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Ferroglobe Reports Strong Second Quarter 2024 Financial Results

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Ferroglobe PLC (NASDAQ: GSM) reported strong Q2 2024 financial results, with sales increasing 15% to $451 million and adjusted EBITDA more than doubling to $57.7 million. The company narrowed its annual Adj. EBITDA guidance to $150-170 million. Key highlights include:

- Net income of $34.9 million, or $0.18 per diluted share
- Net cash positive position of $64 million
- U.S. Department of Commerce announced preliminary duties on Russian FeSi imports
- French operations restarted, driving silicon metal volume growth
- Paid quarterly cash dividend of $0.013 per share; next dividend on September 27
- Shareholders approved share buyback program for up to 37.8 million shares

The company saw increased sales volumes in silicon metal and manganese-based alloys, with silicon metal revenue up 21.6% and manganese-based alloy revenue up 47.6% quarter-over-quarter.

Ferroglobe PLC (NASDAQ: GSM) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con le vendite che sono aumentate del 15% a 451 milioni di dollari e l'EBITDA rettificato che è più che raddoppiato a 57,7 milioni di dollari. L'azienda ha ristretto le sue previsioni annuali di EBITDA rettificato a 150-170 milioni di dollari. I punti salienti includono:

- Utile netto di 34,9 milioni di dollari, ovvero 0,18 dollari per azione diluita
- Posizione di cassa netta positiva di 64 milioni di dollari
- Il Dipartimento del Commercio degli Stati Uniti ha annunciato dazi preliminari sulle importazioni di FeSi dalla Russia
- Le operazioni francesi sono riprese, aumentando la crescita del volume di silicio metallico
- Dividendo in contante trimestrale di 0,013 dollari per azione; prossimo dividendo il 27 settembre
- Gli azionisti hanno approvato un programma di riacquisto di azioni fino a 37,8 milioni di azioni

L'azienda ha visto un aumento dei volumi di vendita nel silicio metallico e nelle leghe a base di manganese, con i ricavi del silicio metallico aumentati del 21,6% e i ricavi delle leghe a base di manganese aumentati del 47,6% rispetto al trimestre precedente.

Ferroglobe PLC (NASDAQ: GSM) informó resultados financieros sólidos para el segundo trimestre de 2024, con ventas que aumentaron un 15% a $451 millones y un EBITDA ajustado que se más que duplicó a $57,7 millones. La empresa ajustó su guía anual de EBITDA ajustado a $150-170 millones. Los principales aspectos destacan:

- Ingreso neto de $34,9 millones, es decir, $0,18 por acción diluida
- Posición de efectivo neto de $64 millones
- El Departamento de Comercio de EE. UU. anunció derechos preliminares sobre las importaciones de FeSi de Rusia
- Las operaciones en Francia se reanudaron, impulsando el crecimiento del volumen de metal de silicio
- Se pagó un dividendo en efectivo trimestral de $0,013 por acción; próximo dividendo el 27 de septiembre
- Los accionistas aprobaron un programa de recompra de acciones de hasta 37,8 millones de acciones

La empresa vio un aumento en los volúmenes de ventas de metal de silicio y aleaciones a base de manganeso, con un aumento del 21,6% en los ingresos por metal de silicio y un aumento del 47,6% en los ingresos por aleaciones a base de manganeso en comparación con el trimestre anterior.

Ferroglobe PLC (NASDAQ: GSM)는 2024년 2분기 재무 실적이 강력하다고 보고했으며, 판매가 15% 증가하여 4억 5,100만 달러에 달하고 조정된 EBITDA는 5,770만 달러로 두 배 이상 증가했습니다. 회사는 연간 조정 EBITDA 가이드를 1억 5,000만 ~ 1억 7,000만 달러로 조정했습니다. 주요 하이라이트는 다음과 같습니다:

- 순이익 3,490만 달러, 즉 희석된 주당 0.18 달러
- 순 현금 자산 6,400만 달러
- 미국 상무부가 러시아 FeSi 수입에 대한 초기 세금을 발표
- 프랑스에서의 운영이 재개되어 실리콘 금속 수량 증가 촉진
- 주당 현금 배당금 0.013 달러 지급; 다음 배당금은 9월 27일
- 주주들이 최대 3,780만 주의 자사주 매입 프로그램을 승인했습니다.

