SGL Carbon (SGL) Q3 2024 earnings summary

Executive summary

• Sales declined by 4.8% to €781.9 million in the first nine months of 2024, mainly due to weak demand in Carbon Fibers and a terminated project in Composite Solutions.

• EBITDA pre/adjusted EBITDA remained nearly stable at €127.6 million, with margin improving to 16.3% from 15.8% year-over-year.

• Net result after nine months was €32.8 million, up from €5.3 million year-over-year, but a significant non-cash impairment of €60–80 million in Carbon Fibers is expected in Q4, likely turning the net result negative.

• Process Technology sales rose 11% year-over-year, with EBITDA pre up 46.3% to €25.6 million, reflecting strong project execution and margin improvement.

• Composite Solutions sales dropped 16% year-over-year due to a major project termination, with EBITDA pre margin falling to 11.2%.

Financial highlights

• Graphite Solutions EBITDA pre reached €104.3 million, up 4.8% year-over-year, with margin at 25.3%.

• Process Technology EBITDA pre margin rose to 24.1%, up 6 percentage points year-over-year.

• Carbon Fiber EBITDA pre was -€7.9 million, with a planned impairment of €60–80 million.

• Free cash flow was €15.5 million, down from €35 million last year due to lower customer down payments.

• Net financial debt increased to €123.8 million due to higher investments.

Outlook and guidance

• 2024 sales and EBITDA guidance confirmed, with EBITDA expected at the lower end of €160–170 million.

• No growth expected in silicon carbide for 2025; customers maintain midterm growth plans but shift volumes to later years.

• CapEx for 2024 targeted just below €100 million; 2025 CapEx guidance to be provided with next outlook.