v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting 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 substantial majority of the needle coke that we produce internally to manufacture our graphite electrodes, and, as a result, approximately 89% of our revenues from external customers for the nine months ended September 30, 2026 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 nine months ended September 30, 2026 and 2025:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(Dollars in thousands)2026202520262025
Net sales$140,163 $143,998 $392,626 $387,677 
Cash cost of goods sold(1)
105,220 109,296 321,660 306,856 
Other segment expenses27,306 22,745 70,962 65,835 
Lower of cost or market inventory valuation adjustment2,013 1,650 9,792 6,326 
Research and development1,458 1,639 4,440 4,866 
Selling and administrative expenses12,964 13,784 39,808 41,673 
Restructuring and other exit charges13,874 — 13,874 — 
Other (income) expense, net(774)142 (12,288)(1,837)
Interest expense25,916 24,517 74,482 79,776 
Interest income(1,151)(1,383)(2,705)(5,184)
Income tax expense 105 90 3,117 44,085 
Net loss$(46,768)$(28,482)$(130,516)$(154,719)
(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 consists of deliveries of by-products of the manufacturing processes, and is the significant expense the chief operating decision maker uses to evaluate segment expenses.