GrafTech International (EAF) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales volume grew 8% year-over-year to approximately 31,000 MT, with U.S. sales up 29% and production volume reaching 33.4k MT; capacity utilization improved to 74% from 65% a year ago.

• Net sales were $127 million, down 3% year-over-year due to lower realized pricing, despite higher volumes; net loss improved to $40 million ($1.54/share) from $87 million in Q2 2025.

• Adjusted EBITDA was $2 million, down from $3 million in Q2 2025, mainly due to pricing pressure; adjusted free cash flow was negative $75 million, reflecting inventory build and interest payments.

• Strategic initiatives included price increases on uncommitted volume, cost structure enhancements, and advocacy for fair trade and operational improvements.

• Liquidity stood at $253 million as of June 30, 2026, after drawing the final $100 million from a term loan facility; no significant debt maturities until December 2029.

Financial highlights

• Q2 2026 net sales: $127 million, down 3% year-over-year; net loss: $40 million ($1.54/share), improved from $87 million loss in Q2 2025.

• Adjusted EBITDA: $2 million, down from $3 million in Q2 2025; adjusted loss per share: $1.47.

• Cash cost of goods sold per MT: $3,517 in Q2 2026, down 6% year-over-year and 9% sequentially.

• Net cash used in operating activities: $69 million; adjusted free cash flow: negative $75 million, mainly due to inventory build and timing of interest payments.

• Total liquidity at quarter-end: $253 million, including $145 million in cash and $108 million in available credit.

Outlook and guidance

• Full-year sales volume growth expected between 5–10%, with over 90% of anticipated volume already committed.

• Price increases of $600–$1,200/MT on uncommitted volume are being implemented, with new commitments at prices 15% above Q1 2026 levels.

• Cash cost of goods sold per MT expected to decline by a low single-digit percentage for 2026.

• Capital expenditures for 2026 anticipated at approximately $35 million.

• Operating cash flow expected to improve in the second half as inventory normalizes.