The company continues to struggle with structural profitability, evidenced by a failure to maintain positive gross margins and a net margin of -34.6% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 517.4M | 504.13M | 538.78M | 620.5M | 1.28B | 1.35B | 1.22B | 1.79B | 1.9B | 550.77M | 437.96M | 533.04M | 1.09B | 1.17B | 1.25B | 1.32B | 1.01B | 659.04M | 1.19B | 1B | 855.43M | 886.7M | 848M | 712M | 613M | 654M | 776M | 831M | 947M | 1.1B | 948M |
| Revenue Growth % | 0.65% | -6.43% | -13.17% | -51.57% | -4.8% | 9.92% | -31.63% | -5.54% | 244.23% | 25.76% | -17.84% | -50.89% | -6.97% | -6.54% | -5.45% | 31.1% | 52.8% | -44.63% | 18.45% | 17.46% | -3.53% | 4.56% | 19.1% | 16.15% | -6.27% | -15.72% | -6.62% | -12.25% | -13.67% | 15.72% | 5.22% |
| Cost of Goods Sold | 406.45M | 519.81M | 560.98M | 593.84M | 735.85M | 692.09M | 568.53M | 759.5M | 706.62M | 463.05M | 466.35M | 481.27M | 945.52M | 982.03M | 932.46M | 995.64M | 716.74M | 468.96M | 756.45M | 673.83M | 606.09M | 654.34M | 638M | 544M | 473M | 469M | 560M | 528M | 553M | 637M | 547M |
| COGS % of Revenue | - | 103.11% | 104.12% | 95.7% | 57.43% | 51.43% | 46.43% | 42.41% | 37.27% | 84.07% | 106.48% | 90.29% | 87.12% | 84.17% | 74.7% | 75.42% | 71.18% | 71.16% | 63.55% | 67.06% | 70.85% | 73.8% | 75.24% | 76.4% | 77.16% | 71.71% | 72.16% | 63.54% | 58.39% | 58.07% | 57.7% |
| Gross Profit | -14.15M | -15.68M | -22.19M | 26.66M | 545.4M | 653.7M | 655.83M | 1.03B | 1.19B | 87.72M | -28.39M | 51.77M | 139.79M | 184.65M | 315.8M | 324.55M | 290.26M | 190.09M | 433.79M | 330.99M | 249.35M | 232.36M | 210M | 168M | 140M | 185M | 216M | 303M | 394M | 460M | 401M |
| Gross Margin % | -2.74% | -3.11% | -4.12% | 4.3% | 42.57% | 48.57% | 53.57% | 57.59% | 62.73% | 15.93% | -6.48% | 9.71% | 12.88% | 15.83% | 25.3% | 24.58% | 28.82% | 28.84% | 36.45% | 32.94% | 29.15% | 26.2% | 24.76% | 23.6% | 22.84% | 28.29% | 27.84% | 36.46% | 41.61% | 41.93% | 42.3% |
| Gross Profit Growth % | - | 29.36% | -183.24% | -95.11% | -16.57% | -0.33% | -36.41% | -13.29% | 1255.83% | 408.96% | -154.84% | -62.96% | -24.3% | -41.53% | -2.69% | 11.81% | 52.7% | -56.18% | 31.06% | 32.74% | 7.31% | 10.65% | 25% | 20% | -24.32% | -14.35% | -28.71% | -23.1% | -14.35% | 14.71% | 4.7% |
| Operating Expenses | 60.56M | 61.39M | 52.22M | 79.53M | 80.62M | 136.38M | 71.89M | 66.36M | 59.06M | 55.96M | 58.45M | 90.55M | 135.38M | 121.42M | 159.34M | 158.54M | 130.17M | 92.49M | 104.74M | 99.02M | 115.71M | 109.88M | 98M | 96M | 91M | 181M | 97M | 140M | 163M | 513M | 134M |
| OpEx % of Revenue | - | 12.18% | 9.69% | 12.82% | 6.29% | 10.13% | 5.87% | 3.71% | 3.12% | 10.16% | 13.35% | 16.99% | 12.47% | 10.41% | 12.76% | 12.01% | 12.93% | 14.03% | 8.8% | 9.85% | 13.53% | 12.39% | 11.56% | 13.48% | 14.85% | 27.68% | 12.5% | 16.85% | 17.21% | 46.76% | 14.13% |
| Selling, General & Admin | 54.52M | 54.91M | 46.51M | 74.01M | 76.98M | 132.61M | 67.91M | 63.67M | 62.03M | 49.48M | 57.73M | 86.09M | 124.18M | 111.04M | 145.54M | 144.56M | 117.84M | 82.33M | 95.76M | 90.47M | 105.15M | 100.44M | 90M | 85M | 78M | 78M | 86M | 86M | 103M | 455M | 98M |
