Oct 23, 2026 earnings call — Monterrey closure and pricing momentum
Company announced planned closure of Monterrey facility and reported realized price of approximately $3.9 thousand per metric ton.
Revenue $0.1B (est $0.1B) · EPS $-1.21 (est $-1.38)
Key quotes
"However, based on our current order book, and the timing of shipments against these higher priced commitments, we expect a mid single digit percentage increase in realized pricing in the fourth quarter."
"In the third quarter, we announced the planned closure of our graphite electrode manufacturing facility in Monterrey, Mexico."
"An example of our progress in this area, which we are quite excited about, is a collaboration with Antora Energy that we announced in September."
Analyst Q&A 3
price negotiations and Monterey closure reasons
Q (Bennett Moore): He asked how customer talks on price increases were going and whether those increases will raise margins. He also asked why Monterrey was chosen and whether Antora could absorb stranded fixed costs at Saint Mary's.
A: Management said pricing has evolved: an initial increase implied roughly a 15% uplift and a mid-single-digit ASP rise in Q4, and a 30% increase was announced in early September with bespoke customer negotiations ongoing. They said the price momentum should be margin accretive and that Monterrey was the highest-cost, smallest facility so closing it helps rebalance supply, retain product capabilities, and reduce fixed costs; Antora could help use idle assets to absorb costs.
"I am confident in saying at this point in time that the price increase and the momentum we are building and where we land in next year will be margin accretive." — Timothy K. Flanagan (CEO)
pricing outlook and needle coke market
Q (Arun Viswanathan · RBC): He asked for more detail on pricing momentum and for an outlook on needle coke given oil price inflation. He also asked about global electrode supply-demand and using needle coke for EV/battery materials.
A: Management said they expect the initial price increases to show up in Q4 ASPs and a step change into 2027 as negotiations complete. They said needle coke prices have risen from about $1 thousand-$1.2 thousand earlier to around $1.7 thousand-$2,000 a ton now, industry utilization outside China is roughly mid-60s percent and reductions plus demand growth should further tighten the market, and Seadrift can provide needle coke capacity to support other synthetic graphite uses including EVs.
"So if I if I had to say where I think the market is today, we are probably in that $1.7 thousand to $2,000 a ton range." — Timothy K. Flanagan (CEO)
closure costs, cost savings, and pricing flow
Q (Abraham Landa · BofA): He asked how the $20 million to $25 million Monterrey closure cost splits between cash/non-cash and COGS/SG&A and whether cleanup liabilities are included. He also asked how much of the pricing increases have flowed into current volumes and Q4.
A: Management said the $20 million to $25 million is a cash cost and will be reported mostly as COGS, with about half general closure costs and half people costs; the ongoing cost savings will also be primarily COGS and site closure and cleanup are included in that cash amount. They said about 15% was achieved on the new regional contracts after the first price increase, about 80% of volume was already committed at the time, Q4 will show the biggest portion of the realized increases, and the September 30% increase will create a step change into 2027.
"That is that is a cash cost. $20 million to $25 million." — Rory F. O'Donnell Jr. (CFO)