Q2 2024 Ferroglobe PLC Earnings Call Transcript
Key Points
- Ferroglobe PLC (GSM) reported a 15% increase in total sales for Q2 2024, reaching $451 million.
- Adjusted EBITDA more than doubled to $58 million from $26 million in the prior quarter.
- The company achieved a significant victory with the US Department of Commerce imposing high anti-dumping and countervailing duties on Russian ferrosilicon imports.
- Ferroglobe PLC (GSM) is making significant progress in its partnership with Coreshell, achieving excellent results in testing silicon-rich materials for EV batteries.
- The company has enhanced its capital return program by approving a share repurchase program at the June AGM.
- Operating cash flow and free cash flow were weak, with free cash flow being negative $20 million due to inventory build-up.
- The company expects weak demand and easing supply constraints to result in softer prices in the third and fourth quarters.
- Ferroglobe PLC (GSM) anticipates the lowest adjusted EBITDA of the year in the fourth quarter due to weak market conditions and the idling of French operations.
- Silicon-based alloys revenue declined by 6% from the prior year quarter due to lower shipments.
- The company is cautious about the fourth quarter outlook, citing weak demand in several segments including aluminum and steel.
Good morning, everyone, and thank you for joining Ferroglobe's second quarter 2024 conference call.
Joining me today are Marco Levi, our Chief Executive Officer; and Beatriz GarcÃa-Cos, our Chief Financial Officer.
Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to slide 2 at this time. Statements made by management during this conference call that are forward looking are based on current expectations. Factors that could cause actual results to differ materially from these forward-looking statements can be found in Ferroglobe's most recent SEC filings and the exhibits to those filings, which are available on our webpage at ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, net debt, and adjusted diluted earnings per share and among other non-IFRS measures. Reconciliations of non-IFRS measures may be found in our most recent SEC filings.
Before I turn the call over to Marco Levi, our Chief Executive
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