SGL Carbon (SGL) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 14% year-over-year to €234.3 million, mainly due to weak demand in the semiconductor and electric vehicle sectors, with high-margin silicon carbide and graphite products particularly impacted.

• EBITDApre dropped 20.4% to €33.5 million, with margin down to 14.3% from 15.4% in Q1 2024.

• Net result turned negative at -€6 million, affected by €17.3 million in one-off restructuring and impairment charges.

• Significant restructuring in the Carbon Fibers business, including closure of the Lavradio site in Portugal by end of 2026 and global headcount reductions.

• 2025 guidance confirmed: sales expected slightly below prior year, EBITDApre €130–150 million.

Financial highlights

• Group sales fell to €234.3 million, a 14% decrease year-over-year; FX-adjusted decline was nearly 15%.

• EBITDA margin in Graphite Solutions dropped to 18.5%, with a €15 million decline in EBITDA.

• Process Technology segment grew sales by 10.6% to €36.5 million and EBITDA by nearly 60% to €11 million, reaching a 30% margin.

• Carbon Fibers sales fell 18.9% to €46.7 million, but EBITDA improved to -€1.2 million due to cost savings and contract terminations.

• Composite Solutions sales dropped 19.4% to €29.9 million, with EBITDA halving to €2.7 million.

Outlook and guidance

• Guidance for 2025 maintained: sales slightly below previous year, EBITDApre in the €130–150 million range.

• Expectation of slight recovery in Graphite Solutions in H2 2025.

• Process Technology order book being depleted, with potential for lower sales in H2 if order intake does not improve.

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

• Excluding Carbon Fibers, group revenue would be €200 million lower, but adjusted EBITDA for remaining units would be €155–175 million.