BROOKLYN HEIGHTS: GrafTech International Ltd. (NYSE: EAF) reported its highest quarterly sales volume in nearly three years, reflecting strong execution of its strategic initiatives and resilience amid industry challenges.
The graphite electrode manufacturer posted a 12% year-over-year sales volume increase in Q2 2025, its strongest since Q3 2022. U.S. sales volume surged 38% compared to the prior-year quarter, underscoring the company’s strategic pivot toward domestic markets. For the first half of 2025, U.S. growth stood at 32%.
Net sales for the quarter totaled $132 million on volume of 28.6 thousand metric tons. GrafTech reported a net loss of $87 million, or $0.34 per share, including a $43 million non-cash tax expense. Adjusted EBITDA reached $3 million.
Cash cost per metric ton declined 13% year-over-year. The company now anticipates a 7–9% decline in full-year 2025 cash costs—an improvement over earlier guidance.
CEO Timothy Flanagan said GrafTech’s ability to grow share despite a “challenging commercial environment” highlights its strong customer value proposition and operational discipline. “Our actions are preserving our ability to remain the electric arc furnace industry’s preeminent supplier,” Flanagan said.
The company ended the quarter with $367 million in liquidity and continues to anticipate a 10% increase in full-year sales volume, marking a cumulative 25% rise since the end of 2023.
Outlook and Industry Trends
GrafTech expects flat demand in most markets but modest growth in U.S. electric arc furnace steel production. The firm continues executing pricing actions and cost controls to navigate weak global pricing.
Longer term, the company sees favorable demand trends tied to decarbonization efforts, electric vehicle growth, and increasing adoption of petroleum needle coke in lithium-ion battery production.