GrafTech International Ltd (EAF) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to GrafTech's second quarter 2025 earnings conference call and webcast. (Operator Instructions)

女士們、先生們，早安，歡迎參加 GrafTech 2025 年第二季財報電話會議和網路廣播。（操作員指示）

I would now like to turn the conference call over to Mike Dillon, Vice President, Investor Relations, and Treasurer. Please go ahead.

現在，我想將電話會議交給投資者關係副總裁兼財務主管 Mike Dillon。請繼續。

Thank you, Jenny. Good morning, and welcome to GrafTech International's second quarter 2025 earnings call. On with me today are Tim Flanagan, Chief Executive Officer; Jeremy Halford, Chief Operating Officer; and Rory O'Donnell, Chief Financial Officer. Tim will begin with opening comments. Jeremy will then discuss safety, the commercial environment, sales and operational matters. Rory will review our quarterly results and other financial details, and Tim will close with additional comments on our outlook. We will then open the call to questions.

謝謝你，珍妮。早安，歡迎參加 GrafTech International 2025 年第二季財報電話會議。今天與我一起出席的還有執行長 Tim Flanagan、營運長傑里米哈爾福德 (Jeremy Halford) 和財務長 Rory O'Donnell。蒂姆將先致開幕詞。然後，傑里米將討論安全、商業環境、銷售和營運事宜。羅裡 (Rory) 將回顧我們的季度業績和其他財務細節，蒂姆 (Tim) 將對我們的前景發表補充評論。然後我們將開始提問。

Turning to our next slide. As a reminder, some of the matters discussed on this call may include forward-looking statements regarding, among other things, performance, trends, and strategies. These statements are based on current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those indicated by forward-looking statements are shown here. We will also discuss certain non-GAAP financial measures, and these slides include the relevant non-GAAP reconciliations.

翻到下一張投影片。提醒一下，本次電話會議討論的一些事項可能包括有關業績、趨勢和策略等方面的前瞻性陳述。這些聲明是基於當前預期，並受風險和不確定性的影響。這裡列出了可能導致實際結果與前瞻性陳述所示結果有重大差異的因素。我們也將討論某些非公認會計準則財務指標，這些投影片包括相關的非公認會計準則對帳。

You can find these slides in the Investor Relations section of our website at www.graftech.com. A replay of the call will also be available on our website.

您可以在我們網站 www.graftech.com 的「投資者關係」版塊找到這些投影片。本次電話會議的重播也將在我們的網站上提供。

I'll now turn the call over to Tim.

我現在將電話轉給蒂姆。

Good morning, and thank you for joining GrafTech's second quarter's earning call. Today, we'll provide an overview of our second-quarter performance, share key operational and commercial updates, and discuss our outlook for the remainder of 2025 and beyond. But before we dive into the details, I'd like to begin with an update on the proactive steps we are taking as it relates to the evolving industry dynamics and heightened macro uncertainty. We have outlined a series of strategic initiatives to meet our key commercial, operational, and financial objectives.

早安，感謝您參加 GrafTech 第二季的財報電話會議。今天，我們將概述第二季的業績，分享關鍵的營運和商業更新，並討論我們對 2025 年剩餘時間及以後的展望。但在我們深入探討細節之前，我想先介紹一下我們正在採取的與不斷變化的行業動態和加劇的宏觀不確定性相關的主動措施。我們制定了一系列策略舉措，以實現我們的關鍵商業、營運和財務目標。

Our objectives are clear and include increasing sales volume and regaining market share, improving our average pricing through a combination of price increases and shifting the geographic mix of our volume to higher priced regions, reducing costs and working capital requirements, and ultimately to improve our liquidity and strengthen our overall financial foundation.

我們的目標很明確，包括增加銷售量和重新獲得市場份額，透過提高價格和將銷售地理結構轉移到價格更高的地區來提高我們的平均定價，降低成本和營運資金需求，最終提高我們的流動性並加強我們的整體財務基礎。

Our initiatives have been designed to strengthen our competitive positioning, enhance our resiliency, and ensure we remain well positioned to generate strong returns as the market recovers. The team is delivering on all fronts, and the results have been impressive. Allow me to highlight a few examples from our second-quarter performance.

我們的措施旨在加強我們的競爭地位，增強我們的彈性，並確保我們在市場復甦時保持有利地位，產生強勁回報。該團隊在各方面都表現出色，並取得了令人印象深刻的成果。請容許我重點介紹一下我們第二季業績的幾個例子。

We grew sales volume by 12% year over year in the second quarter and 16% sequentially compared to the first quarter. In fact, our sales volume in the second quarter was our highest level since the third quarter of 2022. Likewise, our capacity utilization rate increased to 65%, also the highest level in nearly three years. We achieved a 13% year-over-year decline in our cash COGS per metric ton, and we expect to exceed our initial cost reduction guidance for the full year. We generated positive EBITDA for the first time since the second quarter of last year. And lastly, our cash flow performance and quarter end liquidity position exceeded our expectations.

我們第二季的銷售額年增了 12%，季增了 16%。事實上，我們第二季的銷量是自 2022 年第三季以來的最高水準。同樣，我們的產能利用率也上升至65%，這也是近三年來的最高水準。我們的每公噸現金銷售成本年減了 13%，預計全年成本削減幅度將超過最初的預期。自去年第二季以來，我們首次實現了正的 EBITDA。最後，我們的現金流表現和季度末流動性狀況超出了我們的預期。

Overall, we're very pleased with these second-quarter results. However, I want to be clear, that doesn't mean we're satisfied with the current level of performance. However, we do view these results as a positive step in the right direction. These are signs of progress and momentum, providing a solid platform to build upon for continued improvement.

整體而言，我們對第二季的業績非常滿意。然而，我想明確一點，這並不意味著我們對目前的表現水準感到滿意。然而，我們確實認為這些結果是朝著正確方向邁出的積極一步。這些都是進步和動力的標誌，為持續改進提供了堅實的平台。

As market conditions recover, we will remain well positioned to accelerate our path back to normalized levels of profitability. With that introduction, let me expand on our initiatives and performance in a few of these areas, starting with the commercial efforts.

隨著市場狀況的復甦，我們將繼續保持有利地位，加快恢復正常獲利水準。透過上述介紹，我將首先從商業努力開始，詳細闡述我們在其中一些領域的舉措和表現。

We are actively leveraging our strong customer value proposition and capitalizing on the commercial momentum we have built to expand our market share and drive continued volume growth. With the second-quarter performance I referenced earlier, our year-to-date sales volume is up 7% compared to 2024. Further, we remain on track to increase our sales volume by approximately 10% on a full-year basis for 2025 compared to last year. This will result in cumulative sales volume growth of approximately 25% since the end of 2023. This is impressive growth in any market but is particularly noteworthy given the graphite electrode demand has remained relatively flat for the past two years.

我們正在積極利用我們強大的客戶價值主張，並利用我們已經建立的商業勢頭來擴大我們的市場份額並推動銷售持續成長。根據我之前提到的第二季業績，我們今年迄今的銷售量與 2024 年相比成長了 7%。此外，我們仍有望在 2025 年全年實現銷售額較去年同期成長約 10%。這將導致自2023年底以來累計銷量成長約25%。在任何市場中，這都是令人印象深刻的成長，但考慮到過去兩年石墨電極需求保持相對平穩，這一點尤其值得注意。

It's a clear indication that our strategy is working and that we're outperforming the broader market. However, we continue to face challenging pricing dynamics in nearly all of our regions. While this is partially attributable to the flat market demand, it further reflects the increased level of low-priced graphite electrode exports from China and others that we've spoken to previously, which has resulted in excess electrode capacity in the rest of the world.

這清楚地表明我們的策略正在發揮作用，而且我們的表現優於大盤。然而，我們在幾乎所有地區仍然面臨嚴峻的定價狀況。雖然這部分歸因於市場需求持平，但進一步反映了我們之前談到的中國和其他國家低價石墨電極出口量的增加，導致世界其他地區的電極產能過剩。

To navigate these headwinds, we are closely monitoring market developments and remain focused on disciplined execution across all areas within our control. To that end, we have taken and will continue to take decisive actions to improve our overall financial performance. These efforts include ongoing actions to strategically shift the geographic mix of our sales volume towards regions where we see opportunities to capture higher selling prices.

為了應對這些不利因素，我們密切關注市場發展，並繼續專注於我們控制範圍內所有領域的嚴格執行。為此，我們已經採取並將繼續採取果斷行動來改善我們的整體財務表現。這些努力包括持續採取行動，將我們的銷售量地理結構策略性地轉向那些我們認為有機會獲得更高銷售價格的地區。

In some cases, this means making deliberate decision to walk away from volume opportunities where margins are unacceptably low and we're not being compensated to the value proposition we provide. This is consistent with our commitment to a disciplined value-focused growth, not volume for volume's sake. A key element of this strategy is to grow our volume and market share in the United States, which remains our most profitable region.

在某些情況下，這意味著要慎重決定放棄利潤率低得令人無法接受的批量機會，而且我們無法獲得對所提供的價值主張的補償。這符合我們對以價值為中心的規範增長的承諾，而不是為了數量而數量增長。這項策略的關鍵要素是增加我們在美國的銷售和市場份額，美國仍然是我們最賺錢的地區。

In the second quarter, we increased our sales volume in the United States by 38% year over year. This represents another step change in our US market share and is providing significant support to our average selling price. For the second quarter, our weighted average price was approximately $4,200 per metric ton. Comparing this to the fourth quarter of 2024, where our average selling price for non-LTA volume was approximately $3,900 per metric ton, this represents an increase of nearly 8%.