회사는 실리콘 금속 및 망간 기반 합금의 판매량 증가를 경험했으며, 실리콘 금속 수익은 분기 대비 21.6% 증가하고 망간 기반 합금 수익은 47.6% 증가했습니다.

Ferroglobe PLC (NASDAQ: GSM) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec des ventes en hausse de 15% à 451 millions de dollars et un EBITDA ajusté plus que doublé à 57,7 millions de dollars. L'entreprise a réduit ses prévisions annuelles d'EBITDA ajusté à 150-170 millions de dollars. Les points saillants comprennent :

- Résultat net de 34,9 millions de dollars, soit 0,18 dollar par action diluée
- Position nette de trésorerie positive de 64 millions de dollars
- Le département du Commerce des États-Unis a annoncé des droits préliminaires sur les importations de FeSi en provenance de Russie
- Les opérations en France ont redémarré, stimulant la croissance des volumes de silice métallique
- A versé un dividende trimestriel en espèces de 0,013 dollar par action ; prochain dividende le 27 septembre
- Les actionnaires ont approuvé un programme de rachat d'actions allant jusqu'à 37,8 millions d'actions

L'entreprise a constaté une augmentation des volumes de ventes de silice métallique et des alliages à base de manganèse, avec des revenus du silice métallique en hausse de 21,6% et des revenus des alliages à base de manganèse en hausse de 47,6% par rapport au trimestre précédent.

Ferroglobe PLC (NASDAQ: GSM) hat starke Finanzzahlen für das zweite Quartal 2024 gemeldet, mit einem Umsatzanstieg von 15% auf 451 Millionen Dollar und einem mehr als verdopplten bereinigten EBITDA von 57,7 Millionen Dollar. Das Unternehmen hat seine Jahresprognose für das bereinigte EBITDA auf 150-170 Millionen Dollar verengt. Zu den wichtigsten Punkten gehören:

- Nettogewinn von 34,9 Millionen Dollar, oder 0,18 Dollar pro verwässerter Aktie
- Positive Netto-Cash-Position von 64 Millionen Dollar
- Das US-Handelsministerium hat vorläufige Einfuhrzölle auf FeSi-Importe aus Russland angekündigt
- Die französischen Betriebe wurden wieder aufgenommen, was das Wachstum des Siliziummetallvolumens antreibt
- Quartalsweise Barausschüttung von 0,013 Dollar pro Aktie; nächste Ausschüttung am 27. September
- Die Aktionäre genehmigten ein Aktienrückkaufprogramm von bis zu 37,8 Millionen Aktien

Das Unternehmen verzeichnete steigende Verkaufsvolumen bei Siliziummetall und manganbasierten Legierungen, mit einem Umsatzanstieg von 21,6% bei Siliziummetall und 47,6% bei manganbasierten Legierungen im Vergleich zum Vorquartal.

Positive
  • Sales increased 15% to $451 million in Q2 2024
  • Adjusted EBITDA more than doubled to $57.7 million
  • Net income of $34.9 million, up from a loss in Q1
  • Net cash positive position of $64 million
  • Narrowed annual Adj. EBITDA guidance to $150-170 million
  • U.S. Department of Commerce imposed preliminary duties on Russian FeSi imports
  • French operations restarted, driving silicon metal volume growth
  • Silicon metal revenue up 21.6% quarter-over-quarter
  • Manganese-based alloy revenue up 47.6% quarter-over-quarter
Negative
  • Total cash balance decreased by $15.3 million to $144.5 million
  • Working capital increased by $11.6 million to $499.1 million
  • Silicon-based alloy revenue decreased by 6.0% quarter-over-quarter
  • Silicon-based alloys Adj. EBITDA decreased by 29.2% quarter-over-quarter

Insights

Ferroglobe's Q2 2024 results show significant improvement, with adjusted EBITDA more than doubling to $57.7 million from $25.8 million in Q1. The 15% increase in sales to $451 million and narrowed EBITDA guidance range to $150-170 million indicate stronger performance and increased confidence.