| SG&A % of Revenue | - | 10.89% | 8.63% | 11.93% | 6.01% | 9.85% | 5.55% | 3.56% | 3.27% | 8.98% | 13.18% | 16.15% | 11.44% | 9.52% | 11.66% | 10.95% | 11.7% | 12.49% | 8.05% | 9% | 12.29% | 11.33% | 10.61% | 11.94% | 12.72% | 11.93% | 11.08% | 10.35% | 10.88% | 41.48% | 10.34% |
| Research & Development | 6.04M | 6.47M | 5.71M | 5.52M | 3.64M | 3.77M | 3.98M | 2.68M | 2.13M | 2.95M | 2.4M | 4.46M | 14.84M | 10.44M | 13.8M | 13.98M | 12.33M | 10.17M | 8.99M | 8.55M | 10.56M | 9.44M | 8M | 11M | 13M | 12M | 11M | 9M | 9M | 9M | 0 |
| R&D % of Revenue | - | 1.28% | 1.06% | 0.89% | 0.28% | 0.28% | 0.32% | 0.15% | 0.11% | 0.54% | 0.55% | 0.84% | 1.37% | 0.89% | 1.11% | 1.06% | 1.22% | 1.54% | 0.76% | 0.85% | 1.23% | 1.06% | 0.94% | 1.54% | 2.12% | 1.83% | 1.42% | 1.08% | 0.95% | 0.82% | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -59.04M | -77.07M | -74.41M | -52.87M | 464.78M | 517.32M | 583.95M | 964.93M | 1.13B | 31.75M | -86.84M | -38.78M | 4.41M | 63.23M | 156.47M | 166.01M | 160.08M | 97.59M | 329.04M | 231.97M | 133.64M | 122.48M | 112M | 52M | 40M | -10M | 119M | 163M | 231M | -53M | 267M |
| Operating Margin % | -11.41% | -15.29% | -13.81% | -8.52% | 36.28% | 38.44% | 47.69% | 53.88% | 59.61% | 5.77% | -19.83% | -7.27% | 0.41% | 5.42% | 12.53% | 12.57% | 15.9% | 14.81% | 27.65% | 23.09% | 15.62% | 13.81% | 13.21% | 7.3% | 6.53% | -1.53% | 15.34% | 19.61% | 24.39% | -4.83% | 28.16% |
| Operating Income Growth % | - | -3.57% | -40.75% | -111.37% | -10.16% | -11.41% | -39.48% | -14.63% | 3459.23% | 136.57% | -123.95% | -979.52% | -93.03% | -59.59% | -5.75% | 3.7% | 64.03% | -70.34% | 41.85% | 73.58% | 9.11% | 9.36% | 115.38% | 30% | 500% | -108.4% | -26.99% | -29.44% | 535.85% | -119.85% | 20.27% |
| EBITDA | -11.18M | -15.42M | -12.16M | 4.02M | 520.28M | 583.04M | 646.91M | 1.03B | 1.2B | 99.06M | -9.14M | 22.72M | 97.77M | 158.33M | 238.37M | 247.31M | 202.75M | 130.33M | 364.47M | 270.97M | 172.76M | 159.41M | 147M | 83M | 69M | 26M | 162M | 208M | 282M | -4M | 303M |
| EBITDA Margin % | -2.16% | -3.06% | -2.26% | 0.65% | 40.61% | 43.32% | 52.84% | 57.33% | 63.12% | 17.98% | -2.09% | 4.26% | 9.01% | 13.57% | 19.1% | 18.73% | 20.13% | 19.78% | 30.62% | 26.97% | 20.2% | 17.98% | 17.33% | 11.66% | 11.26% | 3.98% | 20.88% | 25.03% | 29.78% | -0.36% | 31.96% |
| EBITDA Growth % | -14.15% | -26.78% | -402.54% | -99.23% | -10.76% | -9.87% | -36.99% | -14.2% | 1108.05% | 1183.16% | -140.25% | -76.76% | -38.25% | -33.58% | -3.62% | 21.98% | 55.56% | -64.24% | 34.5% | 56.85% | 8.38% | 8.44% | 77.11% | 20.29% | 165.38% | -83.95% | -22.12% | -26.24% | 7150% | -101.32% | 16.54% |
| D&A (Non-Cash Add-back) | 47.86M | 61.64M | 62.24M | 56.89M | 55.5M | 65.72M | 62.96M | 61.82M | 66.4M | 67.3M | 77.7M | 61.5M | 93.36M | 95.1M | 81.9M | 81.3M | 42.66M | 32.74M | 35.43M | 39.01M | 39.12M | 36.93M | 35M | 31M | 29M | 36M | 43M | 45M | 51M | 49M | 36M |
| EBIT | -49.66M | -66.39M | -60.57M | -202.1M | 491.31M | 523.32M | 603.73M | 971.21M | 1.04B | 34.25M | -89.51M | -81.05M | -257.74M | -4.07M | 157.73M | 163.56M | 181.87M | 44.25M | 279.85M | 242.69M | 115.74M | 93.03M | 103M | 72M | 41M | 2M | 119M | 163M | 231M | 287M | 267M |
