GrafTech International (EAF) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $140.2 million, down 3% YoY, as realized pricing fell 7%; net loss was $46.8 million and adjusted EBITDA was $8.6 million.

• Higher-priced commitments are expected to lift realized pricing by mid-single digits in Q4 and meaningfully in 2027.

• The planned Monterrey closure is intended to reduce excess capacity, costs and capital needs while maintaining customer supply.

Financial highlights

• Q3 net sales were $140.2 million versus $144.0 million YoY; gross profit was $5.6 million versus $10.3 million, and operating loss was $22.7 million versus $5.1 million.

• Q3 net loss was $46.8 million, or $1.76 per diluted share, versus $28.5 million, or $1.10 per share; adjusted net loss was $32.1 million.

• Adjusted EBITDA was $8.6 million versus $13.0 million YoY; lower realized pricing was partly offset by lower cash COGS per MT.

• Q3 operating cash use was $8.4 million and adjusted free cash flow was negative $16.1 million; 9M operating cash use was $92.0 million.

• Q3 net sales included $8.5 million from resolutions of long-standing commercial matters, versus $11.2 million in Q3 2025.

Outlook and guidance

• FY2026 graphite electrode sales volume is expected to increase 5%–10% YoY; production and sales are expected to be balanced for the year.

• Q4 weighted-average realized pricing is expected to increase by a mid-single-digit percentage QoQ; higher-priced commitments are expected to support meaningfully higher pricing in 2027.

• FY2026 cash COGS per MT is expected to decline by a low-single-digit percentage YoY, with cost initiatives offsetting input-cost pressures.

• FY2026 capex guidance remains ~$35 million; working capital is expected to rise modestly for higher sales volume, with a Q4 reduction anticipated.

• Monterrey closure costs are expected at $20–25 million, mostly incurred by end-2027; production is expected to conclude early Q2 2027.