Key positives include:

  • Net cash position of $64 million
  • Successful restart of French operations
  • Favorable U.S. trade ruling on Russian ferrosilicon imports
  • Promising EV battery testing results
However, year-over-year comparisons show some pressure, with YTD adjusted EBITDA down 44%. The working capital increase to $499.1 million due to inventory build-up is worth monitoring.

Overall, Ferroglobe's financial position remains solid, with continued dividend payments and a new share buyback program, suggesting management's confidence in future performance.

Ferroglobe's Q2 results reflect a mixed market environment. The silicon metal segment saw an 18.2% increase in shipments, driven by higher volumes in EMEA, indicating recovering demand. However, the 15.8% year-over-year price decline suggests ongoing pricing pressures.

The silicon-based alloys segment faced challenges with an 8.2% decrease in shipments, primarily due to weak U.S. demand. This could signal broader economic concerns in key markets.

Notably, the manganese-based alloys segment showed strong performance with a 30.7% increase in shipments and 12.9% price improvement. This might be linked to the strategic purchase of manganese ore amid supply disruptions.

The preliminary duties on Russian ferrosilicon imports in the U.S. could significantly benefit Ferroglobe's market position from early 2025. Additionally, the promising EV battery testing results could open new growth avenues in the rapidly expanding electric vehicle market.

The promising results from Coreshell nanocoating technology with silicon-rich anode for EV batteries is a significant technological development for Ferroglobe. This validates the company's strategic focus on high-grade silicon metal for advanced battery applications.

As the EV market continues to grow rapidly, demand for high-performance battery materials is expected to surge. Ferroglobe's expertise in silicon metal production positions it well to capitalize on this trend. The successful integration of silicon-rich anodes could lead to batteries with higher energy density and faster charging capabilities, addressing key consumer concerns in EV adoption.

However, it's important to note that the path from promising test results to large-scale commercial application can be long and uncertain. Ferroglobe will need to navigate potential challenges in scaling production, meeting stringent quality requirements and competing with other emerging battery technologies.

If successful, this development could significantly diversify Ferroglobe's revenue streams and enhance its long-term growth prospects in the evolving energy storage landscape.

Narrowing annual Adj. EBITDA guidance to $150-170 million from $130-170 million previously

  • Posted solid adjusted EBITDA of $58 million for the second quarter of 2024
  • Net cash positive of $64 million and adjusted gross debt of $81 million
  • U.S. Department of Commerce announced preliminary duties on Russian FeSi imports
  • Coreshell advanced EV battery testing yields promising results
  • French operations restarted in Q2, driving silicon metal volume growth
  • Paid quarterly cash dividend of $0.013 per share in June; next dividend on September 27
  • Shareholders approved the share buyback program at the June annual general meeting

LONDON, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announces financial results for the second quarter of 2024.

Financial Highlights

($ in millions, except EPS) Q2 2024 Q1 2024 %
Q/Q
 Q2 2023 %
Y/Y
 YTD 2024 YTD 2023 %
Y/Y
                      
Sales $451.0  $391.9  15% $456.4 (1%) $842.9 $857.3 (2%)
Net income (loss) $34.9  $(2.0) (1.844%) $31.9 9% $32.9 $52.9 (38%)
Adjusted diluted EPS $0.13  $(0.00) (4.000%) $0.30 (58%) $0.13 $0.34 (61%)
Adj. EBITDA $57.7  $25.8  124% $105.7 (45%) $83.5 $150.4 (44%)
Operating cash flow $2.0  $198.0  (99%) $23.6 (91%) $200.1 $158.4 26%
Capital expenditures1 $21.9  $18.2  20% $23.6 (7%) $40.1 $41.6 (4%)
Free cash flow2 $(19.9) $179.8  (111%) $0.9 (2.215%) $160.0 $118.4 35%
(1)  Cash outflows for capital expenditures
(2)  Free cash flow is calculated as operating cash flow less capital expenditures
 

Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “We continued to execute well on multiple fronts during the second quarter. We posted strong quarterly results with a 15% increase in sales and more than doubled our adjusted EBITDA from the prior quarter. We successfully restarted our French operations in April, helping drive silicon metal and manganese-based specialty alloy volumes.

