EAFHIGH SIGNALFINANCIAL10-K

GrafTech experienced a substantial deterioration in net losses alongside continued negative gross margins, indicating severe operational distress despite improved cash position.

The company's financial performance deteriorated meaningfully with net losses substantially higher year-over-year, reflecting persistent challenges in a weak commercial environment. The combination of negative gross margins and elevated interest expense suggests fundamental operational issues that cash conservation alone cannot resolve.

Comparing 2026-02-13 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

GrafTech's financial position shows mixed signals with cash reserves growing notably to $176.9M while overall assets contracted 16% to $1.0B. Operating performance remained deeply troubled with gross profit staying negative at -$15.7M and net losses substantially higher at -$219.8M, compounded by increased interest expense of $104.1M. The reduction in current assets and receivables suggests lower business activity levels, while higher SG&A expenses indicate ongoing structural costs amid revenue challenges.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-67.6%
-$131.2M→-$219.8M

Net income declined 67.6% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+31.4%
$134.6M→$176.9M

Cash position surged 31.4% — strong cash generation or capital raise providing significant financial cushion.

Current Assets
Balance Sheet
-23.9%
$636.8M→$484.5M

Current assets declined 23.9% — monitor working capital adequacy and short-term liquidity.

Interest Expense
P&L
+22%
$85.3M→$104.1M

Interest costs rose 22% — monitor debt levels and coverage ratio in rising rate environment.

Gross Profit
P&L
+21%
-$19.9M→-$15.7M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Accounts Receivable
Balance Sheet
-18.4%
$199.6M→$162.9M

Receivables declined — improved collection efficiency or conservative revenue recognition.

SG&A Expense
P&L
+18.1%
$46.5M→$54.9M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Assets
Balance Sheet
-16%
$1.2B→$1.0B

Total assets contracted 16% — asset sales, write-downs, or balance sheet optimization underway.

R&D Expense
P&L
+13.5%
$5.7M→$6.5M

R&D investment increased 13.5% — signals commitment to future product development, though near-term margin impact.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-14
ADDED
On February 6, 2026, 25,820,110 shares of our common stock were outstanding.
Form 10-K Summary 98 Signatures 99 PART I References herein to the Company, GrafTech, we, our, or us refer collectively to GrafTech International Ltd.
This unique position provides us with a number of competitive advantages.
The majority of our connecting pin production is performed at our Monterrey, Mexico facility; however, we also have pin stock production capabilities at our Pamplona, Spain facility to provide an alternative source, if needed, for this critical component.
1 Production capacity reflects expected maximum production volume during the period through our Calais, Pamplona and Monterrey facilities depending on product mix and expected maintenance outage.
While maintaining the capability to produce graphite electrodes and pins, production activities at St.
Marys were indefinitely idled in 2024, with the exception of graphite electrode and pin machining.
The industry is fairly consolidated, with the five largest global (excluding China) producers in the industry, GrafTech, Resonac Holdings Corporation, HEG Limited, Graphite India Limited and Tokai Carbon Co., Ltd., collectively, representing approximately 75% of global (excluding China) graphite electrode production capacity.
We estimate that, as of the end of 2025, global (excluding China) UHP graphite electrode capacity was approximately 660 thousand MT, or approximately 85% of the global (excluding China) graphite electrode capacity.
We believe that more than half of the UHP electrode capacity in China does not meet the quality standards needed to be exported for use in the most demanding EAF applications.
REMOVED
On February 7, 2025, 257,263,710 shares of our common stock were outstanding.
Form 10-K Summary 105 Signatures 106 PART I References herein to the Company, GrafTech, we, our, or us refer collectively to GrafTech International Ltd.
This unique position provides us with competitive advantages in product quality and cost.
On February 14, 2024, the Company announced a cost rationalization and footprint optimization plan, in response to persistent softness in the commercial environment.
This included an indefinite suspension of production activities at our St.
Marys facility, with the exception of graphite electrode and pin machining.
We also indefinitely idled certain assets within our remaining graphite electrode manufacturing footprint.
As a result of these initiatives, our stated production capacity was reduced from approximately 202 thousand MT in 2023 to approximately 178 thousand MT 1 in 2024.
Prior to 2023, all of our connecting pin production was performed at our Monterrey, Mexico facility.
However, in 2023, we added pin production capabilities at our Pamplona, Spain facility to provide 1 Production capacity reflects expected maximum production volume during the period through our Calais, Pamplona and Monterrey facilities depending on product mix and expected maintenance outage.
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