第二季度，我們在美國的銷量較去年同期成長了38%。這代表著我們在美國市場份額的另一個變化，並為我們的平均售價提供了顯著的支持。第二季度，我們的加權平均價格約為每公噸 4,200 美元。與 2024 年第四季相比，我們的非 LTA 量平均售價約為每公噸 3,900 美元，這代表著近 8% 的成長。

As overall market pricing has remained relatively flat over this period, the growth in our average selling price is attributable to the successful execution of this strategy. While optimizing the geographic mix of our sales volume is an important step towards improving the quality of our order book, the reality is the absolute level of pricing across the industry must increase to more accurately reflect the underlying cost, the value delivered, and the essential nature of graphite electrodes.

由於這段期間整體市場價格保持相對平穩，我們平均售價的成長歸功於這項策略的成功執行。雖然優化銷售量的地理結構是提高訂單品質的重要一步，但現實是整個產業的絕對定價水準必須提高，以更準確地反映潛在成本、交付的價值和石墨電極的基本性質。

Earlier this year, we informed our customers of our intention to increase prices by 15% on uncommitted volume for 2025. This increase is the first necessary step on the path to restoring pricing and therefore, profitability to levels that will support our ability to invest in our business. Our customers recognize that graphite electrodes are a relatively small piece of their overall cost structure but are just as important as the scrap they put in their mill or the electricity that powers their furnace. They appreciate the significant steps taken by GrafTech to improve the health of our business before coming to them with a price increase.

今年早些時候，我們告知客戶，我們打算將 2025 年未承諾的價格提高 15%。此次提價是恢復定價並因此將獲利能力恢復到支持我們業務投資能力的水平的必要第一步。我們的客戶認識到石墨電極在其整體成本結構中所佔的比例相對較小，但卻與他們放入工廠的廢料或為熔爐供電的電力一樣重要。他們讚賞 GrafTech 在向他們提出漲價之前為改善我們的業務狀況而採取的重大措施。

While capturing higher pricing in a soft commercial environment is never easy, we're encouraged that we're starting to see price stability across many of our key regions. As we finalize customer negotiations related to volume for the balance of 2025 and head into discussions with our customers on their needs for 2026, we look forward to discussing the unmatched value we provide to our customers beyond just supplying electrodes of the highest quality. This includes the reliability of supply and our world-class technical services, all which support a higher price point.

雖然在疲軟的商業環境中獲得更高的價格從來都不是一件容易的事，但我們很高興地看到，我們在許多關鍵地區開始看到價格穩定。當我們完成與 2025 年剩餘產量相關的客戶談判並與客戶討論他們 2026 年的需求時，我們期待討論我們為客戶提供的無與倫比的價值，而不僅僅是提供最高品質的電極。這包括供應的可靠性和我們世界一流的技術服務，所有這些都支援更高的價格點。

We are unwavering in our commitment to serve our customers with excellence and be the most trusted value-added supplier of high-quality graphite electrodes, consistent with our focus on nurturing long-term partnerships built on performance, reliability, and mutual success.

我們堅定不移地致力於為客戶提供卓越的服務，成為最值得信賴的高品質石墨電極增值供應商，同時我們致力於建立基於性能、可靠性和共同成功的長期合作夥伴關係。

Allow me to pivot to cost. I want to acknowledge the outstanding work our team has done to significantly improve our cost structure from fixed and variable operating expenses to corporate overhead costs. Through disciplined execution and a relentless focus on efficiency, we've made remarkable progress in driving down costs and enhancing the overall agility of our operations.

請容許我談談成本問題。我要感謝我們的團隊所做的出色工作，他們顯著改善了我們的成本結構，從固定和變動營運費用到企業管理費用。透過嚴格的執行和對效率的不懈關注，我們在降低成本和提高整體營運靈活性方面取得了顯著進展。

Further, our team continues to effectively manage the uncertainty caused by the evolving global trade-making policy and specifically the impact of US tariffs. As we've consistently noted, our integrated global network of production gives us flexibility around where we manufacture our products, allowing us to serve end markets efficiently and reliably. In addition, we maintain strategically positioned inventories across key geographies, allowing us to meet customer needs even in dynamic market conditions. As a result, we are well positioned to minimize the potential impacts of those imposed tariffs.

此外，我們的團隊繼續有效地管理不斷變化的全球貿易政策以及特別是美國關稅的影響所造成的不確定性。正如我們一直指出的那樣，我們一體化的全球生產網路使我們能夠靈活地選擇產品生產地點，從而高效、可靠地服務終端市場。此外，我們在主要地區保持策略性定位的庫存，使我們能夠即使在動態的市場條件下滿足客戶的需求。因此，我們有能力盡量減少這些關稅的潛在影響。

As we noted in Q1, we expect the impact of the announced tariffs to have less than a 1% impact on our 2025 cash cost, which is reflected in our updated cash COGS guidance. The current trade announcements also present opportunities for our business. We're closely monitoring how various tariff scenarios could influence steel industry trends and shape the commercial environment for graphite electrodes.

正如我們在第一季所指出的，我們預計宣布的關稅對我們 2025 年現金成本的影響不到 1%，這反映在我們更新的現金 COGS 指導中。目前的貿易公告也為我們的業務帶來了機會。我們正在密切關注各種關稅情景如何影響鋼鐵業趨勢並塑造石墨電極的商業環境。

For example, with the expanded Section 232 tariffs that have been implemented on US steel -- or steel imports into the US, we continue to expect those tariffs will be stickier than the broader tariff programs that have continued to evolve. Further, we expect higher Section 232 tariffs will support an increase in steel production within the United States, and this presents a tremendous opportunity for GrafTech.

例如，隨著對美國鋼鐵或進口到美國的鋼鐵實施擴大的第 232 條關稅，我們繼續預計這些關稅將比不斷發展的更廣泛的關稅計劃更具黏性。此外，我們預計第 232 條關稅的提高將支持美國鋼鐵產量的成長，這為 GrafTech 帶來了巨大的機會。

Based on the latest statistics from the World Steel Association, nearly 72% of the steel produced in the US in 2024 was manufactured using the electric arc furnace steelmaking approach, an increase of approximately 350 basis points compared to 2023. And as we'll discuss later in our comments, we expect this positive mix shift will continue.

根據世界鋼鐵協會的最新統計數據，2024年美國生產的鋼鐵中近72%是採用電弧爐煉鋼方法生產的，與2023年相比增長了約350個基點。正如我們稍後將在評論中討論的那樣，我們預計這種積極的組合轉變將會持續下去。

Given our strong momentum in this key region, combined with an increased tariffs impacting certain foreign graphite electrode competitors, we are well positioned to compete for incremental demand from our US customers

鑑於我們在這一關鍵地區的強勁勢頭，加上關稅上調對某些外國石墨電極競爭對手的影響，我們完全有能力爭取美國客戶的增量需求

Overall, given the fluid nature of global trade policy, we are continually assessing the range of potential tariff outcomes and taking proactive measures that seek to address the following: minimizing the risk for GrafTech, capitalizing on emerging opportunities, and promoting fair trade in our key regions. Above all, our focus remains on meeting the needs of our customers, and we are confident in our ability to do so.

總體而言，鑑於全球貿易政策的多變性，我們正在不斷評估各種潛在的關稅結果，並採取積極措施，力求解決以下問題：盡量減少 GrafTech 的風險，利用新興機遇，並促進我們重點地區的公平貿易。最重要的是，我們仍然專注於滿足客戶的需求，並且我們對做到這一點充滿信心。

Taking a step back regarding our second-quarter performance, we're pleased that our efforts across all of the areas that I've discussed are beginning to translate into improved bottom-line performance. This reflects signs of progress and momentum towards our objective of accelerating our path back to normalized levels of profitability.

回顧我們第二季度的業績，我們很高興看到，我們在我所討論的所有領域的努力開始轉化為改善的底線業績。這反映出我們在加速恢復正常獲利水準的目標方面取得了進展和動力。

To that end, I want to sincerely thank our entire team around the world for their remarkable efforts, their resilience, and commitment during this pivotal time. Their dedication continues to drive our progress and position us for long-term success.

為此，我要真誠感謝我們遍布全球的整個團隊在這關鍵時刻所做的卓越努力、堅韌不拔的精神和奉獻精神。他們的奉獻精神不斷推動我們的進步，並使我們獲得長期的成功。

With that, let me turn it over to Jeremy to provide more color on our operational and commercial performance.

接下來，請傑里米詳細介紹我們的營運和商業表現。

Thank you, Tim, and good morning, everyone. I'll begin with an update on safety, which is one of our core values and a non-negotiable priority across our organization. We are pleased to have maintained strong momentum in this area, putting us on track for our best safety performance ever. This positive trend is a direct result of our team's vigilance, accountability, and shared commitment to a culture of safety.

謝謝你，提姆，大家早安。我首先要介紹一下安全方面的最新情況，這是我們的核心價值之一，也是我們整個組織不可協商的優先事項。我們很高興能夠在這一領域保持強勁勢頭，並有望實現有史以來最好的安全表現。這一正面趨勢直接源自於我們團隊的警覺性、責任感以及對安全文化的共同承諾。

As we move through the rest of the year, sustaining and building on this momentum will remain a key focus. While we're proud to be among the top safety performers in the broader manufacturing industry, we are not satisfied. Our ultimate goal is zero injuries, and we will continue working relentlessly toward that standard every single day.

