SGL Carbon (SGL) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 14.0% year-over-year to €234.3 million, mainly due to weak demand in the semiconductor and electric vehicle markets, impacting high-margin products in Graphite Solutions.

• Adjusted EBITDA fell 20.4% to €33.5 million, with margin down to 14.3% from 15.4% in Q1 2024, mainly due to volume declines in high-margin products.

• Net result for Q1 was a loss of €5.9 million, down from a profit of €12.9 million last year, impacted by €17.3 million in one-off restructuring items.

• Significant restructuring in the Carbon Fibers business is underway, including site closures, headcount reductions, and a focus on profitable core activities.

• 2025 guidance is confirmed: sales expected slightly below prior year, EBITDApre/adjusted EBITDA between €130–150 million.

Financial highlights

• Sales dropped by €38 million (-14%) year-over-year to €234.3 million; FX-adjusted decline was nearly -15%.

• EBIT dropped 87.2% year-over-year to €3.4 million, mainly due to €17.3 million in restructuring and non-recurring items.

• Free cash flow was €5.1 million, nearly unchanged from €5.9 million in Q1 2024.

• Equity ratio remained stable at 41.3%; net financial debt nearly unchanged at €109.7 million; leverage ratio at 0.7.

• Gross margin decreased to 22.8% from 23.1% in Q1 2024.

Outlook and guidance

• 2025 outlook confirmed: sales expected slightly below prior year, adjusted EBITDA/EBITDApre between €130–150 million.

• Expectation of a slight recovery in the second half of the year, particularly in graphite solutions.

• ROCE expected between 9% and 10% for 2025.

• Ongoing market, trade, and geopolitical uncertainties are acknowledged.

• All four business units included in guidance.