Revenue declined 3.4% YoY to $127.4M in Q2 2026, with gross margin remaining negative at -0.3% and operating margin at -11.4%, reflecting persistent cost pressures.
GrafTech International Ltd. (EAF) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 512.92M | 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 % | 0.86% | -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 | 542.36M | 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 | -29.44M | -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 % | -5.74% | -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 | 60.1M | 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 | 53.87M | 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 | 6.23M | 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 | -89.54M | -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 % | -17.46% | -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 | -57.24M | -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 % | -11.16% | -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 % | -170.67% | -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) | 32.3M | 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 | -84.64M | -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 | -96.09M | -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 | 1.28M | 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 | 97.36M | 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 | -79.4M | -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 | -168.94M | -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 % | -32.94% | -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 | 8.41M | 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 % | -4.98% | -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 | -177.35M | -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 % | -34.58% | -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 % | 16.26% | -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) | -177.35M | -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) | -0.68 | -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 % | 17.07% | -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 | 261.73M | 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 | 261.73M | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent negative gross margins
Metrics are mathematically derived from official filings.
Volume Gains Mask Price Erosion
Despite Q2 2026 volume growth of 8% YoY, revenue fell 3.4% YoY to $127.4M, implying continued price erosion. According to the latest earnings release, management's 5-10% volume guidance may not offset pricing pressure.
The revenue trajectory shows a decelerating trend, with TTM revenue down 6.4% YoY. The Q2 2026 volume increase of 8% YoY and 10% sequentially, as noted in recent context, failed to lift revenue, indicating that average selling prices are falling faster than volume gains. This suggests the company is trading price for volume in a competitive market, a strategy that may not stabilize the top line if price declines persist.
Negative Gross Margin Persists
Gross margin remained negative at -0.3% in Q2 2026, with cumulative gross profit over the last four quarters at -$29.4M. As reported in financial statements, this indicates production costs exceed revenue, a structural issue.
The gross margin has been negative for seven of the last ten quarters, with the latest quarter at -0.3%. This persistent negative margin suggests that the company's high fixed-cost structure and input costs are not being covered by current pricing. The vertical integration of needle coke production at Seadrift appears insufficient to offset the cyclical trough, and the margin may remain under pressure until global electrode prices recover.
Operating Leverage Amplifies Losses
Operating income swung from -$2.1M in Q2 2024 to -$14.6M in Q2 2026, with operating margin at -11.4%. Based on reported figures, SG&A has remained stable around $13M, but fixed costs magnify the impact of revenue declines.
The operating leverage is clearly negative: as revenue declined, operating losses widened disproportionately. SG&A expenses have been relatively stable, averaging $13.5M per quarter, but the inability to cover fixed costs at current revenue levels has driven operating margin to -11.4%. This suggests that any revenue recovery could lead to significant margin expansion, but the current environment offers no such relief.
Net Losses Exceed Operating Losses
Net income in Q2 2026 was -$40.5M, far worse than operating income of -$14.6M, implying significant non-operating charges. According to the income statement data, these charges may include interest, taxes, or impairments.
The gap between operating and net income is substantial, with net losses consistently exceeding operating losses by $20-30M per quarter. This suggests material non-operating expenses, likely interest on debt and possibly tax-related items. The Q2 2025 net loss of -$86.9M on an operating loss of -$14.7M indicates a one-time charge, possibly an impairment, which warrants further investigation. Investors should monitor the sustainability of these non-operating losses.
COGS Outpacing Revenue
COGS in Q2 2026 was $127.8M, exceeding revenue of $127.4M, resulting in a gross loss. As reported in financial statements, this marks the fourth consecutive quarter of negative gross profit, highlighting cost pressures.
The cost structure is dominated by COGS, which has consistently exceeded revenue in recent quarters. This indicates that the company is unable to cover its production costs, including raw materials and fixed overhead. The stability of SG&A and R&D suggests that the issue is not overhead but the core manufacturing cost. The negative gross margin may reflect low capacity utilization and high per-unit fixed costs, which could improve if volumes increase, but the current pricing environment does not support profitability.
Volume Strategy May Not Restore Profitability
Despite management's guidance for 5-10% volume growth, the Q2 2026 volume increase of 8% failed to improve margins, with gross margin still negative. This suggests that volume gains alone may not be sufficient to offset price declines.
The short thesis would argue that the company's strategy of pursuing volume growth is flawed because it is not translating into profitability. The Q2 2026 data shows that even with an 8% volume increase, revenue declined and gross margin remained negative. This implies that the company is sacrificing price for volume, which may not be sustainable. Additionally, the competitive pressure from Chinese exports and the shift of needle coke to battery anodes could keep prices depressed, making a margin recovery unlikely in the near term.