This article first appeared on GuruFocus .
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Revenue:Dropped by 17.2% from EUR1.026 billion to EUR850 million in 2025.
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EBITDA:Reached EUR135 million, within the guidance range of EUR130 million to EUR150 million.
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EBITDA Pre Margin:EUR15.9 million.
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Graphite Solutions Sales:Decreased by 18% from EUR540 million to EUR440 million.
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Graphite Solutions EBITDA:Dropped from EUR131 million to EUR81 million.
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Process Tech Sales:Declined by 5% from EUR138.3 million to EUR130.9 million.
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Process Tech EBITDA:Decreased from EUR33 million to EUR31.8 million.
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Carbon Fiber Sales:Dropped by 29% from EUR210 million to EUR150 million.
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Carbon Fiber EBITDA:Improved from a loss of EUR11 million to a profit of EUR14.1 million.
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Composite Solutions Sales:Decreased from EUR125 million to EUR108 million.
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Composite Solutions EBITDA:Dropped from EUR18.2 million to EUR11.4 million.
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Net Result:Approximately minus EUR80 million.
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Free Cash Flow:EUR37 million.
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Net Financial Debt:Reduced to below EUR100 million with a leverage of 0.7 times.
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Equity Ratio:39.2%.
Release Date: March 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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SGL Carbon SE ( SGLFF ) successfully restructured its carbon fiber business, closing unprofitable sites and focusing on a profitable core, resulting in a positive EBITDA turnaround.
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The company managed to maintain a healthy EBITDA pre-margin of EUR 15.9 million despite a significant drop in sales, showcasing effective cost-saving measures.
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SGL Carbon SE ( SGLFF ) has a strong balance sheet with a leverage ratio of 0.7 times and a healthy equity ratio of 39.2%, indicating financial stability.
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The company has outlined a clear growth strategy, SGL Growth 2030, focusing on established markets, new applications, and innovations, aiming to reach EUR 1 billion in sales by 2030.
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SGL Carbon SE ( SGLFF ) is largely hedged against energy price fluctuations, with an 80% hedging ratio for electricity and gas in high energy-intensive locations for 2026.
Negative Points
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SGL Carbon SE ( SGLFF ) experienced a 17.2% drop in sales in 2025, primarily due to the restructuring of its carbon fiber business and challenges in the semiconductor industry.
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The Graphite Solutions unit saw an 18% decline in sales, heavily impacted by the downturn in the silicon carbide business, leading to a 38% drop in EBITDA.
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The Process Tech unit experienced a decline in sales and EBITDA, with expectations of continued sluggish performance in 2026 due to a downturn in the chemical industry.
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The Composite Solutions unit faced a 37% drop in EBITDA, struggling with delayed projects and lower-than-expected order quantities in the automotive sector.
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SGL Carbon SE ( SGLFF ) anticipates lower sales and EBITDA pre in 2026, with uncertainties in the geopolitical environment and potential impacts from currency fluctuations.
Q & A Highlights
Q: Can you provide some insights on how SGL Carbon is managing energy prices, given the company's energy-intensive nature? A: Andreas Klein, CEO, explained that SGL Carbon is largely hedged against energy price fluctuations. For the calendar year 2026, especially in high energy-intensive locations, the company has a hedging ratio of 80% for electricity and gas.
Q: Could you elaborate on the merger of Carbon Fibers and Composite Solutions? When will this be reflected in the reporting? A: Thomas Dippold, CFO, stated that the merger of Carbon Fibers and Composite Solutions into a new business unit called Fiber Composites will start from 2026. This will be reflected in the Q1 figures released in May 2026.
Q: Regarding the medium-term strategy, when can we expect to see the first milestones of the new strategy? A: Andreas Klein, CEO, mentioned that the first proof point is the framework contract with X-energy in the nuclear field. While some areas like aerospace and space will take longer, contributions from the new strategy should start to become visible over the next five years.
Q: What are the reasons behind the downturn in the SiC market, and is there a shift to other technologies affecting demand? A: Andreas Klein, CEO, explained that the downturn is due to high inventory levels and slower-than-expected EV growth. The demand for SiC is primarily driven by electric vehicles, and the market is expected to recover by 2027.
Q: How does the company plan to manage fixed costs after reducing turnover in the Carbon Fiber business by 30%? A: Thomas Dippold, CFO, noted that fixed costs have been adjusted to market levels, particularly for the sites that were closed or idled. The company has written down fixed assets to reflect their market values, focusing on maintaining a profitable core.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
