Q2 2025 Ferroglobe PLC Earnings Call

Good morning, ladies and gentlemen, and welcome to Pharaoh Globes. Second quarter 2025 earnings call.

At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time.

Alex Rotonen: Good morning, everyone, and thank you for joining Ferroglobe's second quarter 2025 conference call. Joining me today are Marco Levi, our Chief Executive Officer, and Beatriz García-Cos, our Chief Financial Officer. Before we get started with some prepared remarks, I am going to read a brief statement. Please turn to slide two 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 exhibits to those filings, which are available on our website at ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures. Reconciliation of non-IFRS measures may be found in our most recent SEC filings.

Good morning, everyone. And thank you for joining Pharaoh Globes, second quarter, 2025 conference call.

Joining me today are Marco Levy. Our chief executive officer and Bettis Garcia costs 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 print expectations factors that could cause actual results to differ materially from these. Forward-looking statements can be found in paragraphs most recent SEC filings and Exhibits to those filings which are available on our website at ferroglobe cam.

In addition, this discussion includes references to Yvonne. It's just that I adjusted gross, debt, adjusted, net debt and adjusted diluted earnings per share among other non-ifrs measures.

Alex Rotonen: Before I turn the call over to Marco Levi, our Chief Executive Officer, I want to announce that we will be participating in the Seaport Virtual Conference on August 19th and 20th, and the IDEAS Midwest Conference in Chicago on August 27th. We hope to see you there. Marco.

Reconciliation of non-ifrs measures may be found in our most recent SEC files.

Before I turn the call over to Marc Levy, our chief executive officer, I want to announce that. We'll be participating in the seaport virtual conference on August 19th and 20th.

Marco Levi: Thank you, Alex, and thank you all for joining us today. We appreciate your continued interest in Ferroglobe PLC. There is a rapidly evolving market environment, particularly on the trade front, resulting in elevated uncertainty and limited visibility around global trade policy and regulatory developments. This was particularly evident as it relates to global tariffs, safeguards, and trade measures both in Europe and in the U.S., adding complexity to an already challenging market environment. Despite these headwinds, we are pleased with the recent progress as evidenced by the newly agreed trade framework between the U.S. and the EU, signaling a shift toward greater clarity and cooperation. This development is expected to reduce disruptions and provide improved visibility across global markets. As these measures take effect, we are optimistic that the uncertainties will be resolved in the near term, creating a stronger and more stable market environment heading into 2026.

And the Ideas Midwest Conference in Chicago, on August 27th. We hope to see you there, Marco.

Thank you, Alex.

And thank you all for joining us today.

We appreciate your continued interest in paragraph.

There is a rapidly evolving Market environment, particularly on the trade from the resulting in elevated uncertainty.

And limited visibility around global trade policy, and Regulatory developments.

This was particularly evident as it relates to Global tariffs, safe words and trade measures both in Europe and in the US.

Adding complexity to an already challenging market environment.

Despite this edwins.

we have pleased with the recent progress as evidenced by the newly agreed trade framework between the US and you,

Signaling the shift to a greater Clarity and cooperation.

This development is expected to reduce disruptions and provide improved visibility across Global markets.

Marco Levi: However, given the current uncertainty and limited visibility on market dynamics, trade measures, and tariff structures, we believe that it is prudent to withdraw our 2025 guidance at this time. We will revisit it once we have greater clarity on these key matters. I'll now walk through several key developments and uncertainties, many of which we believe will ultimately support a strong outlook for our industry. As discussed previously, the European Commission launched a safeguard investigation last December into silicon metal, silicon-based ferroalloys, and manganese-based ferroalloys, a significant and necessary step to address unfair trade practices. The preliminary decision, which was initially expected in May, has not been officially announced. At this time, we don't know what measures will be adopted or what the timing will be. As a result of delays, we believe that Ferroglobe PLC will benefit from these measures in 2026.

As these measures take effect, we are optimistic that the uncertainties will be resolved in the near term, creating the stronger and more stable Market environment adding into 20206.

however,

given the current uncertainty and limited visibility of market dynamics.

Trade measures and tariff structures. We believe that it is prudent to withdraw our 2025 guidance at this time.

We will revisit it once we have greater Clarity on these key matters.

I now work for several key developments and uncertainties, many of which, we believe will ultimately support a strong outlook for our industry.

As discussed previously.

European commission launched a safeguard investigation. Last December into citycom metal, silicon based on low is a manganese Louis.

A significant and necessary step to address unfair Trade Practices.

The preliminary decision which was initially expected in May has not been officially announced.

At this time, we don't know what measures would be adopted or what the timing will be.

Marco Levi: As Chairman of EUROALIAGE, I am actively engaged with its industry participants, EU member states, and other stakeholders to advocate for a positive outcome to ensure necessary protections for our industry. Our products play an essential role in many key industries such as aluminum, chemicals, steel, solar, microchips, and most critically, defense. With a final EU decision due by the end of November, we are optimistic that the strategic importance of our industry will result in a favorable outcome. The final implementation of safeguards requires approval from at least 15 of the 27 EU member states and by states representing at least 65% of the population. Adding to the uncertainty are trade tensions involving the United States. While a key preliminary trade deal was reached with the EU, many others remain undecided. One of the key U.S.

