NYSE$EAF

GrafTech International Ltd. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strength in market conditions supporting improved pricing and profitability.

GrafTech International Ltd. announced third quarter 2021 financial results with net income of $120 million, or $0.45 per share. Sales volume increased 33% compared to the third quarter of 2020. The company reduced debt by $100 million in the quarter and repurchased 4.3 million shares of stock for $46 million.

  • Net income of $120 million, or $0.45 per share, and net income margin of 35%.
  • Adjusted EBITDA of $172 million, for a 50% adjusted EBITDA margin.
  • Sales volume increased 33% compared to the third quarter of 2020.
  • Reduced debt $100 million and $300 million year-to-date through the third quarter.

Headline financials

Total Revenue

$347M

Previous: $287M+21.0%
EPS (adj)

$0.45

Previous: $0.35+28.6%
Capital Expenditures

-$40.4M

Previous: -$30.7M-31.7%
Free Cash Flow

$79.5M

Previous: $63.5M+25.0%
Net Income

$120M

Previous: $94.2M+27.2%
Operating Income

$157M

Previous: $135M+16.0%
Gross Profit

$177M

Previous: $155M+14.1%
Cash & Equivalents

$86.7M

Previous: $159M-45.4%
Total Assets

$1.39B

Previous: $1.47B-5.1%
Stock-Based Comp

$262K

No prior period

Revenue & EPS history

GrafTech · Revenue · Quarterly

$347M

Q3 2021+21%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

In the fourth quarter, GrafTech expects its non-LTA price for graphite electrodes delivered and recognized in revenue to be 7-9% higher than in the third quarter of 2021. In 2022, the company expects its non-LTA pricing to be significantly higher than the second half of 2021. Cost increases are also expected in the fourth quarter of 2021 and into 2022.

Tailwinds

  • Expects Q4 non-LTA price to be 7-9% higher than Q3 2021.
  • Expects non-LTA pricing to be significantly higher in 2022 than H2 2021.
  • Global steel market capacity utilization rates continue to be strong.
  • Continue to make progress in reducing our long-term debt
  • The Company is now authorized to repurchase up to $163 million in shares of the Company’s common stock

Headwinds

  • Expects some cost increases in the fourth quarter of 2021 and into 2022.
  • Cost increases driven by recent global cost pressures, particularly for third-party needle coke, energy, and freight.
  • The cyclical nature of our business and the selling prices of our products may lead to periods of reduced profitability and net losses in the future
  • The possibility that global graphite electrode overcapacity may adversely affect graphite electrode prices
  • Pricing for graphite electrodes has historically been cyclical and the price of graphite electrodes may decline in the future

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 Q3 2021

Historical avgQ3 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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Q4 2016
Q1 2017
Q3 2016
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Q4 2015
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Q4 2014
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Q4 2013
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Q4 2012
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Q1 2012
Q4 2011
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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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