This article first appeared on GuruFocus .
Release Date: November 06, 2025
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 ) managed to increase its EBITDA pre-margin slightly to 16.6% despite a significant drop in sales.
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The restructuring of the carbon fiber business has led to a positive operative result for the first time in three years.
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Process Tech business unit maintained stable sales and achieved a 9.4% increase in EBITDA, showcasing strong performance.
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The company confirmed its guidance for 2025, expecting EBITDA pre in the range of 130 to 150 million.
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SGL Carbon SE ( SGLFF ) has a strong balance sheet with an equity ratio of 39.7% and a leverage ratio of 0.8.
Negative Points
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Sales dropped by 16.5% compared to the previous year, with a notable impact from the semiconductor and LED business line.
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The net result was significantly negative at -50.3 million, mainly due to non-recurring restructuring costs.
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The carbon fiber business unit experienced a 20% drop in sales, despite achieving a positive operative result.
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Composite Solutions saw an 11% decline in sales, partly due to the cancellation of a profitable project with a US SUV OEM.
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There is a continuous price pressure in the Process Tech business, which may erode strong performance by the end of the year.
Q & A Highlights
Q: What is the relevance of investment plans in the semiconductor industry in Germany for SGL Carbon? A: Unidentified_3 responded that while the investment activities in Germany and Europe are important, SGL Carbon operates on a global scale. The company is involved in global semiconductor supply chains, so specific investments in any country do not significantly impact their business. The focus is on serving global demand rather than any particular location.
Q: Can you elaborate on the restructuring efforts in the carbon fiber business and their impact? A: Unidentified_2 explained that the restructuring involved exiting unprofitable business activities, particularly in acrylic fibers and precursors, resulting in cost savings of 25 million. This enabled the carbon fiber business to return to a positive EBITDA, marking a significant turnaround.
Q: How has the Process Tech segment performed despite challenges in the chemical industry? A: Unidentified_2 noted that Process Tech remained stable due to its global setup, balancing portfolios across the Americas and Asia. Despite a 3% decline in sales, the segment achieved a 9.4% increase in EBITDA, thanks to a strong order book and large-scale projects.
Q: What are the future strategic directions for SGL Carbon? A: Unidentified_3 mentioned that SGL Carbon is undergoing a corporate strategy process to define its direction by 2030. This includes identifying which businesses to expand and exploring new growth areas, with a strategy update expected in March 2026.
Q: How has the semiconductor and LED business impacted SGL Carbon's financials? A: Unidentified_2 highlighted a 21% drop in sales in the graphite solutions segment, primarily due to a 77 million downturn in the semiconductor and LED business line. Despite this, the company remains confident in market recovery, driven by strong demand in electric vehicles and inventory management improvements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