As a result of delays, we believe that Pharaoh Globe will benefit from these measures in 2026.

As chairman of ver.

I am actively engaged with the industry. Participants, new member states, and other stakeholders advocate for a positive outcome to ensure necessary protections for our industry.

Our products play a the essential role in many key Industries such as aluminium chemicals, steel solar.

Microchips and most critically defense.

November, we are optimistic that the Strategic importance of our industry will result in a favorable outcome.

The final implementation of stakeholders requires approval from at least 15 of the 27, EU member states.

And by States representing at least 65% of the population.

Adding to the uncertainty. A trade tensions. Involving the United States.

Marco Levi: trade negotiations is with Canada, which is an important supplier of aluminum and steel to the United States. There is a lack of clarity regarding how and when these trade policies will be finalized, which affects our business and overall global trade. In addition, we are waiting for the outcome of the U.S. silicon metal trade case, which was filed in April, with the preliminary countervailing duties decision expected in late September, and an anti-dumping decision expected two months later in late November. The countries investigated are Angola, Australia, Laos, Norway, and Thailand. One of the key developments this quarter was a notable decline in European silicon metal prices, which was driven by a substantial increase in imports from China. These aggressively low-priced imports have placed considerable pressure on the market, where EU 27 producers' market share has dropped from 40% just a few years ago to approximately 15% today.

While a keep eliminate trade deal, was reached with the EU, many others remain undecided.

1 of the key us trade negotiations is with Canada, which is an important supplier of aluminum and steel to the United States.

There is a lack of clarity regarding how and when these trade policies will be finalized which affects our business and overall global trade.

In addition.

We are waiting for the outcome of the US. Civic of metal trade case, which was filed in April, with the preliminary countervailing. Duties decision, expected in late, September and anti-dumping decision. Expected 2 months later in late November.

The countries investigated are Angola Australia, allows Norway and Thailand.

1 of the key developments, this quarter was a notable decline in European legal meta prices.

Which was driven by a substantial increase in imports from China.

This aggressively low price Imports have placed considerable pressure on the market where EU 27 producers market. Share has dropped from 40% just few years ago.

Marco Levi: This surge in imports is not only undermining local producers but also destabilizing pricing across the region. As a result, silicon metal indexes in Europe have declined by approximately 20% in just the past month. This sharp drop has created a considerable market disruption, making visibility into future supply and pricing very difficult. While macro conditions remain challenging and unpredictable, we continue to focus on things that we can control and manage the business with discipline, maintaining operational efficiency and a strong focus on discretionary cost control. Our actions, combined with our operational excellence, enabled us to deliver positive adjusted EBITDA in the second quarter. At the same time, we remain committed to returning capital to shareholders. In the second quarter, we purchased 600,000 shares for $2 million and paid $2.6 million in dividends.

2, approximately 15% today.

This surge in Imports is not only undermining local producers but also destabilizing pricing across the region.

As a result.

Silicon metal indexes in. Europe have declined by approximately 20% in just the past month.

This ship dropped, as created, the considerable Market, disruption, making visibility into future Supply, and pricing very difficult.

While macro conditions, remain challenging and unpredictable.

We continue to focus on things that we can control and manage the business with discipline, maintaining operational efficiency and a strong focus on discretionary cost control.

Our actions combined with our operational, excellence enabled us to deliver positive adjustability in the second quarter.

At the same time.

We remain committed to returning Capital to shareholders.

Marco Levi: Looking ahead to 2026, we see several positive developments on the horizon that are expected to significantly enhance our performance. First, we are beginning to see tangible benefits in the U.S. market from the anti-dumping and countervailing duties imposed last year on ferrosilicon imports from Russia, Kazakhstan, Brazil, and Malaysia. Additionally, newly announced tariffs targeting major Asian ferrosilicon importers to the U.S., like Vietnam and Malaysia, plus India, would be imposed with minimum tariffs ranging from 20% to 40%, along with any applicable anti-dumping duties. Brazil ferrosilicon producers, by comparison, face 50% tariffs plus both anti-dumping and countervailing duties. These tariffs should further improve the market dynamics in the U.S. In fact, during the second quarter, we recorded the highest volume of ferrosilicon sales in the past eight quarters, a clear indication of how the U.S. trade actions are supporting domestic producers.

In the second quarter, we purchased 600,000 shares for 2 million dollars and paid 2.6 million dollars in dividends.

Looking ahead to 2026, we see several positive developments on the Origin that are expected to significantly enhance our performance.

First.

We are beginning to see tangible benefits in the US market from the anti-dumping and countervailing. Duties, imposed last year on Ferro silicon imports from Russia kazakus and Brazil and Malaysia.

Additionally.

Newly announced stories targeting major Asian ferocon, importers to the US like Vietnam and Malaysia, plus India.

Will be imposed with minimum tariffs, ranging from 20 to 40% along with any applicable anti-dumping duties.

By comparison face, 50% tariffs plus both anti-dumping and countervailing. Duties, this starts should further improve the market dynamics in the US.

