Executive Summary

Q3 delivered modest top-line growth and a return to positive adjusted EBITDA and free cash flow: revenue $144M (+10% YoY), adjusted EBITDA $13M, and adjusted FCF $18M, aided by $11M deferred revenue recognition and sustained cost reductions .
Results beat S&P Global consensus: revenue $143.998M vs $139.3M estimate (+3.4%) and adjusted/“Primary” EPS -$1.03 vs -$1.20 estimate (+$0.17); GAAP diluted EPS was -$1.10 (reverse-split adjusted) . Values retrieved from S&P Global.*
Guidance tweaked: 2025 sales volume growth trimmed to 8–10% (from ~10%), while cost guidance raised to ~10% YoY decline in cash COGS/MT (from 7–9%); capex ~$40M and working capital tailwind maintained .
Strategic positives include a 53% YoY surge in U.S. sales volume, flat-to-slightly up U.S. pricing QoQ, and commentary that EU trade protections could lift regional steel utilization, supporting electrodes demand .
Near-term stock catalysts: revenue/EPS beat driven by working capital and non-cash deferred revenue benefit; raised cost-savings guidance; and constructive trade-policy backdrop in the U.S./EU that may improve 2026 demand outlook .

What Went Well and What Went Wrong

What Went Well

Volume growth and U.S. mix shift: Total sales volume +9% YoY to 28.8k MT, with U.S. volumes +53% YoY, supporting better realized pricing mix and market share gains .
Cost execution: Cash COGS/MT fell ~10% YoY to $3,795; FY25 guidance raised to ~10% decline (vs 7–9% prior), underscoring structural cost progress and efficiency gains .
Liquidity and cash generation: Adjusted EBITDA turned positive ($13M) and adjusted FCF was $18M; quarter-end liquidity was $384M, aided by working capital management .

Management quotes:

“We are… on track to achieve cumulative sales volume growth of over 20% since the end of 2023… [and] a cumulative decline in our cash cost of goods sold per metric ton of over 30% since the end of 2023.” (CEO) .
“We now anticipate an approximate 10% year-over-year decline in our cash COGS per metric ton for 2025… compared to our previous guidance of 7–9%.” (CFO) .

What Went Wrong

Pricing pressure persists: Weighted-average realized price ~$4,200/MT, down ~7% YoY on LTA roll-off and competitive pressure, offset only partially by U.S. mix; overall pricing “unsustainably low” .
Continued net losses: GAAP net loss of $28M (diluted EPS -$1.10), despite cost progress; interest burden and gross margin pressure remain significant .
Guidance trimmed on volume: Full-year 2025 sales volume growth reduced to 8–10% (from ~10%) as the company walks away from low-margin orders .

Financial Results

P&L Summary (YoY and QoQ)

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	130.654	131.840	143.998
Diluted EPS (GAAP)	-$1.40	-$3.35	-$1.10
Adjusted EPS	-$1.33	-$1.63	-$1.03
Gross Margin %	-9.2%	~0.0%	7.2%
Adjusted EBITDA ($M)	-6.196	3.471	13.013
Adjusted EBITDA Margin %	-4.7%	2.6%	9.0%

Note: All per-share data retroactively reflect the 1-for-10 reverse stock split effective Aug 29, 2025 .

Actuals vs. S&P Global Consensus (Q3 2025)

Metric	Consensus	Actual	Surprise
Revenue ($M)	139.33*	143.998	+$4.67M / +3.4%*
Primary EPS (Adjusted)	-$1.2014*	-$1.03	+$0.17*

Values retrieved from S&P Global.*

Drivers of the beat:

$11M recognition of previously deferred revenue from resolution of a commercial matter boosted revenue and adjusted EBITDA .
Cash COGS/MT down ~10% YoY supported margin improvement despite flat realized pricing QoQ .

Key Operating & Financial KPIs (Trend)

KPI	Q1 2025	Q2 2025	Q3 2025
Sales Volume (k MT)	24.7	28.6	28.8
Weighted Avg Realized Price ($/MT)	~$4,100	~$4,200	~$4,200
Cash COGS per MT ($)	3,652	3,754	3,795
Capacity Utilization	63%	65%	63%
Adjusted EBITDA ($M)	-3.672	3.471	13.013
Adjusted Free Cash Flow ($M)	-40.274	-53.337	18.376
Liquidity ($M)	421	367	384

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Sales volume growth (YoY)	FY 2025	~10%	8–10%	Lowered
Cash COGS/MT (YoY)	FY 2025	-7% to -9%	~-10%	Raised (more savings)
Working capital impact	FY 2025	Favorable	Favorable	Maintained
Capital expenditures	FY 2025	≈$40M	≈$40M	Maintained
Tariff cost impact	FY 2025	—	<1% of 2025 costs (expected)	New disclosure
2025 uncommitted price action	2025 volume	+15% list increase notified early 2025	Ongoing; pricing environment “unsustainably low”	Maintained initiative; backdrop challenging

