Ferroglobe Reports First Quarter 2025 Financial Results

Maintaining 2025 Adj. EBITDA guidance of $100-$170 million May 07, 2025 17:00 ET | Source: Ferroglobe PLC First Quarter Highlights Reported adjusted EBITDA of $(26.8) millionGenerated $5.1 million of free cash flowFavorable final decision in the U.S. ferrosilicon case with preliminary EU safeguard decision expected by JuneNew trade case filed by U.S. silicon metal producers on April 24Increased quarterly cash dividend to $0.014 per share in March, up 8% over the prior quarterRepurchased 720,008 shares during the first quarter LONDON, May 07, 2025 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading global producer of silicon metal, silicon-based and manganese-based specialty alloys, today announced financial results for the first quarter of 2025. Financial Highlights % % ($ in millions, except EPS) Q1 2025 Q4 2024 Q/Q Q1 2024 Y/Y Sales $307.2 $367.5 (16.4)% $391.9 (21.6)% Net (loss) income attributable to the parent $(66.5) $(28.1) (136.3)% $(2.0) (3184.7)% Adj. EBITDA $(26.8) $9.8 (372.2)% $25.8 (203.9)% Adjusted diluted EPS $(0.20) $0.03 (849.2)% $(0.00) (4872.9)% Operating cash flow $19.4 $32.1 (39.6)% $198.0 (90.2)% Capital expenditures1 $14.3 $17.9 (20.3)% $18.2 (21.5)% Free cash flow2 $5.1 $14.1 64.2% $179.8 (97.2)% (1) Cash outflows for capital expenditures (2) Free cash flow is calculated as operating cash flow less capital expenditures Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “Our first quarter adjusted EBITDA was negative, in line with our budget, reflecting the uncertain market environment. We anticipate significant improvement from the second quarter forward. Despite the soft quarter, Ferroglobe again generated positive free cash flow. We used this cash to pay increased dividends and repurchase shares, while maintaining a strong balance sheet with no net debt. “One of the reasons for our optimistic outlook for the coming quarters is driven by our belief that we are at or near the market trough. This, combined with supportive trade actions in the U.S., including various trade measures, such as the final ferrosilicon determination, a newly filed petition by the U.S. silicon metal producers against unfair competition by imports, positions us well there. In the EU, expected safeguard measures covering all our main products should begin to benefit us in the second half. We expect improving demand to translate into higher revenues. We believe that once these uncertainties are resolved, local producers like Ferroglobe will be well-positioned to take advantage of these opportunities and regain market share,” concluded Dr. Levi. Consolidated Sales In the first quarter of 2025, Ferroglobe reported sales of $307.2 million, a decrease of 16.4% over the prior quarter and a decrease of 21.6% from the comparable prior year period. This decrease compared to the prior quarter was primarily attributable to lower sales volumes in silicon metal and manganese-based alloys and lower pricing in all our portfolio products, partially offset by higher volumes sold in silicon-based alloys. Sales of silicon metal and manganese-based alloys declined by $56.7 million and $4.0 million, respectively, while silicon-based alloys increased by $5.8 million, compared with the prior quarter. Product Category Highlights Silicon Metal ($,000) Q1 2025 Q4 2024 % Q/Q Q1 2024 % Y/YShipments in metric tons: 36,308 49,797 (27.1)% 53,183 (31.7)%Average selling price ($/MT): 2,881 3,240 (11.1)% 3,155 (8.7)% Silicon Metal Revenue 104,603 161,342 (35.2)% 167,792 (37.7)%Silicon Metal Adj.EBITDA (15,447) 16,849 (191.7)% 16,071 (196.1)%Silicon Metal Adj.EBITDA Margin (14.8)% 10.4% 9.6% Silicon metal revenue in the first quarter was $104.6 million, a decrease of 35.2% over the prior quarter. The average selling price decreased by 11.1%, and shipments decreased by 27.1% due to lower volumes, mainly in EMEA, compared to the prior quarter. Adjusted