SGL Carbon (SGL) Q3 2025 earnings summary

Executive summary

• Sales for the first nine months of 2025 declined 16.5% year-over-year to €652.9 million, mainly due to weak semiconductor and automotive demand, restructuring in Carbon Fibers, and high customer inventories.

• EBITDA pre fell 14.9% to €108.6 million, but the margin improved slightly to 16.6% from 16.3% last year, supported by cost-saving measures.

• Net result was negative at €-51.3 million, primarily due to €81 million in non-recurring restructuring and impairment costs.

• Major restructuring in Carbon Fibers included site closures and discontinuation of loss-making activities, leading to €25 million in cost savings and a workforce reduction.

• Free cash flow remained positive at €12.5 million despite restructuring expenses, and the balance sheet stayed robust.

Financial highlights

• Sales dropped by €130 million year-over-year, with the main impact from the semiconductor and LED business line.

• EBITDA pre fell by €19.2 million, but margin increased due to cost-saving measures.

• Net result impacted by €81.7 million in non-recurring restructuring costs and €34 million in carbon fiber impairments.

• Equity ratio stood at 39.7%, leverage ratio at 0.8, and ROCE at 9.7%.

• Free cash flow was positive at €12.5 million, with net financial debt at €116.5 million.

Outlook and guidance

• 2025 guidance confirmed: sales expected to be 10–15% lower than previous year, with EBITDA pre between €130–150 million.

• Free cash flow expected to remain positive but significantly below prior year.

• Market recovery in semiconductors anticipated after a two-year slowdown, with confidence in long-term demand from e-mobility and data centers.

• New corporate strategy to be communicated with 2025 results in March 2026.