Graphite electrodes maker GrafTech's Q3 sales beats estimates on strong U.S. demand

Reuters
Oct 24
Graphite electrodes maker GrafTech's Q3 sales beats estimates on strong U.S. demand

Overview

  • GrafTech Q3 2025 net sales rose 10% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 2025 missed analyst expectations

  • Company generated positive adjusted EBITDA and adjusted free cash flow

Outlook

  • GrafTech expects 8-10% sales volume growth for 2025, slightly down from 10% forecast earlier due to foregoing low-margin sales

  • Company anticipates a 10% decline in cash cost of goods sold per MT for 2025

  • GrafTech sees long-term demand growth from steel industry's shift to electric arc furnaces

Result Drivers

  • U.S. SALES GROWTH - Co reports 53% yr/yr increase in U.S. sales volume, reflecting strategic shift towards this region

  • COST REDUCTION - Achieved 10% yr/yr reduction in cash cost of goods sold per MT, aiding profitability

  • COMMERCIAL RESOLUTION - $11 mln non-cash benefit from resolving a long-standing commercial matter boosted adjusted EBITDA

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$143.99 mln

$139.58 mln (4 Analysts)

Q3 Adjusted EPS

Miss

-$1.03

-$1.01 (5 Analysts)

Q3 EPS

-$1.10

Q3 Adjusted Net Income

Beat

-$26.78 mln

-$35.41 mln (3 Analysts)

Q3 Net Income

-$28.48 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy."

  • Wall Street's median 12-month price target for GrafTech International Ltd is $15.00, about 15.9% below its October 23 closing price of $17.38

Press Release: ID:nBwYwXjVa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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