NYSE$EAF

GrafTech International Ltd. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter 2023 results and successfully executed plans to navigate current market conditions. Received regulatory approval to restart production activities at St. Marys, Pennsylvania facility.

GrafTech reported a net loss of $7 million, or $0.03 per share, with adjusted EBITDA of $15 million. The company's sales volume was 17 thousand metric tons, and production volume was 16 thousand metric tons. They also saw $25 million in cash flow from operating activities.

  • Net loss of $7 million, or $0.03 per share
  • Adjusted EBITDA of $15 million
  • Sales volume of 17 thousand metric tons
  • Received regulatory approval to restart production activities at St. Marys, Pennsylvania facility

Headline financials

Total Revenue

$139M

Previous: $366M-62.1%
EPS (adj)

-$0.02

Previous: $0.48-104.2%
Capital Expenditures

-$25.3M

Previous: -$16.9M-49.9%
Free Cash Flow

-$32.6M

Previous: $107M-130.4%
Net Income

-$7.37M

Previous: $124M-105.9%
Operating Income

$2.81M

Previous: $153M-98.2%
Gross Profit

$26.2M

Previous: $175M-85.1%
Cash & Equivalents

$135M

Previous: $85.1M+59.2%
Total Assets

$1.56B

Previous: $1.48B+4.8%
Stock-Based Comp

$796K

Previous: $465K+71.2%

Revenue & EPS history

GrafTech · Revenue · Quarterly

$139M

Q1 2023-62.1%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The suspension of our operations in Monterrey, Mexico in late 2022 will have a significant impact on our sales volume through the end of the second quarter of 2023. We estimate our sales volume for the second quarter of 2023 will be in the range of 24 thousand MT to 27 thousand MT. As a result, we estimate our sales volume for the full year of 2023 will be in the range of 100 thousand MT to 115 thousand MT.

Tailwinds

  • Sales volume levels to begin recovering in the second quarter with further improvement in the second half of the year
  • Modest easing of the impact from inflationary pressures on a sequential basis compared to the first quarter of 2023
  • Steel industry’s accelerating efforts to decarbonize will lead to increased adoption of the electric arc furnace method of steelmaking, driving long-term demand growth for graphite electrodes
  • Demand for petroleum needle coke to accelerate driven by its use to produce synthetic graphite for use in lithium-ion batteries for the growing electric vehicle market
  • Vertical integration into petroleum needle coke production via our Seadrift facility, will optimally position GrafTech to benefit from these sustainable industry tailwinds

Headwinds

  • Suspension of operations in Monterrey, Mexico will have a significant impact on our sales volume through the end of the second quarter of 2023
  • Continued soft demand for graphite electrodes due to ongoing economic uncertainty and geopolitical conflict
  • Graphite electrode inventory levels at our customers that currently exceed typical norms
  • Significant year-over-year increase in our cash cost of goods sold per MT as fixed costs are being recognized over a smaller volume base
  • Reflecting the full-year impact of higher raw material costs that increased throughout 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-4.0%

Avg return

Earnings day

-4.9%

Avg return

5 days after

-3.1%

Avg return

30 days after

39%

13 / 33 earnings

Positive

+14.3%

Q4 2020

Best reaction

-46.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+11.2%+15.6%
Q4 2025-46.2%-51.7%-62.8%
Q3 2025-1.9%-24.7%-30.0%
Q1 2025+7.8%-3.1%+59.3%
Q4 2024-9.4%-31.5%-22.1%
Q3 2024+3.9%+2.4%-7.2%
Q2 2024-3.5%-8.9%-13.0%
Q1 2024+3.1%+3.7%+10.6%
Q4 2023+7.6%+5.3%+26.5%
Q3 2023-23.6%-28.9%-22.1%
Q2 2023-21.8%-15.7%-31.5%
Q1 2023-9.9%-14.0%-5.7%
Q4 2022-16.2%-17.9%-12.3%
Q3 2022-3.1%-10.5%+7.6%
Q2 2022-13.0%-11.6%-25.6%
Q1 2022-8.9%-13.0%-2.0%
Q4 2021-12.6%-8.0%-13.2%
Q3 2021+12.7%+11.4%+5.6%
Q2 2021-6.6%-0.3%-4.1%
Q1 2021-2.0%-6.2%-2.0%
Q4 2020+14.3%+20.4%+11.8%
Q3 2020-9.3%+0.3%+39.2%
Q2 2020+9.3%+9.3%+1.9%
Q1 2020-14.3%-14.8%+11.5%
Q4 2019-5.6%-5.4%-31.9%
Q3 2019+2.2%+8.6%-3.0%
Q2 2019-1.6%-5.3%+9.0%
Q1 2019+2.2%+6.7%-13.4%
Q4 2018+0.8%+7.6%-5.8%
Q3 2018-0.6%-4.3%-13.6%
Q2 2018+0.4%-2.5%-15.6%
Q4 2017+8.3%+14.0%+18.6%
Q1 2018+8.3%+14.0%+18.6%
Q3 2017
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Q4 2016
Q1 2017
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Q4 2015
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Q4 2014
Q3 2014
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Q1 2014
Q4 2013
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Q4 2012
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Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2009
Q1 2010
Q4 2009
Q3 2009
Q3 2008
Q2 2009
Q4 2008
Q4 2007
Q2 2008

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