SGL Carbon (SGL) Q3 2024 earnings summary

Executive summary

• Sales declined 4.8% to €781.9 million in the first nine months of 2024, mainly due to weak demand in Carbon Fibers and a terminated project in Composite Solutions.

• EBITDApre remained nearly stable at €127.6 million, with margin improving to 16.3% from 15.8% year-over-year.

• Net result increased to €32.8 million from €5.3 million last year, as prior year was impacted by impairment in Carbon Fibers.

• A non-cash impairment of €60–80 million for Carbon Fibers will be recognized in Q4 2024 due to updated market expectations.

• Guidance for 2024 sales and adjusted EBITDA confirmed at the lower end of the target range.

Financial highlights

• Free cash flow was €15.5 million, down from €35.0 million last year due to lower customer down payments.

• Net financial debt rose to €123.8 million, mainly due to higher investments.

• Equity ratio increased to 43.3% (from 41.1% at year-end 2023).

• Leverage ratio stable at 0.7.

• ROCE at 11.1% (down from 11.3% year-end 2023).

Outlook and guidance

• 2024 guidance confirmed: sales expected at prior year level, EBITDApre at €160–170 million, at the lower end of the range.

• No growth in SiC demand expected for 2025 due to EV market slowdown, but long-term growth trends in semiconductors and renewables remain intact.

• CapEx for 2024 targeted well below €150 million; 2025 CapEx guidance to be provided after midterm planning.