GrafTech International Ltd. (EAF): Business Model Canvas [Dec-2025 Updated]

You're looking at a company managing a tough spot: GrafTech International Ltd. is carrying $1,125 million in gross debt, but its strategy for late 2025 is sharp. Honestly, their vertical integration, owning the primary raw material (petroleum needle coke), combined with aggressively shifting sales toward the US market-which saw 53% volume growth in Q3-is how they plan to hit that projected 8-10% volume increase for the year. It's a classic case of operational control fighting financial leverage, all while maintaining $384 million in liquidity as of September 30, 2025. Dive below to see the full nine blocks of how GrafTech International Ltd. is structuring its business model right now.

GrafTech International Ltd. (EAF) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships GrafTech International Ltd. relies on to execute its strategy as of late 2025. These aren't just vendors; they are structural components of the business.

Strategic cooperation with major stockholder Nilesh Undavia for board governance

The relationship with stockholder Nilesh Undavia, who owned approximately 6.7% of the Company's outstanding common stock as of January 2025, resulted in a Cooperation Agreement. This agreement involved the appointment of Sachin Shivaram to the Board of Directors. Mr. Undavia agreed to customary standstill provisions and voting commitments extending through January 2027, with a potential extension to May 2028.

Global network of raw material and logistics suppliers for non-needle coke inputs

GrafTech International Ltd. maintains substantial vertical integration into petroleum needle coke (PNC), its key raw material, via its Seadrift facility in Texas. This internal supply acts as a primary partnership, shielding the company from external supply shocks for this critical input. The Seadrift facility produced approximately 36,000 metric tons of PNC in the third quarter of 2025. The company remains exposed to market risks related to fluctuations in raw material costs, including PNC.

The operational footprint supporting the global network includes manufacturing facilities in:

• Calais, France
• Monterrey, Mexico
• Pamplona, Spain
• St Marys, Pennsylvania (machining only as of 2024)

Technology partners for the ArchiTech™ Furnace Productivity System

The ArchiTech™ Furnace Productivity System, an advanced high-speed EAF diagnostic, analysis, and reporting system, is supported by customer technical service representatives. This system has achieved more than 250 installations across over 45 countries. The system helps EAF operators reduce costs and increase productivity.

Here's a quick look at the key financial and operational data points related to GrafTech International Ltd.'s structure as of mid-to-late 2025:

Financial institutions for the $1,125 million gross debt structure

GrafTech International Ltd. reported gross debt of $1,125 million as of both March 31, 2025, and June 30, 2025. Substantially no maturities were due until December 2029 on this debt structure. The debt to capital ratio was 1.22 for the fiscal quarter ending September 30, 2025.

Finance: draft 13-week cash view by Friday.

GrafTech International Ltd. (EAF) - Canvas Business Model: Key Activities

Manufacturing ultra-high power graphite electrodes (GE) is central to GrafTech International Ltd.'s operations. For the third quarter of 2025, the production volume reached 26.6 thousand MT, while the total sales volume was 28.8 thousand MT. This production activity occurred at a capacity utilization rate of 63% for the quarter.

A key element supporting the GE manufacturing is the vertical integration into petroleum needle coke (PNC) production via the Seadrift facility in Texas, which provides a competitive advantage in producing high-quality graphite electrodes.

Key operational metrics for the third quarter of 2025 reflect these activities:

Executing cost reduction initiatives is a primary focus area. GrafTech International Ltd. achieved a 10% year-over-year reduction in cash cost of goods sold per metric ton for the third quarter of 2025. Management updated the full-year 2025 guidance, projecting an approximate 10% year-over-year decline in cash COGS per metric ton on a full-year basis, which translates to a target cash COGS per metric ton of approximately $3,860 for the full year. This performance contributes to a more than 30% cumulative reduction in cash cost per metric ton since the end of 2023.

