GrafTech sales fall 3% to $140.163 million in third quarter
Key Facts
GrafTech reported net sales of $140.163 million in the third quarter of 2026, down 3% from $143.998 million in the year-earlier period. The company attributed the decline mainly to a lower weighted-average realized price. That price was about $3,900 per metric ton, down 7% year over year. It was unchanged from the second quarter of 2026. The figures put pricing pressure at the forefront of the company's quarterly performance, despite the realized price holding steady between the two most recent quarters.
GrafTech reported second-quarter sales of $127 million and a net loss of $40 million, or $1.54 per share. Adjusted EBITDA was $2 million that quarter. In the first half of 2026, sales rose $8.8 million, or 4%, from the same period in 2025. The company said sales volume growth partly offset the decline in the weighted-average realized price. Electrode sales volume in the second quarter was 30.8 thousand metric tons, up 8% year over year and 10% from the first quarter.
In the second quarter, the weighted-average realized price was also about $3,900 per metric ton, down 7% year over year. The company attributed the pressure to continued competition across most of its key commercial regions. The realized price's stability in the third quarter compared with the previous quarter means the sequential decline paused, but it remained below its level a year earlier. In September, GrafTech announced an increase of at least 30% in graphite electrode prices, effective immediately for open commercial negotiations. It said the move was intended to restore prices to sustainable levels that support investment and long-term supply.
The company maintained its forecast for graphite electrode sales volume growth of between 5% and 10% in 2026 compared with the prior year. It also forecast in its second-quarter report a low-single-digit decline in cash cost of goods sold per ton in 2026 compared with 2025. For the fourth quarter, GrafTech expects the weighted-average realized price to rise by a mid-single-digit percentage compared with the third quarter. This puts pricing at the center of the outlook for the coming period, following the year-over-year decline in the third quarter. The available information did not provide a specific figure for the expected fourth-quarter increase.
The company's total liquidity was $242 million as of September 30, 2026, comprising $134 million in cash and cash equivalents and $108 million available under its revolving credit facility. Total debt was $1.225 billion, with virtually no significant maturities until December 2029. As part of its cost-reduction efforts, GrafTech plans to close its graphite electrode facility in Monterrey in phases, with production expected to end in early second quarter of 2027. The company estimates annual cash cost savings of between $20 million and $25 million, excluding one-time costs. It expects to realize the full annual benefit in 2028.
EL7 data showed the company's stock closed at $7.45 on October 21 and recorded the same closing price on October 22. These prices preceded the third-quarter results announcement on October 23 and do not represent the stock's movement after the results were released. The Monterrey plan provides a later timeline for cost reductions, as its impact begins after production is expected to end in 2027. The price increase announced in September applies to open commercial negotiations, while the company's fourth-quarter forecast points to a mid-single-digit rise in the realized price. Its forecast for graphite electrode sales volume growth of between 5% and 10% in 2026 remains part of its guidance for the rest of the year.