“We were also successful in our ferrosilicon trade case in the U.S. as our actions impacted the U.S. Department of Commerce’s decision to impose preliminary anti-dumping and countervailing duties of 283% and 748%, respectively, on all Russian ferrosilicon imports, which were announced in June. This is a very positive development that we expect to benefit our ferrosilicon business in the US, beginning in early 2025. Finally, the EV battery testing using Coreshell nanocoating technology with silicon-rich anode is yielding excellent results. We are excited about these results as it confirms our belief that high-grade silicon metal will play a critical role in the future of batteries used in EVs.

“We are narrowing the adjusted EBITDA guidance range from $130-$170 million to $150-$170 million. The strong second quarter combined with higher index prices should positively impact the third quarter, giving us more confidence for the second half of the year,” concluded Dr. Levi.

Consolidated Sales

In the second quarter of 2024, Ferroglobe reported net sales of $451 million, an increase of 15% over the prior quarter and a decrease of 1% over the year-ago period. This increase over the prior quarter is primarily attributable to higher sales volumes in silicon metal and manganese-based specialty alloys and also higher pricing in our portfolio products. Silicon metal and manganese-based alloys contributed $36 million and $32 million of the increase, respectively, partially offset by a $7 million decrease in silicon-based alloy sales.

Product Category Highlights

Silicon Metal

                
($,000) Q2 2024 Q1 2024 % Q/Q Q2 2023 % Y/Y YTD 2024 YTD 2023 % Y/Y
Shipments in metric tons:  62,872   53,183  18.2%  50,651  24.1%  116,055   87,593  32.5%
Average selling price ($/MT):  3,244   3,155  2.8%  3,855  (15.8)%  3,203   4,064  (21.2)%
                      
Silicon Metal Revenue    203,957    167,792  21.6%   195,260  4.5%   371,724    355,995  4.4%
Silicon Metal Adj.EBITDA    34,584    16,071  115.2%   82,403  (58.0)%   50,655    113,523  (55.4)%
Silicon Metal Adj.EBITDA Margin  17.0%  9.6%    42.2%    13.6%  31.9%  
                           

Silicon metal revenue in the second quarter was $204.0 million, an increase of 21.6% over the prior quarter and an increase of 4.5% over the year-ago period. Average realized selling price increased by 2.8%, primarily due to increased prices in the U.S. Total shipments increased due to higher volumes in EMEA. The adjusted EBITDA for silicon metal increased to $34.6 million during the second quarter, an increase of 115.2% compared with $16.1 million for the prior quarter. The improvement in adjusted EBITDA margin in the quarter was mainly driven by price and volume increases.

Silicon-Based Alloys

                
($,000) Q2 2024 Q1 2024 % Q/Q Q2 2023 % Y/Y YTD 2024 YTD 2023 % Y/Y
Shipments in metric tons:  46,953   51,171  (8.2)%  49,457  (5.1)%  98,124   98,557  (0.4)%
Average selling price ($/MT):  2,241   2,188  2.4%  2,697  (16.9)%  2,213   2,726  (18.8)%
                      
Silicon-based Alloys Revenue    105,222    111,962  (6.0)%   133,386  (21.1)%   217,148    268,706  (19.2)%
Silicon-based Alloys Adj.EBITDA    10,199    14,412  (29.2)%   31,812  (67.9)%   24,611    53,736  (54.2)%
Silicon-based Alloys Adj.EBITDA Margin  9.7%  12.9%    23.8%    11.3%  20.0%  
                           

Silicon-based alloy revenue in the second quarter was $105.2 million, a decrease of 6.0% over the prior quarter and a decrease of 21.1% in the year-ago period. Shipments decreased by 8.2%, which was attributable to demand weakness in the U.S. The adjusted EBITDA for the silicon-based alloys decreased to $10.2 million in the second quarter of 2024, a decrease of 29.2% compared with $14.4 million for the prior quarter. The adjusted EBITDA margin decreased mainly due to the decrease in shipments during the second quarter of 2024.

