Ferroglobe PLC

Second-quarter revenue was $379 million, up 9% sequentially, driven by a 7% increase in total volumes to 188,000 tons. Adjusted EBITDA increased by about $10 million to $13 million, and adjusted EBITDA margin improved to 3.5% from 1% in Q1. Free cash flow was $20 million versus negative $16 million in the prior quarter; cash from operations was $37 million, supported by a $28 million working-capital release. By segment, silicon metal revenue rose 26% to $106 million with an adjusted EBITDA loss of $2.7 million; silicon-based alloys revenue rose 2% to $125 million with adjusted EBITDA of $15 million; manganese base alloys revenue was flat at $108 million with adjusted EBITDA of $13 million. CapEx was $17 million, and management said Q2 should be the high point for the year. Looking ahead, management expects continued working-capital release in the second half of the year, around $15 million, and said the next dividend is $0.015 per share on September 29. No formal revenue or EBITDA guidance was given for the next quarter or full year.

Marco Levi framed the quarter as solid execution in a difficult market and used the call to push a broader strategy refresh. He emphasized Ferroglobe’s plan to build a Western critical-materials platform, expand into products like magnesium, antimony, silver, gallium and other ferroalloys, and improve competitiveness through cost reduction and footprint optimization. His tone was constructive and confident, repeatedly pointing to existing assets, know-how and customer relationships as advantages, while also stressing that pricing pressure in Europe remains unacceptable.

Beatriz García-Cos Muntañola focused on the sequential financial improvement: sales up to $379 million, adjusted EBITDA up to $13 million, and margin up to 3.5%. She cited a $5 million litigation benefit in Spain within adjusted EBITDA, a $60 million mark-to-market adjustment on a power purchase agreement in tax and others, and CapEx of $17 million tied mainly to a charcoal plant investment in Spain. She also said net debt and adjusted gross debt declined by $17 million and $20 million, respectively, and that Q2 CapEx should mark the peak for the year.

Analysts pressed on how quickly Ferroglobe could scale adjacent critical materials and what products it would target. Management said discussions with the Department of Energy and Department of War are progressing quickly, that ferromolybdenum tests have already been produced in spec, and that additional ferroalloy tests should happen before year-end; magnesium would likely require a new plant costing about $180 million to $200 million before subsidies. Questions also focused on working capital, buybacks and volume upside; Beatriz said the company still expects to release about $15 million of working capital in the second half and is not resuming share buybacks for now. On volumes, Marco said silicon metal remains below 2024 run rates and European pricing is still distorted by imports, while ferrosilicon volumes in Europe look like they can be sustained and U.S. growth is possible, though pricing remains suboptimal.