GrafTech loss widens in first quarter

GrafTech International

First quarter ended March 31	2026	2025	% Change
Net sales	$125.1	$111.8	11.9%
Net earnings (loss)	$(43.3)	$(39.4)	-10.0%
Per diluted share	$(1.66)	$(1.52)	-9.1%

(in millions of dollars except per share)

GrafTech International reported a wider net loss in the first quarter. However, it expects demand for graphite electrodes to “improve modestly” in the rest of 2026.

The Brooklyn Heights, Ohio-based graphite electrode producer logged a $43.3 million net loss in the first quarter, widening from a loss of $39.4 million a year earlier. Net sales increased 12% to $125.1 million in the same comparison.

Sales volume for Q1’26 totaled 28,00 metric tons (mt), up 14% vs. a year earlier.

“We delivered 14% year-over-year sales volume growth in the first quarter and remain on track to meet our full-year volume expectation,” Timothy Flanagan, president and CEO, said in a statement on Friday.

“However, supply-side imbalance, driven by overcapacity that has been built in both China and India, translates into a current pricing environment that remains unsustainably weak,” he added.

Outlook

GrafTech expects graphite electrode demand to “improve modestly” in 2026. “Stable-to-improving steel production trends” outside of China support this.

“While steel market conditions remain mixed, in the United States, demand has been relatively stable and is expected to increase modestly, with steel production further supported by favorable trade policies,” the company noted.

GrafTech continues to expect a 5–10% year-over-year increase in graphite electrode sales volume for 2026. The company has already committed more than 85% of its anticipated volume in its order book.

The company said it is taking deliberate actions to restore more sustainable pricing and improve its profitability.

“These include implementing price increases of $600 to $1,200 per metric ton on uncommitted volume, actively supporting graphite electrode trade cases in key jurisdictions, including the United States and Brazil, continuing to optimize our order book by prioritizing higher-value regions, and foregoing volume opportunities where margins are unacceptably low,” it said.

Geopolitical developments continue to impact key input costs. These include oil-based raw materials, energy, and logistics.

“In response, we are expanding initiatives to improve our cost structure, including enhancing production efficiency and optimizing production schedules,” GrafTech said.

The company added: “Factoring all of this in, we continue to expect a low single-digit percentage-point decline in our cash cost of goods sold per mt for 2026 compared to 2025.”

Further out, GrafTech has a rosier view.

“Longer term, we remain confident in the structural drivers of demand growth for graphite electrodes,” the company said.

The ongoing shift toward electric-arc furnace steelmaking supports this. Additionally, there is a growing demand for petroleum needle coke in battery applications.

“We remain committed to providing reliable supply to our customers while improving our financial performance and delivering long-term shareholder value,” Flanagan said.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.