在今年餘下的時間裡，維持和加強這一勢頭仍將是我們的重點。雖然我們很自豪能夠成為製造業中安全表現最出色的企業之一，但我們並不滿足。我們的最終目標是零傷害，我們將繼續每天不懈地努力，實現這項標準。

Let me now turn to the next slide to discuss the commercial environment. On a global basis, steel production outside of China was approximately 210 million tons in the second quarter of 2025, which was down 1% compared to the second quarter of last year. This resulted in a global utilization rate for the second quarter of approximately 67%.

現在讓我翻到下一張投影片來討論商業環境。從全球來看，2025年第二季中國以外地區鋼鐵產量約2.1億噸，較去年第二季下降1%。這使得第二季全球利用率達到約 67%。

Looking at some of our key commercial regions using data published by World Steel Association earlier this week. For North America, steel production was down 1% year to date compared to the prior year. Specific to the US, World Steel reported that production grew 1% year to date through June. For the balance of the year, reflecting the impact of US tariffs on the level of steel imports, we expect further growth in this region on a full-year basis.

使用世界鋼鐵協會本週早些時候發布的數據來查看我們的一些主要商業區域。就北美而言，今年迄今的鋼鐵產量與去年相比下降了 1%。具體到美國，《世界鋼鐵》報告稱，截至 6 月份，今年迄今美國鋼鐵產量增加了 1%。對於今年的剩餘時間，考慮到美國關稅對鋼鐵進口水準的影響，我們預計該地區將全年進一步成長。

In the EU, steel output decreased 3% year to date compared to the same period in 2024 and remains well below historical levels of steel production and utilization for that region. With that background, let's turn to the next slide for more details on our results.

在歐盟，今年迄今的鋼鐵產量與 2024 年同期相比下降了 3%，並且仍遠低於該地區鋼鐵產量和利用率的歷史水準。了解了這些背景知識後，讓我們翻到下一張投影片來了解結果的更多細節。

Starting with our operations, our production volume in the second quarter was approximately 29,000 metric tons. This resulted in a capacity utilization rate of 65%, representing our highest utilization rate since the third quarter of 2022. In addition, our teams continue to do extraordinary work in identifying and executing cost reduction opportunities across various components of our cost structure.

從我們的營運開始，我們第二季的產量約為 29,000 公噸。這使得產能利用率達到 65%，這是自 2022 年第三季以來的最高利用率。此外，我們的團隊繼續在成本結構的各個組成部分中努力尋找和執行降低成本的機會。

While Rory will share details on the numbers, let me highlight a few examples. We continue to leverage our decades of research and development and innovation to bring down usage rates and find alternatives for certain raw materials without compromising the quality of our products. We're also capitalizing on our recent technology investments to reduce our overall energy consumption while simultaneously benefiting from optimized production scheduling to take advantage of reduced electricity pricing during off-peak hours.

雖然羅裡會分享數字細節，但讓我重點介紹幾個例子。我們繼續利用數十年的研究、開發和創新來降低使用率並尋找某些原材料的替代品，同時不影響我們產品的品質。我們也利用最近的技術投資來降低整體能源消耗，同時受益於優化的生產調度，以利用非尖峰時段降低的電價。

We've also made tremendous progress in executing our procurement strategy, diversifying our supplier base to further reduce raw material costs. And finally, our cost structure continues to benefit from our actions to lower fixed costs. And these reductions are further amplified by the improved fixed cost leverage that comes with the increased production volumes. Importantly, all of this is being accomplished without compromising our product quality and reliability nor our commitment to the environment or to safety.

我們在執行採購策略方面也取得了巨大進展，使我們的供應商基礎多樣化，從而進一步降低原材料成本。最後，我們的成本結構持續受益於我們降低固定成本的行動。隨著產量的增加，固定成本槓桿的改善進一步擴大了這些削減幅度。重要的是，所有這一切都是在不損害我們的產品品質和可靠性，也不損害我們對環境或安全的承諾的情況下實現的。

Turning to our commercial performance. In the second quarter, our sales volume was approximately 29,000 metric tons. As Tim noted, this was a 12% year-over-year increase and represented our highest sales volume performance in 11 quarters. Of particular note is our success in actively shifting a significant portion of our volume to the US as we have discussed.

談到我們的商業表現。第二季度，我們的銷售量約為29,000公噸。正如蒂姆所說，這比去年同期增長了 12%，是我們 11 個季度以來的最高銷售量表現。特別值得注意的是，正如我們所討論的，我們成功地將很大一部分業務轉移到了美國。

Year to date, we've grown sales volume in this region by 32% compared to last year. This is an especially impressive result given that year-to-date steel production in the US is up just 1%, as I mentioned earlier. Our average selling price for the second quarter was approximately $4,200 per metric ton, which represented a 12% year-over-year decline. This decrease was largely driven by the substantial completion in 2024 of the higher priced LTAs, as well as persistent challenges with industry-wide pricing that we have discussed.

今年迄今為止，我們在該地區的銷售額與去年相比成長了 32%。正如我之前提到的，考慮到今年迄今為止美國鋼鐵產量僅增加了 1%，這是一個尤其令人印象深刻的結果。我們第二季的平均售價約為每公噸 4,200 美元，年減 12%。這一下降主要是由於 2024 年價格較高的長期協議基本完成，以及我們討論過的全行業定價持續面臨的挑戰。

Our focus remains on mitigating these impacts in the near-term, including the previously mentioned geographic mix shift toward the US. Similar to all regions, average pricing in the US is below year ago levels, but it remains our strongest region for graphite electrode pricing. In fact, we estimate that the higher mix of US volume boosted our weighted average selling price for the second quarter by approximately $80 per metric ton and by $110 per metric ton on a year-to-date basis.

我們的重點仍然是在短期內減輕這些影響，包括前面提到的向美國的地理結構轉變。與所有地區類似，美國的平均價格低於去年同期的水平，但它仍然是我們石墨電極定價最強勁的地區。事實上，我們估計，美國產量的增加使我們第二季度的加權平均售價提高了約 80 美元/公噸，年初至今的加權平均售價提高了 110 美元/公噸。

As a result, when comparing our second quarter weighted average price of $4,200 per metric ton to the more comparable non-LTA price of $3,900 per metric ton that we reported for the fourth quarter of last year, we saw an increase of nearly 8%, as Tim referenced earlier. Further, our weighted average price for the second quarter represented a 2% sequential increase over the first quarter of this year. Overall, our commercial momentum, despite a muted demand environment, underscores the success of our customer engagement strategy and the compelling value we deliver to our customers.

因此，正如蒂姆之前提到的，當將我們第二季度的加權平均價格 4,200 美元/公噸與我們去年第四季度報告的更具可比性的非長期協議價格 3,900 美元/公噸進行比較時，我們發現價格上漲了近 8%。此外，我們第二季的加權平均價格比今年第一季環比上漲了 2%。總體而言，儘管需求環境低迷，但我們的商業勢頭凸顯了我們的客戶參與策略的成功以及我們為客戶提供的引人注目的價值。

As we have noted, our value proposition is built on a number of key pillars, including unmatched technical capabilities related to our architect furnace productivity system and world-class customer technical services team, ongoing investments in research and development, which continue to expand GrafTech's leading position in graphite electrode and petroleum needle coke technology, our unique vertical integration into needle coke, providing surety of supply for our key raw material, and further supply reliability, enabled by our integrated and flexible global production footprint, an increasingly critical advantage amid evolving global trade policies.

正如我們所指出的，我們的價值主張建立在許多關鍵支柱之上，包括與我們的建築師爐生產力系統和世界一流的客戶技術服務團隊相關的無與倫比的技術能力，持續的研發投資，這繼續擴大了GrafTech在石墨電極和石油針狀焦技術的領先地位，我們獨特的針狀焦垂直整合，為我們的關鍵原材料提供供應保證，並透過我們整合和靈活的全球生產足跡實現進一步的供應可靠性，這在不斷變化的全球貿易政策中是一個越來越重要的優勢。

Ultimately, we're committed to building and strengthening long-term customer relationships, focused on delivering mutual value and shared success for years to come. As I conclude my comments, let me take a moment to note that the continued progress and momentum we are seeing across our business is a testament to the hard work and attention to detail of our more than 1,000 global employees, and I want to personally thank them for their efforts.

最終，我們致力於建立和加強長期客戶關係，專注於在未來幾年提供共同價值和共同成功。在結束我的演講之前，請允許我花一點時間指出，我們在整個業務中看到的持續進步和發展勢頭證明了我們全球 1,000 多名員工的辛勤工作和對細節的關注，我要親自感謝他們的努力。

With that, I'll now turn it over to Rory to cover the rest of our financial details.

有了這些，我現在就將話題交給羅裡 (Rory)，讓他來介紹我們其餘的財務細節。

Thank you, Jeremy, and good morning, everyone. For the second quarter, we had a net loss of $87 million or $0.34 per share. This included a $43 million non-cash income tax charge in the second quarter to establish a valuation allowance against certain deferred tax assets. We recorded this valuation allowance based on historical operating results. But to be clear, this does not reflect a change in our future projections regarding taxable income as our confidence in recovering to normalized levels of profitability in the coming years remains intact.

