The discontinuation of loss-making business activities as part of the restructuring of the business unit Carbon Fibers and the continuing weakness in demand in the semiconductor market segment weighed on SGL Carbon's sales performance in the past fiscal year 2025. Consolidated sales declined accordingly by 17.2% to €850.2 million (2024: €1,026.4 million).
Due to the lack of sales contributions, the company focused on securing profitability by implementing quick and consistent cost-saving measures. At €135.0 million, adjusted EBITDA was 17.1% below the previous year's figure of €162.9 million, but within the guidance for 2025 of €130 to €150 million. As a result, the adjusted EBITDA margin remained at 15.9% at the previous year's level (2024: 15.9%).
Sales development
The decline in Group sales is primarily attributable to negative volume effects, to which all four operating business units contributed. In particular, lower sales to customers from the semiconductor industry in the business unit Graphite Solutions (GS) weighed on Group sales. GS reported sales of €442.3 million, down €96.7 million on the previous year. Sales in Carbon Fibers fell by €60.9 million to €148.9 million due to the discontinuation of loss-making business activities. Process Technology (PT) was also unable to maintain the high sales level of the previous year. PT sales declined slightly by €7.4 million to €130.9 million. Burdened by the high level of uncertainty in the automotive industry and the associated lower order volumes, sales in business unit Composite Solutions (CS) also fell by €15.8 million to €108.8 million.
Earnings performance
The lack of high-margin semiconductor sales at Graphite Solutions (GS) in particular weighed on the Group's adjusted EBITDA. After €131.0 million in the previous year, GS achieved adjusted EBITDA of €81.1 million in 2025. In contrast, adjusted EBITDA for Carbon Fibers (CF) improved from minus €11.0 million in the previous year to €14.1 million in the reporting period due to successful restructuring measures. This was due to a significant reduction in fixed costs and strict cost management. Adjusted EBITDA in Process Technology also declined slightly from €33.0 million in the previous year to €31.8 million. Lower fixed cost coverage due to reduced capacity utilization impacted adjusted EBITDA in Composite Solutions (CS). Adjusted EBITDA for CS fell to €11.4 million in the reporting period, compared with €18.2 million in the previous year.
Earnings performance in the past fiscal year was significantly impacted by one-time effects and special items totaling minus €92.8 million (2024: minus €118.5 million). These include, in particular, restructuring expenses totaling €65.8 million, mainly from the restructuring of the business unit CF, which accounted for €59.8 million. The one-time effects and special items also include impairments on fixed assets totaling €23.6 million. After these adjustments as well as depreciation and amortization of €53.4 million (2024: €58.7 million), EBIT in 2025 amounted to minus €11.2 million (2024: minus €14.3 million).
Taking into account the slightly improved financial result of minus €30.4 million (2024: minus €32.6 million) and tax expenses of €36.7 million (2024: €32.5 million), the extensive restructuring measures and associated special effects resulted in a negative consolidated result of minus €99.2 million (2024: minus €80.3 million).
Net financial debt, equity, and free cash flow
In fiscal year 2025, net financial debt decreased by 8.6% to €98.9 million compared to the end of the previous year (2024: €108.2 million). The debt ratio remained stable at 0.7 as of December 31, 2025 (2024: 0.7). Despite the negative consolidated net income of €79.2 million - which included restructuring-related impairment losses on property, plant, and equipment totaling €23.6 million, as well as a write-down of capitalized deferred taxes in the U.S. amounting to €32.5 million - the equity ratio remained solid at 39.2% (2024: 41.5%).
The stability of SGL Carbon's financial structure is also reflected in its free cash flow, which remained almost unchanged at €37.0 million compared to the previous year (2024: €38.7 million) despite payments resulting from the restructuring of the Carbon Fiber activities, in particular the closure of the sites in Portugal and the USA. Overall, the restructuring is thus almost complete in terms of liquidity.
Outlook for fiscal year 2026
For 2026, we expect geopolitical conditions to remain uncertain and different developments in our key sales markets. Following weak demand for our products from the semiconductor industry in 2025, we do not anticipate a recovery in this market segment in 2026 due to continued high inventory levels at our customers. We also expect slower growth in the automotive market segment. In particular, existing trade barriers and increasing competition from Asia could lead to lower demand for our products for automotive applications. We expect a similar development for the European chemical industry. Here, high manufacturing costs and regulatory requirements in particular are weighing on production sites in Europe and, in some cases, leading to postponements of new projects and investments. For our other existing market segments, especially our industrial applications, we expect stagnant development in 2026 due to the prevailing general conditions.
When forecasting sales for the 2026 fiscal year, it should be noted that the full-year effect of the discontinuation of loss-making business activities in the business unit Carbon Fibers in mid-2025 will be fully reflected in sales in 2026. In line with expectations for our existing sales markets and largely unchanged economic conditions, we anticipate consolidated sales of between €720 million and €770 million (2025: €850.2 million) and adjusted EBITDA (EBITDApre) of between €110 million and €130 million for fiscal year 2026. Furthermore, as in previous years, we aim to achieve positive free cash flow again, which will be at the same level as the previous year (2025: €37.0 million).
“SGL Growth 2030”
A key focus of our work in 2026 and beyond will be the development of and entry into new growth areas. By implementing restructuring measures and adapting SGL's structures to the new size of the company, we have created a future-oriented platform that will enable us to make the most of growth opportunities in existing and new markets on the basis of our robust core business.
Our corporate strategy is based on three pillars:
- Further market penetration in existing markets, e.g., the semiconductor industry
- Focused expansion of our position in new market segments with above-average growth potential using existing materials and products
- Expanding our product portfolio through innovations in existing and new materials
In addition to our core business, we have identified new applications that offer future growth potential for our company. We are focusing on three growth areas:
- Materials for energy generation. These are, in particular, certified specialty graphites for small modular reactors (SMRs). SGL Carbon can supply all types of graphite required for this innovative industry. An initial success is the collaboration with X-energy in the US, one of the leading SMR technology developers.
- Our capabilities and many years of experience as a supplier to the automotive industry enable significant growth potential in the defense and security industry. The future increase in demand for composite materials, e.g., for drone and military vehicle components, or protective equipment, offers a wide range of possible applications for our materials.
- Another identified growth market is the aerospace industry. We already have qualified materials and have been supplying carbon fiber materials and components to the aircraft industry for several years. In addition to aviation, aerospace also offers growth potential for SGL Carbon. This sector also requires heat- and pressure-resistant materials, e.g., for the construction of carrier rockets for satellite transport or heat shields.
Our growth strategy is complemented by the development of new material solutions in line with our customers' requirements. We see further future potential in particular in the product areas of coatings for the semiconductor industry and natural fiber fabrics for the automotive industry.
"Focusing on our existing portfolio, our robust balance sheet and financing structure, and the proven experience and expertise of our employees, we are well positioned for profitable organic and inorganic growth. Our long-term goal is to establish SGL Carbon as one of the leading suppliers of high-performance materials. Our ambition is to become a billion-dollar company again by 2030 with an attractive and profitable portfolio," emphasizes Andreas Klein, CEO of SGL Carbon.
Further details regarding business development in 2025, the forecast for 2026, and SGL's growth strategy “SGL Growth 2030” can be found in SGL Carbon's annual report.
