EL7.AI
StocksMedium•23 October 2026•
5 min read

GrafTech Loss Widens to $46.768 Million in Third Quarter Despite Steady Sales

Key Facts

1Net loss was $46.768 million, or $1.76 per share, in the third quarter of 2026.
2Net sales fell 3% to $140.163 million from $143.998 million a year earlier.
3Sales volume was stable at 28.8 thousand metric tons, while the weighted average realized price fell 7% year over year to about $3,900 per ton.
4GrafTech expects annual cash savings of between $20 million and $25 million from the Monterrey closure, with the full annual impact in 2028.
5The company used $8.445 million in cash in operating activities during the third quarter.

GrafTech International’s net loss widened to $46.768 million, or $1.76 per share, in the third quarter of 2026, compared with a loss of $28.482 million, or $1.10 per share, in the same period of 2025. The company reported results on October 23, the date it had set for a performance discussion call at 10 a.m. Eastern time. The wider loss came despite stable year-over-year sales volume, as lower realized prices and costs related to the plan to close the Monterrey facility weighed on results. Net sales fell to $140.163 million from $143.998 million a year earlier, a 3% year-over-year decline. GrafTech said the decline in the weighted average realized selling price was the primary reason for the drop in sales.

Sales volume was 28.8 thousand metric tons, stable compared with the third quarter of 2025, while the weighted average realized price was about $3,900 per ton. That average fell 7% year over year but remained stable compared with the second quarter of 2026. The divergence between volume and price means weaker revenue came from price, not from selling fewer volumes, according to the indicators reported by the company. Price pressure was also reflected in adjusted EBITDA, which fell to $8.626 million from $13.013 million a year earlier. GrafTech attributed the decline primarily to the lower weighted average realized price, partially offset by a decrease in cash cost of goods sold per metric ton.

The quarter’s results included $14 million in restructuring and other exit costs related to the planned closure of the graphite electrode facility in Monterrey, Mexico, most of which the company said were noncash. GrafTech announced a phased closure plan in August, with production expected to end in early in the second quarter of 2027. The company estimates the initiative will generate annual cash savings of between $20 million and $25 million, excluding one-time costs, with the full annual impact expected in 2028. The company tied the decision to a significant structural global oversupply of graphite electrode capacity, which it said was largely due to capacity expansion in China and India outpacing demand growth in both markets. It added that increased exports from the two countries to key markets are contributing to industry pressure, making cost and capacity reductions part of its response to competition.

In a parallel move to improve returns on sales, GrafTech announced on September 8 an increase of at least 30% in graphite electrode prices, effective immediately for open commercial negotiations, and said the increase builds on a move announced in March. The company expects a mid-single-digit increase in the weighted average realized price in the fourth quarter compared with the third quarter. It also said it expects realized prices to be materially higher in 2027, placing its price outlook at the heart of the recovery path it outlined after a quarter in which the average price fell 7% year over year. These expectations remain company guidance, while third-quarter results showed that lower prices continued to weigh on sales and profitability. GrafTech shares, listed under the ticker EAF, closed at $7.45 on October 22, before the results were announced the following day; that closing price does not reflect a share-price move in response to the announcement.

The company also recorded net cash used in operating activities of $8.445 million during the third quarter. It said operating cash flow was affected by an expected increase in inventory and that it expects to reduce working capital, including inventory, in the fourth quarter. This follows $69 million in cash used in operating activities in the second quarter of 2026, compared with $53 million in the corresponding period of 2025. In July, the company had described the second quarter as the expected peak in quarterly cash needs for 2026, while adjusted free cash flow then stood at negative $75 million, affected by the timing of semiannual interest payments and planned inventory build. The fourth-quarter plan therefore combines an expected inventory reduction with an improvement in average selling price, while the Monterrey savings are targeted to reach their full annual impact in 2028.

The quarterly comparison shows a different trajectory between the second- and third-quarter losses: net loss was $40 million in the second quarter of 2026, compared with $87 million in the second quarter of 2025, but the year-earlier period included a $43 million noncash income tax expense. In the third quarter, the year-over-year loss widened from $28.482 million to $46.768 million, alongside a decline in adjusted EBITDA and restructuring costs. The company is scheduled to discuss its third-quarter results on its announced call on October 23 at 10 a.m. Eastern time. Near-term operating expectations will focus on higher realized prices in the fourth quarter and a reduction in working capital and inventory, according to GrafTech. For the Monterrey plan, the company expects production to end in early in the second quarter of 2027 and its estimated annual savings to reach their full impact in 2028.