Marco Levi: We expect this trend to continue in the coming quarters. Another reason for the positive outlook for 2026 is the expected benefit from EU safeguard measures, as previously mentioned. Besides this trade-related event, there are additional encouraging macro developments anticipated to benefit Ferroglobe PLC. Production containments of silicon metal are taking place in China, Europe, and Brazil, indicating that the current price level is unsustainable. We are optimistic that these actions will help stabilize the market and reverse the recent price rise. Another important factor for the coming month is that NATO has committed to increasing defense-related spending substantially, which is expected to boost the steel and aluminum industries. Importantly, the NATO countries are in our key markets, Europe and North America. In addition, Germany has committed to investing more than $500 billion in its infrastructure.

In fact, during the second quarter, we recorded the highest volume of ferocity consoles in the past, 8 quarter, a clear indication of how the US trade actions are supporting domestic producers.

We expect this trend to continue in the coming quarters.

Mentioned.

Beside this trade related events, there are additional encouraging macro developments, anticipated to benefit parag globe.

Production containments of silicon metal are taking place in China Europe and Brazil indicating that the current price level is unsustainable.

We are optimistic that these actions will help stabilize the market and reverse the recent price trend.

Another important factor for the coming months is that NATO has committed to increasing defense related spending substantially.

Which is expected to booster.

The steel and aluminum Industries.

Marco Levi: More specific to Ferroglobe PLC, our operational flexibility to optimize production enables us to better match the market need. Recently, we switched two silicon metal furnaces to ferrosilicon, one in the U.S. and one in Europe, due to better economics. This allows us to increase ferrosilicon production by approximately 35,000 to 40,000 tons annually. To reiterate our strategic advantage, being a local company with a vertical supply chain integration positions us well to take advantage of any tariffs or trade restrictions in the U.S. or Europe. Ferroglobe PLC reached an important milestone on June 30th by joining the Russell 2000 and 3000 indexes. This increases our visibility among institutional investors and improves trading liquidity, delivering sustainable value to our shareholders. Next slide, please.

Importantly, the NATO countries are in our key markets Europe and North America. In addition, Germany has committed to investing more than 500 billion dollars in its infrastructure.

More specific to Federal Globes, our operational flexibility to optimize production, enables us to better match. The market needs recently. We switched 2 silicon metal furnaces to ferocon, 1 in the US and 1 in Europe, due to better economics. This allows us to increase ferocity on production by approximately 35.40 thousand tons annually.

To create a rate, our strategic Advantage being a local company with a vertical supply chain integration positions as well to take advantage of any types or trade restrictions in us or Europe.

Ferroglobe reached an important Milestone on June 30th by joining the Russell 2020. 3,000 indexes.

This increases our visibility among institutional and investors and improves trading liquidity, delivering sustainable value to our shareholders.

Marco Levi: As we anticipated on our last earnings call, the second quarter showed substantial improvement in our performance with a 27% increase in volumes and a 26% increase in revenue. Our adjusted EBITDA rebounded to a positive $22 million from a loss in the first quarter, while remaining net cash positive. Next slide, please. Moving to our segment update, I'll start with silicon metal on slide five. While shipments increased substantially over the first quarter, Q2 volumes were still impacted by weak demand and low-priced silicon metal imports from China into the EU. Overall volumes improved 23% over the previous quarter, mainly as a result of our contract structure due to the restart of our French operation at the beginning of April. The main driver of these predatory imports was the collapse of the polysilicon market in Asia, which continues into the third quarter.

Next slide, please.

As we anticipated on our last earning call, the second quarter showed substantial improvement in our performance.

We have a 27% increase in volumes and a 26% increase in Revenue.

Our adjusted debt are rebounded to a positive 22 million from A Loss in the first quarter while remaining net cash positive.

Next slide, please.

Moving to our segment update, I'll start with silicon metal on slide 5.

Large shipments, increased substantially over the first quarter, Q2 volumes were still impacted by weak, demand, and low price, silicon metal imports from China into the EU.

Overall volumes in Pro. 23% over the pre-order mainly, as a result of our contractor, due to the restart of our financial operation at the beginning of April.

The main driver of this predatory import was the collapse of the policy market in Asia.

Marco Levi: Polysilicon prices have recovered from their lows but remain well below earlier levels. Until the Asian polysilicon market recovers further or relevant safeguards become effective, silicon metal imports from China to the EU are likely to continue. The chemical sector weakness persists as aggressive siloxane imports have resulted in oversupply in the U.S. and Europe. Our increased focus on the aluminum segment is yielding positive results on volumes. The impact of Chinese imports was pronounced in Europe, with index prices declining 33% from 2,450 euros to 1,650 euros in the second quarter. At the same time, the U.S. index increased by 3%. Next slide, please. The silicon-based ferroalloys market also showed a robust volume increase in the second quarter, with a 24% jump in overall volumes.

Which continues into the third quarter?

Or city comprises every covered from their loans but remain well below earlier levels.

Until the agent policy Market recovers.

further or relevant figures become effective city of metal imports from China to the, you are likely to continue

The chemical sector weakness persists as aggressive Silex and imports have resulted in over Supply in the US and Europe.

Our increased focus on the aluminum. Segment is yielding positive results. On volumes.

The impact of Chinese Imports was pronounced in Europe within this prices. Declining 33% from 2450 Euros to 1,650 Euros in the second quarter.

