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Mar 31
Ferroglobe Q1 2025 Earnings Report
Ferroglobe reported a decrease in sales and net income for Q1 2025, with adjusted EBITDA turning negative, while maintaining positive free cash flow.
Key Takeaways
Ferroglobe reported a challenging first quarter of 2025 with sales decreasing by 16.4% quarter-over-quarter and 21.6% year-over-year to $307.2 million. The company posted a net loss of $66.5 million and adjusted EBITDA of $(26.8) million, reflecting an uncertain market environment and lower pricing. Despite this, Ferroglobe generated positive free cash flow of $5.1 million and maintained a strong balance sheet with no net debt.
Adjusted EBITDA was $(26.8) million, a significant decrease from the prior quarter and prior year, primarily due to lower pricing and higher energy costs.
The company generated $5.1 million in free cash flow, which was used to pay increased dividends and repurchase shares.
Sales decreased by 16.4% quarter-over-quarter and 21.6% year-over-year, mainly driven by lower sales volumes and pricing across all portfolio products.
Ferroglobe repurchased 720,008 shares and increased its quarterly cash dividend to $0.014 per share, demonstrating a commitment to returning capital to shareholders despite the challenging quarter.
Ferroglobe
Ferroglobe
Ferroglobe Revenue by Segment
Revenue by Segment
Silicon Metal Revenue
CapyFin.comSilicon-Based Alloys Revenue
CapyFin.comManganese-Based Alloys Revenue
CapyFin.com Forward Guidance
Ferroglobe anticipates significant improvement from the second quarter forward, driven by market trough conditions, supportive trade actions in the U.S., and expected EU safeguard measures.
Positive Outlook
- Anticipates significant improvement in adjusted EBITDA from the second quarter forward.
- Believes the market is at or near its trough, suggesting potential for recovery.
- Supportive trade actions in the U.S., including the final ferrosilicon determination and a newly filed petition against unfair silicon metal imports, are expected to benefit the company.
- Expected EU safeguard measures covering main products should begin to benefit the company in the second half of the year.
- Improving demand is expected to translate into higher revenues, positioning local producers like Ferroglobe to regain market share.
Challenges Ahead
- The first quarter adjusted EBITDA was negative, reflecting an uncertain market environment.
- The company expects a modest increase in working capital over the next two quarters as production ramps up in France.
- The current market environment is uncertain, which could impact the pace of recovery.
- The benefits from EU safeguard measures are not expected until the second half of the year.
- The company's outlook is based on assumptions that management believes to be reasonable, but are inherently uncertain, and actual results may differ materially.