Manganese-Based Alloys

                
($,000) Q2 2024 Q1 2024 % Q/Q Q2 2023 % Y/Y YTD 2024 YTD 2023 % Y/Y
Shipments in metric tons:  81,464   62,320  30.7%  62,573  30.2%  143,784   109,440  31.4%
Average selling price ($/MT):  1,204   1,066  12.9%  1,248  (3.5)%  1,144   1,277  (10.4)%
                      
Manganese-based Alloys Revenue    98,083    66,433  47.6%   78,091  25.6%   164,489    139,768  17.7%
Manganese-based Alloys Adj.EBITDA    13,832    5,520  150.6%   1,065  1198.8%   19,352    3,108  522.7%
Manganese-based Alloys Adj.EBITDA Margin  14.1%  8.3%    1.4%    11.8%  2.2%  
                           

Manganese-based alloy revenue in the second quarter was $98.1 million, an increase of 47.6% over the prior quarter and an increase of 25.6% over the year-ago period. Average realized selling price increased by 12.9% and total shipments increased by 30.7%. Adjusted EBITDA for the manganese-based alloys portfolio increased to $13.8 million in the second quarter of 2024, an increase of 150.6% compared with $5.5 million for the prior quarter. The adjusted EBITDA margin increase was mainly driven by price and volume increases.

Raw materials and energy consumption for production

Raw materials and energy consumption for production was $264.3 million in the second quarter of 2024 versus $257.4 million in the prior quarter, an increase of 2.7%. As a percentage of sales, raw materials and energy consumption for production was 59% in the second quarter of 2024, an improvement versus 66% in the prior quarter. This variance was mainly due to lower production costs in Europe related to the restart of operations in France during the second quarter of 2024.

Net Income (Loss) Attributable to the Parent

In the second quarter of 2024, net income attributable to the parent was $34.9 million, or $0.18 per diluted share, compared to a net loss attributable to the parent of $2.0 million, or ($0.01) per diluted share in the first quarter. The company reported adjusted diluted earnings per share of $0.13 for the second quarter, compared with adjusted earnings per share of $0.00 per share in the prior quarter.

Adjusted EBITDA

In the second quarter of 2024, adjusted EBITDA was $57.7 million, or 12.8% of sales, an increase of 123.8% compared to adjusted EBITDA of $25.8 million, or 6.6% of sales, from the first quarter of 2024. The increase in adjusted EBITDA as a percentage of sales in the second quarter of 2024 is primarily attributable to higher realized prices and volumes.

Total Cash, Adjusted Gross Debt and Working Capital

                     
($ in millions) Q2 2024 Q1 2024 $ % Q2 2023 $ % Y/Y
                     
Total Cash1 $144.5  $159.8   (15.3)  (10%) $363.2  (218.7) (60%)
Adjusted Gross Debt2 $80.7  $80.8   (0.1)  (0%) $400.1  (319.4) (80%)
Net (Cash)/Debt $(63.7) $(79.0)  15.3   19% $36.8  (100.5) (273%)
Total Working Capital $499.1  $487.5   11.6   2% $475.0  24.2  5%
(1)  Total cash is comprised of restricted cash, cash and cash equivalents
(2)  Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 for each of the periods presented
 

The total cash balance was $144.5 million as of June 30, 2024, down $15.3 million from $159.8 million as of March 31, 2024.

During the second quarter, the Company generated $2.0 million of operating cash flow and had a negative cash flow from investing activities of $24.3 million. Cash flow from financing activities was positive $7.0 million.

Total working capital was $499.1 million on June 30, 2024, up from $487.5 million on March 31, 2024. The $11.6 million increase in working capital balance during the quarter was mainly due to a $35.8 million increase in inventories, partially offset by a $17.2 million increase in trade and other payables and a $7.0 million decrease in trade and other receivables.

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “We continued our strong performance in the second quarter, increasing our adjusted EBITDA by 124% to $58 million and sales by 15% to $451 million while maintaining a strong balance sheet and net cash positive position of $64 million. The increase in our overall working capital over the first quarter was due to inventory build-up as we restarted our French operations and increased purchases of manganese ore. Our increase in manganese ore purchases was a strategic decision to capitalize on the disruption caused by the shutdown of the South32 manganese ore mine. As a result, the cost of our manganese ore purchases was below the current market. We are focused on increasing our working capital efficiency in the coming quarters.”