EBITDA for silicon metal decreased to $(15.4) million for the first quarter, compared with $16.8 million for the prior quarter. In addition to lower prices, adjusted EBITDA margin further decreased mainly due to cost deterioration attributed to volume declines, lower fixed cost absorption and higher energy costs.Silicon-Based Alloys ($,000) Q1 2025 Q4 2024 % Q/Q Q1 2024 % Y/YShipments in metric tons: 42,864 39,417 8.7% 51,171 (16.2)%Average selling price ($/MT): 2,120 2,159 (1.8)% 2,188 (3.1)% Silicon-based Alloys Revenue 90,872 85,101 6.8% 111,962 (18.8)%Silicon-based Alloys Adj.EBITDA 2,414 3,093 (22.0)% 14,412 (83.3)%Silicon-based Alloys Adj.EBITDA Margin 2.7% 3.6% 12.9% Silicon-based alloy revenue in the first quarter was $90.9 million, an increase of 6.8% over the prior quarter. The average selling price decreased by 1.8% and shipments increased by 8.7% compared to the prior quarter. Volumes increased due to higher demand in the US. Adjusted EBITDA for silicon-based alloys decreased to $2.4 million for the first quarter of 2025, a decrease of 22.0% compared with $3.1 million for the prior quarter. The adjusted EBITDA margin decrease was primarily driven by decline in prices. Manganese-Based Alloys ($,000) Q1 2025 Q4 2024 % Q/Q Q1 2024 % Y/YShipments in metric tons: 67,229 67,712 (0.7)% 62,320 7.9%Average selling price ($/MT): 1,108 1,159 (4.4)% 1,066 3.9% Manganese-based Alloys Revenue 74,490 78,478 (5.1)% 66,433 12.1%Manganese-based Alloys Adj.EBITDA (5,574) 7,091 (178.6)% 5,520 (201.0)%Manganese-based Alloys Adj.EBITDA Margin (7.5)% 9.0% 8.3% Manganese-based alloy revenue in the first quarter was $74.5 million, a decrease of 5.1% over the prior quarter. The average selling price decreased by 4.4% and shipments were essentially flat compared to the prior quarter. Adjusted EBITDA for the manganese-based alloys portfolio decreased to $(5.6) million for the first quarter, compared with $7.1 million in the prior quarter. Adjusted EBITDA margin decreased mainly due to higher energy costs and idling in France. Raw materials and energy consumption for production Raw materials and energy consumption for production was $238.3 million in the first quarter of 2025 compared to $250.8 million in the prior quarter, a decrease of 5.0%. As a percentage of sales, raw materials and energy consumption for production was 77.6% in the first quarter of 2025, compared to 68.2% in the fourth quarter. The increase in costs as percentage of sales was driven by lower pricing and higher energy costs. Net (Loss) Income Attributable to the Parent In the first quarter of 2025, net loss attributable to the parent was $(66.5) million, or $(0.36) per diluted share, compared to a net loss attributable to the parent of $(28.1) million, or $(0.15) per diluted share in the prior quarter. This decrease is primarily attributable to reduced prices across our product portfolio and shipments of our main products. The Company reported adjusted diluted earnings per share of $(0.20) for the first quarter, compared with adjusted earnings per share of $0.03 per share in the prior quarter.Adjusted EBITDA Adjusted EBITDA was $(26.8) million for the first quarter of 2025 compared to $9.8 million for the prior quarter. The decrease was mainly driven by lower pricing and higher energy costs. Total Cash, Adjusted Gross Debt and Working Capital %($ in millions) March 31, 2025 December 31, 2024 $ % March 31, 2024 $Y/Y Total Cash1 $129.6 $133.3 (3.7) (2.8)% $159.8 (30.2) (18.9)%Adjusted Gross Debt2 $110.4 $94.4 16.0 16.9% $80.8 29.6 36.6%Net Cash $19.2 $38.9 (19.7) (50.6)% $79.0 (59.8) 75.7%Total Working Capital3 $435.7 $460.8 (25.1) (5.5)% $487.5 (51.8) (10.6)% (1) Total cash is comprised of restricted cash and cash and cash equivalents(2) Adjusted gross debt excludes bank borrowings on our factoring program and the impact of leasing standard IFRS16 (3) Total working capital is comprised of inventories, trade receivables