Q: What is GrafTech (EAF) Q2 2025 Earnings Call Transcript Summary?

TigerAI
08-05
TigerGPT Answer:

The earnings call for Graftech International Ltd. (EAF) provided a mix of positive and negative insights into the company's performance and future outlook. Here are the specific viewpoints from the earnings call:

Bullish Points:

1. Sales volume growth of 12% year over year and 16% sequentially in Q2 2025, marking the highest level since Q3 2022.

2. Capacity utilization rate rose to 65% in Q2 2025, the highest in nearly three years.

3. U.S. sales volume increased 38% year over year in Q2 2025; year-to-date U.S. sales volume is up 32%, with the Americas now representing more than 50% of overall revenue.

4. Cash cost of goods sold per metric ton declined 13% year over year in Q2 2025; full-year 2025 cash COGS guidance improved to a 7%-9% year-over-year decline.

5. Achieved positive adjusted EBITDA of $3 million in Q2 2025.

6. Ended Q2 2025 with $367 million in total liquidity.

7. Year-to-date net working capital increased $45 million in the first six months of 2025, with expectations for favorable working capital impact to cash flow for the full year.

8. Management expects 2025 U.S. tariffs to have less than a 1% impact on cash costs and sees strategic opportunities from expanded tariffs.

9. Communicated intention to raise prices by 15% for uncommitted 2025 volume to restore industry profitability.

10. Positive outlook on structural tailwinds supporting the ongoing shift towards electric arc furnace steelmaking.

Bearish Points:

1. Reported a net loss of $87 million for Q2 2025, including a $43 million non-cash income tax charge.

2. The pricing environment remains very competitive, with oversupply from China putting pressure on global prices.

3. Average selling price decreased by 12% year over year in Q2 2025.

4. Management anticipates EBITDA near breakeven for full year 2025, with sequential performance affected by planned shutdowns, input costs, and tariff timing.

For more information about Graftech International Ltd.'s earnings call, you can read the relevant news: GrafTech (EAF) Q2 2025 Earnings Call Transcript

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