GrafTech International Ltd. (EAF) AI Stock Analysis

GrafTech International Ltd. specializes in the research, development, manufacturing, and distribution of graphite and carbon-based solutions. Headquartered in Brooklyn Heights, Ohio, the company manufactures graphite electrodes, which are critical components utilized in electric arc furnace steel production as well as other ferrous and non-ferrous metal manufacturing. GrafTech also produces petroleum needle coke, an essential carbon form needed to construct durable graphite electrodes. Founded in 1886, the company operates an international distribution network comprising direct sales, independent representatives, and third-party distributors to serve industrial metal manufacturers worldwide.

GrafTech's revenue has steadily fallen from $1.35B in FY2021 to $504.1M in FY2025, reflecting a 5-year revenue CAGR of -16.3%. Operating margin deteriorated from 38.4% in FY2021 to -15.3% in FY2025, while net income shifted from $388.3M to -$219.8M over the same period. For the trailing twelve months, revenue was $512.9M with a net profit margin of -34.6% and an operating margin of -11.5%. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.4% year-over-year, while quarterly earnings dropped 63.5%.

As of June 30, 2026, GrafTech held $145.4M in cash and short-term investments against $1.20B in total debt, yielding net debt of $1.05B. Shareholders' equity stood at -$345.6M, alongside total assets of $1.04B and a current ratio of 4.13. Operating cash flow in FY2025 was -$81.6M, leading to free cash flow of -$120.5M after capital expenditures of $38.9M. The company also allocated $230,000 to share buybacks during FY2025.

GrafTech carries a market capitalization of $185.3M and an enterprise value of $1.35B. It trades at an EV to EBITDA ratio of 6.6x and a price-to-sales ratio of 0.4x, both lower than the US-listed Industrials median of 13.9x and 1.5x, respectively. The stock trades at a forward P/E of 6.8x compared to the peer median of 17.2x. Over the past year, the shares dropped 57.4%, while the SPY gained 16.8%.

Wall Street analyst coverage includes 1 Strong Buy, 2 Holds, and 1 Sell recommendation. The mean price target is $8.50, representing a 19.7% premium over the October 16, 2026 closing price of $7.10. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $503.2M and an EPS of -$6.60. For the following year, 1 analyst projects revenue of $578.9M and an EPS of -$4.30. GrafTech beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for October 23, 2026.

This page is an AI-written research summary of GrafTech International Ltd. (EAF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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