GrafTech's losses widen in Q2, CEO says US tariffs may help in H2

In its most recent earnings report, GrafTech International attributed its second-quarter net loss to a non-cash tax expense and lower weighted average realized prices.

The Brooklyn, Ohio-based graphite electrode producer’s Q2’25 net loss of $86.8 million widened from a loss of $14.8 million in the same quarter last year.

The company’s net sales clocked in at $131.8 million, a 4% decrease from Q2’24 net sales of $137.3 million.

Simultaneously, Q2’25 sales volumes rose by 12% to 28,600 metric tons (mt) from 25,500 mt in the year before quarter.  

“Net loss for the second quarter of 2025 included a $43 million non-cash income tax expense related to the establishment of a full valuation allowance against the Company’s United States and Switzerland deferred tax assets,” stated GrafTech.

The company said its weighted-average realized price for Q2’25 was approximately $4,200/mt, down 12% from the same quarter in 2024.

At its earnings conference call, President and CEO Timothy Flanagan stated that the company is shifting its focus toward markets with higher selling prices, reiterating the “challenging pricing dynamics” experienced in Q2’25. 

He said GrafTech sees potential benefits in US President Donald Trump’s expanded tariff policies.

“We expect higher Section 232 tariffs will support an increase in steel production within the United States, and this presents a tremendous opportunity for GrafTech,” Flanagan said.  

Additionally, he stated that while tariff negotiations remain in flux, GrafTech is “assessing the range of potential tariff outcomes and taking proactive measures that seek to address the following: minimizing the risk for GrafTech, capitalizing on emerging opportunities and promoting fair trade in our key regions.” 

Outlook

GrafTech expects its 2025 sales volume to increase by about 10% year over year.  

Flanagan cited World Steel data showing that 72% of US steel in 2024 came from electric arc furnaces.

The company expects electrode demand to rise in the European Union as more EAF projects come online. This outlook holds despite the EU’s low steel production levels.

“Broadly speaking, as it relates to both the EU and beyond, we remain confident the electric arc furnace will continue to increase their share of total steel production over time, which will drive higher demand for graphite electrodes,” said Flanagan.