EarningsQ3 2026 Earnings Report
MX:EAF Q3 2026 EPS Results
Actual EPS-$22.73
Consensus EPS-$25.98
Beat/MissBeat by +$3.25
One Year Ago EPS-$19.35
MX:EAF Q3 2026 Revenue Results
Actual Revenue$2.63B
Expected Revenue$2.38B
Beat/MissBeat by +$252.38M
YoY Revenue Growth-2.66%
Earnings Announcement Details
QuarterQ3 2026
Date10/23/2026
TimeBefore Open
Conference CallFriday, October 23, 2026
MX:EAF Upcoming Earnings
GrafTech International's next earnings date is estimated for January 29, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:EAF Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
Higher Pricing Commitments and 2027 Pricing Momentum
The 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 Accretive
Management 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 Growth
Year-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 Year
Third-quarter production volume was approximately 27 thousand metric tons, an increase of 2% compared to the prior-year quarter.
Cost Improvement Progress
Third-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 Benefits
The 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 Track
Customer 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 Conditions
Graphite 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 Market
Petroleum 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 China
Global 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 Outlook
Management 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 Applications
The 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 Collaboration
The 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 Flow
Net 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 Profile
The 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 Levels
Through 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.
MX:EAF Earnings History
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.
Beat
Missed