Revenue and profitability decline
Third-quarter revenue fell 3% to $140.2 million from $144.0 million a year earlier. GrafTech sold 28.8 thousand metric tons, unchanged from the prior-year quarter, while its net loss amounted to $1.76 per diluted share.
In its October 23 results release, GrafTech reported adjusted EBITDA of $8.6 million, compared with $13.0 million in the third quarter of 2025. Its adjusted diluted loss widened to $1.21 per share from $1.03.
Gross profit declined from $10.3 million to $5.6 million, while the operating loss increased from $5.1 million to $22.7 million. Restructuring and other exit charges associated with the planned Monterrey shutdown accounted for $14 million of the quarter's net loss. Most of those charges were non-cash.
Pricing and volume outlook
GrafTech's weighted-average realized price was about $3,900 per metric ton in the third quarter, unchanged from the second quarter but 7% below the year-earlier level. The company expects that measure to rise by a mid-single-digit percentage in the fourth quarter compared with the third quarter, and it also expects higher realized pricing in 2027.
The outlook follows a September 8, 2026 announcement that GrafTech had notified customers of a minimum 30% graphite electrode price increase. That increase applied immediately to all open commercial negotiations and followed a pricing action announced in March 2026.
For the first nine months of 2026, graphite electrode sales reached 87.7 thousand metric tons, up 7% from a year earlier. GrafTech retained its forecast for full-year sales volume growth of 5% to 10%. Third-quarter production totaled 27.0 thousand metric tons, with capacity utilization at 64%.
Monterrey shutdown and capacity changes
GrafTech intends to close Monterrey through a phased wind-down, with production expected to end early in the second quarter of 2027. Its plants in Calais, France, and Pamplona, Spain, are to take over customer requirements now served by Monterrey. Connecting-pin production will move to Pamplona.
The plan will lower annual graphite electrode production capacity from about 178 thousand metric tons to approximately 127 thousand metric tons, a reduction of about 51 thousand metric tons. Monterrey accounts for roughly 35 thousand metric tons of that reduction. The remaining approximately 16 thousand metric tons will come from Pamplona, where the production mix will change to support pin stock requirements.
GrafTech expects annual cash cost savings of $20 million to $25 million, with the full annual benefit arriving in 2028. It also projects a roughly $5 million reduction in annual capital expenditure requirements beginning in 2027.
The closure is expected to free up approximately $20 million to $25 million in working capital on a one-time basis. Separately, GrafTech anticipates total one-time cash costs of about $20 million to $25 million, mostly incurred by the end of 2027.
Cash flow and debt
Operating activities used $8.4 million of cash during the third quarter. As of September 30, 2026, GrafTech had $242 million in liquidity: $134 million in cash and cash equivalents and $108 million available under its revolving credit facility.
Gross debt stood at $1,225 million, with substantially no maturities until December 2029. Net debt was approximately $1,091 million.
Institutional shareholding changes
Quiver Quant reported that 57 institutional investors increased their EAF holdings in their most recent quarter, while 37 reduced their positions.
Among the larger moves in the second quarter of 2026, BlackRock added 953,457 shares, increasing its position by 288.2%, at an estimated value of $5,634,930. Sixth Street Partners Management Company added 563,633 shares valued at an estimated $3,331,071. Millennium Management sold its entire 373,435-share position, with an estimated value of $2,207,000.