At the same time, the US index increased by 3%,

Next slide, please.

The city conveys, the lowest Market also showed aerobat volume increased in the second quarter.

Marco Levi: The main reason for the increase was the restart of our French operations, followed by improved demand in the U.S., which was helped by the favored trade decision against Russia, Kazakhstan, Malaysia, and Brazil. The second quarter was the strongest shipment quarter in three years, with the EU and U.S. improving volumes by 43% and 6% respectively over the first quarter. While shipments were up across our footprint, the pricing was a tale of two markets. In the U.S., the demand was driven by higher street production and ferrosilicon trade decisions, which bolstered the index price by 10% to $1.26 per pound. In contrast, the European prices declined by 8%, primarily due to weakness in the regional steel production. We expect the EU market to begin improving in 2026 for both volumes and prices as the safeguards decision becomes effective. Next slide, please.

We were 24% jumped in overall volumes.

The main reason for the increase was the rest of our French operations followed by improved demand in the US, which was up by the phy, trade decision against Russia, kazakistan and Malaysia, and Brazil.

when you as improving volumes by 43 and 6% respectively, over the first quarter,

While shipments were up across our footprint. The pricing was a tale of 2 markets in the US. The demand was driven by higher Street production and fyrosity. Contrary decision.

Which bolstered the index price by 10% to 1.26 cents per pound in contrast to European prices declined by 8% primarily due to weakness in the regional steel production.

We expect you Market to begin improving in 2026 for both volumes and prices as the Safeguard decision becomes effective.

Marco Levi: Our manganese segment was our strongest segment, with volume increasing 31% over the first quarter. This was our highest shipment volume quarter in three years. Part of the improvement over Q1 was the restart of French operations and delayed shipments carried over from Q1 due to low manganese ore inventories. Manganese alloy index prices declined in the second quarter by 6% and 11% respectively for ferromanganese and silicon manganese. The outlook for manganese demand remains strong, and we expect a robust performance from this segment in the coming quarters, further supported by potential safeguards, which could serve as a catalyst for accelerated growth. I would like to turn the call over to Beatriz García-Cos, our Chief Financial Officer, to review the financial results in more detail. Beatriz.

Next slide, please.

Our manga segment was our strongest segment with volume increasing 31% over the first quarter.

This was our highest shipment volume quarter in 3 years.

Part of the improvement over q1 was the restart of French operations and delayed achievements. Carried over from q1 due to low manganese or inventories.

Manganese alloy index prices declined. In the second quarter by 6 and 11% are respectively for Ferro, manganese and silicon manganese.

The Outlook.

For manganese demand remains strong and we expect a robust performance from this segment. In the coming quarters further supported by potential safe guards which could serve as a catalyst for Accelerated growth.

Beatriz García-Cos: Thank you, Marco. Please turn to slide nine for a review of the income statement. Sales increased 26% in the second quarter to $387 million, while raw material costs increased only 6%, driving significant improvement in margin with raw material as a percentage of sales declining to 66% from 78% in the previous quarter. This improvement reflects better fixed cost absorption as production ramped up, particularly in France, and also lower energy costs. Top-line growth was driven by a 27% increase in volumes across all product categories, along with higher average selling prices, primarily in the manganese-based ferroalloys segment, which was up 9%. The increase in volumes was primarily attributable to the restart of our French operations. Adjusted EBITDA for Q2 improved substantially, increasing to $22 million versus a loss of $27 million in Q1, an improvement of $48 million. Adjusted EBITDA margin in the second quarter was 6%.

Now, I would like to turn the call over to beerus Garcia cost. Our Chief Financial Officer to review the financial results in more detail the address.

Thank you, Marco.

Please turn to slide 9 for a review of the income statement.

Faith increase 26% in the second quarter to 387 million.

While raw material cost increase only 6% driving significant Improvement in margin with raw materials as a percentage of sales declining to 66% from 78% in the previous quarter.

This Improvement reflects better. Fix course, absorption as production, ramped up particularly in France and also lower energy costs.

Topline growth was driven by a 27% increase in volumes across all product categories.

Along with higher average selling prices primarily in the manganese based Alloys segment, which was up 9%

The increase in volumes was primarily attributable to the restart of our French operations.

Adjusted the Evita for Q2 improved substantially increasing to 22 million dollars versus a loss of 27 million in q1.

An improvement of 48 million.

Beatriz García-Cos: The margin increase was largely cost-driven, supported by both volume and price improvement. Next slide, please. Silicon metal revenue increased to $130 million in the second quarter, up 24% over Q1. The increase was driven by a 23% increase in shipments, combined with a 1% increase in average selling prices. Volume gains were strongest in EMEA, supported by the restart of our French operations. Adjusted EBITDA for silicon metal shrunk from a $15 million loss in Q1 to a $7 million gain in Q2, with margins improving to 5%, up from negative 15% in the first quarter. This primarily reflects cost improvement resulting from stronger production levels, lower energy costs, and better fixed cost absorption. Next slide, please. Silicon-based ferroalloys revenue rose 23% to $112 million, supported by a 24% increase in shipments. Pricing was slightly lower, down 1% versus the prior quarter.