The company is actively shifting its geographic sales mix toward higher-priced US and Western European markets. This strategic shift is evident in the United States sales volume, which surged 53% year-over-year for the third quarter of 2025. This focus aims to capture opportunities in regions exhibiting more favorable pricing dynamics.

The execution of these activities is summarized by these recent results:

• Achieved 10% year-over-year reduction in cash COGS per MT in Q3 2025.
• Projected full-year 2025 cash COGS per MT decline of 10%.
• US sales volume grew 53% year-over-year in Q3 2025.
• Q3 2025 Sales Volume was 28.8 thousand MT.

GrafTech International Ltd. (EAF) - Canvas Business Model: Key Resources

You're looking at the core assets GrafTech International Ltd. (EAF) relies on to operate and compete. These aren't just things on a balance sheet; they are the engines driving their market position, especially given the current steel cycle.

Seadrift Coke L.P. vertical integration for primary raw material (PNC).

The ownership stake in the Seadrift facility, which provides vertical integration into petroleum needle coke (PNC), is a major structural advantage. This key raw material is essential for making graphite electrodes. Honestly, this integration helps GrafTech International Ltd. manage supply chain risk better than competitors who must buy all their PNC on the open market. Furthermore, the demand for PNC is anticipated to accelerate due to its use in producing synthetic graphite for lithium-ion batteries for the electric vehicle market, giving this resource a dual-market relevance.

Global GE manufacturing capacity of approximately 178 thousand MT.

GrafTech International Ltd. maintains a focused, high-quality manufacturing footprint. Following a 2024 cost rationalization plan that included suspending production at the St. Marys, Pennsylvania facility, the stated global production capacity settled at approximately 178 thousand metric tons as of December 31, 2024. This capacity is spread across facilities in Calais, France; Pamplona, Spain; and Monterrey, Mexico. To give you a sense of utilization, the sales volume for the third quarter of 2025 was 28.8 thousand MT.

Here's a quick look at how capacity and recent volume stack up:

Intellectual property and patents for high-performance electrode technology.

The company's competitive edge is heavily supported by its intellectual property portfolio, specifically around high-performance electrode technology, which targets the ultra-high power (UHP) segment of the market. This technology allows GrafTech International Ltd. to serve the most demanding electric arc furnace (EAF) steelmaking applications. While I can't list patent numbers here, this proprietary knowledge is what underpins their ability to achieve a 10% year-over-year reduction in cash cost of goods sold per metric ton in Q3 2025, reflecting production cost control at various demand levels.

Total liquidity of $384 million as of September 30, 2025.

Financial flexibility is a key resource, and GrafTech International Ltd. maintained a solid position heading into the final quarter of 2025. The total liquidity stood at $384 million as of September 30, 2025. This figure provides the necessary buffer to manage near-term industry challenges. That liquidity was comprised of several components, showing where the immediate funds were held.

The composition of that liquidity, based on the latest available breakdown, included:

• Cash and cash equivalents: $178 million.
• Availability under revolving credit facility: $108 million (as of June 30, 2025, which is the closest preceding data point).
• Availability under senior secured first lien delayed draw term loans: $100 million (as of June 30, 2025).

The company also generated positive adjusted free cash flow of $18 million in the third quarter of 2025, which helps sustain this resource base. It's definitely a stronger position than in prior periods.

Finance: draft 13-week cash view by Friday.

GrafTech International Ltd. (EAF) - Canvas Business Model: Value Propositions

You're looking at what makes GrafTech International Ltd. a preferred supplier in the Electric Arc Furnace (EAF) world. It boils down to a few concrete things they deliver that matter directly to a steel producer's bottom line.

Guaranteed supply of high-quality GE due to vertical integration.

GrafTech International Ltd. is unique because they are the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, which is their key raw material for graphite electrode manufacturing. This integration happens through their Seadrift facility in Texas. This control over the supply chain is a major value driver. For instance, in the third quarter of 2025, GrafTech International Ltd. grew its sales volume by 9% year-over-year, showing they can deliver even in a complex market environment.

