GrafTech loss widens in first quarter amid 'global economic uncertainty'

GrafTech International reported a wider net loss in the first quarter amid “global economic uncertainty” and “fluid” global trade policies.

The Brooklyn, Ohio-based graphite electrode producer posted a net loss of $39.4 million in Q1’25, widening 28% from a loss of $30.9 million a year earlier. Net sales fell 18% to $111.8 million in the same comparison.

Currently, the company is looking to focus more on business in the US.

“We are actively shifting the geographic mix of our business to regions where there is an opportunity to capture higher average selling prices, with a particular emphasis on the United States,” CEO and President Timothy Flanagan, said in a statement on Friday.

“As a result, we grew our sales volume approximately 25% year over year in the United States for the first quarter and expect to continue growing our market share in this key region for the remainder of 2025.”

Overall sales volume for Q1’25 was 24.7 thousand metric tons (mt), up 2% vs. a year earlier.

However, Flanagan noted that more broadly, “the steel and graphite electrode industry conditions remain challenging as global economic uncertainty persists and global trade policies remain fluid.”

A bright spot, he said, was that products made in its Monterrey, Mexico, facility, are USMCA compliant, and thus remain tariff-free so far for US customers.

Outlook

The company said that “geopolitical uncertainty,” particularly around tariffs and trade, would continue to impact “broader steel industry trends.”

While GrafTech closely monitors the situation, “we continue to expect demand for graphite electrodes in the near term will remain relatively flat in the key regions in which we operate.”

The firm expects to achieve “a low double-digit percentage point year-over-year increase in our sales volume for 2025 on a full-year basis.”

“Longer term, we remain confident that the steel industry’s efforts to decarbonize will lead to increased adoption of the electric arc furnace method of steelmaking, driving long-term demand growth for graphite electrodes,” GrafTech said.