Ferroglobe (5FG) Q3 2026 Earnings Report

The call reflected a difficult third quarter, with sequential declines in shipments, revenue, adjusted EBITDA, and free cash flow, alongside significant energy-cost pressure and a weak European ferrosilicon market. However, management highlighted substantial cost-reduction opportunities, improving silicon metal pricing from trade actions, progress in critical materials and Coreshell, positive manganese-based alloys trends, and a solid balance sheet. The positive strategic developments partially offset the current operating challenges, resulting in a balanced overall tone.

Ferroglobe expects its cost reduction program, once fully implemented, to enhance annual EBITDA by approximately $100 million, plus or minus 15%, increase capacity utilization to 80%, up from less than 60%, today, close 5 plants, reduce its corporate and operations workforce by approximately 20%, target working capital reduction of $3.04 billion dollars, and require upfront costs in the range of $40 million to $60 million net of targeted working capital reduction over an 18-month period; the company expects the fourth quarter to remain challenging due to energy costs and weak ferrosilicon market in Europe, does not expect material changes in working capital in the fourth quarter, expects CapEx to decline significantly in the fourth quarter, expects additional ferromolybdenum shipments and its first commercial shipment of other critical ferroalloys in the fourth quarter, expects to present its final proposal on critical materials this month in November, and expects negotiations to begin in early 2027 and conclude before the end of the first quarter.