v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting Information, Revenue for Reportable Segment [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 majority of the needle coke that we produce internally to manufacture our graphite electrodes and as a result approximately 91% of our revenues from external customers are derived from the sale of graphite electrodes. For the year ended December 31, 2025, one customer accounted for approximately 11% of the Company’s consolidated net sales. No single customer accounted for 10% or more of the Company's net sales in 2024 or 2023.

The accounting policies of our Industrial Materials segment are the same as those described in Note 1, “Business and Summary of Significant Accounting Policies.” 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 loss, which is also reported on the Consolidated Statements of Operations and Comprehensive Loss as consolidated net loss. The measure of segment assets is reported on the Consolidated Balance Sheets as total consolidated assets.
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 years ended December 31, 2025, 2024 and 2023:
(in thousands)202520242023
Net sales$504,134 $538,782 $620,500 
Cash cost of goods sold(1)
415,760 442,699 507,233 
Other segment expenses85,736 91,058 64,624 
Lower of cost or market inventory valuation adjustment18,315 24,878 12,431 
Research and development6,475 5,706 5,520 
Selling and administrative expenses54,914 46,510 74,012 
Rationalization expenses— 3,156 — 
Goodwill impairment charges— — 171,117 
Other (income) expense, net(4,049)(1,569)4,679 
Interest expense104,057 85,313 58,087 
Interest income(6,632)(5,701)(3,439)
Income tax expense (benefit)49,393 (22,103)(18,514)
Net loss$(219,835)$(131,165)$(255,250)

(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.    
The following tables summarize information as to the Company's operations in different geographic areas:
(in thousands)202520242023
Net sales:
United States$206,190 $171,192 $206,263 
Americas (excluding the United States)67,138 95,513 100,364 
Asia Pacific31,923 57,581 66,214 
Europe, Middle East, Africa198,883 214,496 247,659 
Total$504,134 $538,782 $620,500 

 December 31,
(in thousands)20252024
Long-lived assets (a):
United States$167,371 $182,087 
Mexico104,215 109,020 
Brazil3,737 3,451 
France94,393 84,059 
Spain119,918 103,734 
Other countries296 348 
Total$489,930 $482,699 
(a)Long-lived assets represent fixed assets, net of accumulated depreciation.