謝謝你，傑里米，大家早安。第二季度，我們的淨虧損為 8,700 萬美元，即每股 0.34 美元。其中包括第二季的 4,300 萬美元非現金所得稅費用，用於建立針對某些遞延稅務資產的估值準備金。我們根據歷史經營業績記錄了這項估值準備金。但需要明確的是，這並不反映我們對未來應稅收入預測的變化，因為我們對未來幾年恢復到正常獲利水準的信心依然堅定。

For the second quarter, adjusted EBITDA was $3 million. This compares to $14 million of adjusted EBITDA in the second quarter of 2024, which included a $9 million benefit in connection with the favorable outcome of an arbitration. The remaining year-over-year decline was modest and reflected the lower average selling prices, mostly offset by a 13% reduction in cash costs on a per metric ton basis.

第二季度，調整後的 EBITDA 為 300 萬美元。相較之下，2024 年第二季的調整後 EBITDA 為 1,400 萬美元，其中包括與仲裁有利結果相關的 900 萬美元收益。其餘同比降幅較小，反映了較低的平均售價，但大部分被每公噸現金成本 13% 的下降所抵消。

Expanding on the cost favorability, we continue to outperform our expectations in this area and are increasing our full-year cost savings guidance. We now anticipate a 7% to 9% year-over-year decline in our cash COGS per metric ton for 2025 on a full-year basis compared to our previous guidance of a mid-single-digit percent decline. Using the midpoint of the updated guidance range, this would translate into cash COGS per metric ton of approximately $3,950 for the full year.

在擴大成本優惠的基礎上，我們繼續超越了這一領域的預期，並提高了全年成本節約預期。我們現在預計，2025 年全年每公噸現金銷售成本將年減 7% 至 9%，而我們先前預測的下降幅度為中等個位數百分比。使用更新後的指導範圍的中點，這將轉化為全年每公噸約 3,950 美元的現金 COGS。

While this is above our year-to-date run rate, as we have noted previously, we will have periodic quarter-to-quarter fluctuations in our cash cost recognition as a result of timing impacts. However, we are pleased to be outperforming our initial expectations for the year and that our cost structure continues to trend in the right direction.

雖然這高於我們年初至今的運行率，但正如我們之前所指出的，由於時間影響，我們的現金成本確認將出現週期性的季度波動。然而，我們很高興今年的業績超出了最初的預期，而且我們的成本結構繼續朝著正確的方向發展。

Turning to cash flow. For the second quarter, cash used in operating activities was $53 million, while adjusted free cash flow was also a use of $53 million. This reflected $39 million of cash interest in the second quarter, including $34 million of semiannual interest payments on the company's notes, which drive quarter-to-quarter fluctuations in our cash flow performance.

轉向現金流。第二季度，經營活動所用現金為 5,300 萬美元，調整後的自由現金流也為 5,300 萬美元。這反映了第二季 3,900 萬美元的現金利息，其中包括 3,400 萬美元的公司票據半年利息支付，這導致我們的現金流量表現出現季度波動。

For the second quarter, the year-over-year impact of changes in working capital was relatively neutral. However, taking a step back, we had a $45 million build in our net working capital level through the first six months of the year, most notably driven by inventory as year-to-date production has exceeded sales volumes. This was planned and is timing related.

對於第二季而言，營運資本變動的年比影響相對中立。然而，回顧一下，今年前六個月我們的淨營運資本水準增加了 4,500 萬美元，最顯著的原因是庫存增加，因為年初至今的產量已經超過了銷售量。這是有計劃的並且與時間有關。

As we have previously noted, we plan to build inventory in the first half of the year, reflecting one of our cost savings initiatives, which is to level load our production for the year. On a full-year basis, our expectation remains to balance production and sales volume levels. Further, we continue to expect working capital will be favorable to our cash flow performance for the full year of 2025. This will be realized through a combination of production cost improvements and inventory management while maintaining adequate safety stock of pins and electrodes.

正如我們之前提到的，我們計劃在今年上半年建立庫存，這反映了我們的一項成本節約舉措，即平衡全年的生產負荷。從全年來看，我們預計產量和銷售水準仍將保持平衡。此外，我們繼續預期營運資金將有利於我們 2025 年全年的現金流表現。這將透過生產成本改進和庫存管理相結合來實現，同時保持足夠的針腳和電極安全庫存。

Overall, we are tracking ahead of our initial cash flow projections for 2025 and encouraged by our momentum in this area as we enter the back half of the year.

總體而言，我們正在提前實現 2025 年的初步現金流預測，並且在進入下半年時，我們在這一領域的發展勢頭令人鼓舞。

Turning to the next slide and expanding on this point. We ended the second quarter with total liquidity of $367 million, consisting of $159 million of cash, $108 million of availability under our revolving credit facility, and $100 million of availability under our delayed draw term loan. As a reminder, this untapped portion of our delayed draw term loan is available to be drawn until July of 2026, and our expectation remains that we will draw on this residual portion prior to its expiration.

翻到下一張投影片並擴展這一點。截至第二季末，我們的總流動資金為 3.67 億美元，其中包括 1.59 億美元的現金、1.08 億美元的循環信貸額度下的可用資金以及 1 億美元的延期提取定期貸款下的可用資金。提醒一下，我們延期提取定期貸款中尚未使用的部分可在 2026 年 7 月之前提取，我們仍然期望在到期前提取這部分剩餘部分。

As it relates to our $225 million revolving credit facility, which matures in November of 2028, we had no borrowings outstanding as of the end of the quarter. However, based on a springing financial covenant that considers our recent financial performance, borrowing availability under the revolver remains limited to approximately $115 million, less currently outstanding letters of credit, which were approximately $7 million (technical difficulty) end of the quarter.

由於這與我們 2.2​​5 億美元的循環信貸額度有關，該額度將於 2028 年 11 月到期，截至本季末，我們沒有未償還借款。然而，根據考慮到我們近期財務表現的彈性財務契約，循環信貸項下的可用借款額度仍然限制在約 1.15 億美元，減去目前未償還的信用證，本季末未償還的信用證金額約為 700 萬美元（技術難度）。

Overall, our strong liquidity position, along with the absence of substantial debt maturities until December of 2029 will support our ability to manage through near-term industry-wide challenges, which is consistent with our thesis for our recent capital transactions.

總體而言，我們強大的流動性狀況，加上直到 2029 年 12 月都沒有大量債務到期，將支持我們應對近期全行業挑戰的能力，這與我們最近的資本交易的論點一致。

Finally, let me conclude by joining Tim and Jeremy in expressing appreciation for the remarkable efforts and dedication of our entire team around the globe. I will now turn the call back to Tim for some final comments on our outlook.

最後，請允許我與蒂姆和傑里米一起對我們全球整個團隊的卓越努力和奉獻精神表示感謝。現在我將把電話轉回給提姆，請他對我們的展望發表一些最後的評論。

Thanks, Rory. To summarize our comments, we've laid out a clear, disciplined plan to navigate the near-term industry headwinds, and we're executing against that plan. Our objectives are to increase sales volume, regain market share, increase our average price, reduce costs, lower our working capital, and strengthen our financial foundation. We are making meaningful progress across all of these areas.

謝謝，羅裡。總結我們的評論，我們制定了一個清晰、嚴謹的計劃來應對近期的行業逆風，並且我們正在按照該計劃執行。我們的目標是增加銷售量、重新獲得市場份額、提高平均價格、降低成本、降低營運資本並加強財務基礎。我們在所有這些領域都取得了有意義的進展。

Our recent achievements reflect our unwavering focus on the factors within our control, allowing us to preserve flexibility and remain well positioned to capitalize on a future market recovery. To this last point, we remain bullish on the structural tailwinds that will support the ongoing shift towards electric arc furnace steelmaking.

我們最近的成就反映了我們堅定不移地專注於我們能夠控制的因素，這使我們能夠保持靈活性並保持有利地位，以利用未來的市場復甦。對於最後一點，我們仍然看好結構性順風，這將支持向電弧爐煉鋼的持續轉變。

Globally, based on any data -- based on data recently published by the World Steel Association, the EAF method of steelmaking further increased its market share this past year, accounting for 51% of steel production outside of China in 2024. This is a continuation of the steady share growth that the EAF industry has experienced for a number of years. And driven by decarbonization efforts, we expect this trend to continue.

從全球來看，根據任何數據——根據世界鋼鐵協會最近發布的數據，電弧爐煉鋼方法在過去一年中進一步增加了其市場份額，到 2024 年將佔中國以外鋼鐵產量的 51%。這是電弧爐產業多年來份額穩定成長的延續。在脫碳努力的推動下，我們預計這一趨勢將會持續下去。

In the US, which produces approximately 80 million tons of steel annually, over 20 million tons of new EAF capacity has either recently come online or is planned for the coming year, with further announcements expected as we move ahead. Given our strong commercial momentum in the US and our focus on meeting the evolving needs of our customers, we are well positioned to capitalize on this demand growth.

美國每年生產約 8,000 萬噸鋼鐵，其中超過 2,000 萬噸的新電弧爐產能要么最近已上線，要么計劃在明年上線，預計未來還會有進一步的消息公佈。鑑於我們在美國強勁的商業勢頭以及我們專注於滿足客戶不斷變化的需求，我們已準備好利用這一需求成長。

In the EU, as Jeremy noted, steel production remains below historical levels. However, we continue to see signs that point towards potential recovery in the near to medium term. As we've spoken to previously, these include actions being taken by the EU Commission to create a policy backdrop that is more supportive for the EU steel industry, as well as announced initiatives regarding investments in infrastructure and defense spending that should significantly boost steel demand in Europe in the coming years.

