Shares of Ferroglobe PLC (GSM) tumbled 8.65% in pre-market trading on Thursday, following the release of the company's third-quarter 2025 financial results. The silicon and specialty metals producer reported a significant decline in sales and adjusted EBITDA, sparking investor concerns about the company's near-term prospects.

According to the earnings report, Ferroglobe's Q3 2025 sales dropped to $311.7 million, representing a 24% decrease from $386.9 million in the previous quarter. The company's adjusted EBITDA also fell to $18.3 million from $21.6 million, with the adjusted EBITDA margin shrinking to 5.9%. The primary cause of the downturn was a substantial decrease in shipments, particularly in Europe, where the company experienced a 51% decline due to low-priced imports from China.

Despite the disappointing results, Ferroglobe highlighted some positive developments, including a strong preliminary U.S. Silicon Metal AD/CVD decision, expected trade measures in the EU, and the signing of a multi-year energy agreement for French operations. The company also reported a modest free cash flow of $1.6 million for the quarter and noted cost improvements due to lower energy costs in Europe and effective cost management in the U.S. and Europe. However, these positives were not enough to offset investor concerns about the significant sales decline and challenging market conditions, leading to the sharp pre-market sell-off.