GrafTech International(NYSE) EAF

GrafTech makes large carbon parts that help steel mills melt metal with electricity. These tools let companies turn old scrap into new steel products. The company also produces the special carbon needed to make these parts.

Essential Tools for Steelmaking

• Graphite Electrodes: Industrial rods used to conduct heat in electric furnaces for steel production; accounts for roughly 90% of revenue.
• Petroleum Needle Coke: High-quality carbon material used as the primary ingredient for making electrodes; manufactured internally for supply security.
• By-products and Other: Secondary materials created during the carbon manufacturing process; generated $16.9 million in revenue in the first quarter of 2026.

Recent Strategic Moves

• Sold landfill assets from previously closed operations for $9.3 million in cash during the first quarter of 2026.
• Implemented price increases between $600 and $1,200 per metric ton for uncommitted electrode orders in 2026.
• Completed a 1-for-10 reverse stock split on August 29, 2025, to adjust the total shares outstanding.
• Secured a new credit agreement for $175 million in term loans with Barclays Bank plc on December 23, 2024.

The Vertical Advantage

GrafTech is the only large producer in its industry that makes its own raw materials. This vertical integration allows the company to control its supply of needle coke while selling electrodes to steelmakers globally.

Checking the Books

• Revenue reached $125.1 million in the first quarter of 2026, up 11.9% year-over-year.
• Gross profit fell to negative $15 million in the first quarter of 2026, worsened from a loss of $1.8 million in the prior year.
• Net loss reached $43.3 million in the first quarter of 2026, a 10% worsening from the $39.4 million loss in the first quarter of 2025.
• Operating cash flow was negative $14.9 million in the first quarter of 2026, which improved from negative $32.2 million a year earlier.

The Bottom Line

GrafTech has transitioned into a vertically integrated manufacturer to manage the volatility of the global steel market. Recent efforts focus on restructuring debt and adjusting product pricing to navigate ongoing industry challenges.