Ferroglobe PLC Q4 FY2025 earnings call

• 2025 had external challenges but Ferroglobe made strategic progress. Achieved trade measures in EU and US. Converted 3 furnaces from silicon metal to ferrosilicon. • Operationally, executed with discipline, proactive cost control, navigated weaker demand and lower pricing while maintaining solid balance sheet. • Took steps to enhance long-term cost structure and operating flexibility, signed new energy agreement in France. • Invested in long-term opportunities like idled operations in Venezuela. • Increased dividend in 2025 and announced another increase for 2026.

Silicon metal: Volumes and revenues declined by approximately 3% in 2025 due to weak demand, Chinese and Angolan dumping in Europe, and an 8% decline in U.S. shipments. Adjusted EBITDA declined from $12 million to $1 million in Q4 with margins decreasing to 1%. Silicon-based alloys: Revenue grew 12% in Q4 driven by a 19% sequential increase in volumes, adjusted EBITDA increased to $60 million with margins expanding to 15%. Manganese-based alloys: Volume increased 16% to 81,000 tonnes in Q4, revenue increased 10%, adjusted EBITDA doubled to $9 million with margins increasing from 5% to 9%. Full year adjusted EBITDA was $28 million, down from $154 million in 2024, with price decline and reduced volumes being key factors.

• Anticipate revenues to improve to $1.5 billion to $1.7 billion in 2026, an increase of 20% at midpoint over 2025, driven by strong volume growth in silicon-based and manganese-based alloys segments. • Expect volumes to improve in U.S. ferrosilicon market as antidumping and countervailing duties finalize. • Optimistic about 2026 for silicon-based and manganese-based alloys sales with booked incremental business and expected EU steel safeguards impact.

• Muted demand, tariff uncertainty, delayed trade measures and elevated levels of predatory imports in 2025. • Silicon metal excluded from new safeguards and continued aggressive imports from China and Angola. • EU carbon credit dynamics could potentially penalize European producers if not properly managed. • Political and legal aspects in Europe causing delays in trade measure decisions and lack of unity affecting industry protection.

Q: Wanted to touch on volume expectations across the 3 businesses for 2026. And the plan for the EU silicon assets.

A: Marco addressed volume expectations in Europe and U.S. regarding safeguards and aluminum growth. Explained conversion of furnaces and utilization of silicon metal furnaces.

Q: Inquired about the component of minimum prices with EU safeguards for ferroalloys.

A: Marco discussed demand being critical, ferrosilicon and manganese price trends, and steel demand impact.

Q: Asked about manganese alloys facilities.

A: Marco stated they are producing at a small rate due to supply chain and asset conditions.

Q: Explained EU carbon credits function.

A: Marco provided an overview of how EU carbon credits work for carbon ferromanganese and the complexity of the situation.

Q: Asked about silicon metals exclusion from EU safeguards.

A: Marco explained reasons for exclusion and ongoing efforts for new measures.

Q: Zoomed out on ultimate end market exposure.

A: Spoke about political support and differences between EU and U.S. in protecting industries.

Q: Asked about working capital and CapEx.

A: Beatriz discussed working capital release, expectation of continuing to release working capital, net debt position, and similar or slightly lower CapEx in 2026