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Ferroglobe Q4 2024 Earnings Report
Ferroglobe reported a decrease in sales and adjusted EBITDA for the fourth quarter of 2024, but achieved strong free cash flow and initiated a capital return program.
Key Takeaways
Ferroglobe's Q4 2024 performance saw a decrease in sales and adjusted EBITDA compared to both the prior quarter and prior year. Despite this, the company generated strong free cash flow, repaid senior secured notes, and initiated a capital return program including dividends and share repurchases. The company remains optimistic about demand improvement in the second half of 2025 and anticipates benefits from ongoing trade measures.
Adjusted EBITDA for Q4 2024 was $9.8 million, an 83.7% decrease from Q3 2024 and Q4 2023.
Free cash flow for Q4 2024 was $14.1 million, a significant increase from -$10.0 million in Q3 2024 and $3.2 million in Q4 2023.
Sales in Q4 2024 were $367.5 million, down 15.2% from Q3 2024 and 2.2% from Q4 2023.
The company initiated a capital return program, including a quarterly dividend of $0.013 per share paid in December and a repurchase of approximately 482,000 shares.
Revenue by Segment
Forward Guidance
Ferroglobe is issuing adjusted EBITDA guidance for 2025 of $100 million to $170 million, reflecting uncertainties related to trade measures, market conditions, and geopolitical factors.
Positive Outlook
- Demand is expected to begin improving in the second half of 2025.
- Trade measures in the U.S. and Europe are progressing well, which should reduce artificially low-priced competitive products.
- The company is positioned for growth due to strong free cash flow and balance sheet.
- The capital return program, including dividends and share repurchases, is expected to continue.
- The company's focus on fair trade measures is anticipated to stabilize the market.
Challenges Ahead
- The guidance range for adjusted EBITDA is wide due to uncertainties.
- Market conditions remain uncertain.
- Geopolitical factors could impact performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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