SGL Carbon Emerges from Restructuring with Focus on Future Growth

SGL Carbon completes strategic overhaul, exiting unprofitable units. Revenue fell 17.2% to €850.2M in 2025, but margins stabilized. Focus shifts to high-growth markets under 'SGL Growth 2030' plan.

SGL Carbon has completed a significant operational overhaul, shedding unprofitable legacy businesses to position itself for future expansion. While the company's revenue declined sharply in the past year, management successfully stabilized margins and is now targeting new opportunities in the defense and aerospace sectors.

The company's 2025 financial results highlight the scale of this strategic shift. Group revenue fell by 17.2% to €850.2 million. This decrease was largely intentional, resulting from SGL Carbon's deliberate exit from loss-making activities within its Carbon Fibers unit. Concurrently, weak demand from the semiconductor industry weighed on performance. Despite these headwinds, the firm managed to keep its adjusted EBITDA within the projected range, reporting a figure of €135.0 million.

Strategic Pivot and Cautious Guidance

A cornerstone of the company's forward-looking plan is the "SGL Growth 2030" strategy. The objective is ambitious: management aims to rebuild SGL Carbon into a billion-euro enterprise by the end of the decade, concentrating on high-growth markets.

For the current 2026 fiscal year, however, leadership has issued a conservative outlook that reflects the complete withdrawal from in-house carbon fiber production:

• Group Revenue: €720 to €770 million
• Adjusted EBITDA: €110 to €130 million

Portfolio Pruning and Market Pressures

The restructuring involved substantial portfolio rationalization. The Carbon Fibers segment shrank to €148.9 million following site closures. This streamlining is designed to create a more robust structural foundation, aiming to reduce the company's vulnerability to cyclical downturns.

The Graphite Solutions division felt the brunt of customer caution in the chip industry. High inventory levels among clients in the silicon carbide semiconductor space slowed new orders, causing divisional revenue to retreat by nearly €100 million.

Market Reaction and Technical Position

The transition phase is being viewed skeptically by investors. Over a 30-day period, SGL Carbon's share price declined by approximately 25.8%, closing at €3.23 on Friday. With a Relative Strength Index (RSI) reading of 29.2, the stock is technically considered oversold. Market participants are now awaiting the first quarterly results of the new fiscal year to assess whether the revenue bottom has truly been reached following the divestment of business units.