SGL Carbon SE

In H1 2026, total turnover declined 13% to EUR 394 million from EUR 453 million a year earlier. EBITDA pre was roughly EUR 70 million, down 3.7% from EUR 72.5 million, and EBITDA pre margin was 17.7%. Graphite Solutions sales rose 6% to EUR 234 million, but excluding compensation payments were slightly down 6%; its EBITDA pre increased to EUR 46.6 million from EUR 40.8 million, with margin near 20%. Process Tech sales fell 28.2% to a little more than EUR 50 million from EUR 70.2 million, while EBITDA pre dropped to EUR 7.3 million from almost EUR 20 million and margin fell to 14.5% from 28.3%. Fiber Composites sales fell to roughly EUR 100 million from EUR 150 million, while EBITDA pre improved to almost EUR 19 million from EUR 10.6 million. Net result improved to EUR 11.8 million from minus EUR 31 million, free cash flow was EUR 31.4 million, net financial debt fell by almost EUR 20 million, leverage was 0.6, equity ratio was almost 40%, and ROCE was roughly 10%. Management said it is still on track to deliver 2026 guidance and expects Process Tech to remain around current levels, perhaps slightly better, over the remaining six months; it also said there could be additional compensation payments in coming quarters, but the big chunk has already been renegotiated.

Andreas Klein framed the first half as evidence that the company is executing its Growth 2030 strategy while still navigating weak macro conditions. He pointed to improving momentum in semiconductors, especially in China and SiC, successful product launches in coatings, a new nuclear graphite capacity agreement with X-energy, progress in space and defense, and doubled aero retrofit floor panel volumes. His tone was constructive and confident, while still cautioning that some market momentum, especially in semiconductors, needs to prove durable.

Thomas Dippold emphasized that the company’s reported revenue decline was driven largely by the exit from the loss-making carbon fiber business and by weak demand in Graphite Solutions and Process Tech. He highlighted EUR 7.7 million already collected in Q1 and another renegotiated EUR 21 million in compensation payments, which supported top line, profit, and cash; he also noted free cash flow of EUR 31.4 million, net financial debt down by almost EUR 20 million, leverage at 0.6, equity near 40%, and ROCE around 10%. On restructuring, he said costs were a little more than EUR 40 million, below the EUR 50 million target, and completed in less than one year.

Analysts asked whether more semiconductor compensation payments should be expected in 2026, and management said discussions are ongoing but the big chunk has already been renegotiated. Questions also focused on whether full-year guidance for Process Tech and Fiber Composites looked conservative given H1 trends; management said Process Tech is stabilizing only at a low level with any project wins likely to affect sales in 2027, while Fiber Composites benefited from one-time restructuring effects that cannot repeat in H2. On Corporate, management said the business includes rental income and some services, and that overhead will remain tightly controlled.