Adjusted, the Vita margin in the second quarter was 6%. The margin increase was largely cost driven support by both volume and price improvements.

Next slide, please.

Silicon metal Revenue, increased to 130 million dollars. In the second quarter up 24% over q1.

Decrease was driven by a 23% increase in shipments combined, with a 1% increase in average selling prices.

Volume gains, were the strongest in the media.

Support by the restart of our French operations.

Adjusted Aida for silicon metal.

Thrown from 15 million loss in q1 to a 7 million gain in Q2.

With margins, improving to 5%.

Up from negative 50% in the first quarter.

These primarily reflects cost Improvement resulting from stronger production levels, lower energy, cost and better fixed cost absorption.

Next slide, please.

Silicon based Alloys Revenue. Rose 23% to 112 million dollars support by a 24% increase in shipments.

Beatriz García-Cos: Adjusted EBITDA increased significantly from $2 million in Q1 to $7 million in Q2, tripling quarter over quarter. Margins expanded from 3% to 6%, driven by improved fixed cost absorption, resulting from a significant increase in production volumes as a result of our French operations. Next slide, please. Manganese-based ferroalloys post the strongest improvement, with revenue up 43% to $106 million. This was driven by a 31% increase in volumes, combined with a 9% increase in average selling prices. Adjusted EBITDA improved from a $6 million loss to a profit of $17 million, with margins reaching 16%. These gains were fueled by higher throughput, improved cost absorption, and contributions from the resumed French operations, partially offset by the higher cost of manganese ore. Next slide, please. During the second quarter, we generated $16 million in operating cash flow, reflecting a working capital release of $14 million.

Pricing was a slightly lower down 1% versus the prior quarter.

To $7 million dollars. Thank you.

To tripling quarter over quarter.

Margins expanded from 3% to 6% driven by improved fixed cost. Absorption resulting from a significant increase in production volumes as a result of our French operations.

Next slide, please.

Manganese waste Alloys, post the strongest improvement with Revenue up 43% to 106 million. This was driven by a 31% increase in volumes combined with a 9% increase in average selling prices.

Adjusted the Vita improved from a $6 million loss to a profit of $70 million.

With margins, reaching 16% these games were fueled by higher throughput, improved cost, absorption and contribute from the resume Freight operations partially offset by the higher cost of Mangano.

The excess slide please.

Beatriz García-Cos: Please note that the difference in working capital between cash flow and balance sheet is the decline or depreciation in the U.S. dollar. In addition, we collected a $7 million energy rebate related to our 2025 energy contract and paid $12 million of income taxes. Capital expenditures totaled $60 million in Q2, up slightly from the prior quarter. Despite the tough market conditions, our free cash flow for the second quarter was neutral. Next slide, please. During the second quarter, we preserved a strong balance sheet while maintaining our dividend and continuing our share repurchase program. During the quarter, we repurchased 600,000 shares at an average price of $3.31 for a total of $2 million. Since initiating share buybacks in the third quarter of 2024, we have repurchased a total of 1.9 million shares for approximately $7 million. We will continue to do so opportunistically.

During the second quarter, we generated 16 million dollars in operating cash flow reflecting a working capital release of 14 million dollars.

Please note that the difference in working capital between cash flow and balance sheet, is the decline or depreciation in the US dollar.

In addition we collected a 7 billion energy rebate related to our 2025 energy contract and pay 12 billion dollars of income taxes.

Capital expenditures, total $60 million in Q2 up slightly from the prior quarter.

Despite the tough market conditions, our free cash flow for the second quarter was neutral.

This slide, please.

During the second quarter, we preserved a strong balance sheet while maintaining our division and continuing our share reputation program.

During the quarter, we repurchased 600,000 shares at an average price of 3.31 dollars for a total of 2 million dollars.

Since initiating share Buybacks. In the third quarter of 2024, we have repurchased, a total of 1.9 million shares for approximately 7 million dollars.

Beatriz García-Cos: We also made an additional $4 million investment in Coreshell, bringing our total to $10 million to support the 60-amp pilot plant. We remained net cash positive at the end of the quarter, with a balance of $10 million versus $19 million at the end of the first quarter. Adjusted gross debt at the end of the second quarter was $125 million, up from $110 million in the prior quarter. In addition, in June, we made the final SEPI loan principal repayment of $18 million. Our year-to-date CapEx was $30 million. At this time, I will turn the call back to Marco.

We will continue to do so opportunistically.

we also made an additional $4 million investment in Co

Bringing our total to million dollars to support the 60 amp pilot plant.

We remained net cash positive. At the end of the quarter with a balance of dollars versus 19 million. At the end of the first quarter adjusted growth, at the end of the second quarter was 125 million.

Up from 110 million in the prior quarter.

in addition in June, we made the final seplow principal repayment of 80 million

Marco Levi: Thank you, Beatriz. Before opening the call to Q&A, I would like to provide key takeaways from today's presentation on slide 15. First, due to increased uncertainty in the market, particularly around trade actions and volatile pricing in Europe, we are withdrawing our annual guidance. Visibility remains limited, and we believe this is the most prudent course of action until we have greater clarity. However, we expect the ongoing E.U. safeguard decision to reduce price pressure from imports, paving the way for robust market conditions in 2026. In the U.S., where we have seen a tangible improvement in the ferrosilicon market, we expect trade policies and anti-dumping actions to improve the market further. Despite some external headwinds, we continue to navigate the environment effectively, as highlighted by our second quarter adjusted EBITDA of $22 million.

