GrafTech International Ltd (EAF)
NYSE:EAF
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GrafTech International
(NYSE:EAF)
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Rating:44Neutral
Price Target:
$7.00
▼(-4.89% Downside)
Action:ReiteratedDate:03/08/26
The score is held down primarily by very weak financial performance (losses, negative equity, and negative free cash flow) and bearish technicals (price well below key moving averages with negative MACD). The latest earnings call adds some support via 2026 volume growth guidance, cost-reduction progress, and solid liquidity, but ongoing pricing pressure and negative profitability keep overall risk elevated.
Positive Factors
U.S. market momentum
Substantially faster U.S. volume growth improves geographic mix and reduces reliance on lower-priced export markets. Durable U.S. share gains can support higher-utilization, steadier orderbooks and better commercial leverage versus volatile regions, aiding revenue stability over coming quarters.
Negative Factors
High leverage and negative equity
Negative equity and material net debt leave the company dependent on external financing and sensitive to earnings fluctuations. Structurally constrained balance sheet limits strategic flexibility, raises refinancing and covenant risk, and increases probability of dilution or restructuring if losses persist.
Read all positive and negative factors
Positive Factors
Negative Factors
U.S. market momentum
Substantially faster U.S. volume growth improves geographic mix and reduces reliance on lower-priced export markets. Durable U.S. share gains can support higher-utilization, steadier orderbooks and better commercial leverage versus volatile regions, aiding revenue stability over coming quarters.
Read all positive factors
GrafTech International (EAF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$190.04M
Dividend YieldN/A
Average Volume (3M)302.17K
Price to Earnings (P/E)―
Beta (1Y)1.89
Revenue Growth-3.66%
EPS Growth32.11%
CountryUS
Employees1,072
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-2.45
Shares Outstanding25,820,110
10 Day Avg. Volume247,042
30 Day Avg. Volume302,172
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)-15.54
Price to Sales (P/S)8.00
P/FCF Ratio-33.47
Enterprise Value/Market Cap6.03
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit-72.00
Enterprise Value/Ebitda-241.74
Forecast
1Y Price Target
$10.33Price Target Upside40.35% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-4.78
Revenue Forecast (FY)$531.00M
GrafTech International Business Overview & Revenue Model
Company Description
GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. It offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum need...
How the Company Makes Money
GrafTech makes money primarily by selling graphite electrodes to steel producers that operate electric arc furnaces, where electrodes are a critical consumable input used to melt scrap steel and other feedstocks. Revenue is generated through (1) e...
GrafTech International Key Performance Indicators (KPIs)
GrafTech International Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but pragmatic view: GrafTech reported meaningful operational achievements (notably substantial cost reductions, strong U.S. volume growth, record safety, and a solid liquidity cushion) while continuing to face significant market headwinds—including declining realized prices, negative quarterly profitability metrics, low utilization, and structural overcapacity driven by China and India exports. Management emphasized disciplined commercial actions, further cost improvement targets, strategic options (footprint optimization, partnerships, and trade/policy engagement), and moderate volume growth guidance for 2026, but noted that pricing pressure may persist into 2026 and poses material near-term margin risk.Positive Updates
Full-Year Volume Growth
Sales volume increased 6% for the full year 2025, reflecting commercial execution despite a challenging market backdrop.
Negative Updates
Declining Realized Prices
Average selling price in Q4 was about $4,000/MT, down 9% year-over-year and down 5% sequentially; management stated observed pricing entering 2026 is not better than 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Volume Growth
Sales volume increased 6% for the full year 2025, reflecting commercial execution despite a challenging market backdrop.
Read all positive updates
Company Guidance
GrafTech guided 2026 sales volume growth of 5–10% year‑over‑year (management cited ~10% as a specific expectation) with ~65% of anticipated 2026 volume already committed in the order book; they expect a low single‑digit % decline in cash cost per metric ton (progressing toward a long‑term cash‑cost target of ~$3,600–$3,700/ton), plan ~ $35 million of capital expenditures for 2026, anticipate a modest increase in net working capital (primarily in H1 for planned maintenance/timing), intend to draw the remaining uncapped portion of the delayed‑draw term loan (available until July 2026), and enter 2026 with year‑end 2025 liquidity of $340 million (comprised of $138M cash, $102M revolver availability and $100M delayed‑draw availability) while revolver borrowing availability is currently limited to ~ $115M less ~$14M of letters of credit; management noted no substantial debt maturities until December 2029.GrafTech International Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
20
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 504.13M | 538.78M | 620.50M | 1.28B | 1.35B |
| Gross Profit | -15.68M | -22.19M | 26.66M | 545.40M | 653.70M |
| EBITDA | -4.74M | 1.67M | -145.21M | 546.80M | 589.04M |
| Net Income | -219.84M | -131.16M | -255.25M | 382.96M | 388.33M |
Balance Sheet | |||||
| Total Assets | 1.03B | 1.22B | 1.29B | 1.60B | 1.41B |
| Cash, Cash Equivalents and Short-Term Investments | 138.43M | 256.25M | 176.88M | 134.64M | 57.51M |
| Total Debt | 1.09B | 1.09B | 930.75M | 921.93M | 1.03B |
| Total Liabilities | 1.29B | 1.30B | 1.21B | 1.27B | 1.39B |
| Stockholders Equity | -259.63M | -78.90M | 78.25M | 337.71M | 23.40M |
Cash Flow | |||||
| Free Cash Flow | -120.50M | -74.40M | 22.52M | 252.46M | 384.78M |
| Operating Cash Flow | -81.62M | -40.09M | 76.56M | 324.63M | 443.04M |
| Investing Cash Flow | -38.33M | -34.21M | -53.82M | -71.97M | -57.86M |
| Financing Cash Flow | -341.00K | 155.72M | 18.71M | -176.27M | -471.79M |
GrafTech International Technical Analysis
Neutral
7.36
Price Trends
8.04
Negative
11.92
Negative
12.28
Negative
Market Momentum
-0.22
Negative
55.73
Neutral
47.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EAF, the sentiment is Neutral. The current price of 7.36 is above the 20-day moving average (MA) of 6.21, below the 50-day MA of 8.04, and below the 200-day MA of 12.28, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 47.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EAF.
GrafTech International Risk Analysis
GrafTech International disclosed 28 risk factors in its most recent earnings report. GrafTech International reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GrafTech International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.92B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
75 Outperform | $1.48B | 28.81 | 7.68% | 0.35% | 15.93% | 12.72% | |
68 Neutral | $1.21B | ― | 135.79% | 6.02% | 2.28% | 534.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | $3.69B | -1.40 | -110.00% | ― | 2.53% | -2.83% | |
45 Neutral | $339.59M | -4.17 | -26.54% | ― | 41.05% | -1.02% | |
44 Neutral | $190.04M | -18.35 | 120.83% | ― | -3.66% | 32.11% |
* Industrials Sector Average
EAF
GrafTech International
7.36
1.35
22.46%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.