The following is a summary of the GrafTech International Ltd. (EAF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• GrafTech reported a Q3 2024 net loss of $36 million or $0.14 per share, compared to a slight profit in the same quarter the previous year.

• Adjusted EBITDA for Q3 2024 was negative $6 million, influenced by lower weighted average pricing and a shift towards non-LTA volumes, although partially offset by significant reductions in cash costs.

• Consolidated sales volume increased by 9% year-over-year, and year-to-date sales volume was up 13% from the prior year.

• The company achieved a $20 million free cash flow in Q3.

Business Progress:

• GrafTech is leveraging its vertical integration into needle coke, expanding into the 800-millimeter electrode market with successful initial trials, signaling potential growth.

• Announced a strategic financing transaction to enhance liquidity and extend debt maturities, aiming to strengthen financial stability and support long-term growth.

• Implemented cost control measures resulting in a 28% reduction in cash COGS per metric ton, with additional reductions anticipated.

Opportunities:

• The company expects low double-digit sales volume growth for 2025, driven by ongoing market share recovery and strategic customer engagements.

• Long-term growth avenues include an increasing shift to electric arc furnace steelmaking and anticipated high demand for needle coke, both from the steel and electric vehicle sectors.

Risks:

• The cyclicality of the steel industry and current low steel capacity utilization rates pose risks to demand for GrafTech's products.

• The company faces challenges from competitive dynamics and weak pricing environments in the graphite electrode market, exacerbated by increased electrode exports from countries like India and China.

More details: GrafTech IR

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