NYSE$EAF

GrafTech International Ltd. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results, reflecting persistent softness in the commercial environment. A cost rationalization and footprint optimization plan was announced.

GrafTech International Ltd. reported a challenging year in 2023, with Q4 net loss of $217 million, impacted by a goodwill impairment charge of $171 million and LCM inventory valuation adjustment of $12 million. The company is taking actions to reduce costs and optimize its manufacturing footprint in response to ongoing softness in the commercial environment.

  • Net loss of $217 million, or $0.85 per share, including a goodwill impairment charge of $171 million and a lower of cost or market ("LCM") inventory valuation adjustment of $12 million.
  • Adjusted EBITDA of negative $22 million, including the LCM inventory valuation adjustment.
  • Sales volume of 24 thousand metric tons ("MT").
  • Net cash provided by operating activities of $9 million.
  • Adjusted free cash flow of $4 million

Headline financials

Total Revenue

$137M

Previous: $248M-44.6%
EPS (adj)

-$0.27

Previous: $0.17-258.8%
Capital Expenditures

-$5.75M

Previous: $26.9M-121.4%
Net Income

-$217M

Previous: $50.3M-532.0%
Operating Income

-$208M

Previous: $63.9M-425.1%
Gross Profit

-$40.7M

Previous: $84M-148.5%
R&D Expense

$1.84M

No prior period
Stock-Based Comp

$624K

Previous: $645K-3.3%

Revenue & EPS history

GrafTech · Revenue · Quarterly

$137M

Q4 2023-44.6%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

GrafTech anticipates weak demand for graphite electrodes in the near term due to persistent softness in the commercial environment. They expect a modest year-over-year improvement in sales volume for 2024 and are taking actions to reduce costs and optimize their manufacturing footprint.

Tailwinds

  • Anticipate a modest year-over-year improvement in our sales volume for 2024, most notably in the first quarter of 2024
  • Actions to further reduce our cost structure and optimize our manufacturing footprint.
  • Benefit of reduced market pricing for certain raw materials and energy
  • Anticipated improvement in our sales and production volume levels
  • Expected to result in a significant year-over-year decline in our cash cost of goods sold per MT.

Headwinds

  • Expect demand for graphite electrodes in the near term will remain weak
  • Reflecting persistent softness in the commercial environment
  • Steel industry production remains constrained by global economic uncertainty
  • Challenging pricing dynamics have persisted in most regions.
  • Being selective in the commercial opportunities we choose to pursue.

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 Q4 2023

Historical avgQ4 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

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
Q2 2017
Q4 2016
Q1 2017
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
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Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
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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