SGL Carbon: Improved Profitability Amid Decreasing Sales

SGL Carbon reports an increase in EBITDA margin to 16.3% despite a 4.8% sales decline for the first nine months of 2024. Sales reached €781.9 million, slightly lower than the previous year. Adjusted EBITDA was stable at €127.6 million, supported by product mix effects in the Graphite Solutions and Process Technology units. However, weak demand and price pressure continue to impact the Carbon Fibers business.

The equity ratio improved to 43.3%, with a capital expenditure of €66.5 million and a positive free cash flow of €15.5 million. The company highlighted a decrease in demand for graphite products for semiconductors, affected by lower electric vehicle sales. A projected non-cash impairment of €60–80 million for Carbon Fibers is anticipated in Q4 2024 due to ongoing demand weakness. The 2024 outlook remains cautiously optimistic, expecting EBITDA at the lower end of the projected range, amid a challenging economic climate.