Q2 2026 SGL Carbon SE Earnings Call Transcript
Key Points
- SGL Carbon SE (SGLFF) successfully completed its carbon fiber restructuring ahead of schedule and under budget, with total costs of just over EUR40 million versus the EUR50 million target, leading to a significant improvement in fiber composites profitability.
- The company's net result turned positive, improving by more than EUR40 million to EUR11.8 million in H1 2026, demonstrating a return to black figures at the bottom line.
- Free cash flow was strong at EUR31.4 million in H1 2026, even excluding compensation payments, contributing to a reduction in net financial debt by almost EUR20 million and a healthy leverage ratio of 0.6.
- Graphite Solutions delivered a healthy EBITDA pre margin of almost 20%, supported by compensation payments from renegotiated take-or-pay contracts with silicon carbide customers.
- SGL Carbon SE (SGLFF) is making positive progress on its 'SGL Growth 2030' strategy, including successful market launches of novel coating products, a new agreement with Xenergy to expand nuclear graphite production, and doubling production volume for aero retrofit floor panels.
- The company confirmed its 2026 guidance, citing positive momentum in the semiconductor market, especially in China for SiC, with volume and price stabilization.
- Total group turnover dropped by 30% (EUR60 million) in H1 2026, primarily due to the discontinuation of the loss-making carbon fiber business, but also reflecting a weak operational environment.
- Graphite Solutions' like-for-like sales declined by 6% excluding compensation payments, indicating weak demand in the high-margin silicon carbide business and other market segments.
- Process Technology experienced a significant downturn, with sales falling 28.2% and EBITDA pre dropping from EUR20 million to EUR7.3 million, due to weak order intake and postponed investment decisions in the chemical industry.
- The company faces ongoing macroeconomic and geopolitical uncertainties, including the Middle East conflict, which are delaying customer orders and putting pressure on margins in Process Technology.
- The positive EBITDA improvement in Fiber Composites is partly attributed to one-time effects from the restructuring, which cannot be repeated in the second half of the year, making the full-year guidance appear conservative.
- The company expects only a slight improvement in Process Technology for the second half, with no major turnaround anticipated, as new project orders will only convert to sales in 2027.
(Operator Instructions)
Good afternoon, ladies and gentlemen, and welcome to the SGL Carbon Conference Call First Half Results 2026.
(Operator Instructions) Claudia Kellert.
Yes, thank you. A very warm welcome from SDL side as well. Time is running, first half of 2026 is behind us and today we want to discuss and present to you our first half figures. And give you a short overview about our expectations for the second half of 2026. Even today, Andreas Klein, our CEO, and Thomas Depold, our CFO, will lead the presentation and will be able to answer your questions. And now I hand over to Thomas. Please, it's your turn.
Thank you, Claudia. Hello from my side. This is Thomas Depold. It's my privilege and honor to guide you through. Our results for the first six months of the year. On slide number four, you can
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