| Net Interest Income | -69.52M | -97.42M | -87M | -68.22M | -34.51M | -66.04M | -96.32M | -122.62M | -133.4M | -30.43M | -26.56M | 35.84M | -36.73M | -35.83M | -22.99M | -17.88M | -3.74M | -4.56M | -18.21M | -37.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 3.86M | 6.63M | 5.7M | 3.44M | 4.48M | 872K | 1.75M | 4.71M | 1.66M | 395K | 358K | 35.84M | 330K | 203K | 261K | 424K | 1.33M | 1.05M | 1.14M | 647K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 98.41M | 104.06M | 92.7M | 71.66M | 38.99M | 66.91M | 98.07M | 127.33M | 135.06M | 30.82M | 26.91M | 0 | 37.06M | 36.04M | 23.25M | 18.31M | 5.08M | 5.61M | 16.53M | 35.95M | 0 | 0 | 39M | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -64.84M | -93.38M | -78.86M | -220.9M | -12.46M | -60.91M | -73.9M | -122.1M | -227.42M | -28.32M | -29.58M | -78.48M | -299.2M | -103.33M | -21.98M | -22.72M | 14.63M | -60.9M | -66.5M | -27.56M | -64.42M | -82.17M | -48M | -73M | -75M | -65M | -86M | -120M | -229M | -408M | -54M |
| Pretax Income | -165.85M | -170.44M | -153.27M | -273.76M | 452.32M | 456.41M | 510.05M | 842.83M | 902.81M | 3.43M | -116.42M | -117.26M | -294.79M | -40.1M | 134.49M | 143.29M | 174.71M | 36.69M | 262.54M | 204.41M | 69.22M | 40.31M | 64M | -21M | -26M | -72M | 33M | 43M | 2M | -121M | 213M |
| Pretax Margin % | -32.05% | -33.81% | -28.45% | -44.12% | 35.3% | 33.91% | 41.66% | 47.06% | 47.62% | 0.62% | -26.58% | -22% | -27.16% | -3.44% | 10.77% | 10.85% | 17.35% | 5.57% | 22.06% | 20.34% | 8.09% | 4.55% | 7.55% | -2.95% | -4.24% | -11.01% | 4.25% | 5.17% | 0.21% | -11.03% | 22.47% |
| Income Tax | 57.91M | 49.39M | -22.1M | -18.51M | 69.36M | 68.08M | 75.67M | 98.22M | 48.92M | -10.78M | -7.55M | 13.33M | -9.42M | -12.84M | 16.85M | -9.89M | -361K | 24.14M | 52.23M | 48.33M | 27.09M | 165.81M | 46M | 5M | -13M | 15M | 10M | 1M | 32M | 39M | 68M |
| Effective Tax Rate % | -34.92% | -28.98% | 14.42% | 6.76% | 15.33% | 14.92% | 14.84% | 11.65% | 5.42% | -314.22% | 6.49% | -11.37% | 3.19% | 32.03% | 12.53% | -6.9% | -0.21% | 65.8% | 19.89% | 23.64% | 39.13% | 411.32% | 71.88% | -23.81% | 50% | -20.83% | 30.3% | 2.33% | 1600% | -32.23% | 31.92% |
| Net Income | -223.76M | -219.84M | -131.16M | -255.25M | 382.96M | 388.33M | 434.37M | 744.6M | 854.22M | 7.98M | -235.84M | -154.2M | -285.38M | -27.26M | 117.64M | 153.18M | 175.07M | 12.55M | 210.31M | 153.7M | 91.33M | -125.18M | 17M | -24M | -18M | -87M | 10M | 42M | -37M | -160M | 152M |
| Net Margin % | -43.25% | -43.61% | -24.34% | -41.14% | 29.89% | 28.86% | 35.48% | 41.58% | 45.06% | 1.45% | -53.85% | -28.93% | -26.29% | -2.34% | 9.42% | 11.6% | 17.39% | 1.9% | 17.67% | 15.3% | 10.68% | -14.12% | 2% | -3.37% | -2.94% | -13.3% | 1.29% | 5.05% | -3.91% | -14.59% | 16.03% |
| Net Income Growth % | -60.23% | -67.6% | 48.61% | -166.65% | -1.38% | -10.6% | -41.66% | -12.83% | 10600.48% | 103.38% | -52.95% | 45.97% | -946.91% | -123.17% | -23.2% | -12.5% | 1294.96% | -94.03% | 36.83% | 68.28% | 172.96% | -836.35% | 170.83% | -33.33% | 79.31% | -970% | -76.19% | 213.51% | 76.88% | -205.26% | 1366.67% |