正如傑里米指出的，歐盟的鋼鐵產量仍低於歷史水準。然而，我們繼續看到表明近期至中期內可能出現復甦的跡象。正如我們先前所說，這些措施包括歐盟委員會正在採取行動，為歐盟鋼鐵業創造更有利的政策背景，以及宣布有關基礎設施和國防開支投資的舉措，這些舉措將在未來幾年大幅提振歐洲的鋼鐵需求。

Specific to EAFs, while some European steelmakers have announced temporary delays in their EAF transition plans, other projects continue to move forward. And we expect -- and we continue to expect a meaningful mix shift towards EAF steelmaking within the EU in the medium to longer term.

具體到電弧爐，雖然一些歐洲鋼鐵製造商宣布暫時推遲其電弧爐轉型計劃，但其他項目仍在繼續推進。我們預計——並且我們繼續預計，從中長期來看，歐盟內部將出現向電弧爐煉鋼的重大轉變。

Further, with graphite electrode inventories remaining at low levels in Europe, an increase in European EAF steel production should lead to an outsized increase in graphite electrode demand. Given the expected growth in demand and tariff protections already in place, the EU remains an important strategic region for GrafTech and has been another key aspect of our initiative to actively shift the mix of our sales volume.

此外，由於歐洲石墨電極庫存仍處於低水平，歐洲電弧爐鋼產量的增加將導致石墨電極需求的大幅增加。鑑於預期的需求成長和已經實施的關稅保護，歐盟仍然是 GrafTech 的重要戰略區域，也是我們積極轉變銷售量結構舉措的另一個關鍵方面。

In fact, on a year-to-date basis through June, we increased our sales volume in Western Europe by approximately 27% year over year despite the year-to-date decrease in European steel production that Jeremy referenced. This increase in our European market share positions us well for recovery in this region.

事實上，儘管傑里米提到今年迄今歐洲鋼鐵產量有所下降，但截至 6 月份，我們在西歐的銷售量已年增了約 27%。我們歐洲市場份額的增加為我們在該地區的復甦奠定了良好的基礎。

More broadly speaking, as it relates to both the EU and beyond, we remain confident the electric arc furnace will continue to increase their share of total steel production over time, which will drive higher demand for graphite electrodes.

更廣泛地說，由於它與歐盟及其他地區有關，我們仍然相信，隨著時間的推移，電弧爐在鋼鐵總產量中的份額將繼續增加，這將推動對石墨電極的需求增加。

And with demand for petroleum needle coke, our key raw material, also expected to rise, our vertical integration puts us in an advantaged position. The growth of needle coke market is expected to primarily occur to support the building of a Western supply chain for electric vehicles and energy storage applications, and we share the market's confidence that this growth will be significant.

而且，隨著我們的主要原料石油針狀焦的需求預計也會上升，我們的垂直整​​合將使我們處於有利地位。預計針狀焦市場的成長將主要是為了支持西方電動車和儲能應用供應鏈的建設，我們與市場一樣相信這一成長將是顯著的。

The establishment of those western supply chains from raw material manufacturing through to the OEMs remains in its early stages. However, we believe the uncertainty caused by tariffs and the potential for international trade disruptions highlights the strategic importance of the West reducing its reliance on other countries for critical minerals such as graphite and to accelerate the development of domestic supply chains with the support of policymaking.

西方從原材料製造到原始設備製造商的供應鏈的建立仍處於早期階段。然而，我們認為，關稅造成的不確定性以及國際貿易中斷的可能性凸顯了西方減少對其他國家石墨等關鍵礦產的依賴，並在政策支持下加速國內供應鏈發展的戰略重要性。

At this last point, a week ago, the US Department of (technical difficulty) ruling in a trade case that began late last year regarding graphite active anode material being imported into the US from China. As a result of this ruling, preliminary antidumping tariffs of 93.5% have been imposed on anode material imports from China with the final ruling expected in December. This stacks on top of previously announced tariffs resulting in a combined tariff of 160% on Chinese anode material imported into the US.

就在這最後關頭，一週前，美國商務部（技術難題）對去年年底開始的一起涉及從中國進口到美國的石墨活性陽極材料的貿易案做出了裁決。根據該裁決，歐盟對從中國進口的陽極材料徵收93.5%的初步反傾銷關稅，預計最終裁決將於12月作出。這與先前宣布的關稅疊加，導緻美國對進口到美國的中國陽極材料徵收的綜合關稅高達 160%。

We welcome this important development, which, along with recent announcements related to initiatives on sourcing of rare earths, demonstrates strategic intent on part of the US government to foster an ex-China supply chain for critical minerals. While we are closely monitoring these developments, we have also continued to build out our technical capabilities and demonstrate those to key market participants. Thanks to these efforts and our deep expertise in needle coke and synthetic graphite, we are confident we are well positioned to be a valuable strategic partner in this space.

我們歡迎這項重要進展，這項進展與最近宣布的有關稀土採購措施一起，顯示了美國政府培育關鍵礦產中國以外供應鏈的戰略意圖。在我們密切關注這些發展的同時，我們也持續增強我們的技術能力並向主要市場參與者展示這些能力。由於這些努力以及我們在針狀焦和合成石墨方面的深厚專業知識，我們有信心成為該領域的寶貴策略合作夥伴。

In closing, this is a pivotal time for GrafTech. We've made tremendous progress on our strategic initiatives, and that progress gives us confidence. We're in a strong position to benefit from the long-term structural trends that are set to shape the future of our industry. As a result, we're energized by the opportunities that lie ahead and remain fully committed to executing our strategy, delivering value for our customers and driving long-term sustainable growth for our shareholders.

最後，對於 GrafTech 來說，這是一個關鍵時刻。我們的策略舉措取得了巨大進展，這些進展給了我們信心。我們處於有利地位，可以從塑造我們行業未來的長期結構性趨勢中受益。因此，我們對未來的機會充滿信心，並將繼續全力致力於執行我們的策略，為我們的客戶創造價值，並為我們的股東推動長期永續成長。

This concludes our prepared remarks. We'll now open the call for questions.

我們的準備好的演講到此結束。我們現在開始提問。

(Operator Instructions) Bennett Moore, JPMorgan.

（操作員指示）摩根大通的 Bennett Moore。

It's nice to see the continued share gains in the US. Does this still stand at around 50% for the company's overall exposure? And is there any room to gain further share this year potentially from Indian suppliers? Or is this more of a 2026 contract opportunity?

很高興看到美國市場份額持續成長。對於公司的整體風險敞口來說，這是否仍然保持在 50% 左右？今年是否還有可能從印度供應商獲得更多份額？或者這更像是一個 2026 年的合約機會？

Yeah, Bennett. So I would say US or the Americas as a whole represent a little bit more than 50% of our overall revenue. And certainly, as we continue to look to grow our share, which is up 31% year over year in the US, that will continue to drive that percentage higher as we move out forward. I think as we look at the back half of the year, I think we'd expect demand in the US to remain robust, given the tariff landscape and those 232 steel tariffs that are already in place.

是的，貝內特。所以我想說美國或整個美洲的收入占我們總收入的 50% 多一點。當然，隨著我們繼續尋求擴大我們的份額，我們的份額在美國同比增長了 31%，隨著我們向前發展，這一比例將繼續上升。我認為，當我們展望下半年時，考慮到關稅狀況和已經實施的 232 鋼鐵關稅，我們預計美國的需求將保持強勁。

How it impacts the supply side on electrodes is still yet to be seen as the reciprocal tariffs and all of those kind of work through the system and continue to evolve. But net-net, I think we feel very good about our position, both with what we've done thus far and also how we think about the value proposition and what we offer our customers as we look forward. So look forward to continued growth in this market.

它對電極供應方面的影響還有待觀察，因為互惠關稅和所有這些工作都將透過系統繼續發展。但總體而言，我認為我們對自己的地位感到非常滿意，不僅因為我們迄今為止所做的工作，也因為我們對價值主張的看法以及我們未來為客戶提供的服務。因此期待這個市場繼續成長。

Great. Thanks for that. And then my quick second one here relates to the Chinese antidumping duties. Do you feel this is potential to lift local needle coke prices and ultimately cost support for US pricing? Or is this kind of a further dated opportunity just given how immature the Western supply chain still is?

偉大的。謝謝。我的第二個問題與中國反傾銷稅有關。您是否認為這有可能提高當地針狀焦價格並最終為美國定價提供成本支持？或者，考慮到西方供應鏈還不成熟，這種機會是否還不夠成熟？

Yeah. I mean I'll start, and I'll let Jeremy chime in as well. But I think the way you asked the question kind of answered it in some respects, right? There isn't any anode production of material note within the United States right now. But I think the backdrop of the previous ITC ruling and now the most recent Department of Commerce ruling on the 93.5% really sets a foundation that will allow for more confidence in moving forward with these projects and the development of the supply chains in the West, which, again, I think we feel good about where we sit in terms of a raw material supplier and our technical capabilities, both on the raw materials, but the graphitization as well, which is an important kind of first step to get the supply chains established.

是的。我的意思是我先開始，然後我也讓傑里米加入。但我認為你提問的方式在某些方面回答了這個問題，對嗎？目前美國境內還沒有任何值得注意的陽極生產。但我認為，先前的 ITC 裁決以及最近商務部對 93.5% 的裁決確實奠定了基礎，讓我們更有信心推進這些項目和西方的供應鏈發展，再次，我認為我們對自己在原材料供應商方面的地位以及我們的技術能力感到滿意，不僅在原材料方面，而且在石墨化方面，這是建立供應鏈的重要第一步。

So I think it will support medium to long-term, but it's not an immediate impact to pricing in the short run. Jeremy, anything you want to add?

