Graftech International (EAF) risk factors, FY2025 10-K

Risks related to our business and industry

1. 01We are dependent on the global steel industry generally and the EAF steel industry in particular, which historically have been highly cyclical, and a downturn in these industries may materially adversely affect our business100% rewritten
2. 02We sell our products primarily to the EAF steel production industry, which is highly cyclical and is affected significantly by general economic conditions. As a result, we have experienced periods of significant net lossesNew
3. 03Pricing for graphite electrodes has historically been cyclical and future declines in price may continue to adversely affect our results66% rewritten
4. 04If we are unable to implement price increases in certain regions, or if these increases lead to loss of market share, our results of operations, cash flow, liquidity, and financial condition could be materially adversely affectedNew
5. 05Global graphite electrode overcapacity has adversely affected graphite electrode prices in the past, and continues to do so, which is negatively impacting our sales, margins and profitability, and may continue to do so in the future63% rewritten
6. 06The graphite electrode industry is highly competitive. Our market share, net sales or net income could decline due to vigorous price and other competition44% rewritten
7. 07We are dependent on the supply of petroleum needle coke and extended disruptions in supply could negatively impact our operations
8. 08We rely primarily on one facility in Monterrey, Mexico for the manufacturing of connecting pins, a necessary component of our graphite electrodes. Our results of operations could deteriorate if this facility would become unable to provide us with the required volume of connecting pins
9. 09We are dependent on the cost and availability of manufacturing inputs, including raw materials (in addition to petroleum needle coke, energy and freight). Our results of operations could deteriorate if such inputs increase in cost or are substantially disrupted for an extended period of time
10. 10Our business and our customers are subject to market changes in the cost of electricity and natural gas that could adversely affect our business
11. 11Failure to retain our existing senior management team or the inability to attract and retain qualified personnel could hurt our business and inhibit our ability to operate and grow successfully
12. 12Our operations are subject to hazards which could result in significant liability to us
13. 13We are subject to a variety of legal, economic, social and political risks associated with our substantial operations in multiple countries, which could have a material adverse effect on our financial and business operations
14. 14Our results of operations could deteriorate if our manufacturing operations were substantially disrupted for an extended period for any reasonNew
15. 15Plant operational improvements may be delayed or may not achieve the expected benefits
16. 16We depend on third parties for certain construction, maintenance, engineering, transportation, warehousing and logistics services
17. 17We may be subject to information technology systems failures, cybersecurity incidents, network disruptions and breaches of data security, which could compromise our information and expose us to liability
18. 18If we are unable to successfully negotiate with the representatives of our employees, including labor unions, we may experience strikes and work stoppages
19. 19Our ability to grow and compete effectively depends on protecting our intellectual property. Failure to protect our intellectual property could adversely affect our business
20. 20Moreover, patents, even if valid, only provide protection for a specified limited duration. In addition, effective patent, trademark and trade secret protection may be limited or unavailable or we may not apply for it in the United States or in any of the other countries in which we operate
21. 21Third parties may claim that our products or processes infringe their intellectual property rights, which may cause us to pay unexpected litigation costs or damages or prevent us from selling our products or services
22. 22We currently benefit from U.S. and EU anti-dumping duties and tariffs against certain Chinese and Indian imports that if reduced or not extended could have a material adverse effect on our business, financial condition and results of operations
23. 23Implementation of tariffs and changes to or uncertainties related to tariffs and trade agreements could adversely affect our business25% rewritten

Risks related to our indebtedness

1. 24Our indebtedness could limit our financial and operating activities and adversely affect our ability to incur additional debt to fund future needs and our ability to fulfill our obligations under our existing and future indebtedness
2. 25The 2018 Revolving Credit Facility, the Initial First Lien Term Loan Facility and the indentures governing the New Notes include covenants that could restrict or limit our financial and business operations75% rewritten
3. 26revolving loans and letters of credit (subject to certain exclusions) exceed 51.3% of the amount of commitments then-existing under the 2018 Revolving Credit FacilityNew

Risks related to our legal and regulatory environment

1. 27Stringent health, safety and environmental laws and regulations applicable to our manufacturing operations and facilities could result in substantial costs related to compliance, sanctions or material liabilities and may affect the availability of raw materials
2. 28Global data and privacy protection laws applicable to us require substantial costs related to compliance, and any failure to comply could result in significant liability to us, including fines and penalties

Risks related to our common stock

1. 29Certain provisions, including in our Amended Certificate of Incorporation and our Amended By-Laws, could hinder, delay or prevent a change in control, which could adversely affect the price of our common stock
2. 30We cannot guarantee that our stock repurchase program will be fully consummated or that it will enhance long-term stockholder value. Stock repurchases could also increase the volatility of the trading price of our stock and will diminish our cash reserves28% rewritten