Ferroglobe PLC Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Trade Actions: U.S. filed trade cases against several countries with preliminary countervailing and antidumping duties; EU safeguard investigation on silicon metal, etc., expected Nov 18.
• Coreshell Partnership: Coreshell shipping commercial scale EV pilot batteries, expects commercial deployment in robotics/defense early 2026; joint development and supply agreement finalized.
• Operational Agreements: Signed multiyear energy agreement in France, effective Jan 1, 2026, providing competitive energy price and flexibility.
• Financial Results: Q3 sales down 19% to $312M, raw material costs down 29%, adjusted EBITDA $18M, margin 5.9%.

Segment Performance

• Silicon Metal: Revenue declined 24% sequentially to $99 million in Q3, with shipments down 25% to 34,000 tons and average selling price up 1.2% to $2,950. Adjusted EBITDA increased 81% to $12 million, margins at 12%.
• Silicon-based Alloys: Revenue declined 17% to $92 million, volumes down 19% to 43,000 tons, and average selling price up 2% to $2,149. Adjusted EBITDA increased significantly to $12 million, margins at 13%.
• Manganese-based Alloys: Revenue declined 21% to $84 million, volumes down 21% to 70,000 tons, and average selling price up 1% to $1,214. Adjusted EBITDA decreased 74% to $4 million, margins at 5%.

Guidance

• Expect trade measures in U.S. and EU to improve business environment in 2026.
• Coreshell expected to commercialize battery systems in early 2026.
• Anticipate working capital improvements in Q4.
• Declared dividend of $0.04 per share for Q4.

Risks

• Uncertainty around EU safeguard investigation outcomes and product inclusion.
• Continued aggressive imports affecting volumes and pricing.
• Dependence on trade actions to improve market dynamics.

Question and Answer

• Q: Demand signals and volume perspective for 2026 across product categories and regions A: Marco discussed Europe's demand stimulated by supply chain protection, steel demand growth, and Germany's energy tariff; North America's steel mill utilization and siloxane imports impact.
• Q: Operational efficiencies and impact on EBITDA/cash flow A: Marco mentioned hiring freeze, selective spending, and focus on S&OP to improve working capital.
• Q: Capital allocation and shareholder returns A: Beatriz stated they plan to consider share buybacks when market conditions improve.
• Q: Silicon metal in chemical sector trends A: Marco discussed Europe's silicon metal demand affected by siloxane imports and polysilicon industry collapse; U.S. affected by siloxane imports and Dow's captive use.
• Q: EU safeguards and next steps A: Marco mentioned confidence in Nov 18 outcome, readiness for immediate action if measures insufficient.