SGL Carbon (SGL) Q2 2026 earnings summary

Executive summary

• Sales declined 13.0% year-over-year to €394.2 million, mainly due to discontinued unprofitable business activities and weak demand, but €28.7 million in compensation payments from contract amendments supported results.

• Adjusted EBITDA decreased 3.7% to €69.8 million, with margin improving to 17.7% from 16.0% year-over-year, aided by compensation payments.

• Net result turned positive at €11.8 million, improving from a loss of €31.4 million in H1 2025, reflecting lower restructuring costs and successful cost control.

• Free cash flow increased to €31.4 million, supporting a reduction in net financial debt to €79.3 million and a leverage ratio of 0.6.

• The company remains on track to meet its 2026 annual targets, with its growth strategy focused on high-growth markets such as semiconductors, power generation, defense, and aerospace.

Financial highlights

• Group sales dropped by €59 million year-over-year, with a significant impact from discontinued unprofitable businesses (~€50 million loss in sales).

• EBIT rose to €40.5 million from a loss of €3.2 million in H1 2025, mainly due to lower restructuring expenses.

• Equity ratio increased to 39.7%, and ROCE remained stable at 9.8–10%.

• Earnings per share improved to €0.10 from -€0.26 in H1 2025.

• Capital expenditures were €19.6 million, below depreciation and amortization.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales expected between €720–770 million, adjusted EBITDA €110–130 million, free cash flow at prior year level, and ROCE between 9–10%.

• SGL Growth 2030 strategy is on track, targeting €1 billion in sales by 2030.

• Ongoing negotiations may yield further compensation payments, but the majority has already been recognized.