SGL Carbon (SGL) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 featured significant restructuring, especially in Carbon Fibers, with site closures and a focus on profitable core operations, securing profitability and establishing a platform for future growth.

• Sales and EBITDA pre declined year-over-year, but EBITDA pre margin remained stable at 15.9% due to cost savings and restructuring.

• Portfolio streamlining included withdrawal from loss-making activities and merging Carbon Fibers and Composite Solutions into Fiber Composites.

• Net result remained negative at approximately -€80 million, impacted by one-off restructuring and impairment charges totaling €92.8 million.

• The "SGL Growth 2030" strategy was launched, targeting €1 billion sales and 15%-18% EBITDA pre margin by 2030, with a focus on new markets and innovation.

Financial highlights

• Sales fell 17.2% year-over-year to €850.2 million; EBITDA pre dropped 17.1% to €135.0 million, within guidance.

• Net result was negative at about -€80 million, mainly due to €92.8 million in restructuring and impairments.

• Free cash flow remained stable at €37.0 million; net financial debt decreased by 8.6% to €98.9 million.

• Equity ratio stood at 39.2% and ROCE at 9.8% at year-end.

• Leverage ratio held at 0.7.

Outlook and guidance

• 2026 sales guidance is €720–770 million, reflecting the full-year effect of Carbon Fiber site closures and discontinued activities.

• EBITDA pre expected between €110–130 million, with margin stable versus 2025.

• No significant sales expected from new markets (nuclear, defense, aerospace) in 2026, but growth strategy targets €1 billion sales and 15%-18% EBITDA pre margin by 2030.

• Recovery in semiconductor business expected post-2026.