NYSE$EAF

GrafTech International Ltd. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong results across key metrics due to improvements in the global steel market.

GrafTech International Ltd. reported strong second-quarter results driven by improvements in the global steel market. The company's sales and production volumes steadily improved, and they anticipate continued recovery in the industry for the remainder of the year.

  • Net income of $28 million, or $0.11 per share, including one-time Change in Control charges of $88 million.
  • Adjusted net income of $114 million, or $0.43 per share.
  • Adjusted EBITDA of $160 million.
  • Sales volume increased 16% sequentially over first quarter 2021 and 39% year over year.

Headline financials

Total Revenue

$331M

Previous: $281M+17.8%
EPS (adj)

$0.43

Previous: $0.35+22.9%
Capital Expenditures

-$26.1M

Previous: -$24.4M-7.0%
Free Cash Flow

$2.11M

Previous: $68.4M-96.9%
Net Income

$28.2M

Previous: $92.8M-69.6%
Operating Income

$52.1M

Previous: $133M-61.0%
Gross Profit

$129M

Previous: $150M-14.1%
Cash & Equivalents

$114M

Previous: $188M-39.2%
Total Assets

$1.4B

Previous: $1.53B-8.9%
Stock-Based Comp

$15.3M

No prior period

Revenue & EPS history

GrafTech · Revenue · Quarterly

$331M

Q2 2021+17.8%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

GrafTech expects to see improvement in its reported non-LTA pricing in the second half of 2021 and into 2022, driven by increasing customer demand and growth in the graphite electrode market.

Tailwinds

  • Continued improvement in the global steel market.
  • Increasing customer demand.
  • Growth in the graphite electrode market.
  • Improvement in non-LTA pricing expected in the second half of 2021.
  • Company well-positioned for success in the improving market.

Headwinds

  • One-time Change in Control charges impacted net income.
  • Global graphite electrode overcapacity may adversely affect graphite electrode prices.
  • Cyclical nature of the business and selling prices of products may lead to reduced profitability.
  • Dependence on the global steel industry and electric arc furnace steel industry.
  • Dependence on the supply of petroleum needle coke.

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 Q2 2021

Historical avgQ2 2021

-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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Q1 2017
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Q1 2012
Q4 2011
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Q1 2011
Q4 2010
Q3 2010
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Q1 2009
Q1 2010
Q4 2009
Q3 2009
Q3 2008
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Q4 2008
Q4 2007
Q2 2008

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