所以我認為它將在中長期內提供支持，但不會在短期內對定價產生直接影響。傑瑞米，你還有什麼要補充的嗎？

Yeah. No, I think you hit the key points there, Tim. The only other thing that I would note is that while there is a variety of announced projects that we hope come online for additional anode production domestically, there's been no announced new projects for needle coke other than, of course, our permitted expansion at our Seadrift facility. And so we do think that this will lead to an eventual tightening up of that market, but that's still quarters into the future, as Tim mentioned.

是的。不，我認為你已經觸及關鍵點了，提姆。我唯一要注意的另一件事是，雖然我們希望有各種已宣布的項目上線，以便在國內增加陽極生產，但除了我們在 Seadrift 工廠獲準擴建之外，還沒有宣布任何新的針狀焦項目。因此，我們確實認為這將最終導致該市場收緊，但正如蒂姆所提到的那樣，這仍然是未來幾季的事情。

Thank you for that context. Best of luck.

感謝您提供的資訊。祝你好運。

Arun Viswanathan, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Arun Viswanathan。

Congrats on the EBITDA improvement and the cost reductions as well. So I guess maybe the first question would just be on pricing and the pricing environment. It looks like there was a tick up in your production and volumes. And the utilization rate may be slightly better as well, in the US, especially. So would you say that overall kind of pricing expectations have bottomed and maybe kind of very, very small room for improvement? Or how would you kind of characterize the pricing environment as you look into, say, the next six months or so for electrodes?

祝賀 EBITDA 的提高和成本的降低。所以我想也許第一個問題只是關於定價和定價環境。看起來你們的產量和數量都有增加。而且利用率可能也會稍微好一些，尤其是在美國。那麼您是否認為整體定價預期已經觸底，而且可能只有非常小的改善空間？或者當您展望未來六個月左右的電極價格環境時，您會如何描述它？

Yeah. And appreciate that, and thanks for the comments. Listen, the pricing environment remains very competitive, right? We've talked about the oversupply, especially coming out of China, which has put pressure on the rest of the world and the global demand environment with some puts and takes in certain regions outperforming other. But overall, global demand is pretty flat. I think though, despite this, we are growing our volume, and we did grow our ASP by 8% over the fourth quarter last year. So I think we are starting to see price stability globally, but it's still not at a level where we think it's sustainable for the long term, right?

是的。對此我深表感謝，也感謝您的評論。聽著，定價環境仍然非常具有競爭力，對嗎？我們討論了供應過剩的問題，特別是來自中國的供應過剩，這給世界其他地區和全球需求環境帶來了壓力，某些地區的投入和產出表現優於其他地區。但整體而言，全球需求相當穩定。儘管如此，我認為我們的銷售仍在成長，而且我們的平均銷售價格確實比去年第四季成長了 8%。所以我認為我們開始看到全球價格穩定，但它仍然沒有達到我們認為可以長期維持的水平，對嗎？

So whether it's our actions to change our mix and focus our energies on those markets that again will compensate us for the value we provide in our healthier production markets as a whole or if it's through the continued pressure of raising our prices and driving higher prices and getting compensated again for the services and the value provided to our customers, we're going to keep pushing the envelope to drive prices higher. It's a challenging market, but we're starting to see some success. We've seen some flattening out of the pricing curves, which throughout all of 2024, were downward sloping. So we hope that we've hit bottom and we'll now start to see some recovery in the back half of this year, but then more importantly, as we get into 2026.

因此，無論我們採取行動改變我們的產品組合，將精力集中在那些將再次補償我們在整個更健康的生產市場中提供的價值的市場上，還是通過持續提高價格的壓力和推動更高的價格並再次獲得對我們為客戶提供的服務和價值的補償，我們都將繼續挑戰極限，提高價格。這是一個充滿挑戰的市場，但我們開始看到一些成功。我們看到價格曲線有所趨於平緩，在整個 2024 年，價格曲線一直呈現向下傾斜趨勢。因此，我們希望我們已經觸底，並且我們將在今年下半年開始看到一些復甦，但更重要的是，當我們進入 2026 年時。

Okay. And could you also offer any thoughts on needle coke? There was a lot of oil-based volatility in the quarter, especially from a geopolitical standpoint. But does that affect needle coke? And then what is kind of the outlook?

好的。您能對針狀焦提出一些看法嗎？本季石油價格波動較大，尤其是從地緣政治角度來看。但這會影響針狀焦嗎？那麼前景是什麼樣的呢？

We've had somewhat slightly good EV demand in China, but not necessarily that great outside of China. And so I'm not sure if that's been a drag on needle coke supply-demand? Or how would you characterize the needle coke supply-demand and pricing outlook as well?

中國的電動車需求略有成長，但中國以外的市場需求不一定那麼好。所以我不確定這是否會對針狀焦的供需造成拖累？或是您如何描述針狀焦的供需和價格前景？

Yeah. So thanks for that, Arun. Really, we're seeing continued flatness in the needle coke market. Pricing remains pretty consistent with where it has been for the last several quarters. And as we look forward, we're not seeing a large catalyst in the near-term as we get -- as we look out a little bit further and start to see some of these catalysts, particularly some of the Western supply chain developments come online, we think that that should start driving some improvements. But as of right now, things are still pretty flat with where they've been.

是的。所以謝謝你，阿倫。事實上，我們看到針狀焦市場持續穩定。定價與過去幾季的水平保持相當一致。展望未來，我們在短期內不會看到大的催化劑——當我們把目光放得更遠一些，開始看到一些催化劑，特別是一些西方供應鏈的發展，我們認為這應該會開始推動一些改善。但截至目前，情況仍相當平穩。

Yeah, Arun, I would just add, if we go back to prior to the Trump administration, you had a lot of support, EV mandates and such. Now you're seeing it more on standing up the EV industry through trade and tariff actions and even more so as you think about the recently announced deal with MP Materials from the Department of Defense, right, where you've seen a creative and very transformational public-private partnership that really is going through kind of the government or Washington's efforts to stand up domestic production and onshoring kind of the production of these critical minerals.

是的，阿倫，我只想補充一點，如果我們回到川普政府之前，你得到了很多支持，電動車授權等等。現在，你會看到更多透過貿易和關稅行動來支持電動車產業，尤其當你想到最近宣布的與國防部 MP Materials 達成的協議時，你會看到一種富有創造性和變革性的公私合作夥伴關係，這種合作夥伴關係實際上是透過政府或華盛頓的努力來支持國內生產和在岸生產這些關鍵礦產。

So like those were the things that I think we'll see start to drive needle coke pricing and the demand in the West, which will ultimately help us beyond just the growth of EAF consumption of electrodes as we look out going forward. So all in all, I think those are two really positive developments that we're seeing in the market right now as it relates to needle coke.

因此，我認為我們將看到這些因素開始推動針狀焦的價格和西方的需求，最終將幫助我們超越電弧爐電極消耗量的成長，並展望未來。總而言之，我認為這是我們目前在市場上看到的與針狀焦相關的兩個非常積極的發展。

Okay. So given that you expect a flattish needle coke environment, you are driving your own cost lower, you were able to accomplish positive EBITDA this quarter, do you expect that positive EBITDA trajectory to continue and you see some sequential improvement as you get into Q3? And then maybe it falls off just seasonally a little bit in Q4. And then next year, you continue to expect some modest continued improvement in EBITDA.

好的。因此，鑑於您預計針狀焦市場環境將持平，您正在降低自己的成本，本季度您能夠實現正的 EBITDA，您是否預計正的 EBITDA 軌跡將持續下去，並且進入第三季度時您會看到一些連續的改善？然後可能在第四季出現季節性小幅下降。然後，明年，您繼續預期 EBITDA 將繼續略有改善。

Have you kind of bottomed and you're kind of heading now towards improved results each period? Or where are you kind of in your evolution here?

您是否已經觸底並且正在朝著每個時期取得更好的成績？或者說，您目前處於什麼樣的進化階段？

Sure, Arun. So as you saw in our release, our cash cost for the first half of the year was about $3,700. We revised our guidance for a full-year cash cost of about $3,950. So you're right, you'll see some cost uptick in the second half of the year, which is driven by a couple of things. It's driven by fixed cost leverage we lose in the second half because of some of our summer shutdowns. It's driven by some of the higher cost of inputs like labor and energy in the second half of the year. And it's also driven by kind of the back half being loaded up with our view on tariffs currently.

當然，阿倫。正如您在我們的新聞稿中看到的，我們今年上半年的現金成本約為 3,700 美元。我們將全年現金成本預期修改為約 3,950 美元。所以你說得對，你會看到下半年成本上升，這是由幾個因素造成的。這是由於我們下半年因夏季停工而損失的固定成本槓桿所致。這是由於下半年勞動力和能源等投入成本上升所致。這也是由於後半部充斥著我們對關稅的看法。

We're also not getting as much of a benefit from our LCM utilization -- LCM reserve utilization as we had previously. So that's a little bit of a headwind. But all in, I think you can expect that the full year, if you bake all that together, we'll probably be at or slightly above a breakeven type EBITDA number.