| Net Income (Continuing) | -223.76M | -219.84M | -131.16M | -255.25M | 382.96M | 388.33M | 434.37M | 744.6M | 853.89M | 14.21M | -108.87M | -130.59M | -285.38M | -27.26M | 117.64M | 153.18M | 175.07M | 12.55M | 210.31M | 156.08M | 42.4M | -120.54M | 18M | -26M | -19M | -89M | 23M | 42M | -30M | -160M | 145M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 331K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.72M | 26.87M | 30M | 31M | 30M | 25M | 14M | 14M | 13M | 13M | 6M |
| EPS (Diluted) | -0.86 | -0.85 | -0.51 | -0.99 | 14.80 | 14.60 | 1.62 | 2.58 | 2.87 | 0.03 | -0.78 | -0.51 | -2.10 | -0.20 | 0.84 | 1.05 | 1.41 | 0.10 | 1.74 | 1.37 | 0.86 | -1.28 | 0.17 | -0.36 | -0.28 | -1.75 | 0.22 | 0.91 | -0.83 | -3.49 | 3.15 |
| EPS Growth % | -61.95% | -66.67% | 48.48% | -106.69% | 1.37% | 801.23% | -37.21% | -10.1% | 9466.67% | 103.85% | -52.94% | 75.71% | -950% | -123.81% | -20% | -25.53% | 1310% | -94.25% | 27.01% | 59.3% | 167.19% | -852.94% | 147.22% | -28.57% | 84% | -895.45% | -75.82% | 209.64% | 76.22% | -210.79% | 1311.54% |
| EPS (Basic) | - | -0.85 | -0.51 | -0.99 | 14.80 | 14.60 | 1.62 | 2.58 | 2.87 | 0.03 | -0.78 | -0.51 | -2.10 | -0.20 | 0.85 | 1.06 | 1.42 | 0.10 | 1.80 | 1.53 | 0.93 | -1.28 | 0.17 | -0.40 | -0.28 | -1.75 | 0.22 | 0.94 | -0.83 | -3.49 | 3.15 |
| Diluted Shares Outstanding | 260.9M | 260.05M | 257.67M | 257.04M | 258.79M | 266.32M | 267.93M | 289.07M | 297.75M | 302.23M | 302.23M | 302.23M | 136.16M | 135.07M | 139.7M | 146.4M | 123.45M | 120.73M | 119.04M | 112.19M | 106.2M | 97.8M | 100.24M | 66.67M | 63.64M | 49.71M | 45.45M | 46.15M | 44.58M | 45.85M | 48.47M |
| Basic Shares Outstanding | 260.9M | 260.05M | 257.67M | 257.04M | 258.78M | 266.25M | 267.92M | 289.06M | 297.75M | 302.23M | 302.23M | 302.23M | 136.16M | 135.07M | 138.55M | 145.16M | 122.62M | 119.71M | 111.45M | 100.46M | 98.21M | 97.8M | 96.22M | 59.72M | 63.64M | 49.71M | 45.45M | 44.68M | 44.58M | 45.85M | 48.47M |
| Dividend Payout Ratio | - | - | - | - | 2.7% | 2.74% | 7.11% | 13.25% | 180.78% | - | - | - | - | - | - | - | - | 0.97% | - | - | - | - | - | - | - | - | - | 2.38% | - | - | - |
Persistent negative gross margins
As reported in recent financial filings, GrafTech's revenue trajectory remains highly inconsistent, with the most recent quarter showing an 11.9% growth rate following a period of sustained contraction, suggesting that the company's top-line performance is heavily tethered to volatile global steel production cycles and legacy contract expirations.
The fluctuation in quarterly revenue suggests that the company lacks a stable organic growth engine, relying instead on the timing of spot market pricing and the fulfillment of take-or-pay agreements. Investors should monitor whether the recent uptick represents a genuine recovery in demand or merely a temporary anomaly driven by contract settlement timing.
Based on the provided income statement data, GrafTech has struggled to maintain positive gross margins, with the most recent figures indicating a failure to cover production costs, which highlights the severe impact of high fixed-cost absorption during periods of sub-optimal capacity utilization across its manufacturing facilities.
