Ferroglobe (GSM) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were impacted by weak demand and declining prices, especially in silicon metal, resulting in negative adjusted EBITDA of $(26.8) million, but management believes the market has bottomed and expects recovery from Q2, supported by trade actions and operational initiatives.

• Free cash flow remained positive at $5.1 million, with continued share repurchases and an 8% dividend increase.

• Full-year 2025 adjusted EBITDA guidance is maintained at $100–$170 million, with expectations for improvement in Q2 and further strengthening in the second half.

• Management anticipates positive outcomes from U.S. and EU trade cases, which are expected to benefit operations and market position.

Financial highlights

• Q1 2025 revenue was $307.2 million, down 16% year-over-year and 16.4% sequentially, driven by lower shipments and prices, especially in silicon metal.

• Adjusted EBITDA was $(26.8) million, a $37 million decline from the previous quarter, with margin at (9)%.

• Free cash flow was $5.1 million, supported by a $25 million reduction in working capital and a $32 million energy rebate.

• CapEx for the quarter was $14 million, down from $18 million in the prior quarter.

• Adjusted diluted EPS was $(0.20), compared to $0.03 in the previous quarter.

Outlook and guidance

• Adjusted EBITDA guidance for 2025 remains at $100–$170 million, with meaningful improvement expected in Q2 and further strengthening in the second half.

• Management expects net benefit from U.S. tariffs and positive impact from EU safeguard measures, with market recovery anticipated from Q2.