SGL Carbon (SGL) Q2 2024 earnings summary

Executive summary

• H1 2024 performance aligned with guidance, with sales down 4% to €538 million and EBITDA margin up to 16.1% due to favorable product mix and divestitures.

• Net result turned positive at €29.4 million, up from a loss in H1 2023, with stable net financial debt and improved equity ratio.

• Graphite Solutions remains the largest and most profitable segment, driven by semiconductor and LED demand, though growth has slowed.

• Process Technology achieved record sales and margins, while Carbon Fibers and Composite Solutions faced significant declines due to weak demand and contract termination.

• Annual outlook for 2024 confirmed, expecting sales at prior year level and adjusted EBITDA of €160–170 million.

Financial highlights

• Group sales declined by 4% year-over-year to €538 million; FX-adjusted decline was 2.2%.

• Adjusted EBITDA decreased by 1.7% to €86.5 million, but margin improved to 16.1%.

• Net result improved to €29.4 million, with EPS at €0.24.

• Free cash flow remained positive at €12.4 million, though figures varied across reports.

• Net financial debt stable at €119 million, leverage at 0.7, and equity ratio at 44.3%.

Outlook and guidance

• Full-year sales expected to be on par with prior year; EBITDA pre guidance confirmed at €160–170 million, at the lower end of the range.

• Growth in Graphite Solutions expected to slow for 6–12 months due to inventory adjustments and softer demand, but midterm outlook remains positive.

• Composite Solutions EBITDA to see only a slight decline for the year, with compensation payment anticipated in H2.

• Positive free cash flow targeted for the full year, with CapEx to be managed flexibly.

• Long-term focus remains on semiconductors, electromobility, and renewable energies.