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Jun 30, 2024
GrafTech Q2 2024 Earnings Report
GrafTech's Q2 2024 results showed sequential improvement in key metrics due to successful execution of initiatives and aggressive cost structure management.
Key Takeaways
GrafTech International Ltd. reported Q2 2024 results with net sales of $137 million and a net loss of $15 million, or $0.06 per share. The company achieved sequential improvements in sales volume and capacity utilization, alongside significant cost improvements. Adjusted EBITDA was $14 million, and net cash used in operating activities was $37 million.
Net sales reached $137 million.
Net loss was $15 million, or $0.06 per share.
Adjusted EBITDA amounted to $14 million.
Net cash used in operating activities was $37 million.
Revenue by Geographic Location
Forward Guidance
GrafTech anticipates continued weak demand for graphite electrodes due to persistent challenges in the commercial environment and expects sales volume in Q3 2024 to be broadly in line with Q2 2024. They project a mid-teen percentage point decline in full-year 2024 cash cost of goods sold per MT compared to 2023 and expect full-year 2024 capital expenditures to be in the range of $35 million to $40 million.
Positive Outlook
- Expected modest year-over-year improvement in sales volume for the full year.
- Anticipated mid-teen percentage point decline in full year 2024 cash cost of goods sold per MT compared to 2023.
- Continued management of working capital levels.
- Capital expenditures expected to be in the range of $35 million to $40 million for the full year 2024.
- Confidence in long-term demand growth for graphite electrodes due to the steel industry’s decarbonization efforts.
Challenges Ahead
- Near-term demand for graphite electrodes expected to remain weak.
- Persistent challenges in the commercial environment constrain steel industry production.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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