Ferroglobe PLC

Good morning, ladies and gentlemen, and welcome to Ferraglobe's third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference call may be recorded. I would now like to turn the call over to Alex Rottenen, Ferroglobe's Vice President of Investor Relations. You may begin.

Good morning, everyone, and thank you for joining Ferroglobe's third quarter 2025 conference call. Joining me today are Marco Levy, our Chief Executive Officer, and Beatriz Garcia-Cos, our Chief Financial Officer. Before we get started with some prepared remarks, I'm going to read a brief statement. Please turn to slide two at this time. Statements made by management during this conference call that are forward looking are based on current expectations. Factors that could cause actual results to differ materially from those forward looking statements can be found in Ferroglobe's most recent SEC filings and the exhibits to those filings, which are available on our website at ferroglobe.com. In addition, this discussion includes references to EBITDA, adjusted EBITDA, adjusted gross debt, adjusted net debt, and adjusted diluted earnings per share, among other non-IFRS measures. Reconciliation of non-IFRS measures may be found in our most recent SEC filings. Marco.

Thank you, Alex, and thank you for joining us today. We appreciate your continued interest in Fairgold. As we have discussed in previous quarters, 2025 has been marked by significant challenges stemming from unfair trade practices in both the U.S. and the EU. After taking proactive measures to create a more level playing field, we are now beginning to see meaningful progress. Regulators are taking actions, and we are confident these measures will improve the balance in our markets and positioned Ferroglobe for a much stronger performance in 2026. Starting with the US, on April 24th, we filed a trade case in the US regarding unfairly priced imports of silicon metal against Angola, Australia, Laos, Norway, and Thailand. On September 23rd, the US Department of Commerce issued preliminary countervailing duties against four of those countries that subsidized silicon metal production with the following assessments. Australia, 41.3%, Laos, 240%, Norway, 16.9%, and Thailand, 31.3%. For the more, on September 26, the U.S. Department of Commerce issued preliminary anti-dumping duties on Angola and Laos of 68.5% and 94.4% respectively. Additional preliminary anti-dumping determinations are expected by the end of the year for Australia and Norway. Initially, these anti-dumping measures were scheduled to be announced on November 21st. But due to the U.S. government shutdown, they are likely to be delayed. In parallel with U.S. action, the European Commission launched a safeguard investigation on December of last year covering silicon metal, silicon-based alloys, and manganese alloys. The final decision is expected by November 18. A favorable outcome would represent a significant step forward for the industry and for Ferroglo. and it would secure the EU's sustainable access to critical and strategic materials, which are required for infrastructure and defense industries. We remain optimistic about the results of this investigation. From a process perspective, the final implementation of safeguards requires approval from at least 15 of the 27 EU member states, and by states representing at least 65% of the population. It is important to note that it is unclear at this time which of our products would be included in the safeguards and how these will be implemented. Next, I will provide an update on our partnership with Corsair. They continue to make great strides in the development of silicon nanotechnology for next generation batteries for EVs and other applications. Recently, Corshell began shipping commercial scale 60 ampere EV pilot batteries to leading automotive OEMs for testing, a major step toward commercialization. The production ramp remains unscheduled with consistently high yield and quality underscoring the scalability of their process. Another advantage is that Corshell's silicon-rich anode technology removes the reliance on graphite, of which over 90% is produced in China, paving the way for a fully domestic supply chain for EV batteries. Corshell also expects to achieve commercial deployment of advanced battery systems used in robotics and defense applications in early 2026, a significant milestone that validates the potential of silicon anodes in high-performance batteries. I also want to congratulate Jonathan Tan and his team at Core Shell for winning the Startup World Cup in October, a global competition featuring over 100 regional events across more than 20 countries. This recognition highlights the impressive progress the company has made in advancing cutting-edge battery materials. Finally, as we continue to expand our collaboration with Corshell, we have finalized a joint development agreement and expect to establish a long-term supply agreement for high-quality silicon metal in the near future, positioning Ferroglobe to play a key role in the growing market for advanced battery materials as EV adoption accelerates. On the operational side, I am pleased to announce that we recently signed a new multi-year energy agreement in France, effective January 1st, 2026, guaranteeing us a very competitive energy price. In addition to low energy costs, the contract provides us with flexibility to operate our plants for up to 12 months a year, a significant benefit compared to our current agreement. This will simplify our S&OP process, inventory management, and improve working capital, as well as costs through higher fixed cost assertion. Next slide, please. A combination of soft demand and aggressive imports into the EU resulted in declining volumes and revenues in the third quarter. Overall volumes in our main segments were down 21% from the prior quarter. However, despite a 19% decline in revenues, we generated $80 million in adjusted EBITDA, only slightly below the second quarter, and improved free cash flow. Next slide, please. Moving to our segment update, I'll start with silicon metal on slide five. The silicon metal market remains extremely challenging in Europe with significant predatory imports from China, roughly doubling in the first eight months of this year. The EU should not allow imports of silicon metal designated as a critical and strategic material by the EU to have unfettered access to the European market. Because of this dynamic, we were forced to idle all our silicon metal plants in Europe starting at the end of September. As a result of these imports and weak demand, our third quarter shipment in EU declined by 51% compared to the second quarter. North American volumes remain stable despite soft demand. Within the silicon metal segment, the chemical sector continues to be negatively affected by the oversupply of imported siloxane from China into Europe and the US. Siloxane is used in the production of silicones. Index prices saw an uptick from the second quarter in both the US and the EU. However, the year-to-date index in Europe is down by 28% while the US index is flat. Looking forward, We believe the preliminary US anti-dumping and countervailing duties are a positive indicator of what the final measures will resemble and are expected to marketly improve the US market dynamics in 2026. The chemical demand is still expected to remain challenging due to siloxane imports in the EU and to the lesser extent in the US. Next slide, please. After a strong second quarter, silicon basal alloys volumes declined across all regions, with Europe decreasing by 15%, followed by the US being down 10%. Overall, the volumes increased by 19% due to soft demand. This was particularly noticeable in Europe, whereas low restart of post-holiday steel production resulted in a nearly 5% decline in the third quarter compared to the same period of the last year. The pricing environment deteriorated in the third quarter with the U.S. and European indexes declining by 5% and 6% respectively. For the year-to-date period, the weakness in European steel production continued to wait on the index, which is down 10%. The U.S. index is flat year-to-date. Tea production is forecasted to increase by 3.2% in 2026 in Europe. Combined with expected safeguards, this sets the stage for much stronger market conditions next year. We expect similar trends in North America based on conversation with our customers and a steady 2.2% projected growth in North American tea production. Overall, we are optimistic that 2026 will be a strong year for total silicon-based alloys sales for FerroGlobe. Next slide, please. Moving to manganese-based alloys. Following the multi-year high shipments in the second quarter, our manganese segment remains solid in the third quarter, despite the volume decline of 21%. This is more a result of an exceptional second quarter which benefited from delayed shipments carried over from the first quarter in our cost-competitive position. Another factor continuing to constrain the manganese segment is the increased shipments into Europe from India, Malaysia, and Georgia. Manganese alloys index prices softened in the second quarter by 7.3% respectively for ferromanganese and silicon manganese. We anticipate manganese demand recovering in 2026 with expected 3.2% steep production growth in Europe and the announcement of safeguards later this month. I would now like to turn the call over to Beatriz Garcia-Cos, our CFO, to review the financial results in more detail. Beatriz?