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GrafTech International (EAF) Q3 2026 Earnings Report
EAF Q3 2026 EPS Results
- Actual EPS
- -$1.21
- Consensus EPS
- -$1.38
- Beat/Miss
- Beat by +$0.17
- One Year Ago EPS
- -$1.03
EAF Q3 2026 Revenue Results
- Actual Revenue
- $140.16M
- Expected Revenue
- $126.73M
- Beat/Miss
- Beat by +$13.43M
- YoY Revenue Growth
- -2.66%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
GrafTech International's next earnings date is estimated for January 29, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call had a cautiously positive strategic tone. Current financial results remained weak, with a larger net loss, lower sales, lower realized pricing, reduced sequential production, and negative free cash flow. However, management emphasized improving customer pricing commitments, expected 2027 pricing gains, cost-reduction initiatives, manufacturing footprint optimization, improving steel and needle coke markets, attractive synthetic graphite opportunities, improved liquidity, and extended debt maturities.
Management expects a mid single digit percentage increase in realized pricing in the fourth quarter, with a significant increase in realized pricings anticipated in 2027 compared to 2026; approximately 60 to 65% of the 2027 order book is expected to be confirmed by the first quarterly call in February, and annual graphite electrode production capacity is expected to be 127 thousand metric tons upon completion of the Monterrey transition early in the second quarter of 27. Full year sales volume growth is expected between 5% to 10%, cash cost of goods sold per metric ton is expected to decline by a low single digit percentage in 2026 compared to 2025, capital expenditures are expected to be approximately $35 million, and working capital is expected to show a modest increase. The Monterrey closure is expected to provide annual cash cost savings of approximately $20 million to $25 million with the full benefit expected in 2028, reduce annual capital expenditure requirements by approximately $5 million beginning in 2027, release approximately $20 million to $25 million of working capital with the majority anticipated to occur in 2028, and incur approximately $20 million to $25 million of onetime cash costs, the majority of which is expected to be incurred by the end of 27. Graphite electrode demand outside of China is expected to increase at a compound annual growth rate of approximately 3% in the coming years, while needle coke prices were expected to continue to creep up as the company headed into Q1 and Q2 of next year.
- Higher Pricing Commitments and 2027 Pricing MomentumThe company continued securing customer commitments at higher-priced levels during the third quarter and early fourth quarter. It expects a mid single digit percentage increase in realized pricing in the fourth quarter, with a significant increase in realized pricing anticipated in 2027 compared to 2026. The initial 2026 price increase represented approximately a 15% uplift on applicable new commitments, while a further 30% price increase was announced in September.
- Pricing Expected to Be Margin AccretiveManagement stated that the pricing increase and momentum being built are expected to be margin accretive and to more than offset cost increases from energy and raw materials.
- Sales Volume GrowthYear-to-date sales volume increased approximately 7% compared to the first 9 months of 2025, keeping the company on track for its full-year expectation of sales volume growth between 5% to 10%.
- Production Increased Year Over YearThird-quarter production volume was approximately 27 thousand metric tons, an increase of 2% compared to the prior-year quarter.
- Cost Improvement ProgressThird-quarter cash costs of goods sold per metric ton declined approximately 4% compared to the prior-year quarter. The company continues to expect a low single digit percentage decline in cash cost of goods sold per metric ton for the full year of 2026 compared to 2025.
- Manufacturing Footprint Consolidation BenefitsThe planned closure of the Monterrey, Mexico, facility is expected to generate annual cash cost savings of approximately $20 million to $25 million, reduce annual capital expenditure requirements by approximately $5 million beginning in 2027, and release approximately $20 million to $25 million of working capital, with the majority of the working-capital benefit anticipated in 2028.
- Manufacturing Transition on TrackCustomer requirements currently served by Monterrey are planned to transition to Calais, France, and Pamplona, Spain. The transition of connecting pin production capacity to Pamplona is in process and on track. Upon completion early in the second quarter of 2027, annual graphite electrode production capacity is expected to be 127 thousand metric tons.