我們從 LCM 利用率（LCM 儲備利用率）所獲得的效益也不如以前那麼多。所以這有點不利。但總的來說，我認為你可以預期，如果把所有這些因素綜合起來，全年我們的 EBITDA 數字可能會達到或略高於盈虧平衡的水平。

As far as where we go in years ahead, as you know, a lot of our negotiations are coming up in the fourth quarter. So we're looking forward to that. I think we've proven our value beyond just the electrode, but also from a CTS perspective and technical service perspective. So we're looking forward to that.

至於我們未來幾年的發展方向，如你所知，我們的許多談判都將在第四季進行。所以我們對此充滿期待。我認為我們已經證明了我們的價值不僅僅是電極，而且還從 CTS 角度和技術服務角度證明了我們的價值。所以我們對此充滿期待。

And as that develops, we'll give more views as to how we see the upcoming year.

隨著事態的發展，我們將對來年提出更多的看法。

Arun, I would just -- sorry, I was just going to add. I mean, I think what Rory has outlined is 100% accurate in the sense that next six months are what they are. This is all about us stacking quarter after quarter of improved performance. And the team has been doing that now for a number of quarters in a row. It's not always going to be a straight line up and to the right, but we think we've started to develop the momentum.

阿倫，我只是——抱歉，我只是想補充一下。我的意思是，我認為羅裡所概述的內容是 100% 準確的，因為接下來的六個月就是這樣。這一切都是為了讓我們逐季提升業績。目前，該團隊已經連續多個季度這樣做了。它並不總是一條向上和向右的直線，但我們認為我們已經開始形成這種勢頭。

We're seeing stickiness in our cost reduction efforts. The commercial efforts, again, are paying dividends. And we think as we head into '26, we're happy with the momentum we're creating.

我們看到降低成本的努力具有黏性。商業努力再次獲得了回報。我們認為，當我們邁入 26 年時，我們對所創造的勢頭感到滿意。

Perfect. Thanks a lot.

完美的。多謝。

Alex Hacking, Citi Research.

花旗研究部的 Alex Hacking。

I just wanted to follow-up on the potential opportunity in anode materials. I feel like we've been -- or you've been talking about this for many years, right, probably at least five years, and nothing's really happened so far, like nothing has been announced. How would you categorize the state of discussions at the moment? Are they active because we've obviously seen others move forward, right?

我只是想跟進陽極材料的潛在機會。我覺得我們已經——或者你已經談論這個話題很多年了，對吧，可能至少有五年了，但到目前為止什麼都沒有發生，就像什麼都沒有宣布一樣。您如何評價目前的討論狀態？他們之所以活躍是因為我們明顯看到其他人取得了進步，對嗎？

T66 has got together with NOVONIX and they got some money from the DOE. So I'm just curious, like where do things stand? And yeah, so where do things stand?

T66 與 NOVONIX 合作並從 DOE 獲得了一些資金。所以我只是好奇，事情進展如何？是的，那麼情況如何呢？

Yeah. Thanks, Alex. Listen, we have been talking about the anode opportunity for a while. And we've also been consistent in saying this isn't something that we necessarily will do on our own or have the balance sheet to go alone and have outlined a number of areas and ways that we think we can participate in this market and think those still exist, whether it be a raw material supplier, whether it be a graphitization supplier to the market, given the capacity that we have. But I think as we've also gone through this last, call it, three or four years, we've also continued to develop our capabilities to kind of go soup to nuts on the production of anodes and think we have opportunities.

是的。謝謝，亞歷克斯。聽著，我們已經談論陽極機會有一段時間了。我們也一直堅持認為，這不是我們必須獨自完成的事情，或者說我們無法獨自完成，並且我們已經概述了我們認為可以參與這個市場的許多領域和方式，並且認為這些領域和方式仍然存在，無論是作為原材料供應商，還是作為石墨化供應商，考慮到我們擁有的產能。但我認為，在過去的三、四年裡，我們也在不斷發展我們的能力，在陽極生產方面做到面面俱到，我們認為我們有機會。

So I think the change potentially that's coming and the way I would think about it is what I mentioned before with what we just saw last week with MP Materials, right? Again, fairly transformative public-private partnership, kind of a very creative use of Federal dollars from the Department of Defense to unlock value. And also, I mean, they're generating returns for taxpayers. So they're kind of going about it in different ways where they're not just handing out money to whoever has the best application, but they're really looking for those that are well positioned to be cornerstones in the industry.

所以我認為即將發生的變化以及我對此的看法就是我之前提到的以及我們上週在 MP Materials 上看到的情況，對嗎？再一次，這是相當具有變革性的公私合作夥伴關係，以一種非常有創意的方式利用國防部的聯邦資金來釋放價值。而且，我的意思是，他們正在為納稅人創造回報。因此，他們採取了不同的方式來實現這一目標，他們不只是向擁有最佳應用程式的人提供資金，而是真正尋找那些有能力成為行業基石的人。

And again, I think as GrafTech, our existing capabilities, the fact that we're vertically integrated could potentially position us to be an attractive partner with the Department of Defense. So we are continuing our efforts. We're not going to slow down. We'll continue to probe and look for all (technical difficulty). I think this is a bit of a game changer from a sense of the government is putting real dollars behind standing up businesses in an industry versus trying to pull demand through tax incentives and such like that. So I think that's where you start to see this change.

而且，我認為，作為 GrafTech，我們現有的能力以及垂直整合的事實可能會使我們成為國防部有吸引力的合作夥伴。因此，我們正在繼續努力。我們不會放慢腳步。我們將繼續調查並尋找所有（技術難度）。我認為這在某種程度上改變了遊戲規則，因為政府正在投入真金白銀來支持某個行業的企業，而不是試圖透過稅收優惠等方式來拉動需求。所以我認為這就是你開始看到這種變化的地方。

So Tim, like not to put you on the spot, I'm not sure what you could say. But based on those comments, I would interpret that to mean that you are in active discussions with the government over potential partnership type opportunities. Would that be fair?

所以提姆，為了不讓你為難，我不知道你會說什麼。但根據這些評論，我認為這意味著您正在與政府積極討論潛在的合作機會。這樣公平嗎？

Yeah, Alex, I'm not going to comment other than saying we are -- we do think we're well positioned. We welcome the opportunity to continue to advocate on all fronts, whether it's for funding opportunities, whether for its trade protections, whether it's for our position with our customers to improve our position. The MP Materials deal was just announced last week, and this is all very new and very recent to the market. So we'll continue to explore it as we see appropriate.

是的，亞歷克斯，除了說我們確實認為我們處於有利地位之外，我不會發表任何評論。我們歡迎有機會繼續在各個方面進行倡導，無論是為了融資機會，還是為了貿易保護，還是為了我們在客戶面前的地位，以改善我們的地位。MP Materials 交易是上週剛宣布的，這對市場來說非常新穎且近期。因此，我們將在適當的情況下繼續探索。

Okay. I appreciate the color, and best of luck. Thanks.

好的。我很欣賞這個顏色，祝你好運。謝謝。

Abraham Landa, Bank of America.

亞伯拉罕·蘭達，美國銀行。

I guess maybe just first on your US operations, clearly, you're doing a very good job there, growing above market rate. I guess, are you back -- is your market share back to these pre-Monterrey levels? And given that you're growing faster in the market, I guess who are you taking share from just given some of your Tier 1 competitors still have (inaudible) in the US?

我想也許先談談你們在美國的業務，顯然，你們在那裡做得非常好，成長速度高於市場速度。我想，您回來了嗎——您的市場份額恢復到蒙特雷會議前的水平了嗎？鑑於你們在市場上的成長速度更快，我想，鑑於你們的一些一級競爭對手在美國仍然佔有（聽不清楚）份額，你們將從誰那裡奪取市場份額？

Yeah, I would describe where our market share at is commensurate where we think it should be as of today, but we're not satisfied with where it sits today. We still want it more. I just have to remind you, if you go back to the period under the LTAs, and we've said this on past calls, we were probably outsized in market share because of some of the contracts and the way they were structured. But I think what we're happy about is that we have a good share with all of the key customers in North America and in the US in particular.

是的，我會描述我們的市場份額與我們認為的目前應有的水平相稱，但我們對目前的水平並不滿意。我們仍然想要更多。我只是想提醒你，如果你回顧長期協議時期，我們在過去的電話會議上也說過，由於某些合約及其結構方式，我們的市場份額可能過大。但我認為讓我們感到高興的是，我們在北美，尤其是美國的所有主要客戶中都佔有相當大的份額。

We continue to grow those relationships and expand beyond kind of historical market shares in certain cases. And others, we still have some work to go, and that's the goal and the target for our commercial team as we head into '26 is to get everybody up to that level and continuing to grow and really reinforce to our customers that we are the top supplier, that we are a trusted partner, and that our value proposition is more compelling and that we should be the partner they go with.

我們將繼續發展這些關係，並在某些情況下擴大超越歷史的市場份額。而其他方面，我們還有一些工作要做，這就是我們商業團隊的目標，因為我們要進入 26 年，讓每個人都達到這個水平，繼續成長，真正向我們的客戶強調我們是頂級供應商，我們是值得信賴的合作夥伴，我們的價值主張更具吸引力，我們應該成為他們的合作夥伴。

That's very good to hear. On the tariffs, I guess, is it your understanding that the tariffs are going to impact your Japanese and Indian competitors just because it's not exempted from tariffs under that Annex 2? And maybe a little bit more just on the potential impact on [you], I believe about [30%] of your production from your US sales does come from Monterrey, which is USMCA compliant, just a little bit more color on the impact in the US.