and other receivables minus trade and other payables Total cash was $129.6 million as of March 31, 2025, down $3.7 million from $133.3 million as of December 31, 2024. Adjusted gross debt increased by $16.0 million to $110.4 million, resulting in net cash of $19.2 million as of March 31, 2025. During the first quarter cash flows from operating activities were $19.4 million and net cash used in investing activities was $23.0 million. Cash used in financing activities was $2.8 million as a result of lease payments of $3.1 million, dividend payments of $2.6 million and interest payments of $4.5 million. Share repurchases of $2.7 million and repayment of other financing liabilities of $22.7 million were partially offset by net cash proceeds from promissory notes of $4.0 million and financing facilities in the US and South Africa of $30.3 million. Total working capital was $435.7 million as of March 31, 2025, down from $460.8 million on December 31, 2024. The $25.1 million decrease in working capital balance during the quarter was due to a $32.3 million decrease in inventories and an increase in trade and other payables by $17.7 million, offset by an $11.7 million increase in trade receivables and $13.2 million increase in other receivables. Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We continued to make robust progress in reducing our working capital during the first quarter, achieving approximately 50% of our full-year target. Looking ahead, we expect a modest increase in working capital over the next two quarters as production ramps up in France, followed by a meaningful reduction in the fourth quarter. Our balance sheet remains strong and we generated free cash flow in the first quarter, while also returning capital to shareholders through $2.6 million in dividends and $2.7 million in share repurchases.” Capital Returns During the first quarter, Ferroglobe repurchased 720,008 shares at an average price of $3.75 per share and paid a quarterly cash dividend of $0.014 per share on March 26, 2025. Our next cash dividend of $0.014 per share will be paid on June 26, 2025, to shareholders of record as of June 18, 2025. Conference Call Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on May 8, 2025. The call may also be accessed via an audio webcast. To join via phone:Conference call participants should pre-register using this linkhttps://register-conf.media-server.com/register/BIa09c86627bc54bbfa844f3e0cffca9e2 Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call. To join via webcast:A simultaneous audio webcast, and replay will be accessible here:https://edge.media-server.com/mmc/p/7rutmin8 About Ferroglobe Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction, and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com. Forward-Looking Statements This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “should”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof. Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control. Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods. All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release. Non-IFRS Measures This document may contain summarized, non-audited or non-IFRS financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, working capital, adjusted net profit, adjusted diluted EPS, adjusted gross debt and net cash/(debt), are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. INVESTOR CONTACT: Alex Rotonen, CFAVice President, Investor Relations Email: investor.relations@ferroglobe.com MEDIA CONTACT: Cristina Feliu RoigVice President, Communications & Public AffairsEmail: corporate.comms@ferroglobe.com Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Income Statement(in thousands of U.S. dollars, except per share amounts) For the Three Months Ended For the Three Months Ended For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Sales $307,179 $367,505 $391,854 Raw materials and energy