Ferroglobe PLC Q4 2025 Earnings Call Summary

• Performance in 2025 was constrained by muted demand and predatory imports, particularly from China and Angola, which doubled and quadrupled respectively in the European silicon metal market.

• Management secured critical trade safeguards in the EU and anti-dumping duties in the U.S., which are expected to reduce import volumes and restore domestic market share.

• Operational flexibility was enhanced by converting three furnaces from silicon metal to ferrosilicon to capitalize on better economics and trade-protected segments.

• A new 10-year French energy agreement starting in 2026 provides competitive pricing and the ability to operate 12 months a year, improving fixed-cost leverage.

• The company maintained a solid balance sheet through a hiring freeze, discretionary spending cuts, and a 20% reduction in capital expenditures.

• Strategic investments in the silicon-rich EV battery sector via Corcel reached $10 million, with initial shipments to defense and robotics customers expected in Q1 2026.

• Management anticipates 2026 revenue between $1.5 billion and $1.7 billion, representing a 20% increase at the midpoint driven by volume growth in alloys.

• The EU safeguard measures are expected to free up approximately 100,000 to 110,000 tons of ferrosilicon and 250,000 tons of manganese alloys for domestic producers.

• U.S. silicon metal volumes are expected to improve in the second half of 2026 following the finalization of anti-dumping measures in February and June.

• The company plans to continue releasing working capital in 2026, targeting a total reduction toward the $400 million level despite higher production volumes.

• A dividend increase of 7% to $0.015 per share is scheduled to begin in the first quarter of 2026, reflecting confidence in future cash flow generation.

• Silicon metal remains excluded from EU safeguards, leading to continued ‘predatory’ pricing from China that sits 25% to 30% below European cash costs.

• The company idled EU silicon metal plants in Q4 2025 due to unprofitable price levels driven by import saturation.

• Management is exploring the restart of idled operations in Venezuela, citing its proximity to the U.S. market and potential for electrode production.

• The expiration of energy rebates in France starting in 2026 will align adjusted EBITDA more closely with actual cash flow generation.

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