- Improving Graphite Electrode Industry Pricing ConditionsGraphite electrode prices in China increased throughout the year, while Chinese graphite electrode exports declined approximately 10% year over year. Management viewed these developments as indications that the prolonged period of low industry pricing is beginning to change.
- Strengthening Needle Coke MarketPetroleum needle coke prices increased steadily during the year, supported by higher raw material costs and evolving supply and demand conditions. Management estimated current market pricing at approximately $1.7 thousand to $2,000 per ton, compared with approximately $1 thousand to $1.2 thousand at the start of the year, and stated that strengthening needle coke pricing supports higher electrode pricing.
- Steel Market Improvement Outside ChinaGlobal steel production excluding China totaled approximately 142 million metric tons through the first two months of the third quarter, an increase of approximately 2% compared to the corresponding period last year. U.S. steel capacity utilization reached 80% for the second consecutive quarter.
- Long-Term Graphite Electrode Demand OutlookManagement expects graphite electrode demand outside of China to increase at a compound annual growth rate of approximately 3% in the coming years. The World Steel Association was cited as projecting finished steel demand growth outside of China of approximately 1.5% in 2020, accelerating to 4% in 2027.
- Expansion into Synthetic Graphite ApplicationsThe company continues to pursue opportunities for synthetic graphite and petroleum needle coke in battery materials, energy storage, defense, and industrial applications. Management cited GrafTech's vertical integration, manufacturing capabilities, and graphite and carbon science expertise as differentiated capabilities.
- Antora Energy CollaborationThe collaboration with Antora Energy, announced in September, is focused on using GrafTech's manufacturing capabilities at its St. Marys, Pennsylvania, facility to support thermal batteries for industrial applications such as AI data centers. Management said the collaboration represents tangible progress toward developing new revenue opportunities and using idle assets.
- Improved Third-Quarter Cash FlowNet cash used in operating activities was $8 million and adjusted free cash flow was negative $16 million in the third quarter, a significant improvement from the second quarter, when net cash used in operating activities was $69 million and adjusted free cash flow was negative $75 million.
- Strong Liquidity and Extended Debt Maturity ProfileThe company ended the third quarter with approximately $242 million of total liquidity, consisting of $134 million of cash and approximately $108 million of available borrowing capacity under its revolving credit facility. It has substantially no debt maturities until December 2029.
- Safety Performance Remains Below Historical LevelsThrough the first nine months of 2026, the total recordable incident rate was 0.7. Although this was above the full-year 2025 performance, management stated that it remained substantially below levels experienced several years ago.
EAF Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 29, 2027 | 2026 (Q4) | -1.11- | -2.45 | ― | ― |
| Oct 23, 2026 | 2026 (Q3) | -1.38-1.21 | -1.03 | -17.48% (-0.18) | |
| Jul 24, 2026 | 2026 (Q2) | -1.46-1.47 | -1.6 | 8.13% (+0.13) | |
| May 01, 2026 | 2026 (Q1) | -1.30-2.05 | -1.5 | -36.67% (-0.55) | |
| Feb 06, 2026 | 2025 (Q4) | -1.25-2.45 | -1.3 | -88.46% (-1.15) | |
| Oct 24, 2025 | 2025 (Q3) | -1.21-1.03 | -1.3 | 20.77% (+0.27) | |
| Jul 25, 2025 | 2025 (Q2) | -1.25-1.60 | -0.6 | -166.67% (-1.00) | |
| Apr 25, 2025 | 2025 (Q1) | -1.56-1.50 | -1 | -50.00% (-0.50) | |
| Feb 07, 2025 | 2024 (Q4) | -1.22-1.30 | -8.5 | 84.71% (+7.20) | |
| Nov 12, 2024 | 2024 (Q3) | -1.18-1.30 | -0.8 | -62.50% (-0.50) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
