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GrafTech International
(NYSE:EAF)
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Rating:46Neutral
Price Target:
$6.00
▼(-19.25% Downside)
Action:Reiterated
Date:09/06/26
EAF scores low primarily due to very weak financial performance (sharp revenue decline, sustained losses, negative equity, and recent cash burn) and bearish technicals (price below key moving averages with negative MACD). The score is partially supported by the earnings call’s improving operational indicators (higher utilization, committed volumes, and higher-priced commitments) and a capacity-alignment action, but near-term cash flow and pricing pressure remain key risks.
Positive Factors
Improving production utilization and sales volumes
Higher utilization and growing sales volumes indicate operational stabilization and better absorption of manufacturing costs. If sustained, this improvement can support lower unit costs, strengthen plant economics, and provide a foundation for recovering profitability as demand and pricing improve.
Negative Factors
Negative equity and elevated leverage
Negative equity and debt exceeding the asset base materially weaken financial flexibility and increase solvency risk. This structure can constrain investment, reduce resilience during a prolonged industry downturn, and leave the company more dependent on improving operations or refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving production utilization and sales volumes
Higher utilization and growing sales volumes indicate operational stabilization and better absorption of manufacturing costs. If sustained, this improvement can support lower unit costs, strengthen plant economics, and provide a foundation for recovering profitability as demand and pricing improve.
Read all positive factors
GrafTech International Key Performance Indicators (KPIs)
Any
Sales Volume
Indicates the quantity of products sold, providing insight into market demand, revenue potential, and competitive position.
Indicates the quantity of products sold, providing insight into market demand, revenue potential, and competitive position.
Data provided by:
The Fly
The FlyGrafTech International (EAF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$164.38M
Dividend Yield0.9%
Average Volume (3M)281.86K
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth0.86%
EPS Growth17.02%
CountryUS
Employees1,071
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.68
Shares Outstanding26,092,163
10 Day Avg. Volume317,063
30 Day Avg. Volume281,864
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)-15.54
Price to Sales (P/S)8.00
P/FCF Ratio-33.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$7.25Price Target Upside-2.42% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-5.74
Revenue Forecast (FY)$505.22M
GrafTech International Business Overview & Revenue Model
Company Description
GrafTech International Ltd. is a global enterprise dedicated to the research, development, manufacturing, and sale of a diverse range of graphite and carbon-based solutions. The company's key offerings include graphite electrodes, which are crucia...
How the Company Makes Money
GrafTech makes money mainly by manufacturing and selling graphite electrodes, with demand tied closely to electric arc furnace (EAF) steel production volumes and operating rates. Its primary revenue stream is product sales of graphite electrodes (...
GrafTech International Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Neutral
The call presented a balance of operational and commercial progress (volume growth, higher utilization, cost reductions, order book commitments, liquidity and vertical integration) alongside persistent near-term challenges (realized pricing pressure, low EBITDA, negative free cash flow, industry oversupply, and input-cost inflation). Management is focused on executing pricing, cost and strategic initiatives to drive recovery with benefits expected to accrue into 2027.Positive Updates
Sales Volume Growth and U.S. Strength
Sales volume rose to ~31,000 metric tons, representing 8% year-over-year growth and 10% sequential growth; U.S. sales volume increased 29% year-over-year, reflecting strong domestic demand.
Negative Updates
Decline in Net Sales
Net sales were $127 million for the quarter, down 3% year-over-year as the benefit of higher volumes was offset by lower weighted average realized pricing.
Read all updates
Q2-2026 Updates
Positive
Negative
Sales Volume Growth and U.S. Strength
Sales volume rose to ~31,000 metric tons, representing 8% year-over-year growth and 10% sequential growth; U.S. sales volume increased 29% year-over-year, reflecting strong domestic demand.