Our year to the capex was 30 million. At this time, I will turn the call back to Marco.

Thank you, bye before, opening the call to Q&A, I'd like to provide key takeaways from today's presentation on slide 15.

First.

Due to increasing uncertainty in the market particularly around trade actions and volatile pricing in Europe.

We are withdrawing our annual guidance visibility remains limited, and we believe this is the most prudent course of action. Until we have a greater clarity.

however, we expect the ongoing EU safe where decision to reduce price pressure from Imports, Paving the way for robust market conditions in 20126,

In the us where we have seen a tangible Improvement in the ferocity of Market. We expect trade policies and anti-dumping, actions to improve the market further.

Marco Levi: Our operational discipline, cost control, and strong balance sheet, along with our flexible global footprint, position us well to manage through near-term volatility. Looking ahead, we are optimistic about 2026 and expect meaningful tailwinds from trade decisions in both U.S. and Europe, along with early signs of supply curtailment. These developments should significantly improve the operating environment next year. Operator, we are ready for questions.

Despite some external headwinds, we continue to navigate the environment effectively as highlighted by our second quarter, just as a video of 22 million dollars.

Our operational discipline cost control and strong balance sheet along with our flexible Global footprint position us. Well to manage through near 10 volatility

Meaningful, Tailwind from trade decisions in both us and Europe along with the early signs of supply containments.

This developments should significantly improve the operating environment next year.

Operator, we're ready for questions.

Operator: Thank you. We will ask a question. Please press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. We will now take the first question from the line of Martin Englert from Seaport Research Partners. Please go ahead.

Thank you.

To ask a question.

1 1 on your telephone and wait for your name to be announced.

To whistle your question. Please press star 1 and 1 again.

We will now take the first question.

Martin Englert: Hello. Good day, everyone. Wanted to quickly touch on why the annual EBITDA guide was withdrawn. Do you have any visibility wherein you can speak to any forward-looking metrics like price, volume, costs, or broader qualitative views on the second half of this year for the company?

From the line of Martin, angler from Seaport research Partners, please go ahead.

Oh, good day, everyone.

Wanted to quickly touch on why. I know the annual Eva guide was withdrawn. Do you have any visibility wherein you can speak to any forward-looking metrics?

Marco Levi: Sure. At this stage, Martin Englert, thank you for the question. At this stage, like we said, we are in an extreme uncertain environment, like I said in my speech. Uncertainty on overall global trade tariffs, but also tariffs related to our business, both in terms of safeguards and anti-dumping. The big emerging factor in Q2 has been the massive import of silicon metal from China. It is extremely low prices. We are talking about $1,100, $1,200 import price. You have to add duties and transportation. We have faced market prices of 1,400, 1,600 euros per ton that we could not simply match. By the way, it is not only Ferroglobe PLC. It is most of the industry that cannot match these prices.

Like price, volume, costs, or broader qualitative metrics on the second half of this year for the company.

Well, at this stage Martin. Hello. Thank you for the question at this stage. Like we said we are uh, in in a stream uncertain environment. Like I said in, in, in my page, um, uncertainty on overall global trade tariffs, but also tariffs related to to our business, right? Both in terms of safe words and anti-dumping.

And the, the bigger missing factor in the second quarter has been, uh, the massive import of silicon metal from from China. It's extremely low, uh, prices. Um, we are talking about 11000000 dollars,

Marco Levi: This is why we keep on hearing about production curtailments in Ireland, in Germany, in Brazil, and also China, because I think at this price, import price level, basically, you get to the cash cost of the best Chinese producers. Most of the Chinese players lose money at this level. As a consequence, waiting for more clear decisions is very difficult to project volume and prices for the rest of the year. From there, our suffered decision to withdraw the guidance for the rest of the year.

Import price. You have to add duties and uh and transportation. So we have faced uh market prices of 14600 Euros per ton um that uh that we could not simply match. And by the way, it's not only for globe. Its most of the industry that cannot match these prices. This is why we keep on hearing about production Court payments, um, in in Ireland, in Germany in Brazil and also China because

I I think at this price import price level basically you get to the cash cost of the best Chinese producers. So also most of the Chinese players lose money at this level.

so, as a consequence,

You know, waiting for more clear decisions is very difficult to project volume and prices for the rest of the year. And and from there our software decision to withdraw, the guidance for the rest of the year.

Martin Englert: Do you feel like there is any risk that EBITDA could revert negative again before the end of the year, or is that just unknown right now?

do you feel like there's

Marco Levi: We do not know the amount of EBITDA, but we know that we are going to deliver positive EBITDA again. Giving a forecast is impossible due to the current situations.

Any risk that IBA do could revert negative again before the end of the year or is that just unknown right now?

Well, we don't, we don't know the, the amount of ibida but we know that we're going to lose deliver positive Eva again. Uh,

Martin Englert: Okay. Understood. Appreciate that the visibility is challenged out there because of the tariffs. Kind of along those lines with U.S. tariffs, can you touch on any exposure you might have here in the supply chain, meaning on the cost side of the business and implications for your facilities, and also how it has impacted Ferroglobe PLC?