The company's stated production capacity as of December 31, 2024, was approximately 178 thousand metric tons (MT) across their primary manufacturing facilities. They are actively shifting their focus; for the first nine months of 2025, US sales volume grew 39% year-over-year, reflecting a strategic move toward key regions.

Here's a quick look at some operational metrics supporting this supply and quality claim as of late 2025:

Ultra-high power electrodes essential for efficient Electric Arc Furnace (EAF) steelmaking.

GrafTech International Ltd. manufactures high-quality graphite electrode products, specifically Ultra-High Power (UHP) electrodes, which are critical for EAF steel production. The UHP segment is the dominant type in the market, having captured 81% of the market share in 2025. These electrodes are necessary because they withstand the high temperatures and intense electrical currents of modern EAFs. The company maintains a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities.

Technical expertise and support to optimize customer furnace productivity.

The value proposition extends beyond the physical product to include services. GrafTech International Ltd. is viewed as a preferred supplier partly due to its excellent customer service. They actively provide leading-edge technical support. For example, the company expanded operations in Dubai in April 2023 specifically to provide commercial and technical support to customers in the Middle East & Africa region. This support helps customers optimize their furnace productivity, which is key when you consider that in Q2 2025, GrafTech's sales volume grew 12% year-over-year, their highest since Q3 2022.

Product reliability that reduces downtime for EAF steel producers.

Reliability is tied directly to the quality derived from their integrated supply chain and engineered products. The focus on high-quality electrodes and technical service is what positions GrafTech International Ltd. to remain the EAF industry's preeminent supplier. The company's strategy involves optimizing its order book and shifting its geographic mix to capture higher average selling prices, which implies prioritizing reliable, high-margin business.

The commitment to cost control also supports long-term reliability investments. For the second quarter of 2025, they achieved a 13% year-over-year reduction in cash costs per metric ton. For the full year 2025, they project a 7-9% year-over-year decline in cash costs per MT compared to 2024.

• Grew sales volume in the United States by 53% year-over-year for the third quarter of 2025.
• Ended Q3 2025 with total liquidity of $384 million, supporting operations through challenges.
• The company is executing actions to accelerate its path to normalized profitability and support investment in the business.

Finance: draft 13-week cash view by Friday.

GrafTech International Ltd. (EAF) - Canvas Business Model: Customer Relationships

You're looking at how GrafTech International Ltd. interacts with its buyers, which is definitely a high-touch approach for this kind of industrial component.

The model relies heavily on dedicated B2B sales and technical service teams. This isn't a self-service model; it's about embedding expertise with the customer. While specific team headcount isn't public, the emphasis on 'world-class technical services' and 'unparalleled technical expertise associated with the architect furnace productivity system' shows this is a core part of the value proposition supporting pricing discussions.

There has been a clear strategic shift away from locking in prices for long durations. As of the end of 2024, over 60% of the anticipated 2025 sales volume was committed in the order book following customer negotiations. This implies a significant portion, potentially up to 40%, was uncommitted or on shorter-term/spot contracts heading into 2025, indicating a move toward more flexible, market-responsive pricing structures.

To address what management called 'unsustainable pricing levels,' GrafTech International Ltd. took direct action. They informed customers of an intention to implement a 15% price increase on 2025 volume that was not yet committed as of the announcement date early in 2025. This pricing lever is critical for profitability recovery. We saw some immediate effect, as the weighted-average realized price sequentially rose by 2% from Q1 2025 to Q2 2025, reaching approximately $4,200 per metric ton (MT) in Q2 2025. This followed a Q1 2025 average selling price of $4,100 per MT, which was down 20% year-over-year due to the completion of older, higher-priced Long-Term Agreements (LTAs).

Customer retention is being secured by emphasizing performance and supply security, which are key differentiators in a competitive market. The focus on shifting volume geographically to higher-priced regions is showing traction:

• U.S. sales volume grew 38% year-over-year in Q2 2025.
• U.S. sales volume grew 53% year-over-year in Q3 2025.
• Total sales volume for Q3 2025 was nearly 29,000 metric tons, a 9% increase year-over-year.
• Full-year 2025 total sales volume is now expected to increase between 8% and 10% year-over-year.

