Ferroglobe (GSM) Q4 2024 earnings summary

Executive summary

• Achieved $1.6 billion in revenue and $154 million adjusted EBITDA for 2024, with $164 million free cash flow and a net cash positive balance sheet for the first time.

• Initiated and increased quarterly dividends and share buybacks, with the first dividend paid in Q1 2024 and an 8% increase announced for Q1 2025.

• Advanced innovation in silicon metal, including a partnership with Coreshell for EV battery technology and increased investment due to strong test results.

• Implemented and benefited from trade measures in the US and EU, with favorable US decisions and ongoing EU investigations.

• Demand environment remained soft but showed signs of bottoming, with improvement expected in the second half of 2025.

Financial highlights

• FY 2024 sales were $1,644 million, nearly flat year-over-year; Q4 sales were $367.5 million, down from $433.5 million in Q3.

• Full-year 2024 adjusted EBITDA was $154 million, down from $315 million in 2023; Q4 adjusted EBITDA was $9.8 million, down from $60.4 million in Q3.

• Free cash flow for FY 2024 was $164.1 million, up from $91.9 million in 2023; Q4 free cash flow was $14.1 million.

• Q4 net loss attributable to the parent was $46.4 million, mainly due to a $61.3 million impairment; full year net profit was $5.2 million.

• Net cash balance increased to $39 million at year-end, with a cash balance of $133 million and minimal leverage.

Outlook and guidance

• 2025 adjusted EBITDA guidance set at $100–$170 million, reflecting market and trade uncertainties.

• Q1 2025 adjusted EBITDA expected to be negative due to low prices, weak demand, and idling in France.

• Management expects demand improvement and partial benefit from trade measures in the second half of 2025.

• Targeting $50 million working capital improvement and $60–$65 million CapEx in 2025.

• Quarterly dividend increased by 8% to $0.014 per share.