GrafTech loss deepens as graphite electrode pricing remains under pressure

GrafTech International (NYSE:EAF) reported a significant fourth-quarter loss that missed analyst estimates, as the company grapples with an "unsustainably low" pricing environment despite aggressive cost-cutting and a strategic pivot to the U.S. market.

The Brooklyn Heights, Ohio-based manufacturer of graphite electrodes—essential components for electric arc furnace (EAF) steelmaking—reported a net loss of $65 million, or $2.50 per share.

This performance fell short of Wall Street’s consensus estimate of a $1.28 loss per share.

Total revenue for the period was $116 million, down from the $140 million expected by analysts, as global demand for steel remains muted amid macroeconomic uncertainty.

A bright spot in the report was the company’s success in shifting its geographic mix.

Sales volumes in the United States surged 83% year-over-year in the fourth quarter, reflecting a concerted effort to capture domestic market share.

Furthermore, GrafTech managed to lower its cash cost of goods sold per metric ton by 11% for the full year, a critical move as it navigates a period of negative adjusted EBITDA, which stood at negative $22 million for the quarter.