Ferroglobe PLC (NASDAQ: GSM), a leading global producer of silicon metal, silicon-based and manganese-based specialty alloys, reported a significant operational turnaround in its second quarter 2026 financial results, announcing sales of $378.6 million, an 8.9% sequential increase from $347.7 million in the first quarter of 2026. The figures were released on August 4, 2026, via GlobeNewswire. The London-based company swung to a net profit attributable to the parent of $60.4 million, or $0.32 per diluted share, compared to a net loss of $7.1 million, or $(0.04) per diluted share, in the prior quarter.
On a year-over-year basis, sales were marginally lower, down 2.1% from $386.9 million in Q2 2025, while the net result improved dramatically from a loss of $10.5 million in the same period last year. Adjusted EBITDA increased to $13.1 million in Q2 2026, up from $3.3 million in Q1 2026, representing a 291.2% sequential improvement, though it remained below the $21.6 million recorded in Q2 2025. The company noted that the profitability improvement was substantially driven by a $59.9 million positive fair value adjustment related to long-term energy contracts, which also led to a notable reduction in raw materials and energy consumption as a percentage of sales, declining to 51.5% from 64.3% in the prior quarter.
Excluding power purchase agreement impacts, however, raw materials and energy consumption represented 67.3% of sales, up from 65.9% in Q1 2026, reflecting ongoing pressure on the price-cost spread. Operating cash flow recovered strongly to $37.0 million in Q2 2026, reversing from a negative $5.6 million in Q1 2026, while free cash flow reached $20.4 million, compared to a negative $16.4 million in the prior quarter. Capital expenditures totalled $16.6 million in the quarter.
In terms of individual product segments, silicon metal revenue reached $105.8 million in Q2 2026, a 25.8% sequential increase driven by a 33.7% surge in shipments to 40,818 metric tons. However, the average selling price for silicon metal declined 5.9% quarter-on-quarter to $2,592 per metric ton, weighed down by elevated market availability and cautious customer purchasing behaviour, particularly across European markets. Silicon metal adjusted EBITDA remained negative at $(2.7) million, though the margin improved marginally to (2.5%) from (2.7%) in Q1 2026.
On a year-over-year basis, silicon metal average selling prices fell 11.1% from $2,916 per metric ton in Q2 2025. Silicon-based alloys delivered a stronger performance, with revenue rising 2.2% sequentially to $124.9 million on shipment volumes of 62,915 metric tons, up 3.7% from the prior quarter. Despite a 1.5% decline in average selling prices to $1,986 per metric ton, the segment's adjusted EBITDA more than doubled to $14.5 million from $6.8 million in Q1 2026, pushing the adjusted EBITDA margin to 11.6% from 5.6%.
The improvement was attributed to enhanced operating costs and higher shipment volumes. Manganese-based alloys revenue was broadly stable at $107.6 million, a modest 0.4% sequential increase, with average selling prices rising 1.6% to $1,270 per metric ton. Pricing in Europe benefited from the impact of EU safeguard measures and additional duties on certain imports, even as underlying demand remained subdued.
Shipments declined 1.2% to 84,752 metric tons. Adjusted EBITDA for the segment rose to $13.0 million from $10.0 million in the prior quarter, with the adjusted EBITDA margin improving to 12.1% from 9.3%. On the balance sheet, adjusted gross debt decreased by $20.1 million during the quarter to $130.9 million, resulting in a net debt position of $37.7 million as of June 30, 2026, down from $54.6 million at the end of Q1 2026.
Total cash stood at $93.2 million. Total working capital was $398.4 million, a decrease of $32.8 million from $431.2 million at the end of the prior quarter. Dr.
Marco Levi, Chief Executive Officer of Ferroglobe, stated that the quarter's results reflect solid execution of strategy despite a challenging pricing environment, highlighting strong volume growth and positive free cash flow generation. He also noted the company's advancement of its critical materials strategy, leveraging its industrial footprint and metallurgical expertise to position Ferroglobe to benefit from growing focus on critical materials, industrial security, and onshoring initiatives across the United States and Europe. Chief Financial Officer Beatriz García-Cos emphasized the meaningful improvement in operating performance, noting the combination of higher shipment volumes, disciplined working capital management, and continued cost control in driving cash generation and balance sheet strengthening.
During the second quarter, Ferroglobe paid a quarterly cash dividend of $0.015 per share on June 30, 2026. The company announced a subsequent quarterly dividend of $0.015 per share to be paid on September 29, 2026, to shareholders of record as of September 22, 2026. No share repurchases were made during the quarter.
Source: Ferroglobe PLC press release via GlobeNewswire, August 4, 2026; Markets Insider.
Source: markets.businessinsider.com