GRAFTECH INTERNATIONAL LTD

The information set forth in this quarterly report on Form 10-Q, including, without limitation, the risk factor presented below, updates and should be read in conjunction with, the risk factors and information disclosed in Part 1, Item 1A., “Risk Factors,” in our Annual Report on Form 10-K filed on February 14, 2025. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.

We may require a full valuation allowance on our deferred tax assets since it is more likely than not that all or a portion of our deferred tax assets will not be realized. Future adjustments to the realizability of our deferred tax assets may have a material impact on our financial condition and results of operations.

Determining whether a valuation allowance for deferred tax assets is appropriate requires significant judgment and an evaluation of all positive and negative evidence. We assess the need for, or the sufficiency of, a valuation allowance against deferred tax assets at the end of each reporting period. In making such an assessment, significant weight is given to evidence that can be objectively verified. New facts and circumstances, future financial results and new tax legislation, among other factors, may require us to reevaluate our valuation allowance positions which could potentially affect our effective tax rate.

Our losses in the U.S. and Switzerland in recent periods and the potential for respective losses throughout 2025 may lead to a cumulative loss and may represent sufficient negative evidence to require a full valuation allowance on U.S. deferred tax assets and Switzerland deferred tax assets, which would increase our expenses in the period the allowance is recognized and adversely affect our financial condition and results of operations. We continue to monitor the likelihood that we will be able to recover our deferred tax assets, including those for which a valuation allowance is recorded. There can be no assurance that our deferred tax assets will be fully realized. The determination to record a valuation allowance is subject to objective factors that may not be readily predicted in advance and may adversely affect our financial condition and results of operations.