GSM

Ferroglobe PLC: Q2 2026 Financial Summary

Business Context and Reporting Period

This Form 6-K filing, dated August 4, 2026, reports the unaudited financial results for Ferroglobe PLC for the second quarter ended June 30, 2026. Ferroglobe is a global producer of silicon metal, silicon-based, and manganese-based specialty alloys. The company is advancing a strategic critical materials initiative to support Western supply chains while optimizing its existing industrial footprint.

Key Financial Metrics

Material Changes vs. Prior Periods

• Revenue: Sales increased 8.9% sequentially to $378.6 million, driven by higher shipment volumes of silicon metal (+33.7% Q/Q) and silicon-based alloys (+3.7% Q/Q). Year-over-year sales declined 2.1% due to lower average selling prices.
• Profitability: Net profit swung from a $7.1 million loss in Q1 to a $60.4 million profit in Q2. This turnaround was primarily driven by a $59.9 million positive fair value adjustment related to long-term energy contracts (Power Purchase Agreements). Excluding this item, Adjusted EBITDA improved 291% sequentially to $13.1 million.
• Product Mix: Silicon metal revenue rose 25.8% Q/Q despite a 5.9% price decline, as volume growth offset lower pricing. Manganese-based alloys saw a 1.6% price increase supported by EU safeguard measures, though volumes dipped slightly.
• Liquidity: Net debt decreased by $16.9 million to $37.7 million. Free cash flow turned positive at $20.4 million, compared to a $16.4 million outflow in the prior quarter.

Outlook, Commentary, and Risks

Management highlighted strong execution despite a challenging pricing environment. CEO Dr. Marco Levi emphasized the resilience of the operating platform and the strategic positioning to benefit from Western supply chain onshoring. CFO Beatriz Garcia-Cos noted disciplined working capital management and cost control as key drivers of cash generation.

• Guidance: The filing does not provide specific numerical guidance for future periods. Management stated that forward-looking financial information represents goals rather than projections.
• Dividends: A quarterly dividend of $0.015 per share was paid on June 30, 2026. The next dividend of $0.015 is payable on September 29, 2026.
• Risks: Key risks include the cyclicality of the metals industry, energy price volatility, geopolitical conflicts (specifically Ukraine-Russia), supply chain disruptions, and the impact of exchange rate fluctuations. The company also faces risks related to the potential restart of Venezuelan operations and regulatory changes in trade protection measures.

Investor Verification Checklist

• Non-IFRS Adjustments: Verify the sustainability of the $59.9 million gain from Power Purchase Agreement (PPA) fair value adjustments, which significantly inflated net profit but were excluded from Adjusted EBITDA.
• Price-Cost Spread: Monitor the narrowing price-cost spread in silicon metal and silicon-based alloys, where realized selling prices are declining faster than raw material and energy costs (excluding PPA impacts).
• Debt Structure: Review the composition of adjusted gross debt ($130.9 million) and the impact of lease liabilities and financing facilities in South Africa, France, and Spain.
• Volume vs. Price: Assess whether volume growth in EMEA and the U.S. can continue to offset downward pressure on average selling prices in a market with elevated availability.
• Working Capital: Confirm the drivers of the $32.8 million decrease in working capital, specifically the reduction in inventories and increase in trade payables.