Enhanced Capital Return Policy

After Ferroglobe's board of directors approved a share buyback program, shareholders approved it at the June annual general meeting. We are authorized to repurchase up to 37.8 million shares, or approximately 20% of the outstanding shares, over a 5-year period.

The Company paid a quarterly cash dividend of $0.013 per share on June 27, 2024. Our next cash dividend of $0.013 per share will be paid on September 27, 2024, to shareholders of record as of September 20, 2024.

Conference Call

Ferroglobe invites all interested persons to participate on its conference call at 8:30 AM, Eastern Time on August 6, 2024. Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast.

To join via phone:

Conference call participants should pre-register using this link:
https://register.vevent.com/register/BI13217e2c34d24a3384eaac756b699a70

Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.

To join via webcast:

A simultaneous audio webcast and replay will be accessible here:
https://edge.media-server.com/mmc/p/wczmto79

About Ferroglobe

Ferroglobe PLC is a leading global producer of silicon metal, silicon- and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction, and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, working capital, adjusted net profit, adjusted profit per share, adjusted gross debt and net cash/debt, are non-IFRS financial metrics that management uses in its decision making. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important and useful to investors because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

INVESTOR CONTACT:

Alex Rotonen, CFA
Vice President, Investor Relations
Email: investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig
Vice President, Communications & Public Affairs
Email: corporate.comms@ferroglobe.com

 
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)
                
  For the Three
Months Ended

 For the Three
Months Ended

 For the Three
Months Ended

 For the Six
Months Ended

 For the Six
Months Ended

  June 30, 2024
 March 31, 2024
 June 30, 2023
 June 30, 2024
 June 30, 2023
Sales $451,048  $391,854  $456,441  $842,902  $
857,309 
Raw materials and energy consumption for production  (264,285)  (257,357)  (229,077)  (521,642)  (484,113)
Energy consumption for production (PPA impact)  2,270   (1,932)  (23,193)  338    
Other operating income  27,448   10,836   27,689   38,284   42,503 
Staff costs  (67,220)  (70,519)  (74,972)  (137,739)  (142,515)
Other operating expense  (86,071)  (52,348)  (77,202)  (138,419)  (131,347)
Depreciation and amortization charges  (18,875)  (18,669)  (16,452)  (37,544)  (34,442)
Impairment (loss) gain        (887)     (641)
Other gain  238   696   499   934   546 
Operating profit  44,553   2,561   62,846   47,114   107,300 
Net finance income (expense)  (5,315)  (7,669)  (895)  (12,984)  (11,875)
Exchange differences  3,591   1,383   (5,367)  4,974   (3,912)
Profit (loss) profit before tax  42,829   (3,725)  56,584   39,104   91,513 
Income tax (expense) benefit  (8,481)  1,155   (20,520)  (7,326)  (29,981)
Total profit (loss) for the period  34,348   (2,570)  36,064   31,778   61,532 
                
Profit (loss) attributable to the parent $34,880  $(2,024) $31,908  $32,856  $52,899 
Profit (loss) profit attributable to non-controlling interest  532   546   (4,156)  1,078   (8,633)
                
EBITDA $67,019  $22,613  $73,931  $89,632  $137,830 
Adjusted EBITDA $57,739  $25,803  $105,674  $83,542  $150,441 
                
                
Weighted average shares outstanding               
Basic  189,298   187,927   187,872   189,237   187,873 
Diluted  191,006   187,927   190,174   190,915   189,914 
                
Profit (loss) per ordinary share               
Basic $0.18  $(0.01) $0.17  $0.17  $0.28 
Diluted $0.18  $(0.01) $0.17  $0.17  $0.28 


 
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
 
  As of June 30, As of March 31, As of December 31,
  2024 2024 2023
ASSETS
Non-current assets         
Goodwill $29,702 $29,702 $29,702
Intangible assets  192,127  193,592  138,345
Property, plant and equipment  502,610  500,940  501,396
Other financial assets  15,744  13,944  19,792
Deferred tax assets  9,501  10,636  8,760
Receivables from related parties  1,606  1,622  1,658
Other non-current assets  22,003  21,770  22,156
Total non-current assets  773,293  772,206  721,809
Current assets         
Inventories  397,436  361,602  383,841
Trade and other receivables  296,980  303,942  310,243
Receivables from related parties  2,685  2,712  2,772
Current income tax assets  8,901  10,740  15,977
Other financial assets  275  2  2
Other current assets  46,528  27,894  186,477
Restricted cash and cash equivalents  301  298  1,179
Cash and cash equivalents  144,186  159,470  136,470
Total current assets  897,292  866,660  1,036,961
Total assets $1,670,585 $1,638,866 $1,758,770
          
