GrafTech International (EAF) investor relations material

Executive summary

• Q1 2026 saw 14% year-over-year sales volume growth to 28.1 thousand MT and net sales up 12% to $125 million, driven by higher volumes but offset by a 5% decline in realized prices due to competitive pressures.

• Net loss for Q1 2026 was $43 million ($1.66 per share), with adjusted EBITDA at negative $14 million and adjusted free cash flow at negative $27 million, reflecting ongoing pricing pressures.

• Over 85% of anticipated 2026 volume already committed, providing strong order book visibility.

• Strategic initiatives include price increases of $600–$1,200/ton on uncommitted volume, supporting trade cases, and prioritizing higher-value regions.

• Vertically integrated supply chain and operational efficiencies position the company to manage input cost volatility and supply disruptions.

Financial highlights

• Net sales increased 12% year-over-year to $125 million in Q1 2026, with production volume at 29,000–29,400 MT and sales volume at 28,000–28,100 MT, up 14% year-over-year.

• Average selling price was $3,900/ton, down 5% year-over-year and 2% sequentially.

• Cash cost per ton was $3,848 in Q1 2026, up from $3,652 in Q1 2025, but down 4% sequentially.

• Net loss: $43 million ($1.66/share); Adjusted EBITDA: -$14 million; Adjusted free cash flow: -$27 million.

• Liquidity stood at $329 million as of March 31, 2026, with $120 million in cash and no significant debt maturities until December 2029.

Outlook and guidance

• Full-year 2026 graphite electrode sales volume expected to increase 5–10% year-over-year, with over 85% of anticipated volume already committed.

• Cash cost guidance maintained for a low single-digit improvement over 2025; target cash cost: $3,600–$3,700/ton.

• Price increases expected to impact results mainly in Q3 and Q4, setting up for stronger 2027 negotiations.

• CapEx for 2026 projected at $35 million, sufficient for asset maintenance and productivity investments.

• Anticipates modest year-over-year reduction in cash COGS and demand improvement, especially in the U.S.