to 2025. We are also maintaining disciplined capital and working capital management. For 2026, we continue to expect a modest increase in working capital for the full year to support higher volume. We continue to anticipate our full-year capital expenditures will be approximately $35 million, consistent with maintaining our assets at current utilization levels. Longer term, we remain confident in the structural drivers of demand growth for graphite electrodes. The ongoing shift toward electric arc furnace steelmaking and growing demand for petroleum needle coke in battery applications are expected to support sustained industry growth. We believe the actions we are taking, combined with our vertical integration and industry-leading capabilities, position GrafTech to generate stronger financial performance as market conditions normalize."

Company Reports Q2 Revenue of $127M, Exceeding Expectations

Reports Q2 revenue $127M, consensus $125M. "Our second quarter results demonstrate continued strong operational execution in a dynamic market," said Timothy Flanagan, CEO and President. "Sales volume increased 8% from a year ago and 10% sequentially, reflecting solid customer demand and disciplined commercial execution, and we continue to expect our full-year sales volume will increase 5% to 10%. In addition, we are seeing broad acceptance of our previously announced price increase on uncommitted volume. Combined with ongoing improvements in production efficiency and our cost structure, these results reflect the progress we are making in executing our strategic priorities."

GrafTech Files $150M Mixed Securities Shelf

GrafTech files $150M mixed securities shelf