SGL Carbon (SGL) Q1 2026 earnings summary

Executive summary

• Sales declined 21.3% year-over-year to €184.5 million, mainly due to discontinued unprofitable activities and weak demand in key segments.

• EBITDA pre/adjusted EBITDA fell 11.6% to €29.6 million, supported by effective cost control and a one-time €7.7 million compensation payment.

• Net result turned positive at €5.9 million, a significant turnaround from a loss of €6.1 million in Q1 2025, as restructuring costs subsided.

• The annual forecast for 2026 was confirmed.

• Merger of Carbon Fibers and Composite Solutions into the new Fiber Composites business unit as of January 2026.

Financial highlights

• Group sales dropped from €234 million to €184.5 million year-over-year, with €28 million attributed to discontinued carbon fiber businesses.

• EBITDA pre/adjusted EBITDA margin improved to 16.0% from 14.3% year-over-year.

• Free cash flow improved to €6.4 million from €5.1 million year-over-year.

• Net financial debt stable at €98.1 million; leverage ratio at 0.7; equity ratio at 39.5%.

• ROCE at 9.5%, slightly down from 9.8% at year-end.

Outlook and guidance

• 2026 guidance reaffirmed: sales expected between €720–770 million and EBITDA pre/adjusted EBITDA between €110–130 million.

• Free cash flow for 2026 projected at previous year's level; ROCE expected between 9–10%.

• No recovery anticipated in semiconductor and automotive sectors for 2026; no significant sales expected from new markets such as nuclear energy, defense, or aerospace.

• Ongoing macroeconomic and geopolitical uncertainties, including Middle East conflict and tariffs, continue to impact demand.

• Defense sector ramp-up and X-energy project expected to contribute over the next three years.