The EPS beat vs low expectations and reaffirmed volume/cost guidance provide a modest positive, but persistent pricing pressure and rising debt (now $1.225B) with negative equity (-$345.6M) signal ongoing financial strain. Monitor Q3 2026 for whether announced price increases on uncommitted volume (15%+ above Q1 commitments) translate into realized pricing improvement and whether cash burn moderates as management expects in H2.
Price Chart
Executive Summary
GrafTech reported Q2 2026 results with net sales of $127M (-3% YoY) and a net loss of $40M (-$1.54/share), while adjusted EPS of -$1.47 beat the -$1.65 consensus by 10.9%. Sales volume grew 8% YoY and 10% sequentially, and the company reaffirmed full-year 5-10% volume growth guidance and cost improvement targets, but pricing remains under severe pressure with weighted-average realized price down 7% YoY to ~$3,900/MT. The company drew the remaining $100M on its delayed draw term loan, increasing gross debt to $1.225B and total liquidity to $253M, while stockholders' deficit deepened to -$345.6M.
Key Financial Metrics
Key Facts
- Q2 2026 net sales $127.4M, down 3% YoY from $131.8M
- Net loss of $40.5M, or -$1.54/share, improved from -$86.9M loss in Q2 2025
- Adjusted EPS of -$1.47 beat consensus of -$1.65 by 10.9%
- Sales volume 30.8k MT, up 8% YoY and 10% sequentially
- Weighted-average realized price ~$3,900/MT, down 7% YoY
- Adjusted EBITDA of $2M vs $3M in Q2 2025
- Drew remaining $100M on delayed draw term loan; gross debt $1.225B
- Total liquidity $253M; stockholders' deficit -$345.6M
- Reaffirmed 5-10% FY 2026 sales volume growth and low single-digit cost decline guidance
- Cash used in operations -$68.6M; adjusted FCF -$75.5M due to inventory build and semi-annual interest
Financial Impact
Net sales $127.4M (-3% YoY); net loss $40.5M; adjusted EBITDA $2M; gross debt $1.225B
Risk Factors
- Continued pricing pressure from aggressive competitor behavior and industry overcapacity
- High leverage with gross debt of $1.225B and negative stockholders' equity of -$345.6M
- Negative free cash flow (-$75.5M in Q2) and declining liquidity ($253M from $340M at year-end 2025)
- Dependence on steel industry demand recovery and trade policy developments
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000931148-26-000071 |
| Document: gti-20260724.htm | 0000931148-26-000071 |
| Document: 0000931148-26-000071-index-headers.html | 0000931148-26-000071 |
| Document: 0000931148-26-000071-index.html | 0000931148-26-000071 |
| Document: 0000931148-26-000071.txt | 0000931148-26-000071 |
| 8-K Data (Synthetic) | 0000931148-26-000071 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K/A | — | awaiting T+60 | — | — |
Oct 23, 2026 3d ago | 8-K | $8.51 | awaiting T+60 | — | $8.51 (−0.00%) |
Sep 22, 2026 4w ago | Institutional Cluster | $11.21 | awaiting T+60 | — | $8.51 (−24.09%) |
Sep 18, 2026 5w ago | SC 13D/A | $9.36 | awaiting T+60 | — | $8.51 (−9.08%) |
Jul 24, 2026 13w ago | 8-K | $7.44 $7.41 | ▼ −0.40% | ▼ −3.69% | $8.51 (+14.38%) |
Jun 12, 2026 19w ago | Institutional Cluster | $8.55 $6.30 | ▼ −26.32% | ▼ −29.58% | $8.51 (−0.47%) |
May 29, 2026 21w ago | 8-K | $10.14 $6.70 | ▲ +33.93% | ▲ +35.16% | $8.51 (+16.07%) |
May 29, 2026 21w ago | 424B5 | $10.14 $6.70 | ▲ +33.93% | ▲ +35.16% | $8.51 (+16.07%) |
May 28, 2026 21w ago | EFFECT | $10.00 $6.83 | ▲ +31.70% | ▲ +33.44% | $8.51 (+14.90%) |
May 22, 2026 22w ago | S-3 | $9.08 $7.02 | ▲ +22.69% | ▲ +25.41% | $8.51 (+6.28%) |
US Market Status
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