GSM

Ferroglobe PLC: Q1 2026 Financial Summary

Business Context and Reporting Period

This Form 6-K filing, dated May 5, 2026, reports the unaudited financial results for Ferroglobe PLC for the quarter ended March 31, 2026. Ferroglobe is a global producer of silicon metal, silicon-based, and manganese-based specialty alloys. The quarter was characterized by strong ferroalloy volumes driven by trade measures in the U.S. and EU, though profitability was impacted by margin compression due to rising logistics and raw material costs.

Key Financial Metrics

Note: Net Debt is presented as a positive value representing debt obligation; Q1 2025 shows a net cash position.

Material Changes vs. Prior Periods

• Revenue Growth: Sales increased 5.6% quarter-over-quarter (Q/Q) and 13.2% year-over-year (Y/Y), driven by higher volumes in silicon-based and manganese-based alloys.
• Profitability Decline: Adjusted EBITDA fell 77.1% Q/Q to $3.3 million. While volumes improved, pricing did not keep pace with higher costs, particularly in logistics and raw materials.
• Net Loss Improvement: Net loss attributable to the parent narrowed significantly to $7.1 million from $81.0 million in Q4 2025. This improvement was largely due to the absence of a $40.2 million fair value loss on energy contracts and a $17.7 million impairment charge recorded in the prior quarter.
• Cash Flow: Operating cash flow turned negative at $(5.6) million, primarily due to a $13.4 million increase in working capital (inventories and receivables) to support higher sales volumes.

Segment Performance and Management Commentary

• Silicon Metal: Revenue decreased 12.9% Q/Q to $84.1 million due to lower shipments and average selling prices. Adjusted EBITDA turned negative at $(2.3) million with a margin of (2.7%).
• Silicon-Based Alloys: Revenue rose 18.1% Q/Q to $122.3 million on an 18.3% volume increase. However, Adjusted EBITDA dropped 55.8% to $6.8 million due to higher production costs.
• Manganese-Based Alloys: Revenue increased 15.7% Q/Q to $107.2 million, supported by a 9.0% price increase and 6.1% volume growth. Adjusted EBITDA improved to $10.0 million.
• Outlook: Management views current cost pressures as temporary, expecting pricing conditions to improve in the second half of 2026. The company is actively pursuing a restart of cost-competitive Venezuelan operations and leveraging U.S./EU strategic partnerships on critical materials.
• Risks: The conflict in Iran has created a challenging operating environment, increasing transportation and raw material costs. The company also faces risks related to energy prices and geopolitical instability.

Investor Verification Checklist

• Margin Sustainability: Verify if the management's expectation of pricing recovery in H2 2026 materializes given the current lag between cost increases and realized prices.
• Working Capital Efficiency: Monitor the $13.4 million cash outflow for working capital; assess if inventory build-up aligns with actual demand or risks obsolescence.
• Venezuela Restart: Confirm the timeline and capital requirements for restarting the Venezuelan operations, which are cited as a key growth driver.
• Energy Contract Exposure: Review the impact of Power Purchase Agreements (PPA) on future earnings, noting the $5.5 million positive fair value adjustment in Q1 2026 versus the $40.2 million loss in Q4 2025.
• Liquidity Position: Track the increase in net debt to $54.6 million and ensure sufficient cash flow generation to service debt and maintain the quarterly dividend of $0.015 per share.