Giving the forecast is impossible due to the currency situations.

Marco Levi: As from Ferroglobe PLC, Martin Englert, at this point in time, Ferroglobe PLC is not impacted because silicon metal imports from Canada to the U.S. are not impacted at this stage with any trade measure. Talking about critical raw materials, as you know, we are pulling back integration of steel materials in the U.S., and we do not have any specific problem in Europe. We have to face some, we have to make some corrective actions on small raw materials like specific earths, but we have been solving the problem. This has not been impacting overall our supply chain at this stage.

Okay. Understood appreciate that. The visibility is challenged out there because of the tariffs, um, kind of along those lines with us. Tariffs, can you touch on any exposure? You might have here in the supply chain. Meaning on the cost side of the business in implications for your facilities and also how it's impacted back and core.

Europe, we have to face.

Uh, some we have to make some correcting to the actions on small raw materials like specific periods. Um, but we have been solving the problems. So this has not been impacting uh, overall our our supply chain at this time, at this stage,

Martin Englert: Can you remind us of what specific rare earth exposure you might have?

Marco Levi: A lot depends on the founder's formulation, but we are talking about bismuth, germanium, tellurium, mainly these three products. Of course, we have to see what happens with magnesium because the major producer of magnesium, guess what it is? It is China. At the moment, we have been able to secure the supply. By the way, magnesium is not an earth, right?

And you remind us of um, what specific Rare Earth exposure, you might have.

A lot depends on the founder formulation. But we are talking about this smooth germanium dolorium, mainly these three products.

Um then of course we have to see what happens uh, with with magnesium, um, because uh, the major producer of magnesium, guess what is is China? But at the moment we have been able to um, to to secure the supply, by the way, magnesium is not right.

Martin Englert: All right. I appreciate the detail. Good luck. Thank you.

Marco Levi: Thank you, Martin.

Beatriz García-Cos: Thank you, Martin.

All right, I appreciate the detail. Good luck, thank you.

Operator: Thank you. We will now take the next question from the line of Nick Giles from B. Riley Securities. Please go ahead.

Thank you Martin. Thank you, Martin.

Nick Giles: Thank you, Operator. Good morning, everyone. My first question on the EU safeguards, it is encouraging to hear of the progress thus far. Should we have a price floor or a minimum import price in mind, or how should we think about overall structure? I was curious if you could speak to how volumes could respond in each of your product categories and any clarifying points on timing when this could really be implemented. Thank you.

Thank you. We will now take the next question from the line of Nick Joel from B Riley Securities. Please go ahead.

Thank you, operator. Uh, good morning everyone. Um, my my first question on the EU safeguards, it's encouraging to hear of the progress thus far. Um, should we have a, a price floor, or a minimum, import price in mind, or how should we think about overall structure? And then I was curious, if you could speak to how volumes could respond in each of your product categories. Um,

Marco Levi: First of all, we do not know what is included in the decision of the European community. There has been a lot of speculation on the products covered, on the mechanism to protect our industry in Europe, but there is no final decision. As a consequence, I do not want to speculate on that. I just want to confirm that we keep on asking for safeguards covering our complete product mix: silicon metal, manganese alloys, calcium silicon, and ferrosilicon, and foundry. We expect a preliminary decision on August 18, 2019, and the final decision on November 20. Speculating now on the impact, I think, is not a good exercise at this stage. What I want to underline is that we are still engaged with the European community on working on their final decision.

And then any any, any any clarifying points on timing when this could uh you know, really be implemented. Thank you.

Okay, first of all, we don't know.

What is included in the decision of the European community?

Um, there have been a lot of late.

Speculations.

Um on the product coverage on on on on, on the mechanism uh to protect our industry in Europe. But there is no no, final decision.

and as a consequence, I I don't want to speculate on

That I just want to confirm.

That we keep on asking for safeguards covering our Complete product mix.

Silicon metal.

Manganese, as always.

Thin silicon and ferrosilicon and Foundry.

And we are, uh,

We expect the decision, a preliminary decision.

um on August 1, 8 , 1 9

and the final decision.

On November 20th, on, on the impact.

um,

I think is,

is not a good exercise at this stage but what I want what I want to

what I want to underline is that, uh,

We are still that we are still engaged with your European community on working on.

Marco Levi: This makes us feel rather optimistic about having an outcome, which outcome we will see, and we will talk at the right time.

On on their final, on their final decision.

And this makes us.

Feel rather optimistic about having an outcome which outcome. Um, we will we will see and we will talk at the right time.

Nick Giles: Fair enough. Thanks for that, Marco. I guess maybe a follow-up to that. As we look across your three main product categories, which of your assets in Europe should we think about as best positioned to respond with higher volumes, assuming a favorable outcome in the safeguards?

