In This Article:
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Adjusted EBITDA: $60 million, up from $58 million in the prior quarter.
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Revenue: Decreased 4% to $434 million in the third quarter.
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Silicon Metal Revenue: Declined 5% to $196 million in Q3.
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Silicon-Based Alloys Adjusted EBITDA: $2 million in Q3, down from $10 million in the second quarter.
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Manganese Alloys Revenue: Decreased 9% to $90 million in Q3.
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Operating Cash Flow: $11 million in the third quarter.
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Free Cash Flow: Negative $10 million, an improvement of $10 million over the period.
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Cash Balance: $121 million at the end of the third quarter, down from $145 million at the end of the second quarter.
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Adjusted Gross Debt: $89 million as of September 30.
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Dividend: $0.013 per share paid in September, with another scheduled for December.
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Share Repurchase: Approximately 117,000 shares purchased at an average price of $4.22.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ferroglobe PLC (NASDAQ:GSM) reported an adjusted EBITDA of $60 million for Q3 2024, up from $58 million in the previous quarter, driven by higher realized pricing and improved spreads in manganese alloys.
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The company expects to benefit from improved ferrosilicon volumes and prices in the US due to favorable trade cases, which imposed significant duties on imports from Russia, Kazakhstan, Malaysia, and Brazil.
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Ferroglobe PLC (NASDAQ:GSM) is implementing a new sales and operation planning process to optimize demand planning, raw material purchases, production, logistics, and sales, aiming to enhance financial performance and cash flow.
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The company is moving forward with long-term expansion plans to increase silicon metal capacity in the US, anticipating higher demand from solar and battery markets.
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Ferroglobe PLC (NASDAQ:GSM) has secured a significant contract to supply silicon metal to a new large customer in the Middle East for their renewable energy initiative, highlighting its strong market position.
Negative Points
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End market demand remains muted, and pricing continues to soften, which is expected to pressure fourth-quarter results.
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The company's third-quarter revenue was slightly lower than the second quarter due to lower volumes across all segments.
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Silicon-based alloys segment saw a decline in adjusted EBITDA from $10 million in Q2 to $2 million in Q3, primarily due to lower fixed cost absorption.
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Free cash flow was negative $10 million in the third quarter, impacted by a $21 million use of cash by working capital.
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The silicon metal outlook is mixed, with weak demand in the aluminum sector in both Europe and the US in the short term.