Ferroglobe (GSM) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw a 9% sequential revenue increase to $379 million, driven by a 7% rise in shipments, especially a 34% jump in silicon metal volumes in EMEA and the U.S., despite a challenging pricing environment.

• Adjusted EBITDA rose to $13.1 million from $3.3 million in Q1 2026, reflecting improved operating performance and higher shipment volumes.

• Net profit attributable to the parent was $60.4 million, reversing a net loss of $7.1 million in the prior quarter, mainly due to a $59.9 million positive fair value adjustment on long-term energy contracts.

• Strategic focus areas include expanding the critical materials platform, cost structure optimization, restarting Venezuelan operations, and strengthening the core business through trade protection and supply chain realignment.

• Expansion into magnesium, antimony, silver, gallium, and ferroalloys is underway, leveraging existing infrastructure to minimize CapEx and accelerate time to market.

Financial highlights

• Revenue increased 9% quarter-over-quarter to $379 million, with adjusted EBITDA margin rising to 3.5% from 1%.

• Free cash flow improved to $20.4 million in Q2 2026 from negative $16.4 million in Q1 2026.

• Net debt and adjusted gross debt declined by $17 million and $20 million, respectively, ending at $37.7 million and $130.9 million.

• CapEx was $16.6 million, mainly for a charcoal plant in Spain.

• Quarterly dividend of $0.015 per share paid, with the next dividend scheduled for September.

Outlook and guidance

• Expectation of continued working capital release (~$15 million) in the second half of the year.

• No plans to resume share buybacks in the near term, with ongoing weekly assessment.

• Anticipate improved silicon metal prices and demand in the second half, pending European Commission trade actions.

• Management remains focused on financial flexibility, disciplined capital allocation, and leveraging core business and critical materials initiatives for future growth.

• Initial commercial activity in new critical materials targeted before year-end.