聽到這個消息真是太好了。關於關稅，我想，您是否認為，僅僅因為附件 2 不免關稅，關稅就會影響您的日本和印度競爭對手？也許我再多說一點關於對[您]的潛在影響，我相信您在美國銷售的產品中約有[30%]來自蒙特雷，這符合 USMCA 的規定，只是對美國的影響稍微詳細一點。

Yeah, so I'll start with us and maybe the headline first and then maybe some of the details. We're guiding to less than a 1% impact on our cash COGS in terms of tariff impact, and that's incorporated in our [7% to 9%] cash cost reduction. So it's reflected in there.

是的，所以我將從我們開始，首先是標題，然後再講一些細節。我們預計關稅對現金 COGS 的影響不到 1%，這已納入我們的 [7% 至 9%] 現金成本削減中。所以它反映在那裡。

And we continue to work and find ways to mitigate the impact of that. Again, we use our Monterrey, Calais, and Pamplona facilities as a global network, and it gives us some flexibility to a certain extent to move product around and mitigate it. And having Seadrift as a domestic source of needle coke really helps with any of the tariffs against the European Union in terms of content that is produced in the US as an offset to the impact of the tariffs there.

我們將繼續努力尋找減輕其影響的方法。再次，我們將蒙特雷、加萊和潘普洛納的設施用作全球網絡，這在一定程度上為我們提供了一定的靈活性，可以移動產品並減輕影響。而將 Seadrift 作為國內針狀焦來源確實有助於應對針對歐盟的任何關稅，因為在美國生產的內容可以抵消歐盟關稅的影響。

Monterrey, anything coming through Monterrey still is exempt under the USMCA. So again, we feel pretty good with where they're announced. That's being said, it's July 25. August 1 is a week away. We'll see how all of these deals continue to materialize and evolve and where we settle out. But we think the team has done a really good job of putting a plan in place and working that plan to mitigate the impact as much as we can going forward.

蒙特雷，任何經過蒙特雷的貨物仍然受到 USMCA 的豁免。因此，我們對他們的宣布感到非常滿意。話雖如此，今天是 7 月 25 日。距離 8 月 1 日還有一週時間。我們將觀察所有這些交易如何繼續實現和發展，以及我們將如何解決。但我們認為團隊已經做得非常好了，制定了計劃並盡可能減輕未來的影響。

As it relates to our competitors, certainly, those exemptions that exist under the USMCA don't exist for India or Japan. So certainly, any of the material that's coming from India is going to be subject to higher tariff levels wherever that settles out, whether it's at the 27% or 26% announced level or if there's a deal that's struck to something less than that. And the same would be for anybody, whether it's the Tier 1 Japanese competitors or some of the smaller competitors, they're going to be subject to the 15% tariff that was settled with the Japanese here earlier this week.

就我們的競爭對手而言，USMCA 規定的豁免對印度和日本來說當然不存在。因此，無論最終結果如何，任何來自印度的材料都將被徵收更高的關稅，無論是宣布的 27% 還是 26%，或達成低於該水準的協議。對於任何公司來說，無論是日本一級競爭對手還是一些較小的競爭對手，他們都將受到本週稍早與日本達成的 15% 關稅的約束。

So net-net, it's a positive development for us. I think it well positions us, given GrafTech's being based in the US, having avenues into the US that have minimal tariff impacts. And again, it just goes back to what we've said a number of times on this call is our relationships, the value proposition we're developing to our customers, we think that not only will that have an impact on pricing, but also I think it opens up opportunities for us from a volume perspective to continue to grow our volume in the US market.

所以總體來說，這對我們來說是一個積極的發展。我認為這對我們很有利，因為 GrafTech 總部位於美國，進入美國的途徑受到的關稅影響最小。再說一次，這又回到了我們在這次電話會議上多次提到的內容，即我們的關係，我們為客戶開發的價值主張，我們認為這不僅會對定價產生影響，而且從數量的角度來看，我認為這也為我們在美國市場繼續增加銷售創造了機會。

And then switching gears, just talking about Europe, obviously, the steel market there has been weak. There's some green investments being delayed, but we have heard some competitors of yours kind of reducing their capacity there. I guess, what are you seeing in the European market? Anything on price utilization would be helpful.

然後換個話題，只談歐洲，顯然那裡的鋼鐵市場一直很疲軟。一些綠色投資被推遲了，但我們聽說你們的一些競爭對手正在減少那裡的產能。我想，您在歐洲市場看到了什麼？任何有關價格利用的資訊都會有幫助。

Yeah, I mean, so we've labeled the US and the EU as kind of our key markets and have put a lot of energy into growing our market share in there. We grew Europe 27% year over year.

是的，我的意思是，我們將美國和歐盟列為我們的關鍵市場，並投入了大量精力來擴大我們在那裡的市場份額。我們在歐洲的業務年增了 27%。

And you're absolutely right, steel production in the first half of the year is down 3% in Europe. It's well below historical levels in terms of steel production. There's still a lot of challenges with global uncertainty because of the war in Ukraine, high energy prices, and all of that.

您說得完全正確，今年上半年歐洲的鋼鐵產量下降了 3%。就鋼鐵產量而言，遠低於歷史水準。由於烏克蘭戰爭、能源價格高漲等因素，全球仍面臨許多挑戰與不確定性。

But what gives us some encouragement about the course and the direction for the EU is the actions you're seeing coming out of the EU Commission, this steel action plan, where trying to address raw material availability, supporting industrial manufacturing, working on power pricing, and probably the most important thing, which probably caused the delay in some of the transformational projects for decarbonization in Europe is the CBAM, the cross-border adjustment mechanism. So I think as we continue to see those things be addressed, that'll provide some stability into the European market.

但是，讓我們對歐盟的進程和方向感到鼓舞的是歐盟委員會採取的行動，這項鋼鐵行動計劃試圖解決原材料供應問題，支持工業製造，制定電價，或許最重要的是，跨境調整機制（CBAM）可能導致歐洲一些脫碳轉型項目的延遲。因此我認為，隨著這些問題得到解決，這將為歐洲市場帶來一些穩定性。

Still a little ways to go, but that's why we want to be there when Europe recovers, and that's why we stuck with those customers and continue to work with it. Pricing in Europe, just like many regions in the world, isn't where we want it to be. And we'll continue to look to get paid for the value we're delivering those customers and think we're making some headway there.

雖然還有一段路要走，但這就是為什麼我們希望在歐洲復甦時出現在那裡，這也是為什麼我們堅持與這些客戶合作並繼續合作。與世界上許多地區一樣，歐洲的定價並不符合我們的期望。我們將繼續尋求為我們向客戶提供的價值獲得報酬，並認為我們在這方面取得了一些進展。

And not all of Europe is bad. You're seeing a little bit of a mixed bag. Germany's down 10% year to date and probably a reflection of just the overall auto industry in Europe. Italy's up 4%, right? So you are seeing some pockets of higher production that is encouraging for us. But still some room and some work to go in Europe, but I think we're still encouraged as we look out into the future.

但並非所有歐洲國家都是壞的。您看到的情況有點混亂。德國今年迄今已下降 10%，這可能只是歐洲整體汽車產業的表現。義大利上漲了 4%，對嗎？因此，您看到一些地區的產量有所提高，這對我們來說是令人鼓舞的。但歐洲仍有一些空間和工作要做，但我認為，展望未來我們仍然受到鼓舞。

Have you seen any impacts from your competitors' cutting capacity? Or is that yet to be seen just because I think it's only recently happened?

您是否看過競爭對手削減產能帶來的影響？或只是因為我認為它最近才發生，所以才尚未見到？

Yeah, I mean, I don't think we've seen an immediate impact. I mean, there was a deal. I think one of the plants shut down a couple of years ago. Obviously, that was a net positive.

是的，我的意思是，我認為我們還沒有看到直接的影響。我的意思是，有一筆交易。我認為其中一個工廠幾年前就關閉了。顯然，這是一個淨收益。

I think more recently at the end of the first quarter, you saw a transaction to move one of the plants to a financial fund or a strategic fund or whatever. We'll see how that plays out in terms of what their intentions are to do that plant. I don't think necessarily that capacity has gone away in its entirety. But I think all of the European capacity is running at fairly low utilization rates, which is why I think we're happy that we've increased ours to 65% and think we're starting to build some momentum there.

我認為最近在第一季末，你看到了一項交易，將其中一家工廠轉移到金融基金或戰略基金或其他基金。我們將觀察他們建造該工廠的具體意圖。我認為這種能力不一定已經完全消失。但我認為整個歐洲的產能利用率都相當低，這就是為什麼我們很高興將產能利用率提高到 65%，並認為我們開始在那裡建立一些勢頭。

That's great. Thank you for taking my questions this morning.

那太棒了。感謝您今天上午回答我的問題。

Thank you. There are no further questions at this time. I will now hand the call back over to Tim Flanagan, CEO and President, for the closing remarks.

謝謝。目前沒有其他問題。現在，我將把電話轉回給執行長兼總裁 Tim Flanagan，請他致閉幕詞。

Thank you, Jenny. I'd like to thank everyone on this call for your interest in GrafTech. We look forward to speaking with you again next quarter. Have a great day.

謝謝你，珍妮。我要感謝本次電話會議中大家對 GrafTech 的關注。我們期待下個季度再次與您交談。祝你有美好的一天。

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.

謝謝。女士們、先生們，會議現已結束。感謝大家的加入。你們都可以斷開自己的線路。