EQUITY AND LIABILITIES
Equity $876,006 $843,702 $869,886
Non-current liabilities         
Deferred income  59,267  77,185  26,980
Provisions  23,434  22,102  19,970
Provision for pensions  29,760  29,293  29,805
Bank borrowings  14,397  14,643  14,913
Lease liabilities  54,463  54,361  20,304
Debt instruments      149,015
Other financial liabilities  28,116  68,186  65,231
Other obligations  5,444  1,536  35,883
Other non-current liabilities  194  224  199
Deferred tax liabilities  30,265  30,253  32,582
Total non-current liabilities  245,340  297,783  394,882
Current liabilities         
Provisions  137,094  127,533  122,757
Provision for pensions  163  165  169
Bank borrowings  57,573  42,762  31,635
Lease liabilities  11,229  12,297  8,083
Debt instruments      5,765
Other financial liabilities  49,338  15,190  16,052
Payables to related parties  4,537  3,527  2,429
Trade and other payables  195,275  178,038  183,375
Current income tax liabilities  5,632  6,262  8,351
Other obligations  11,608  11,999  14,183
Other current liabilities  76,790  99,608  101,203
Total current liabilities  549,239  497,381  494,002
Total equity and liabilities $1,670,585 $1,638,866 $1,758,770


 
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
                
  For the Three
Months Ended
 For the Three
Months Ended
 For the Three
Months Ended
 For the Six
Months Ended
 For the Six
Months Ended
  June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Cash flows from operating activities:               
Profit (loss) for the period $34,348  $(2,570) $36,064  $31,778  $61,532 
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:               
Income tax (benefit) expense  8,481   (1,155)  20,520   7,326   29,981 
Depreciation and amortization charges  18,875   18,669   16,452   37,544   34,442 
Net finance expense  5,315   7,669   895   12,984   11,875 
Exchange differences  (3,591)  (1,383)  5,367   (4,974)  3,912 
Impairment loss (gain)        887      641 
Share-based compensation  913   928   2,041   1,841   3,946 
Other loss (gain)  (238)  (696)  (499)  (934)  (546)
Changes in operating assets and liabilities               
Decrease (increase) in inventories  (36,696)  19,011   30,132   (17,685)  116,407 
Decrease (increase) in trade receivables  5,982   320   29,326   6,302   148,040 
(Decrease) increase in trade payables  17,387   (1,925)  19,169   15,462   (54,695)
Other changes in operating assets and liabilities  (40,014)  154,596   (61,617)  114,582   (105,717)
Income taxes (paid) received  (8,756)  4,580   (75,165)  (4,176)  (91,463)
Net cash provided by (used in ) operating activities:  2,006   198,044   23,572   200,050   158,355 
Cash flows from investing activities:               
Interest and finance income received  600   741   969   1,341   1,637 
Payments due to investments:               
Intangible assets  (735)  (584)  (940)  (1,319)  (940)
Property, plant and equipment  (21,132)  (17,641)  (22,662)  (38,773)  (40,622)
Disposals:               
Other non-current assets  (3,000)        (3,000)   
Net cash used in by investing activities  (24,267)  (17,484)  (22,633)  (41,751)  (39,925)
Cash flows from financing activities:               
Dividends paid  (2,443)  (2,438)     (4,881)   
Proceeds from debt issuance     (147,624)     (147,624)   
Repayment of debt instruments        (1,742)     (28,025)
Increase/(decrease) in bank borrowings:               
Borrowings  145,962   94,611   152,210   240,573   261,972 
Payments  (130,772)  (83,012)  (126,840)  (213,784)  (268,740)
Payments for lease liabilities  (2,883)  (2,973)  (2,851)  (5,856)  (5,098)
Other (payments) receipts from financing activities  (289)  (192)     (481)  (17,377)
Interest paid  (2,574)  (14,634)  (1,721)  (17,208)  (19,913)
Net cash (used in) provided by financing activities  7,001   (156,262)  19,056   (149,261)  (77,181)
Total net (decrease) increase in cash and cash equivalents  (15,260)  24,298   19,995   9,038   41,249 
Beginning balance of cash and cash equivalents  159,768   137,649   344,197   137,649   322,943 
Exchange differences on cash and cash equivalents in foreign currencies  (21)  (2,179)  (1,011)  (2,200)  (1,011)
Ending balance of cash and cash equivalents $144,487  $159,768  $363,181  $144,487  $363,181 
Restricted cash and cash equivalents  301   298   4,579   301   4,579 
Cash and cash equivalents  144,186   159,470   358,602   144,186   358,602 
Ending balance of cash and cash equivalents $144,487  $159,768  $363,181  $144,487  $363,181 