consumption for production (238,341) (250,763) (259,289) Other operating income 9,072 18,892 10,836 Staff costs (70,450) (70,241) (70,519) Other operating expense (47,290) (52,289) (52,348) Depreciation and amortization (17,520) (19,020) (18,669) Impairment gain (loss) 268 (43,052) — Other gain (loss) 1,405 (571) 696 Operating (loss) profit (55,677) (49,539) 2,561 Finance income 873 3,533 2,297 Finance costs (4,555) (3,089) (9,966) Exchange differences (6,914) 15,167 1,383 Loss before tax (66,273) (33,928) (3,725) Income tax (expense) benefit (625) 4,376 1,155 Total loss for the period (66,898) (29,552) (2,570) Loss attributable to the parent $(66,482) $(28,134) $(2,024) Loss attributable to non-controlling interest (416) (1,418) (546) EBITDA $(45,071) $(15,352) $22,613 Adjusted EBITDA $(26,803) $9,845 $25,803 Weighted average number of shares outstanding Basic and diluted 187,008 188,072 187,927 Loss per ordinary share Basic and diluted $(0.36) $(0.15) $(0.01) Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Financial Position(in thousands of U.S. dollars) As of March 31, As of December 31, As of March 31, 2025 2024 2024 ASSETSNon-current assets Goodwill $14,219 $14,219 $29,702 Intangible assets 178,583 103,095 193,592 Property, plant and equipment 495,285 487,196 500,940 Other financial assets 25,375 19,744 13,944 Deferred tax assets 7,997 6,580 10,636 Receivables from related parties 1,622 1,558 1,622 Other non-current assets 23,019 22,451 21,770 Total non-current assets 746,100 654,843 772,206 Current assets Inventories 314,843 347,139 361,602 Trade receivables 200,526 188,816 214,127 Other receivables 96,308 83,103 89,815 Receivables from related parties — — 2,712 Current income tax assets 5,191 7,692 10,740 Other financial assets 8,564 5,569 2 Other current assets 39,385 52,014 27,894 Restricted cash and cash equivalents 300 298 298 Cash and cash equivalents 129,281 132,973 159,470 Total current assets 794,398 817,604 866,660 Total assets $1,540,498 $1,472,447 $1,638,866 EQUITY AND LIABILITIESEquity $780,568 $834,245 $843,702 Non-current liabilities Deferred income 71,764 8,014 77,185 Provisions 26,390 24,384 22,102 Provision for pensions 28,383 27,618 29,293 Bank borrowings 32,299 13,911 14,643 Lease liabilities 59,766 56,585 54,361 Debt instruments — — — Other financial liabilities 29,487 25,688 68,186 Other non-current liabilities 14,279 13,759 1,760 Deferred tax liabilities 18,834 19,629 30,253 Total non-current liabilities 281,202 189,588 297,783 Current liabilities Provisions 91,416 83,132 127,533 Provision for pensions 168 168 165 Bank borrowings 56,214 43,251 42,762 Lease liabilities 12,572 12,867 12,297 Debt instruments 14,311 10,135 — Other financial liabilities 27,168 48,117 15,190 Payables to related parties 3,074 2,664 3,527 Trade and other payables 176,017 158,251 178,038 Current income tax liabilities 10,337 10,623 6,262 Other current liabilities 87,451 79,406 111,607 Total current liabilities 478,728 448,614 497,381 Total equity and liabilities $1,540,498 $1,472,447 $1,638,866 Ferroglobe PLC and SubsidiariesUnaudited Condensed Consolidated Statement of Cash Flows(in thousands of U.S. dollars) For the Three Months Ended For the Three Months Ended For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Cash flows from operating activities: (Loss) for the period $(66,898) $(29,552) $(2,570) Adjustments to reconcile net (loss) to net cash provided by operating activities: Income tax expense (benefit) 625 (4,376) (1,155) Depreciation and amortization 17,520 19,020 18,669 Finance income (873) (3,533) (2,297) Finance costs 4,555 3,089 9,966 Exchange differences 6,914 (15,167) (1,383) Impairment (gain) loss (268) 43,052 — Share-based compensation 1,296 1,587 928 Other (gain) loss (1,405) 571 (696) Changes in operating assets and liabilities Decrease in inventories 28,357 23,146 19,011 (Increase) decrease in trade receivables (7,206) 31,756 2,404 Increase