Ferroglobe Stock Earnings Reports

Ferroglobe reported Q1 2026 sales of $348 million, up 6% QoQ driven by a 7% increase in volumes (notably an 18% rise in silicon-based alloys to 61,000 tons and a 6% increase in manganese alloys to 86,000 tons). Silicon metal volumes fell as management eschewed uneconomic sales in Europe. Adjusted EBITDA fell to $3 million and free cash flow was negative $16 million; cash from operations was negative $6 million due to a $13 million working capital build. Raw material and energy costs (excluding a $5.5 million PPA mark-to-market adjustment) were 66% of sales. Management cited higher energy, transportation and raw material costs beginning in March due to the Iran conflict but called these temporary. Trade actions (safeguards, antidumping/countervailing duties) are already supporting volumes and are expected to further strengthen pricing in H2 2026, particularly in the U.S. and for some EU alloys when additional measures take effect July 1. Ferroglobe is pursuing strategic optionality: potential restart of Venezuela operations (three ferrosilicon furnaces convertible to silicon metal; 90,000 t capacity) and diversification into ~10 prioritized critical materials that could be produced with minimal to modest CapEx, with magnesium requiring a larger new plant. The company increased its Coreshell investment to ~$17 million (~10% ownership) and signed a multiyear silicon-metal supply term sheet; Coreshell is scaling pilot production and pursuing OEM qualification (volumes meaningful toward 2030+). Management kept dividend payout (next $0.015/share) and repurchased a small number of shares; net debt rose modestly to $55 million. Key near-term catalysts are depletion of excess inventories, implementation of safeguard measures, EU/U.S. critical materials initiatives, and expected stronger steel production in H2 2026.