NYSE$EAF
GrafTech International Ltd. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Third quarter results fell short of expectations due to lower industry demand.
GrafTech's third quarter results were below expectations due to lower industry demand. Despite the financial performance, the company generated strong cash flow through cost management and working capital control. The company is making targeted investments to improve operational flexibility and commercial capabilities.
- Net loss of $23 million, or $0.09 per share.
- Adjusted EBITDA of $1 million.
- Sales volume of 24 thousand metric tons.
- Net cash provided by operating activities of $51 million and adjusted free cash flow of $43 million.
Headline financials
Revenue & EPS history
GrafTech · Revenue · Quarterly
$159M
Forward guidance
Demand for graphite electrodes is expected to remain weak in the near term due to the constrained steel industry production. Sales volume in the fourth quarter of 2023 is expected to decline modestly compared to the third quarter of 2023.
Tailwinds
- 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 is expected to accelerate driven by its utilization in producing synthetic graphite for use in lithium-ion batteries for the growing electric vehicle market.
- Vertical integration into petroleum needle coke via the Seadrift facility will optimally position GrafTech to benefit from sustainable industry tailwinds.
- Cash cost of goods sold per MT in the fourth quarter of 2023 will be below the level recognized in the third quarter of 2023.
- The company continues to closely manage its operating costs and capital expenditures, as well as its working capital levels.
Headwinds
- Demand for graphite electrodes in the near term will remain weak.
- Steel industry production remains constrained by global economic uncertainty.
- Sales volume in the fourth quarter of 2023 is expected to decline modestly compared to sales volume in the third quarter of 2023.
- Cash cost of goods sold per MT will be higher compared to the fourth quarter of 2022.
- Significant year-over-year increase in cash cost of goods sold per MT as fixed costs are recognized over a smaller volume base.
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 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
| Quarter | Report date | Reaction (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% | |
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