SGL Carbon: Still on track to meet its 2026 annual targets

SGL Carbon's consolidated sales in the first half of 2026 totaled 394.2 million, down 13.0% from the prior year (H1 2025: 453.2 million). On the one hand, this is attributable to the loss of sales from the discontinuation of unprofitable business activities as part of the restructuring of the carbon fiber business in mid-2025. On the other hand, lower demand in the Graphite Solutions business unit and the challenging order situation in Process Technology weighed on sales development in the first six months of 2026. By contrast, compensation payments of 28.7 million recognized in income, related to contractual purchase obligations arising from contract adjustments with semiconductor customers, had a positive effect.

In the first half of 2026, SGL Carbon generated adjusted EBITDA of 69.8 million, representing a slight decline of 3.7% (H1 2025: 72.5 million). Adjusted EBITDA was negatively impacted in particular by the decline in high-margin sales in the Process Technology business unit. In contrast, the compensation payments described above resulting from the adjustment of existing supply contracts with Graphite Solutions customers (Q1: 7.7 million; Q2: 21.0 million) had a positive effect on adjusted EBITDA. The adjusted EBITDA margin, including the received compensation payments, improved from 16.0% to 17.7% in the first half of 2026.

Despite the continuing challenging market environment, SGL Carbon is on track to achieve its 2026 targets. In addition, with our SGL Growth 2030' strategy, we are consistently focusing the company on profitable and high-growth target markets such as semiconductors, power generation, defense, and aerospace. Meetings with customers over the past few weeks have shown that we have the right materials and solutions to successfully serve these markets, explains Andreas Klein, CEO of SGL Carbon.

With depreciation and amortization of minus 24.2 million (H1 2025: minus 25.8 million), adjusted EBIT came in at 45.6 million, only slightly below the first half of the previous year (H1 2025: 46.7 million). Due to significantly lower restructuring expenses of minus 3.9 million (H1 2025: minus 47.0 million), EBIT rose to 40.5 million (H1 2025: minus 3.2 million). As aresult, a positive consolidated net income of 11.8 million was once again achieved in the first half of 2026 (H1 2025: minus 31.4 million).

Development of the business unitsSGL's largest business segment, Graphite Solutions (GS), generated sales of 234.1 million in the first half of 2026, up 5.9% from the same period last year (H1 2025: 221.0 million). Included in sales are compensation payments recognized in income resulting from the adjustment of existing supply contracts with semiconductor customers in the amount of 28.7 million. Among others, these payments offset the customers' contractually agreed purchase obligations to SGL. SGL Carbon had already indicated in recent months its intention to work in partnership with its semiconductor customers to help to reduce their inventory levels and paving the way for future collaboration.

GS's sales development in the first half of 2026, including compensation payments, had a positive impact on the business segment's adjusted EBITDA, which improved by 14.2% to 46.6 million (H1 2025: 40.8 million). When comparing half-year figures, it should be noted that, during the reporting period, earnings from adjustments to customer contracts - which originally pertained to the entire fiscal year - were brought forward to the first half of 2026. Slightly higher price pressure and rising raw material prices had a negative impact on GS's adjusted EBITDA. Due to the developments described above, the adjusted EBITDA margin rose to 19.9% on a half-year-over-half-year basis (H1 2025: 18.5%).

The Process Technology (PT) business unit reported a 28.2% decline in sales to 50.4 million in the first half of 2026 (H1 2025: 70.2 million). This is primarily due to cautious order placement by chemical industry customers, PT's most important market segment. Rising energy prices, high labor costs, and regulatory requirements are prompting many chemical companies to postpone investment projects. In addition, lower capacity utilization is leading to the suspension of maintenance and replacement investments as well.

The decline in sales is also reflected in the development of adjusted EBITDA, which fell significantly from 19.9 million to 7.3 million on a year-on-year basis. In addition to volume effects, lower selling prices weighed on PT's adjusted EBITDA. As a result, the adjusted EBITDA margin declined to 14.5% (H1 2025: 28.3%). It should be noted that the first half of the previous year was still characterized by the delivery of large high-margin projects.

Sales in the Fiber Composites (FC) business unit - formed by the merger of the former Carbon Fibers and Composite Solutions segments - totaled 99.4 million in the first half of 2026, falling, as expected, below the 152.6 million recorded in the same period of 2025. The decline of 53.2 million is primarily attributable to the discontinuation of loss-making business activities as part of the Carbon Fibers restructuring in mid-2025.

In terms of results, the new Fiber Composites business unit performed very well. The significant cost reductions resulting from the restructuring of the carbon fiber business, along with the changed product mix, led to an improvement in adjusted EBITDA of 8.3 million to 18.9 million in the first half of 2026 (H1 2025: 10.6 million). The joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB), accounted for using the equity method, contributed 7.4 million (H1 2025: 4.7 million) to FC's adjusted EBITDA. Accordingly, the adjusted EBITDA margin increased from 6.9% to 19.0%.

Debt, Equity, and InvestmentsSGL Carbon's balance sheet stru

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