NYSE$EAF

GrafTech International Ltd. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Exceeded cost reduction goals, generated positive cash flow, and grew sales volume.

GrafTech International Ltd. reported a net sales of $131 million and a net loss of $36 million, or $0.14 per share for Q3 2024. The company exceeded cost reduction goals and generated positive cash flow through working capital and capital expenditure management. They also grew sales volume 9% year-over-year.

  • Exceeded cost reduction goals resulting in significant cost improvement.
  • Generated positive cash flow through working capital and capital expenditure management.
  • Grew sales volume 9% year-over-year to 26.4 thousand metric tons.
  • Announced financing agreement that will increase liquidity and extend debt maturities.

Headline financials

Total Revenue

$131M

Previous: $159M-17.8%
EPS

-$0.14

Previous: -$0.08-75.0%
Sales Volume (MT)

26.4K

No prior period
Production Volume (MT)

19.4K

No prior period
Capacity Utilization

46.0%

No prior period
Cash Cost of Goods Sold per MT

$4.2K

No prior period
Capital Expenditures

-$21.5M

Previous: -$48.3M+55.4%
Free Cash Flow

-$57.6M

Previous: -$70.9M+18.8%
Net Income

-$36.1M

Previous: -$22.6M-59.4%
Operating Income

-$26.3M

Previous: -$18.1M-44.9%
Gross Profit

-$12.1M

Previous: $1.39M-969.3%
Total Assets

$1.14B

Previous: $1.48B-22.9%
R&D Expense

$1.25M

Previous: $1.3M-3.9%
Stock-Based Comp

$1.84M

Previous: $1.63M+12.9%

Revenue & EPS history

GrafTech · Revenue · Quarterly

$131M

Q3 2024-17.8%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The demand for graphite electrodes in the near term will remain weak, reflecting persistent challenges in the commercial environment. Despite these headwinds, the company expects a low double-digit percentage point year-over-year improvement in sales volume for the full year of 2024.

Tailwinds

  • Expect a low double-digit percentage point year-over-year improvement in sales volume for the full year of 2024.
  • Sales volume in the fourth quarter of 2024 is expected to be broadly in line with sales volume for the third quarter of 2024.
  • For 2025, we expect another year of low double-digit percentage point sales volume growth.
  • Expect the year-over-year decline in our full-year 2024 cash cost of goods sold per MT to exceed our previous guidance of a mid-teen percentage point decline compared to 2023.
  • For 2024, we now expect the net impact of working capital will be favorable to our full-year cash flow performance.

Headwinds

  • Demand for graphite electrodes in the near term will remain weak.
  • Steel industry production remains constrained by global economic uncertainty.
  • Challenging pricing dynamics have persisted in most regions.
  • Remain selective in the commercial opportunities we choose to pursue.
  • Anticipate our full-year 2024 capital expenditures will be in the range of $35 million to $40 million.

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 2024

Historical avgQ3 2024

-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 2014
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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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