GrafTech Plans Monterrey Closure, Targets Higher 2027 Pricing

The Tip Desk · October 27, 2026 · 2 min read

The graphite-electrode maker booked $140 million of third-quarter net sales and said it expects a mid-single-digit lift in weighted-average realized pricing in the fourth quarter.

GrafTech International Ltd. (EAF) reported third-quarter net sales of $140 million and said it expects a mid-single-digit percentage increase in weighted-average realized pricing in the fourth quarter versus the third quarter, with meaningfully higher realized pricing in 2027.

The graphite-electrode manufacturer also announced the planned closure of its Monterrey, Mexico plant, which it expects to generate $20 million to $25 million in annual cash cost savings, excluding one-time costs, with the full annual benefit expected in 2028. After the wind-down, annual graphite-electrode capacity is expected to be about 127 thousand metric tons.

Sales volume was 28.8 thousand MT, flat versus a year earlier. Weighted-average realized price was about $3,900 per MT, down 7% from the third quarter of 2025 and unchanged from the second quarter of 2026. Net sales rose from $127 million in the second quarter.

Adjusted EBITDA was $9 million, compared with $13 million a year earlier; the company said the year-over-year decline primarily reflected lower weighted-average realized price, partially offset by lower cash cost of goods sold per MT. Cash cost of goods sold per MT was $3,653.

Net loss was $47 million, or $1.76 a share, versus $28 million, or $1.10 a share, a year earlier. The period included $14 million of restructuring and other exit charges, the majority non-cash, associated with the planned Monterrey closure. Adjusted loss was $32 million, or $1.21 a share.

Production volume was 27.0 thousand MT, and capacity utilization was 64%. Customer requirements currently served by Monterrey are to move to Calais, France, and Pamplona, Spain, with connecting-pin capacity transferred to Pamplona.

Net cash used in operating activities was $8 million, versus $25 million provided a year earlier. Adjusted free cash flow was negative $16 million. The company said operating cash flow reflected an increase in inventory consistent with its expectations and that it continues to anticipate a reduction in working capital, including inventory, in the fourth quarter.

Total liquidity was $242 million as of September 30, 2026, including $134 million of cash and cash equivalents and $108 million of revolving-credit availability. Gross debt was $1,225 million, with substantially no maturities until December 2029, and net debt was about $1,091 million.

GrafTech said it is maintaining an expectation for a 5% to 10% year-over-year increase in graphite-electrode sales volume for 2026 and a low-single-digit percentage decline in cash cost of goods sold per MT for 2026 versus 2025. It said it has secured customer commitments at higher price levels than comparable commitments in earlier periods and expects those commitments to contribute to improved realized pricing as they flow through results. Full-year capital expenditures remain expected at about $35 million.