# GrafTech International Ltd

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/GrafTech International Ltd).

## Overview

GrafTech International Ltd. makes graphite electrodes used mainly in electric arc furnace (EAF) steelmaking and other metal-melting applications. The company is also vertically integrated into petroleum needle coke, its key raw material, which supports supply security and product quality across its global manufacturing network.

## Products & services

• Graphite electrodes for EAF steel production
• Ultra-high power (UHP) graphite electrode products
• Petroleum needle coke products
• Multi-year electrode supply agreements
• Customer technical service and furnace advisory support
• ArchiTech® Furnace Productivity System 6.0

- **Graphite electrodes** (90%) — High-quality electrodes sold to EAF steelmakers and other metal processors for high-temperature melting.
- **Petroleum needle coke** (10%) — Key raw material products and related internal supply value embedded in the manufacturing chain.

- Graphite electrodes for EAF steel production
- Ultra-high power (UHP) graphite electrode products
- Petroleum needle coke products
- Multi-year electrode supply agreements
- Customer technical service and furnace advisory support
- ArchiTech® Furnace Productivity System 6.0

## Customers

GrafTech sells primarily to EAF steel producers, which accounted for the vast majority of graphite electrode purchases in 2025. It also serves other ferrous and non-ferrous melting applications, fused materials, chemical processing, and alloy metals customers that need reliable high-temperature carbon solutions and technical support.

- **Electric arc furnace steel producers** (primary) — Buy graphite electrodes for steelmaking furnaces and value quality, uptime, and supply reliability.
- **Other ferrous and non-ferrous metal processors** (secondary) — Use electrodes in melting and alloy applications where high-performance carbon products are required.
- **Contracted industrial customers** (secondary) — Enter multi-year electrode supply agreements to secure volume, service, and predictable supply.
- **Spot and short-term buyers** (primary) — Purchase through short-term agreements or spot orders when demand is less predictable.

- EAF steel producers buy electrodes for steel melting and furnace operation
- Other ferrous and non-ferrous melt shops use electrodes in high-heat processes
- Customers value product quality, delivery reliability, and technical service
- Long-term contract customers seek supply certainty and pricing visibility
- Global distributors and representatives help reach smaller or regional buyers

## Geography

GrafTech sells in every major geographic region, with approximately 59% of 2025 net sales outside the United States. Management said 94% of 2025 net sales came from EMEA and the Americas, reflecting a business concentrated in mature steel markets and exposed to regional trade policy and tariff shifts. Manufacturing is centered in Calais, France; Pamplona, Spain; Monterrey, Mexico; and an idled facility in St. Marys, Pennsylvania.

- **EMEA** (47%) — Management disclosed that EMEA and the Americas together represented 94% of 2025 net sales.
- **Americas** (47%) — Management disclosed that EMEA and the Americas together represented 94% of 2025 net sales.
- **Asia-Pacific** (6%) — Residual share implied by management's disclosure that EMEA and the Americas were 94% of net sales.

- About 59% of 2025 net sales came from outside the United States
- About 94% of 2025 net sales came from EMEA and the Americas
- Manufacturing is in France, Spain, Mexico, and idled U.S. capacity
- Global sales offices and distributors support customers in major regions
- Regional trade policy and tariffs can affect sourcing and delivery economics

## Strategy

GrafTech is shifting its commercial mix toward shorter-term purchase agreements and spot orders while still using multi-year supply contracts where they add value. Operationally, the company is focused on lowering cash cost per metric ton, managing working capital and capex, and using its integrated production network to reduce tariff and supply-chain risk.

- **Improve cost structure** (short-term) — Lower unit costs are central to competitiveness in a cyclical commodity-like market.
- **Preserve supply reliability and flexibility** (medium-term) — Customers value dependable delivery and the company uses contract duration as a commercial lever.
- **Capture long-term demand growth** (long-term) — EAF adoption and synthetic graphite demand could expand the addressable market over time.

- Shift mix toward short-term orders while keeping selective multi-year contracts
- Use vertical integration into petroleum needle coke to support supply security
- Lower cash cost per metric ton through production and footprint optimization
- Manage working capital tightly to support cash flow
- Use global manufacturing flexibility to reduce tariff and trade-policy exposure
- Position for long-term EAF steel growth and battery-related needle coke demand

## Risks

The business is highly exposed to the cyclicality of global steel and EAF steel demand, so downturns can quickly pressure volumes and pricing. It also faces execution risk from trade policy, customer concentration in industrial end markets, and the possibility that NYSE listing issues, leverage, or asset impairments could weigh on liquidity and valuation.

- **Cyclical EAF steel demand** [high] — Graphite electrode demand is tied to steel production volumes and industrial end markets.
- **Trade policy and tariff disruption** [medium] — The company operates a global manufacturing and sales network that can be affected by cross-border trade rules.
- **NYSE listing compliance** [high] — The common stock does not currently meet the NYSE minimum share price standard, which can hurt liquidity and investor access.
- **Asset impairment and underutilization** [medium] — Weak demand or structural capacity changes can reduce cash flows and trigger impairment charges.
- **Customer and end-market concentration** [high] — Most revenue is tied to a narrow industrial use case and a limited set of downstream steel customers.

- EAF steel demand is cyclical and tied to broader industrial activity
- Trade tariffs and geopolitics can disrupt sourcing and customer economics
- NYSE minimum share price noncompliance may affect liquidity and market value
- Customer demand swings can create inventory and production imbalance
- Impairment risk exists if long-lived assets or capacity become underutilized

## Accounting

Revenue recognition is closely tied to shipment timing and recognized sales volume, so quarter-to-quarter results can move with customer ordering patterns and inventory management. Investors should also watch impairment testing for long-lived assets, inventory valuation, pension and OPEB estimates, and debt modification costs, all of which can materially affect reported earnings and balance sheet values.

- **Revenue recognition and sales volume timing** — Affects reported net sales and comparability across periods.
- **Long-lived asset impairment** — Could materially affect operating income and asset values.
- **Inventory valuation** — Can affect cost of sales and gross margin.
- **Pension and OPEB estimates** — Affects operating costs and balance sheet obligations.
- **Debt modification and financing costs** — Affects net income, cash flow, and leverage metrics.

- Revenue is recognized when sales volume is delivered and accepted
- Quarterly results can shift with customer ordering and shipment timing
- Long-lived asset impairment depends on future cash flow estimates
- Inventory valuation matters because production and demand can diverge
- Pension and OPEB assumptions affect operating expense and liabilities
- Debt modification and refinancing costs can create non-recurring earnings noise

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*Last updated: 2026-04-28T20:10:26.721656+00:00*