TacticScaleWhat GrafTech International Does & How It Makes Money (EAF)
Updated October 2026 · reflects GrafTech International's latest reported financials
Century-old maker of graphite electrodes used in electric arc steelmaking. GrafTech earns revenue by selling graphite electrodes and petroleum needle coke to steel and metal producers worldwide.
How GrafTech International makes money
GrafTech earns revenue by selling graphite electrodes and petroleum needle coke to steel and metal producers worldwide. It sells through its own direct sales force, independent sales representatives, and distributors.
What GrafTech International does
GrafTech International supplies graphite electrodes, a critical consumable in electric arc furnace (EAF) steelmaking. In an EAF, these large graphite rods carry enormous electrical currents that create an arc hot enough to melt scrap and other metal feedstock. The electrodes wear down as they are used, so customers have to keep replacing them. GrafTech also makes petroleum needle coke, the specialty carbon material used to make electrodes, which gives it a foothold further up its own supply chain. Founded in 1886 and headquartered in Brooklyn Heights, Ohio, the company sells worldwide to steel producers and other ferrous and non-ferrous metal makers. It reaches them through a direct sales force, independent sales representatives, and distributors. Because its products are tied to EAF steel output, GrafTech's business is closely linked to the health of the steel industry and to steelmakers' move toward electric arc production.
Products & services
- Graphite electrodes
- Petroleum needle coke
- Electrodes for electric arc furnace (EAF) steelmaking
- Electrodes for non-ferrous metal production
What is GrafTech International worth?
On an owner-earnings DCF, GrafTech International's most-likely value is about $10 versus a recent price near $9 (8% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$6) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 56.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
FangDa Carbon New Material (600516.SS) · Shijiazhuang Shangtai Technology (001301.SZ) · Henan Yicheng New Energy (300080.SZ) · TDG Holding (600330.SS)