The value proposition underpinning these relationships is built on more than just the electrode itself. Here's a quick look at the key elements management uses to justify value and pricing:

The company is actively managing its order book to forego volume opportunities where margins are deemed unacceptably low, showing a commitment to quality of revenue over sheer quantity. This disciplined approach to volume helps support the higher price point they are seeking.

GrafTech International Ltd. (EAF) - Canvas Business Model: Channels

GrafTech International Ltd. moves its graphite electrode and petroleum needle coke products to global EAF steel producers primarily through a direct sales force. This is supplemented by the use of independent sales representatives and distributors to cover the worldwide customer base.

The physical backbone supporting these sales involves a network of operational sites. While the company is headquartered in Brooklyn Heights, Ohio, its manufacturing and distribution strategy is built around a global footprint designed to serve key steel-producing regions.

The strategic focus on the United States market is yielding clear, measurable results in terms of channel penetration. This focus is a deliberate action to shift volume toward regions with stronger realized pricing dynamics.

• U.S. sales volume surged by 53% year-over-year in the third quarter of 2025.
• Year-to-date, U.S. sales volume growth reached 39% compared to the prior year.
• The company expects total full-year 2025 sales volume to increase between 8% and 10% year-over-year.

Here's a quick look at the key volume and pricing metrics from the third quarter of 2025, which directly reflect channel effectiveness:

GrafTech International Ltd. maintains a global logistics network. Management has expressed confidence in this network's flexibility as a key mechanism to mitigate risks associated with evolving global trade policy and tariffs.

GrafTech International Ltd. (EAF) - Canvas Business Model: Customer Segments

The customer segments for GrafTech International Ltd. (EAF) are centered around industrial processes requiring high-performance graphite electrodes, with a clear strategic pivot toward higher-value geographic markets.

Large-scale Electric Arc Furnace (EAF) steel producers globally represent the core demand base. In 2024, approximately 90% of GrafTech International Ltd.'s graphite electrodes were purchased by EAF steel producers. This segment is crucial as the global pivot toward decarbonization drives increased adoption of the electric arc furnace method of steelmaking. The company is a leading manufacturer of graphite electrodes essential for this process.

The secondary customer group includes ferrous and non-ferrous metals producers requiring high-power electrodes. In 2024, the remaining portion of sales, about 10%, was primarily directed toward these other applications, such as various other ferrous and non-ferrous melting applications, fused materials, chemical processing, and alloy metals.

A significant strategic focus is on US steel producers, targeting higher average selling prices (ASPs). GrafTech International Ltd. is actively shifting its geographic sales mix to this region. The volume growth in the United States has been substantial, reflecting this focus:

• U.S. sales volume grew 53% year-over-year in the third quarter of 2025.
• U.S. sales volume grew 25% year-over-year in the first quarter of 2025.
• U.S. sales volume grew 38% year-over-year in the second quarter of 2025.
• For the first six months of 2025, U.S. sales volume grew 32% year-over-year.

This focus is timely, as the company noted optimism regarding opportunities arising from U.S. tariffs on Indian graphite electrode imports. For context on the geographic shift, here is the regional revenue breakdown from 2024:

The final key segment involves potential buyers of petroleum needle coke for lithium-ion battery anodes. GrafTech International Ltd. is substantially vertically integrated into petroleum needle coke via its Seadrift facility in Texas, positioning it to benefit from the electric vehicle (EV) boom. Demand growth for petroleum needle coke for use in EV battery applications is estimated to increase at a 20% or more Compound Annual Growth Rate (CAGR) through 2029. The estimated market size for needle coke in EV batteries for 2025 was placed around $2 billion USD.