in other receivables (9,573) (12,885) (2,084) Decrease (increase) in energy receivable 25,165 (5,735) 161,855 Increase (decrease) in trade payables 13,186 (19,039) (1,925) Other changes in operating assets and liabilities 7,537 4,936 (7,259) Income taxes received (paid) 440 (4,776) 4,580 Net cash provided by operating activities: 19,372 32,094 198,044 Cash flows from investing activities: Interest and finance income received 872 692 741 Payments due to investments: Intangible assets (557) (855) (584) Property, plant and equipment (13,750) (17,090) (17,641) Other financial assets (11,119) — — Disposals: Property, plant and equipment 1,559 — — Receipt of asset-related government grant — 12,453 — Net cash used in investing activities (22,995) (4,800) (17,484) Cash flows from financing activities: Dividends paid (2,613) (2,436) (2,438) Payment for debt and equity issuance costs (95) (6) — Repayment of debt instruments (10,361) — (147,624) Proceeds from debt issuance 14,380 10,255 — Increase (decrease) in bank borrowings: Borrowings 106,033 122,809 94,611 Payments (77,176) (137,650) (83,012) Payments for lease liabilities (3,098) (4,511) (2,973) (Payments) proceeds from other financing liabilities (22,651) 6,054 — Other payments from financing activities — (411) (192) Payments to acquire own shares (2,703) (1,936) — Interest paid (4,531) (2,029) (14,634) Net cash used in financing activities (2,815) (9,861) (156,262) Total net (decrease) increase in cash and cash equivalents (6,438) 17,433 24,298 Beginning balance of cash and cash equivalents 133,271 120,810 137,649 Foreign exchange gains (losses) on cash and cash equivalents 2,748 (4,972) (2,179) Ending balance of cash and cash equivalents $129,581 $133,271 $159,768 Restricted cash and cash equivalents 300 298 298 Cash and cash equivalents 129,281 132,973 159,470 Ending balance of restricted cash and cash and cash equivalents $129,581 $133,271 $159,768 Adjusted EBITDA ($,000): For the Three Months EndedMarch 31, 2025 For the Three Months EndedDecember 31, 2024 For the Three Months EndedMarch 31, 2024 Loss attributable to the parent $(66,482) $(28,134) $(2,024) Loss attributable to non-controlling interest (416) (1,418) (546) Income tax expense (benefit) 625 (4,376) (1,155) Finance income (873) (3,533) (2,297) Finance costs 4,555 3,089 9,966 Depreciation and amortization charges 17,520 19,020 18,669 EBITDA (45,071) (15,352) 22,613 Exchange differences 6,914 (15,167) (1,383) Impairment (gain) loss (268) 43,052 — Restructuring and termination costs — (2,693) — New strategy implementation 682 1,629 1,361 Subactivity — 1,457 942 PPA Energy 2,768 (3,081) 2,270 Fines inventory adjustment 8,172 — — Adjusted EBITDA $(26,803) $9,845 $25,803 Adjusted profit attributable to Ferroglobe ($,000): For the Three Months EndedMarch 31, 2025 For the Three Months EndedDecember 31, 2024 For the Three Months EndedMarch 31, 2024 Loss attributable to the parent $(66,482) $(28,134) $(2,024) Tax rate adjustment 21,481 6,301 17 Impairment (gain) loss (184) 28,671 — Restructuring and termination costs — (1,846) — New strategy implementation 467 1,116 933 Subactivity — 998 646 PPA Energy 1,897 (2,111) 1,556 Fines inventory adjustment 5,600 — — Adjusted (loss) profit attributable to the parent $(37,220) $4,996 $1,168 Adjusted diluted profit per share: For the Three Months EndedMarch 31, 2025 For the Three Months EndedDecember 31, 2024 For the Three Months EndedMarch 31, 2024 Diluted (loss) per ordinary share $(0.36) $(0.15) $(0.01) Tax rate adjustment 0.11 0.03 0.00 Impairment (gain) loss (0.00) 0.15 — Restructuring and termination costs — (0.01) — New strategy implementation 0.00 0.01 0.00 Subactivity — 0.01 0.00 PPA Energy 0.01 (0.01) 0.01 Fines inventory adjustment 0.03 — — Adjusted diluted (loss) profit per ordinary share $(0.20) $0.03 $(0.00)

Ferroglobe Reports First Quarter 2025 Financial Results

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