Overview of Q4 Results#
SGL Carbon SE recently announced its fourth-quarter results, revealing a decline in sales and earnings. Sales for Q4 2025 totaled €197.3 million, which is a 19.3% decrease compared to the same quarter last year and slightly below the expected €199 million. This drop is mainly due to the restructuring of its Carbon Fibers business and ongoing weak demand in important sectors like semiconductors and automotive.
Adjusted EBITDA Performance#
The adjusted EBITDA, which is a measure of a company's profitability, for the fourth quarter was €26.2 million. This figure represents a 26% decline year-over-year and is also 13% lower than the consensus estimate of €30 million. For the entire fiscal year 2025, the adjusted EBITDA reached €135 million, falling within the company's guidance range of €130 million to €150 million.
2026 Guidance#
Looking ahead, SGL Carbon has provided guidance for fiscal year 2026, projecting consolidated sales between €720 million and €770 million. This is below the market's expectations of €805 million to €850 million for 2025. The company anticipates adjusted EBITDA of €110 million to €130 million, which is slightly above the consensus of €111 million. The impact of discontinuing unprofitable Carbon Fibers activities will be fully realized in 2026.
Future Growth Potential#
For 2030, SGL Carbon expects sales to exceed €1 billion with an adjusted EBITDA margin between 15% and 18%. The company is exploring new growth opportunities in specialty graphites for small modular reactors, as well as in the defense, security, and aerospace sectors. Despite challenges, SGL Carbon aims to stabilize its free cash flow, which remained steady at €37 million in 2025, and hopes to maintain similar levels in 2026.