Electrode maker GrafTech's Q2 sales fall, net loss widens on higher tax expense
Overview
GrafTech Q2 sales volume up 12% yr/yr, net sales miss analyst expectations
Adjusted EPS for Q2 misses consensus, reflecting lower realized prices
Co reports Q2 net loss of $87 mln, including $43 mln tax expense
Outlook
GrafTech expects 10% increase in 2025 sales volume
Company projects 7-9% decline in cash costs per MT for 2025
GrafTech plans 15% price increase on uncommitted 2025 volumes
U.S. steel production expected to rise modestly in 2025
Result Drivers
SALES VOLUME GROWTH - GrafTech reports a 12% increase in sales volume year-over-year, driven by strategic shifts in geographic sales mix, particularly in the United States
COST REDUCTION - Achieved a 13% year-over-year reduction in cash costs per metric ton, exceeding previous guidance, reflecting ongoing cost-saving initiatives
PRICING PRESSURE - Net sales declined 4% compared to Q2 2024, primarily due to lower weighted-average realized prices amid competitive pressures
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $131.84 mln | $133.60 mln (4 Analysts) |
Q2 Adjusted EPS | Miss | -$0.16 | -$0.13 (4 Analysts) |
Q2 EPS |
| -$0.34 |
|
Q2 Adjusted Net Income | Miss | -$42.25 mln | -$32.60 mln (3 Analysts) |
Q2 Net Income |
| -$86.89 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy."
Wall Street's median 12-month price target for GrafTech International Ltd is $0.90, about 50% below its July 24 closing price of $1.35
Press Release: ID:nBw7DCSPja
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