GrafTech International Ltd. (NYSE: EAF) released unaudited financial results for the three and nine months ended September 30, 2026, on October 23, 2026. The company reported a net loss of $47 million, or $1.76 per share, for the third quarter of 2026. This compares to a net loss of $28 million, or $1.10 per share, in the same period of the prior year. Net sales for the third quarter were $140 million, a decrease of 3% year-over-year, primarily attributed to lower weighted-average realized pricing.
For the first nine months of 2026, sales volume increased 7% year-over-year to 87.7 thousand metric tons, consistent with the company's full-year growth expectations. However, the adjusted EBITDA for the third quarter was $9 million, down from $13 million in the prior year. The company also reported a net cash usage of $8 million in operating activities and negative adjusted free cash flow of $16 million for the quarter.
In a significant operational update, GrafTech announced the planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico. The company stated that customer requirements currently served by Monterrey will transition to facilities in Calais, France and Pamplona, Spain. GrafTech anticipates this initiative will generate $20 to $25 million in annual cash cost savings, excluding one-time costs, with the full annual benefit expected to be realized in 2028. Following the closure, the company's annual graphite electrode production capacity is expected to be approximately 127 thousand metric tons.
Regarding liquidity, GrafTech reported total liquidity of $242 million as of September 30, 2026, consisting of $134 million in cash and cash equivalents and $108 million of availability under its revolving credit facility. The company's gross debt stood at $1,225 million, with net debt of approximately $1,091 million. The company reaffirmed its full-year 2026 volume and cost expectations, anticipating a low-single-digit percentage decline in cash cost of goods sold per metric ton for 2026 compared to 2025.
Management expressed confidence in reaching an inflection point in realized pricing. The company expects a mid-single-digit percentage increase in weighted-average realized pricing in the fourth quarter of 2026 and anticipates meaningfully higher realized pricing in 2027, supported by higher-priced customer commitments secured in the third quarter and early fourth quarter.
