Key Highlights:

  • GrafTech shares rose 7.99% to $8.05 on Friday, October 23, 2026, the day it reported third-quarter results.
  • Adjusted EBITDA was $8.6 million, down from $13.0 million a year earlier but up from $1.9 million in the second quarter.
  • The net loss widened to $46.8 million, or $1.76 per share, from $28.5 million.
  • Realized graphite electrode pricing is expected to rise by a mid-single-digit percentage in the fourth quarter.
  • Closing the Monterrey plant is expected to save $20 million to $25 million in annual cash costs.

GrafTech Stock: How Does an 8% Gain Compare With a Wider Quarterly Loss?

GrafTech (NYSE:EAF) shares rose 7.99% to $8.05 on Friday, October 23, 2026, as the company reported third-quarter results. The net loss widened to $46.8 million, or $1.76 per share, from $28.5 million, or $1.10, a year earlier, yet investors focused on recovering profitability and a stronger pricing outlook.

Adjusted EBITDA of $8.6 million was below the $13.0 million of the third quarter of 2025 but well above the $1.9 million of the second quarter of 2026. The adjusted loss per share was $1.21.

GrafTech makes graphite electrodes, the consumable component used in electric arc furnace steelmaking.

Sales and Pricing: What Held Back the Quarter?

Net sales fell 3% to $140.2 million from $144.0 million. Sales volume was flat at 28.8 thousand metric tons, while realized price of about $3,900 per metric ton was down 7% from a year earlier and flat versus the second quarter.

Nine-month sales rose to $392.6 million from $387.7 million, helped by a 7% increase in volume to 87.7 thousand metric tons.

Cash cost of goods sold per metric ton improved to $3,653 from $3,795.

Monterrey Closure: Why Did the Loss Widen?

The loss included $13.9 million of restructuring and other exit charges, mostly non-cash, tied to the closure of the Monterrey, Mexico plant announced in September 2026. The company expects annual cash savings of $20 million to $25 million, with the full benefit in 2028.

Production will shift to plants in Calais, France, and Pamplona, Spain, and annual capacity after the closure is expected to be about 127 thousand metric tons.

Operating cash flow was negative $8.4 million, and adjusted free cash flow was negative $16.1 million.

Outlook and Balance Sheet: What Does Management Expect?

The company expects 2026 graphite electrode volume growth of 5% to 10% and a mid-single-digit percentage price increase in the fourth quarter versus the third. It expects meaningfully higher realized prices in 2027, citing favorable steel trade policy in the United States and recently approved increases in trade protection in Europe.

Cash cost of goods sold per metric ton is expected to decline by a low-single-digit percentage from 2025, and capital expenditures should be about $35 million.

Cash was $134.3 million at September 30, and total liquidity was $242 million, including $108 million available under the revolver. Gross debt was $1.225 billion and net debt about $1.091 billion, with substantially no maturities until December 2029.

Valuation: What Does $8.05 Imply?

The loss per share and net loss imply roughly 26.6 million shares (calculated), for a market capitalization near $214 million at $8.05 (calculated). Adding net debt of about $1.091 billion gives an enterprise value near $1.3 billion (calculated).

Earnings are negative, so a price-to-earnings multiple does not apply.

What to Watch Next: Will Fourth-Quarter Pricing Confirm the Recovery?

The third quarter showed lower costs and a sequential EBITDA improvement, but a wider net loss and negative cash flow remain. The next checkpoint is fourth-quarter and full-year 2026 results, for which the company has not yet announced a date, and realized pricing against the mid-single-digit increase.

The company reported improved sequential EBITDA and guided to higher fourth-quarter and 2027 realized prices.

The net loss was $46.8 million, or $1.76 per share, compared with $28.5 million a year earlier.

The company is closing its Monterrey, Mexico plant, expecting $20 million to $25 million in annual cash savings.