GrafTech estimates $25M to $35M non-cash charges for Mexico plant closure

GrafTech International Ltd. (NYSE: EAF) has finalized estimates indicating that the permanent closure of its graphite electrode and pin manufacturing facility in Monterrey, Mexico, will result in approximately $25 million to $35 million in non-cash charges. The company disclosed these figures in an amendment to its current report filed with the U.S. Securities and Exchange Commission on October 20, 2026. The Board of Directors approved the decision to cease operations at the Monterrey site on August 6, 2026.

The non-cash charges consist of approximately $12.3 million in fixed asset write-offs, with the remaining balance attributable to accelerated depreciation. These estimates were finalized by company management on October 20, 2026, updating the disclosure previously provided in the original Form 8-K filed on August 31, 2026. The amendment specifically addresses Item 2.05, Costs Associated with Exit or Disposal Activities, without altering other sections of the original filing.

In addition to the non-cash accounting impacts, GrafTech maintains its expectation that one-time cash expenditures associated with the closure will range from $20 million to $25 million. The company anticipates that the majority of these cash costs will be incurred by the end of 2027. The filing notes that the company’s reliance on its facility in Pamplona, Spain, for the manufacturing of connecting pins following the Monterrey shutdown is a factor in its future operational structure.

The report includes standard cautionary notes regarding forward-looking statements. GrafTech states that these statements reflect current views on financial projections, plans, and objectives, but are subject to risks and uncertainties. Factors that could cause actual results to differ from estimates include changes in market conditions, customer demand, employee negotiations, and legal compliance requirements. The company also highlights the specific operational risk associated with producing connecting pins at the Pamplona facility after the Mexico closure. GrafTech undertakes no obligation to update these forward-looking statements except as required by law.

The document was signed on October 26, 2026, by Rory O'Donnell, who serves as Chief Financial Officer and Senior Vice President of GrafTech International Ltd.