Marco Levi: Yeah, yeah. I want to remind you that the overall safeguard initiative is related to restore the local supply of critical and strategic raw materials at a rate of maximum 40%. So 60% will still be imported. This is a critical thing. Talking about our plants, of course, in particular, the silicon metal plants, Coranne, at a much higher rate, starting from Salon in Spain, moving to Morichet, Anglefort, and Le Cleroux in France. We have converted most of low-down production already to ferrosilicon. The other plants are either manganese plants or foundry plants. Manganese is running well volume-wise. When you move, safeguards Europe may impact also to a certain extent our production of foundry products in South Africa. At this stage, we are not operating any smelting facility in South Africa.

Fair enough. Well, uh thanks for that killer Marco, I guess. Uh, maybe a follow-up to that. I mean, you know, as we look across your 3, main product categories, um, which of your assets in Europe, uh, should we think about as best positions, uh, to respond with higher volumes? You know, assuming a favorable outcome, uh, in the safeguards.

Yeah, yeah yeah. Yeah. There was a I want to remind you that.

um,

the overall Safeguard initiative is related to restore local supply of critical and strategic or materials.

Iterate of Maximum 40%.

Will be uh, important.

Um this is a critical thing. Um, talking about our plans, of course uh in particular, the city of mental plans.

Uh, Quran had a much higher rate starting from Salon in in in Spain, moving to Moishe.

Only for and legal in France.

We have converted most of lockdown.

Production or able to, to furiously Recon.

The other plans are either manganese plants or or foundary plants? Manganese is running. Well volume wise.

um, then when you move,

you know, sacred Europe, may may impact. Also, how to reset an extent, our production from the products in South Africa, but at this stage, we are not

Operating any smelting facility in South Africa.

Nick Giles: is helpful. Maybe just on the more on the U.S. side, I mean, you mentioned switching some furnaces from silicon metal to ferrosilicon. Apologies if I missed it, but what is the overall volume impact and any color on what the potential impact to EBITDA could be at current prices?

That's that's helpful. Um,

Marco Levi: Yes, we have switched one furnace in Beverly, Ohio, from silicon metal to ferrosilicon due to the increased demand of ferrosilicon in the U.S. We have switched one of the large furnaces, the Kinderdam, from silicon metal to ferrosilicon. Now the U.S. margin is supported by the price restoration in the second quarter at about 10%. So it is positive EBITDA while the decision on Lowden is related to market opportunities in ferrosilicon due to our advantage cost position in France versus lack of business in the silicon metal arena.

maybe just on the uh, more on the US side. I mean, you mentioned switching some furnaces from Silicon, metal to Ferro, silicon and apologies if I missed it, but you know, what's the overall volume impact and any color on what the potential impact to ibitta could be, uh, uh, at current prices?

Well, the uh, yes we have a switch to water investing in Beverly Ohio.

from from physical metal to feral silicon due to the

Uh, increase the amount of fuel in, in the US.

And we have reached 1 of the large furnaces in England from City of metal, uh, to, right? So the uh, now the

The US the the margin is is supported by by the the price of solution in the second quarter, right? About 10%.

so is positive with that while while the decision, um, follow them is related to

Market opportunities in fellow silicon, due to our advantage, cost position in France versus lack of business in in the Silicon metal Arena.

Nick Giles: Thank you for that. One more, if I could. You did have an update on your Coreshell investment, and apologies if I missed it there, but is there anything to highlight from a safeguard or a trade case perspective that would ultimately benefit Coreshell or silicon-rich anode technology more broadly? Thank you.

Thank you for that. And then, um,

Marco Levi: Yes. Well, first of all, you have to consider that a very high percentage, ultra-high percentage of graphite comes from China. There is a natural positive push toward replacing graphite with silicon. As mentioned in our pitch, we have increased our participation in Coreshell. During the second quarter, the new pilot plants started operating very smoothly. The first rails were produced, and the first results in cycle efficiency are simply outstanding. We are in the process of assembling the first rails to major OEMs in the United States and Europe.

What 1 more if I could, um, you, you, you did have an update on your core show investment and and apologies. If I missed it there, but is there anything to highlight, uh, from a safeguard or trade case perspective? That would ultimately benefit core shell, um, you know, or or uh, silicon Rich, anode, technology more more. Broadly. Thank you. Yes. Yes. Well, first of all, you know,

You have to consider that that I very high percentage order high percentage of graphite. Yeah he's got from China so there is

an as well, positive push toward replacing

Graphite with c.

Um, as mentioned in our page, we we have increased our participation in in in core shell.

and during the second quarter,

uh, the new pilot plan started operating very smoothly.

The first else were produced and and the first result in cycle efficiency are uh, simply outstanding.

And so we are in the, in the process of sampling.

um, the first sales to to major oems in the United States and in Europe,

Nick Giles: Guys, thank you so much for the update today, and continue best of luck.

Marco Levi: Thank you.

Beatriz García-Cos: Thank you.

Guys. Uh, thank you so much for the update today and continue best of luck.

Operator: Thank you. There are no further questions at this time. I would like to hand back over to Marco Levi for closing remarks.

Thank you. Thank you.

Thank you. There are no further questions at this time. I would like to hand back over to Marco Levi for closing remarks.

Marco Levi: All of you, thank you again for your participation. We look forward to updating you on the next call in November. Have a great day.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

To all of you. Thank you again for your participation. We look forward to updating you on the next call in November, have a great day.

This concludes today's conference call, thank you for participating. You may now disconnect