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
U.S. mix shift & market share	U.S. volumes +25% YoY in Q1; strategy to shift to higher-price regions; expect FY growth; USMCA-compliant Mexico supply tariff-free to U.S.	U.S. volumes +53% YoY in Q3; U.S. pricing flat-to-slightly up QoQ; mix boosted weighted-average price by >$120/MT	Positive momentum
Pricing dynamics	Q1/Q2: pricing down on LTA roll-off and competition; announced +15% on uncommitted 2025 volume	Pricing ~flat QoQ at ~$4,200/MT; market remains oversupplied; management disciplined on low-margin orders	Stabilizing off lows; still weak
Cost structure	Cash COGS/MT -21% YoY in Q1; FY guide mid-single digit decline; Q2 improved to -7–9% FY guide	Q3: Cash COGS/MT -10% YoY; FY guide raised to ~-10%; <1% tariff cost impact expected	Improving
Trade policy & tariffs	Q1/Q2: positioning inventory amid trade uncertainty; intention to mitigate tariff impact via global footprint	EU to cut steel import quotas 47% and raise out-of-quota tariffs; U.S. S232 and India 50% tariffs supportive; possible CBAM effects; China export controls on synthetic graphite highlighted	More supportive backdrop
Adjacent markets (battery materials)	Vertical integration via Seadrift cited; not a standalone anode producer; open to partnerships	Pathway via supply/graphitization partnerships; U.S. anti-dumping (93.5% on Chinese active anode) may unlock Western supply chains	Early-stage optionality

Management Commentary

“We achieved a 9% year-over-year increase in sales volume… and are on track to achieve cumulative sales volume growth of over 20% since the end of 2023.” (CEO) .
“Our average selling price… ~$4,200 per metric ton… a 7% decline YoY and sequentially in line.” (CFO) .
“Cash costs per metric ton were $3,795, representing a 10% year-over-year decline… we now anticipate an ~10% YoY decline for 2025.” (CFO) .
“We continue to expect the impact of the announced tariffs to have less than 1% impact on our 2025 costs.” (CFO) .
“EU trade protections… cut steel import quotas by 47%… could lift EU steel utilization to ~70%.” (CEO) .

Q&A Highlights

One-time revenue benefit: No further deferred revenue remains; $11M recognition is a one-time non-cash benefit from a resolved commercial matter .
Pricing outlook: Market remains oversupplied; early signs of support from U.S./EU trade actions; needle coke pricing relatively flat; long-term demand supported by EAF growth .
Battery materials strategy: GrafTech sees partnership role (needle coke supply, graphitization capacity/expertise), rather than standalone anode production; progress dependent on non-China supply chain development and tariffs .
Tariffs: India 50% tariff supportive of U.S. negotiations; management expects continued U.S. share gains in 2026 conversations .
U.S. pricing: Flat to slightly up sequentially; U.S. pricing influenced less by China than other regions due to existing protections .

Estimates Context

Q3 2025 beat: Revenue $143.998M vs $139.33M consensus (+3.4%); Primary/Adjusted EPS -$1.03 vs -$1.2014 (+$0.17). Beat driven by $11M deferred revenue recognition and cost reductions offsetting weak pricing . Values retrieved from S&P Global.*
Forward look: Q4 2025 consensus revenue ~$140M and EPS -$1.16*, with management guiding 2025 sales volume growth of 8–10% and ~10% YoY decline in cash COGS/MT, implying potential upward bias to cost assumptions but disciplined volume posture in a low-price environment . Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue and adjusted EPS both beat consensus, aided by a one-time revenue benefit and improved cost profile; GAAP losses persist but margin trajectory is improving . Values retrieved from S&P Global.*
Raised full-year cost-savings guidance (cash COGS/MT ~-10% YoY) is a credible lever as mix shifts to the U.S. and procurement/energy initiatives progress, partially insulating profitability from weak pricing .
U.S. demand/pricing resilience and EU trade protections are medium-term positives; management expects supportive policy to drive higher utilization and electrode demand into 2026 .
Balance sheet/liquidity ($384M) and no material maturities until Dec 2029 provide runway to execute through cyclical troughs while maintaining optionality for partnerships in battery materials .
Watchlist for Q4: pace of U.S. market share gains, realized price trajectory, working capital release, and any follow-through from EU/U.S. trade measures; also monitor tariff impacts (<1% of 2025 costs guided) and interest expense drag .
Estimate revisions: modest upward pressure on near-term adjusted EPS from cost execution; revenue likely to track volumes as pricing remains constrained; any incremental trade-policy support or demand uptick could enhance 2026 outlook .

* Consensus/estimate values retrieved from S&P Global via GetEstimates. All other figures and statements are sourced from company filings, press releases, and the Q3 2025 earnings call as cited.

GRAFTECH INTERNATIONAL LTD (EAF)·Q3 2025 Earnings Summary