NYSE$EAF
GrafTech International Ltd. · Q4 2021 earnings
Q4 2021 earnings · · Investor relations
Briefing
GrafTech's Q4 2021 financial results were announced, with improved market conditions and strong execution driving a favorable finish to the year and a positive outlook for 2022.
GrafTech International Ltd. reported a net income of $141 million, or $0.54 per share, and adjusted earnings per share of $0.50 for the fourth quarter of 2021. Sales and production volumes increased compared to the fourth quarter of 2020, and the company reduced debt by $100 million during the quarter.
- Net income was $141 million, or $0.54 per share, with adjusted earnings per share at $0.50.
- Sales volume increased 19% compared to the fourth quarter of 2020.
- Production volume increased 28% compared to the fourth quarter of 2020.
- Debt was reduced by $100 million during the quarter.
Headline financials
Revenue & EPS history
GrafTech · Revenue · Quarterly
$363M
Forward guidance
The steel industry has experienced unprecedented pricing over the past 12 months. While pricing has retreated recently, it remains well above historical levels and the near-term fundamentals in the steel industry remain strong. More broadly, the industry is continuing to look for ways to de-carbonize and many of these efforts are focused on moving away from traditional blast furnace production to electric arc furnace steel production. GrafTech is well-positioned to benefit from these events in 2022 and beyond.
Tailwinds
- Market trends continued to improve in the fourth quarter of 2021 and are expected to continue into 2022.
- Average non-LTA graphite electrode price increased 10% sequentially from the third quarter of 2021.
- First quarter average non-LTA prices are expected to increase an additional 17-20% over the fourth quarter.
- The company is well-positioned to benefit from the steel industry's efforts to de-carbonize.
- Focus on investing in our business, strengthening our balance sheet and opportunistic purchases under the remaining $159 million stock repurchase authorization.
Headwinds
- Steel pricing has retreated recently, though it remains well above historical levels.
- Cost increases are expected in 2022, driven by global inflationary pressures, particularly for third-party needle coke, energy, and freight.
- Capital expenditures in 2022 are expected to be in the range of $70 to $80 million.
- The ultimate impact the COVID-19 pandemic has on our business, results of operations, financial condition and cash flows, including the duration and spread of any variants, the duration and scope of related government orders and restrictions, the impact on our employees, and the disruptions and inefficiencies in our supply chain
- Global graphite electrode overcapacity may adversely affect graphite electrode prices
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q4 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
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2025 | — | — | — | |
| 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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