Ferroglobe (NASDAQ:GSM) executives said the company made “important strategic progress” in 2025 despite weak demand, tariff uncertainty, delayed trade measures, and what management described as elevated levels of predatory imports. On the company’s fourth-quarter and full-year 2025 earnings call, Chief Executive Officer Marco Levi and Chief Financial Officer Beatriz García-Cos highlighted recent trade actions in Europe and the U.S., operational changes to shift production toward stronger markets, and a 2026 outlook that anticipates a rebound driven primarily by ferroalloys volume growth.
Trade actions reshape the outlook for ferroalloys
Levi said the European Commission voted to implement safeguards for the ferroalloy industry that target a 25% reduction in imports versus a baseline of average imports by country and product from 2022 through 2024. He cited average annual imports of about 450,000 tons for ferrosilicon and about 900,000 tons for manganese-based alloys during that period, framing the safeguards as an opportunity for domestic producers to regain share and improve supply-chain security for “critical and strategic materials.”
Production shifts, energy agreement, and investments
To “capitalize on improving ferrosilicon economics,” Levi said Ferroglobe converted three furnaces from silicon metal to ferrosilicon—one in the U.S. and two in Europe—pointing to the company’s global footprint as a way to optimize production amid changing market and geopolitical conditions. In the Q&A, Levi specified the U.S. conversion occurred at Beverly during 2025 and that, as of January, two European furnaces—one in Sabón and one in Laudun—were converted from silicon metal to ferrosilicon.
Levi also said Ferroglobe signed a new 10-year French energy agreement effective Jan. 1, 2026. In addition to “competitive energy prices,” the contract is intended to provide more flexibility, allowing production in France for up to 12 months per year, which management said could improve earnings potential by increasing volumes to better leverage fixed operating costs—particularly in a more protected EU ferroalloy market.
Beyond core operations, Levi said the company increased its total investment in Coreshell to $10 million in 2025, citing progress in silicon-rich EV battery technology. He said Coreshell was expected to begin initial shipments to defense and robotics customers in the first quarter of “this year,” and that Ferroglobe was finalizing a multi-year supply agreement with the company. Levi emphasized that silicon-rich anodes could reduce reliance on graphite, noting that more than 90% of graphite is produced in China.
Quarterly results: volume up, margins pressured by costs and idling
For the fourth quarter, Ferroglobe reported shipments up 13% to 165,000 tons, with revenue rising 6% to $329 million. Adjusted EBITDA declined to $15 million from $18 million in the prior quarter, and free cash flow was negative $19 million.
García-Cos said fourth-quarter raw materials and energy as a percentage of sales increased to 67% from 58%, primarily due to temporary idling in France. She also discussed mark-to-market impacts related to power purchase agreements, saying the company would continue stripping out that volatility to better reflect underlying performance.
By segment, management reported:
- Silicon metal: Revenue declined 3% sequentially to $96 million on shipments down 3% to 33,000 tons. Average selling price was essentially flat at $2,957 per ton. Adjusted EBITDA fell to $1 million from $12 million, with margin compression attributed primarily to idling in France.
- Silicon-based alloys: Revenue increased 12% to $104 million as volumes rose 19% to 51,000 tons, partially offset by a 6% decline in average selling price to $2,020 per ton. Adjusted EBITDA increased to $60 million from $12 million, with García-Cos citing lower costs in Spain, partially offset by early idling in France.
- Manganese-based alloys: Revenue rose 10% to $93 million on volume growth of 16% to 81,000 tons. Average selling price declined 6% to $1,147, which management attributed mainly to a lag versus index prices. Adjusted EBITDA doubled to $9 million, with margin improvement tied to better performance in Norway and higher volumes.
Full-year 2025: adjusted EBITDA down sharply, cash supported by working capital
For the full year, adjusted EBITDA was $28 million, down from $154 million in 2024, with an adjusted EBITDA margin of 2%. García-Cos said price declines—driven by weak demand and higher imports into Europe—accounted for more than 80% (or $104 million) of the adjusted EBITDA decline, while reduced volumes represented another 16%.
Ferroglobe generated $51 million in cash from operations for the year, driven by a $48 million improvement in net working capital. Full-year free cash flow was negative $12 million. The company reduced 2025 capital expenditures by 20% to $63 million, and García-Cos told analysts CapEx in 2026 is expected to be similar or slightly lower, describing the figure as primarily maintenance or sustaining CapEx.
On the balance sheet, García-Cos said net debt increased to $30 million in 2025, while emphasizing the company remained in a “solid” position to support growth. She also said that as the company operates under the new France contract in 2026, it does not expect energy rebates going forward, which she said should help align adjusted EBITDA more closely with cash flow.
2026 outlook and capital returns
Levi said Ferroglobe expects most segments to post “considerable growth” in 2026, projecting revenue of $1.5 billion to $1.7 billion—an increase of 20% at the midpoint versus 2025—driven primarily by volume growth in silicon-based and manganese-based alloys. Management tied the outlook to the cumulative impact of EU safeguards and U.S. ferrosilicon trade rulings.
On capital allocation, Levi said the company increased its first-quarter 2025 dividend by 8% to $0.014 per share and announced another increase to $0.015 per share starting in the first quarter of 2026. García-Cos said the $0.015 dividend will be paid March 30 to shareholders of record on March 23. Management also noted that in early 2025 Ferroglobe repurchased 1.3 million shares at an average price of $3.55 per share, and that a discretionary repurchase plan remains in place.
During Q&A, Levi said the company is selectively restarting European silicon metal furnaces based on contracted demand, with some expected to remain idled in the first quarter while others restarted in January. He reiterated that silicon metal remains excluded from EU safeguards and described continued pressure from imports, particularly from China and rising volumes from Angola. Levi said the company is pursuing additional measures in Europe for silicon metal and had submitted data to the European Commission in mid-December, with an expectation that it will pursue antidumping actions against major exporters.
Management said the company will provide its next update on the following earnings call in May.
About Ferroglobe (NASDAQ:GSM)
Ferroglobe PLC is a leading producer of specialty metals and alloys, serving a diverse range of industrial customers worldwide. The company’s core operations focus on the manufacture of silicon metal, silicon-based alloys, manganese-based alloys and rare earth alloys, which are essential inputs for the aluminum, steel, chemical and electronics industries. Ferroglobe’s product portfolio includes high-purity silicon, ferrosilicon, silicon manganese, manganese alloys and various recarburizers used to enhance metal strength, durability and conductivity.
With production facilities located across North America, Europe, South America and Africa, Ferroglobe maintains a global footprint that allows it to supply customers on multiple continents.
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