GrafTech International Ltd. Q1 FY2026 earnings call

• Commercial front: Actively pursuing market-based and policy-driven solutions for pricing. Announced a price increase on March 26th. Engaged in advocating fair trade and market stability, supporting trade cases in the U.S. • Industry trends: Global steel production outside China had certain changes, with North America showing growth and EU having some trends. Electric arc furnace steelmaking gaining share globally. • Cost structure: Working on cost optimization, including procurement and production efficiency. Geopolitical impacts on inputs like decant oil and energy considered. • Safety: First quarter total recordable incident rate was 0.35, an improvement over 2025 full year.

For the first quarter, production volume was 29,000 metric tons with a capacity utilization rate of 65%. Sales volume was 28,000 metric tons, an increase of 14% compared to the prior year. U.S. sales volume grew 37% year-over-year. Average selling price was approximately $3,900 per metric ton, a 5% decline compared to the prior year and a 2% sequential decline from the fourth quarter. Cash costs per metric ton were $3,848, above the first quarter 2025 level but a 4% sequential decline from the fourth quarter. More than 85% of 2026 anticipated volume was committed in the order book.

• Sales volume: Full year on track for 5 - 10% year-over-year increase in total sales volume. • Pricing: Pricing momentum beginning to turn, with most volume impacted by price increase to happen in the second half of the year. • Costs: Anticipate modest year-over-year reduction in cash COGS consistent with early year guidance. • Liquidity: Ended first quarter with total liquidity of $329 million. Expect to draw on delayed draw term loan residual portion by end of second quarter.

• Geopolitical conflicts generating macro uncertainty and energy market volatility. • Disruptions in production and transportation of oil out of the Middle East affecting decant oil prices and needle coke market. • Shipping disruptions and rising geopolitical risk reinforcing need for supply chain security.

Q: About cost inflation side, confirming EU energy coverage and decant oil impact on needle coke.

A: EU energy nearly fully hedged with fixed price contracts through end of year. Decant oil is ~25% of total production cost, pricing not directly correlated to Brent curve but incorporated into cost forecast. Needle coke market expected to see increase in second half due to oil price and supply disruption.

Q: On pricing, whether trough for year and when inflection.

A: Limited volumes impacted by price increase delivered in second quarter, expect materialization in third and fourth quarter.

Q: On Middle East conflict impact on electrode production and supply-demand.

A: Hard to say long-term impact, but supply disruption in second half possible. Our vertical integration with C-DRIFT provides surety of supply.

Q: On competitors' pricing and share recovery.

A: Have success in tenders since price increase, market understands electrode value. History shows disconnect between electrode cost and finished steel price.

Q: On Middle East conflict exposure in cash cost and spillover.

A: Beyond decant oil, energy costs like electricity and natural gas are factors. Limited volume in Middle East, some spillover to Europe with spot volumes.

Q: On rule of thumb pricing to liquidity and steelmakers shortening supply lines.

A: $100 per metric ton price change equates to ~$12 million liquidity impact. Steelmakers shortening supply lines due to transit times, market uncertainty and demand pickup.

Q: On trade action timing and impact on 2027 negotiations.

A: Countervailing duties ruling no later than end of July, anti-dumping in mid-September, both impacting 2027 negotiations.

Q: On trade policy scenarios and other markets.

A: Trade case in US is both volume and price impact. Actively advocating fair trade in other markets like Brazil and supporting EU efforts.