GrafTech International Ltd. (EAF) - Canvas Business Model: Cost Structure

You're looking at the core expenses that GrafTech International Ltd. has to cover to keep the lights on and the electrodes coming out of the furnace. It's a capital-intensive game, so the cost structure is dominated by a few big buckets.

High fixed costs from global manufacturing and Seadrift PNC production are a major component. GrafTech International Ltd. operates graphite electrode facilities in Calais, France; Monterrey, Mexico; and Pamplona, Spain. The company is executing initiatives to control both variable and fixed costs across its operations. The company's vertical integration into petroleum needle coke production is noted as a competitive advantage in managing the cost structure.

Significant raw material costs (petroleum needle coke and energy) are reflected in the cost of goods sold. GrafTech International Ltd. achieved a $\text{10%}$ year-over-year reduction in cash cost of goods sold per metric ton ($\text{MT}$) for the third quarter of 2025. For the full year 2025, the company projects an approximate $\text{10%}$ year-over-year decline in cash cost of goods sold per $\text{MT}$. Achieving this full-year guidance would represent a cumulative reduction of more than $\text{30%}$ in cash cost of goods sold per $\text{MT}$ since the end of 2023. The projected cash cost of goods sold per metric ton for the full year 2025 is approximately $\text{\$3,860}$.

The debt load directly translates into a significant non-operating cost. As of September 30, 2025, GrafTech International Ltd. had gross debt of $\text{\$1,125 million}$. This level of leverage means high interest expense is a persistent drag on net income, even as operational performance improves. The debt structure, with substantially no maturities until December 2029, locks in this interest obligation.

Capital investment remains a necessary outflow. GrafTech International Ltd. continues to anticipate its full-year 2025 capital expenditures will be approximately $\text{\$40 million}$.

Here's a quick look at the key financial anchors defining the cost base as of late 2025:

You can see the focus on cost control is intense, especially on the per-unit cost of production. The company is actively managing its fixed asset base and associated financing costs.

• Graphite electrode facilities located in:
  • Calais, France
  • Monterrey, Mexico
  • Pamplona, Spain
• Q3 2025 Cash $\text{COGS}$ per $\text{MT}$ reduction year-over-year: 10%
• Gross Debt maturity starting: December 2029

Finance: draft 13-week cash view by Friday.

GrafTech International Ltd. (EAF) - Canvas Business Model: Revenue Streams

You're looking at how GrafTech International Ltd. actually brings in the money, which, as you'd expect for a major industrial supplier, centers on high-value physical products. The revenue streams are pretty straightforward, tied directly to the global steel industry's health and its shift toward Electric Arc Furnace (EAF) production.

Sales of graphite electrodes are the primary revenue source, plain and simple. These are essential components for EAF steelmaking, acting as the conduits that deliver the massive electrical power needed to melt scrap metal. Also, because GrafTech International Ltd. is substantially vertically integrated into petroleum needle coke-the key raw material-selling this coke externally is a secondary, but important, revenue stream. Honestly, that vertical integration gives them a cost advantage that shows up on the top line.

Here's what the latest numbers from the third quarter of 2025 look like, which gives you a solid snapshot of the current revenue generation:

Looking ahead, management's expectation for the full year 2025 shows they anticipate continued volume momentum. They are guiding for a full-year sales volume expected to increase by 8-10% year-over-year. That growth is being driven by strategic shifts, especially in the United States market, where sales volume surged 53% year-over-year in Q3 2025 alone.

You should also keep an eye on the underlying drivers that support these revenue streams:

• The long-term demand for graphite electrodes is expected to grow due to the steel industry's decarbonization efforts favoring EAFs.
• Demand for petroleum needle coke is also anticipated to accelerate, driven by its use in producing synthetic graphite for lithium-ion batteries.
• The company achieved a 10% year-over-year reduction in cash cost of goods sold per metric ton for Q3 2025, which helps the realized price translate better to the bottom line.

The company ended the third quarter with $384 million in total liquidity, including $178 million in cash and cash equivalents, which helps them manage through the variable revenue environment. Finance: draft 13-week cash view by Friday.