10-Q · July 24, 2026
GrafTech delivered Q2 net sales of $127.362 million and a GAAP loss per share of $1.54, with revenue up sequentially but down 3% year over year as an 8% volume increase was more than offset by a 7% pricing decline.…
Earnings analysis · 10-Q
EAF earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
GrafTech delivered a Q3 revenue beat, with sales of $140.2 million up 10.4% sequentially, but profitability deteriorated as EPS declined to a loss of $1.76 from a loss of $1.54 in Q2 and $1.10 a year earlier. Adjusted…
Read full summary
GrafTech delivered a Q3 revenue beat, with sales of $140.2 million up 10.4% sequentially, but profitability deteriorated as EPS declined to a loss of $1.76 from a loss of $1.54 in Q2 and $1.10 a year earlier. Adjusted free cash flow was negative $16.1 million and the quarter included $13.9 million of restructuring charges. Management maintained its 5%-10% volume-growth outlook and expects mid-single-digit pricing growth in Q4, but the Mexico closure increases dependence on 1 Pamplona facility and leaves execution and supply-chain risks elevated.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.76
What stood out
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Revenue rebounded sequentially
Q3 net sales were $140.2 million, up from $127.0 million in Q2 2026, a 10.4% sequential increase, although revenue declined 2.6% from $144.0 million in Q3 2025.
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Pricing outlook improved
Management expects fourth-quarter realized pricing to increase by a mid-single-digit percentage versus Q3 2026, while maintaining its full-year volume-growth outlook of 5%-10%.
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Restructuring targets savings
The Monterrey closure is expected to generate $20 million-$25 million of annual savings, alongside approximately $35 million of 2026 capital expenditures.
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Controls remained effective
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Connecting-pin supply concentration
Following the Mexico facility closure, GrafTech expects to rely primarily on 1 facility in Pamplona, Spain for connecting pins. A disruption during the transition could cause lost sales and prevent realization of the expected $20 million-$25 million of annual savings.
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Floating-rate debt exposure
The First Lien Term Loans bear interest at Term SOFR plus 6.00% or ABR plus 5.00%. A hypothetical 100-basis-point interest-rate change would have affected third-quarter 2026 interest expense by $0.7 million.
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Brazil litigation remains unquantified
The Brazil Clause IV litigation was remanded for further adjudication after the SDI-1 at the TST granted the employees' appeal on March 19, 2026. As of September 30, 2026, the company could not quantify the potential loss, and provisional enforcement began in May 2026.
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Loss widened despite revenue beat
Q3 EPS was a loss of $1.76 versus a loss of $1.54 in Q2 2026 and a loss of $1.10 in Q3 2025. The quarter also included $13.9 million of restructuring charges.
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Free cash flow turned negative
Adjusted free cash flow was negative $16.1 million in Q3 2026, compared with positive $18.0 million in Q3 2025, indicating continued pressure on cash generation.
Management's outlook
Management maintained its 2026 outlook for graphite electrode sales-volume growth of 5%-10%, a low-single-digit decline in cash cost of goods sold per metric ton, and approximately $35 million of capital expenditures. Fourth-quarter realized pricing is expected to increase by a mid-single-digit percentage versus Q3 2026. Management also expects $20 million-$25 million of annual savings from the Monterrey closure.
Earlier filings 2
10-Q · May 1, 2026
GrafTech International Ltd. reported Q1 2026 earnings with a net revenue of $125.1 million, a 12% increase year-over-year, but it faced a net loss of $43.3 million, resulting in a loss per share of $1.66. This revenue…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.