SGL Carbon (SGL) Q4 2024 earnings summary

Executive summary

• Sales declined 5.8% year-over-year to €1,026 million, mainly due to currency effects and portfolio changes, with results at the lower end of guidance.

• EBITDA pre fell 3.3% to €162.9 million, reflecting strong cost management and margin improvement.

• Net result was negative at €-80.3 million, impacted by €118 million in restructuring and impairment costs, mainly in Carbon Fiber.

• Free cash flow remained positive at €40 million, despite lower customer down payments and market headwinds.

• FY 2024 performance aligned with guidance, with product mix changes supporting margin improvement.

Financial highlights

• Group EBITDA margin improved to 15.9%, demonstrating margin resilience.

• Net financial debt reduced by 6% to €108 million; leverage ratio at 0.7 and equity ratio at 41.5%.

• ROCE increased to 11.4%, indicating returns above cost of capital.

• Net result fell to -€41.0 million due to impairment and restructuring; free cash flow at €38.7 million.

Outlook and guidance

• 2025 sales and EBITDA pre expected slightly below 2024, with strict cost and cash management to continue.

• Semiconductor and EV/automotive markets to remain subdued in 2025, with recovery expected in the second half for some segments.

• No growth in SiC demand expected for 2025; mid-term growth outlook remains intact.

• Carbon Fiber restructuring is a key focus, with €50 million one-time cash effects expected over 2025–2026.