SGL Carbon (SGL) Q2 2025 earnings summary

Executive summary

• Sales declined 15.8% year-over-year to €453.2 million in H1 2025, mainly due to weak demand in semiconductor and automotive sectors, especially impacting Graphite Solutions.

• EBITDA pre fell 16.2% to €72.5 million, with the margin stable at 16.0%.

• Major restructuring in Carbon Fibers included closure of loss-making sites, capacity reductions, and discontinuation of unprofitable activities, resulting in a return to positive EBITDA pre.

• Net result swung to a loss of about €31 million, mainly due to restructuring expenses and negative currency effects.

• 2025 sales guidance revised to a 10–15% decrease, while EBITDA pre guidance remains at €130–150 million.

Financial highlights

• Group sales fell by €85 million year-over-year, mainly due to a 22% drop in Graphite Solutions, especially in high-margin Silicon Carbide.

• Net result was -€31 million, impacted by €35–49.9 million in restructuring provisions, mainly for Carbon Fibers.

• Free cash flow remained positive at €7.3 million in H1 2025.

• Net financial debt increased to €115.5 million; equity ratio at 39.8%.

• ROCE at 10.0%, indicating resilience despite market headwinds.

Outlook and guidance

• Sales guidance for 2025 revised to a 10–15% decrease (previously up to 10% decrease), reflecting ongoing restructuring and market weakness.

• EBITDA pre/adjusted EBITDA guidance for 2025 remains unchanged at €130–150 million.

• Higher H2 sales anticipated in Graphite Solutions as inventory destocking progresses and new EV models launch, but no significant recovery expected in semiconductor demand.

• Ongoing cost reduction and restructuring measures across all business units and corporate functions.

• ROCE forecast maintained at 9–10%.