Read all positive updates
Company Guidance
GrafTech reaffirmed full‑year guidance calling for sales volume growth of 5–10% and a modest (low‑single‑digit percent) year‑over‑year reduction in cash COGS per metric ton while targeting long‑run cash costs of $3,600–$3,700/mt; Q2 production exceeded 33,000 mt (74% capacity utilization, highest since 2022) with sales ≈31,000 mt (up 8% y/y and 10% sequentially; U.S. sales +29% y/y), a weighted‑average realized price of ≈$3,900/mt (flat sequential, down ~7% y/y), adjusted EBITDA of $2m, net cash used in operations of $69m and adjusted free cash flow of -$75m, planned capex ≈$35m, total liquidity ≈$253m (cash $145m + $108m revolver), drew the remaining $100m DDTL in June, and noted no material debt maturities until December 2029; management said >80–90% of anticipated 2026 volume is committed (new commitments on average >15% above prior levels), each $100/mt improvement in ASP would add ~$12m of annual cash flow, Q2 should be the peak cash usage with H2 improvement as inventories normalize, and rising needle‑coke costs ($200–$300/ton observed) could further support higher electrode pricing.GrafTech International Financial Statement Overview
Summary
Income Statement
14
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 512.92M | 504.13M | 538.78M | 620.50M | 1.28B | 1.35B |
| Gross Profit | -29.44M | -15.68M | -22.19M | 26.66M | 545.40M | 653.70M |
| EBITDA | -52.34M | -4.74M | 1.67M | -145.21M | 546.80M | 589.04M |
| Net Income | -177.35M | -219.84M | -131.16M | -255.25M | 382.96M | 388.33M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.03B | 1.22B | 1.29B | 1.60B | 1.41B |
| Cash, Cash Equivalents and Short-Term Investments | 145.36M | 138.43M | 256.25M | 176.88M | 134.64M | 57.51M |
| Total Debt | 1.20B | 1.09B | 1.09B | 930.75M | 921.93M | 1.03B |
| Total Liabilities | 1.39B | 1.29B | 1.30B | 1.21B | 1.27B | 1.39B |
| Stockholders Equity | -345.56M | -259.63M | -78.90M | 78.25M | 337.71M | 23.40M |
Cash Flow | ||||||
| Free Cash Flow | -117.38M | -120.50M | -74.40M | 22.52M | 252.46M | 384.78M |
| Operating Cash Flow | -73.67M | -81.62M | -40.09M | 76.56M | 324.63M | 443.04M |
| Investing Cash Flow | -33.92M | -38.33M | -34.21M | -53.82M | -71.97M | -57.86M |
| Financing Cash Flow | 100.21M | -341.00K | 155.72M | 18.71M | -176.27M | -471.79M |
GrafTech International Technical Analysis
Negative
7.43
Price Trends
6.86
Negative
7.81
Negative
9.69
Negative
Market Momentum
-0.24
Positive
37.99
Neutral
13.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAF, the sentiment is Negative. The current price of 7.43 is above the 20-day moving average (MA) of 6.95, above the 50-day MA of 6.86, and below the 200-day MA of 9.69, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 37.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EAF.
GrafTech International Risk Analysis
GrafTech International disclosed 29 risk factors in its most recent earnings report. GrafTech International reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GrafTech International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.51B | 18.75 | 18.48% | 0.59% | 3.73% | 7.60% | |
74 Outperform | $2.01B | 46.09 | 9.03% | 0.20% | 17.07% | 3.40% | |
64 Neutral | $1.44B | 16.97 | 47.41% | 5.94% | 2.17% | -66.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $3.16B | -1.60 | -176.19% | ― | 10.59% | 41.83% | |
49 Neutral | $1.42B | -4.83 | -22.15% | ― | 1.09% | 62.70% | |
46 Neutral | $164.38M | -9.07 | 64.26% | 0.90% | 0.86% | 17.02% |
* Industrials Sector Average
EAF
GrafTech International
6.17
-1.55
-20.08%
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GrafTech International Corporate Events
Business Operations and Strategy
GrafTech to Close Monterrey Graphite Electrode Facility
Negative
Aug 31, 2026
On August 6, 2026, GrafTech’s board approved a plan to permanently cease manufacturing operations at its graphite electrode and pin facility in Monterrey, Mexico, with employee notifications beginning on August 31, 2026. The company aims to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.