The persistent inability to achieve positive gross margins suggests that the company's cost structure is fundamentally misaligned with current market pricing for graphite electrodes. This margin compression appears to be a structural issue rather than a temporary setback, potentially necessitating a significant reduction in operating capacity to restore unit economics.
According to the company's historical income statements, operating leverage remains deeply negative, as SG&A expenses continue to weigh on a business already suffering from gross margin deficits, preventing any meaningful scaling of operating income even during periods of relative revenue stabilization or modest growth in quarterly figures.
The lack of operating leverage indicates that the company's overhead remains rigid despite the significant decline in gross profit. This suggests that management faces a difficult trade-off between maintaining essential operational capabilities and the immediate need to reduce fixed costs to mitigate ongoing operating losses.
As evidenced by the consistent net losses, including a net margin of -34.6% in the most recent quarter, the quality of earnings is currently non-existent, with stock-based compensation and other non-operating items further complicating the path to profitability for shareholders in the current fiscal environment.
The recurring net losses suggest that the company is currently in a state of financial distress, where the primary focus is likely liquidity preservation rather than earnings growth. The persistence of these losses warrants further investigation into whether the company's capital structure can support continued operations without further dilution or debt restructuring.
Based on the provided financial data, the most significant challenge to the current narrative is the company's inability to generate positive cash flow from operations, which raises serious questions about the long-term viability of its current cost structure and its ability to compete against lower-cost global producers.
Short-sellers would likely focus on the company's inability to achieve a positive gross margin, which suggests that the competitive advantage of vertical integration is currently insufficient to offset the high fixed costs of production. The risk of further asset impairments or liquidity constraints remains a primary concern for any potential recovery thesis.
Quick answers to the most common questions about buying EAF stock.
For fiscal year 2025, GrafTech International Ltd. (EAF) reported total revenue of $504.1M. This represents a 46.8% decline compared to $948.0M in 1996.
GrafTech International Ltd. (EAF) reported a net loss of $219.8M for the fiscal year ending 2025.
GrafTech International Ltd. (EAF) reported an operating income of $-77.1M, resulting in an operating profit margin of -15.3%. This margin reflects the operational efficiency of the business before interest and taxes.
GrafTech International Ltd. (EAF) generated $-15.7M in gross profit for the year, representing a gross profit margin of -3.1%. This demonstrates the company's core pricing power and production efficiency.