Ferroglobe PLC Q1 FY2026 earnings call

• Market conditions for ferroalloys became more favorable with silicon-based alloys volumes up 18% sequentially. • Manganese-based segment volumes increased 6%. • Silicon metal market in Europe under attack from China and Angola, but European Trade Commissioner reaffirmed commitment to protect. • Evaluating restart of operations in Venezuela. • Converted silicon metal furnaces to ferro-silicon in response to market conditions. • Partnership with Corsha to advance use of silicon in batteries, co-led series B round, Corsha started production and signed agreements with automotive OEMs.

Silicon-based alloys segment: Volumes grew 18% sequentially to the highest level in nearly five years. Revenue increased 18% to $122 million. Manganese-based segment: Volumes increased 6% to 86,000 tons. Revenue grew 16% to $107 million. Silicon metal segment: Volumes declined 6%, revenue declined 13% to $84 million.

• Optimistic 2026 will be strong year for silicon-based alloy volumes. • Anticipated catalyst in second half from enhanced EU steel safeguards. • Constructive about 2026 manganese outlook with strong volumes expected for remainder of year.

• Silicon metal market under pressure due to aggressive pricing by imports from China and Angola, especially in Europe. • Iran conflict affecting near-term logistics and raw material costs.

Q: Have you had discussions with the US and or EU governments regarding potential grant opportunities for growth when it comes to critical materials? And what specific metals or alloys you're most strongly considering?

A: Talked to different US government departments, currently down to 10 critical materials to produce with some needing minimal or no capex, magnesium may need more substantial investment.

Q: When it comes to the increased logistical expenses, are you implementing surcharges?

A: Implementing surcharges in Europe and US, will likely increase prices across product mix.

Q: What's the inhibiting factor for not raising prices in EU and US for products like Ferros and Nikon?

A: High inventories, Angola dumping ferro-silicon in Europe, and conversion of ferro-silicon to silicon metal by steelmakers in Europe; US expected to see more robust pricing soon.

Q: When thinking about pursuing new critical minerals, would price floor or government-related offtake be part of decision matrix?

A: Count on government support, but focus on market attractiveness and technologies.

Q: Progress for Corshell, volumes, customers, margins?

A: Volumes not significant until OEMs qualify batteries, budget of sales next year north of $60 million.

Q: Volume expectations for 2Q and manganese based alloys?

A: Benefiting from safeguards, manganese alloys volume growth expected, ferro-silicon affected by different dynamics in Europe and US.

Q: Cost improvement in ferrosilicon specifically?

A: Q4 had one-off positive, Q1 costs affected, expect cost improvement but logistics cost may increase in Q2 then fade.