Ferroglobe Sales Rise 8.9% on Silicon Volumes; Pricing Stays Weak

Ferroglobe PLC (NASDAQ: GSM) reported second-quarter sales of $378.6 million, up 8.9% from the prior quarter and down 2.1% from a year earlier. Higher silicon metal volumes drove the sequential gain, in what the company called a challenging pricing environment.

Silicon metal revenue rose 25.8% to $105.8 million on a 33.7% jump in shipments, with gains across EMEA and the U.S. The average selling price fell 5.9% on lower pricing in both regions, and elevated market availability plus cautious customer buying kept pressure on realized prices, particularly in Europe. The segment still posted negative adjusted EBITDA of $2.7 million, slightly wider than the $2.3 million loss in the first quarter, on lower realized pricing. Its adjusted EBITDA margin improved to negative 2.5% from negative 2.7%.

The silicon-based alloy business delivered the quarter's biggest improvement. Revenue of $124.9 million was up 2.2% sequentially, and adjusted EBITDA more than doubled to $14.5 million from $6.8 million, lifting the segment margin to 11.6% from 5.6%. Ferroglobe credited improved operating costs and higher shipments, with softer pricing in Europe and the U.S. only partly offsetting those gains. Steel demand stayed subdued in those regions and market availability remained ample, though stronger realized prices in South Africa provided some support.

Manganese-based alloy sales rose $0.5 million sequentially on higher average selling prices, partially offset by lower volumes.

Ferroglobe produces silicon metal and specialty alloys used in aluminum and steel supply chains, with operations across the U.S. and Europe. European silicon pricing remains under pressure from ample supply, a theme running through recent commodities analysis.

Chief Executive Marco Levi called the quarter "solid execution of our strategy despite a challenging pricing environment," citing volume growth and further debt reduction. He pointed to the company's critical materials strategy as a growth avenue, built on its existing industrial footprint and customer relationships. Western support for domestic supply chains is growing, Levi said.

"Combined with increasing support for Western supply chains and domestic production, we believe Ferroglobe is uniquely positioned to benefit from the growing focus on critical materials, industrial security, and onshoring initiatives across the U.S. and Europe," Levi said.