 
Adjusted EBITDA ($,000):
           
  Q2´24 Q1´24 Q2´23 YTD´24 YTD´23
Profit (loss) attributable to the parent $34,880  $(2,024) $31,908  $32,856  $52,899
Profit (loss) attributable to non-controlling interest  (532)  (546)  4,156   (1,078)  8,633
Income tax (benefit) expense  8,481   (1,155)  20,520   7,326   29,981
Net finance expense  5,315   7,669   895   12,984   11,875
Depreciation and amortization charges  18,875   18,669   16,452   37,544   34,442
EBITDA  67,019   22,613   73,931   89,632   137,830
Exchange differences  (3,591)  (1,383)  5,367   (4,974)  3,912
Impairment        887      641
Restructuring and termination costs  (4,540)        (4,540)  
New strategy implementation  1,012   1,361   (77)  2,373   1,972
Subactivity  109   942   2,373   1,051   6,086
PPA Energy  (2,270)  2,270   23,193      
Adjusted EBITDA $57,739  $25,803  $105,674  $83,542  $150,441


 
Adjusted profit attributable to Ferroglobe ($,000):
           
  Q2´24 Q1´24 Q2´23 YTD´24 YTD´23
Profit (loss) profit attributable to the parent $34,880  $(2,024) $31,908  $32,856  $52,899
Tax rate adjustment  (4,997)  17   5,469   (4,980)  5,639
Impairment        651      470
Restructuring and termination costs  (3,111)        (3,111)  
New strategy implementation  694   933   (57)  1,626   1,447
Subactivity  75   646   1,742   720   4,467
PPA Energy  (1,556)  1,556   17,024      
Adjusted profit attributable to the parent $25,984  $1,168  $56,737  $27,111  $64,922


 
Adjusted diluted profit per share:
           
  Q2´24 Q1´24 Q2´23 YTD´24 YTD´23
Diluted profit (loss) per ordinary share $0.18  $(0.01) $0.17  $0.17  $0.28
Tax rate adjustment  (0.03)  0.00   0.03   (0.03)  0.03
Restructuring and termination costs  (0.02)        (0.02)  
New strategy implementation  0.00   0.00   (0.00)  0.01   0.01
Subactivity  0.00   0.00   0.01   0.00   0.02
PPA Energy  (0.01)  0.01   0.09      
Adjusted diluted profit (loss) per ordinary share $0.13  $(0.00) $0.30  $0.13  $0.34

FAQ

What was Ferroglobe's (GSM) revenue in Q2 2024?

Ferroglobe's revenue in Q2 2024 was $451 million, representing a 15% increase from the previous quarter.

How much did Ferroglobe's (GSM) adjusted EBITDA increase in Q2 2024?

Ferroglobe's adjusted EBITDA more than doubled in Q2 2024, increasing by 124% to $57.7 million compared to the previous quarter.

What is Ferroglobe's (GSM) updated annual Adj. EBITDA guidance for 2024?

Ferroglobe narrowed its annual Adj. EBITDA guidance for 2024 to $150-170 million from the previous range of $130-170 million.

When did Ferroglobe (GSM) restart its French operations in 2024?

Ferroglobe successfully restarted its French operations in April 2024, which helped drive silicon metal and manganese-based specialty alloy volumes.

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