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Jun 30, 2022
GrafTech Q2 2022 Earnings Report
Delivered solid results in a challenging operating environment.
Key Takeaways
GrafTech International Ltd. reported solid results for Q2 2022, with net income of $115 million and adjusted EBITDA of $158 million. The company's performance was driven by improved pricing on non-LTA volume, which offset a shift in business mix to non-LTA volume. GrafTech also strengthened its balance sheet by reducing debt by $40 million and repurchasing $30 million of its common stock.
Net income of $115 million
Earnings per share and adjusted earnings per share of $0.44
Adjusted EBITDA of $158 million, for a 44% adjusted EBITDA margin
Sales volume of 42 thousand metric tons, a decrease of 1% compared to the second quarter of 2021
Forward Guidance
The operating environment for the steel industry remains volatile, with softening in certain markets. The near-term outlook is becoming more challenging with higher raw material, energy and logistics costs, as well as the impact of the ongoing conflict between Ukraine and Russia.
Positive Outlook
- Continue to strengthen our commercial capabilities
- Prudently manage operating and capital expenditures
- Continue to focus on reducing our long-term debt
- Continue to invest in our product and service capabilities
- Optimally positioned to participate in longer-term demand growth for graphite electrodes
Challenges Ahead
- Softening in certain markets, such as Western Europe
- Higher raw material costs
- Higher energy costs
- Higher logistics costs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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