Segment Reporting

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

Our Industrial Materials segment, our only operating and reportable segment, manufactures high-quality graphite electrodes essential to the production of EAF steel and other ferrous and non-ferrous metals. Petroleum needle coke, a crystalline form of carbon derived from decant oil, is a key raw material used in the production of graphite electrodes. We utilize the majority of the needle coke that we produce internally to manufacture our graphite electrodes and as a result over 90% of our revenues from external customers are derived from the sale of graphite electrodes.

Our chief operating decision maker is our chief executive officer. The chief operating decision maker assesses performance for our Industrial Materials segment and decides how to allocate resources based on net income or losses, which are reported on the Condensed Consolidated Statements of Operations and Comprehensive Loss.

The chief operating decision maker uses net loss to evaluate growth trends, establish budgets, assess operational efficiencies and evaluate our overall financial performance.

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024, respectively:

	Three Months Ended June 30,				Six Months Ended  June 30,
	2025		2024		2025		2024
	(Dollars in thousands)
Net sales	$	131,840	$	137,327	$	243,679	$	273,911
Cash cost of goods sold(1)	107,354		110,021		197,560		220,763
Other segment expenses	22,531		21,949		43,090		46,411
Lower of cost or market inventory valuation adjustment	1,893		1,381		4,676		4,073
Research and development	1,348		1,447		3,227		3,074
Selling and administrative expenses	13,267		5,098		27,889		20,375
Rationalization expenses	—		110		—		3,255
Other income, net	(2,426)		(1,091)		(1,979)		(1,484)
Interest expense	25,418		15,609		55,259		31,235
Interest income	(1,866)		(1,853)		(3,801)		(3,377)
Income tax expense (benefit)	51,207		(592)		43,995		(4,793)
Net loss	$	(86,886)	$	(14,752)	$	(126,237)	$	(45,621)

(1)     Cash cost of goods sold is defined as cost of goods sold less depreciation and amortization and less cost of goods sold associated with the portion of our sales that consist of deliveries of by-products of the manufacturing processes, and is the significant expense the chief operating decision maker uses to evaluate segment expenses.