Company Announcements
February 6, 2026
GrafTech’s results underscore pricing pain despite strong US volume gains
Written by Laura Miller
GrafTech International Ltd.
| Fourth quarter ended Dec. 31 | 2025 | 2024 | Change |
|---|---|---|---|
| Net sales | $116.5 | $134.2 | -13.2% |
| Net earnings (loss) | $(65.1) | $(49.5) | -31.5% |
| Per diluted share | $(2.50) | $(1.92) | -30.2% |
| Full year ended Dec. 31 | |||
| Net sales | $504.1 | $538.8 | -6.4% |
| Net earnings (loss) | $(219.8) | $(131.2) | -67.5% |
| Per diluted share | $(8.45) | $(5.09) | -66.0% |
GrafTech International closed 2025 with firmer sales volumes and significant cost reductions. But the graphite electrode producer remained deep in the red as global oversupply and aggressive competitor pricing continued to pressure realized prices.
The Brooklyn Heights, Ohio-based company reported 27,100 metric tons (mt) of electrode shipments in the fourth quarter, essentially flat year over year (y/y). Full-year volumes rose 6% to 109,200 mt. US shipments were the standout, rising 83% in Q4 and 48% for the full year. GrafTech said this reflects its strategy of shifting more tonnage into the highest-priced region globally.
Still, the improvement in mix wasn’t enough to offset a sharp drop in pricing. GrafTech’s weighted-average realized price fell 9% y/y in Q4 to roughly $4,000/mt. Pricing also declined sequentially due to intense competitive pressure across all major regions, the company reported.
Q4 sales tumbled 13% y/y while full-year sales were down 6.4%. The company posted a Q4 net loss of $65 million, widening from a $49 million loss a year earlier. For the full year, GrafTech recorded a net loss of $220 million, including a $43-million non-cash tax charge tied to valuation allowances.
“Looking back on 2025, I am proud of how our team navigated a challenging environment with discipline and determination,” noted President and CEO Tim Flanagan.
Cost cuts
GrafTech continued to lean heavily on cost control to blunt pricing headwinds. Cash cost of goods sold per metric ton fell 11% for the full year. And the company now reports a 31% cumulative reduction since the end of 2023.
Q4 cash cost per metric ton was $4,019, down 2% y/y but up sequentially due to timing effects. Full-year cash cost averaged just over $3,800/mt, beating the company’s prior guidance.
Management highlighted procurement initiatives, energy-efficiency improvements, and tighter production scheduling as key drivers. Production for the year reached 112,300 mt, with 63% capacity utilization, compared with 97,300 mt at 55% in 2024.
Market backdrop
CEO Tim Flanagan said early 2026 steel indicators are improving, with global (ex-China) steel demand expected to rise modestly this year. US steel production is projected to increase further, supported by trade protections, while Europe may see a rebound aided by new tariff measures and the rollout of CBAM.
But the real issue, Flanagan emphasized, remains the supply side. “It’s not the level of electrode demand that’s the key factor holding back our industry today – it’s the supply side imbalance and, ultimately, pricing,” he said on a conference call to discuss the quarterly earnings results.
Chinese and Indian producers continue to add capacity and export aggressively, pushing global prices lower. GrafTech said competitor pricing behavior deteriorated further in Q4 and is expected to remain challenging through 2026.
“We at GrafTech refuse to follow some of our competitors in the race to the bottom,” Flanagan stated on the call. “This meant that our full-year volume finished below our most recent guidance range. It was a right decision for our business and consistent with our commitment to value-focused growth, not volume for volume’s sake.”
“Structural change on the supply chain side is long overdue,” Flanagan continued on the call. “A failure to change the current course of the electrode industry will undoubtedly result in equilibrium that will harm the steel industry for the long term.” He said GrafTech remains “committed to actively shifting this dynamic.”
2026 outlook
“As we enter 2026, we are encouraged to see signs of improving steel industry trends in our core regions,” Flanagan said.
GrafTech expects 5-10% growth in sales volume this year. Roughly 65% of the expected volume is already committed following Q4 contract negotiations. Q1 volume is projected to rise about 10% y/y.
The company plans to continue shifting tonnage toward the US market and will maintain its discipline in walking away from low-margin opportunities, particularly in Europe and the Middle East, Flanagan said.
On costs, GrafTech is targeting a low-single-digit percentage reduction in cash cost per ton for 2026. Capital expenditures are expected to total ~$35 million.
In the long term, the company remains bullish on structural demand drivers: EAF steelmaking growth, decarbonization, and rising needle coke demand tied to synthetic graphite for batteries.
