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1. Company Snapshot

1.a. Company Description

SGL Carbon SE, together with its subsidiaries, engages in the manufacture and sale of carbon fiber and specialty graphite products in Germany, rest of Europe, the United States, China, Asia, Latin America, Africa, and Australia.The company operates in Graphite Solutions; Process Technology; Caron Fibers; and Composite Solutions segment.It offers products for automotive industries, including body and main parts; carbon-ceramic brake discs; battery solutions; friction materials; chassis components; gas diffusion layers and bipolar plates; vanes and rotors; sealing materials; bearing seals; and miscellaneous products, as well as materials for thermal management.


The company also provides composite solutions that include energy storage systems, lead springs, and friction materials; fuel cells for energy conversion, as well as for passenger cars and trains or ferries for zero emission mobile applications; and carbon fibers and semi-finished products based on glass and carbon fibers.In addition, it offers isostatic graphite to produce compound semiconductor layers; silicon carbide coatings for semiconductor production; and heat exchangers, columns, quenchers, pumps, and pipings, as well as sealing materials for process technology.SGL Carbon SE was founded in 1878 and is headquartered in Wiesbaden, Germany.

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1.b. Last Insights on SGL

SGL Carbon SE faces challenges in the construction carbon fiber fabric market, driven by demand for sustainable and durable materials. The company's growth prospects are impacted by evolving tariffs, regional shifts, and advances in digital manufacturing. With a focus on retrofitting and real-time health monitoring, SGL Carbon must adapt to emerging technologies. Recent market reports highlight the company's position amidst competitors like Toray Industries, Hexcel, and Mitsubishi Chemical. Notably, no recent earnings release or share buyback information is available.

1.c. Company Highlights

2. SGL Carbon's 9-Month Results: Weak Demand Impacts Graphite Solutions

SGL Carbon reported a 16.5% decrease in 9-month sales to EUR 653 million, mainly due to weakness in demand from the semiconductor industry and restructuring of the carbon fiber business unit. The company's EBITDApre margin improved to 16.6% compared to 16.3% in the previous year, despite a 15% decline in EBITDApre to EUR 108.6 million. The net loss was EUR 130 million, and the actual EPS was 0.03, beating estimates of -0.13.

Publication Date: Nov -23

📋 Highlights
  • Sales Decline:: 9-month sales fell 16.5% to EUR 653 million, driven by semiconductor demand and carbon fiber unit restructuring.
  • Net Loss and EBITDApre Drop:: Net loss EUR 130 million, EBITDApre down 15% to EUR 108.6 million year-on-year.
  • Margin Improvement:: EBITDApre margin rose to 16.6% from 16.3%, despite overall sales decline.
  • Graphite Solutions Struggles:: Sales dropped 21% to EUR 325.7 million, with EBITDApre plunging 44% to EUR 58.2 million.
  • Carbon Fiber Turnaround:: EBITDApre surged to EUR 9.5 million (vs. EUR -8 million in 2024), post-restructuring.

Segment Performance

The Graphite Solutions business unit was significantly impacted, with a 21% drop in sales to EUR 325.7 million and a 44% decline in EBITDApre to EUR 58.2 million, primarily due to the downturn in the semiconductor and LED business line. In contrast, the Process Tech business unit remained stable, with sales at EUR 102.4 million and an EBITDApre of EUR 28 million, a 9.4% increase from the previous year. The Carbon Fiber business unit showed a positive result, with an EBITDApre of EUR 9.5 million, compared to a loss of EUR 8 million in the previous year, after restructuring and closing down two sites.

Guidance and Outlook

SGL Carbon confirmed its guidance for 2025, with sales expected to be 10% to 15% lower than last year and EBITDApre in the range of EUR 130 million to EUR 150 million. Analysts estimate next year's revenue growth at 0.3%. The company's equity ratio remained high at 39.7%, and the leverage ratio was at 0.8, with a ROCE of 9.7%.

Valuation

The stock is currently trading at a P/E Ratio of -2.25 and a P/S Ratio of 0.34. The EV/EBITDA ratio is -48.96, indicating that the market is pricing in significant distress. The Free Cash Flow Yield is 5.8%, which is a positive sign. The ROE is -25.26%, and the ROIC is -9.86%, reflecting the company's current challenges. The Net Debt / EBITDA ratio is -11.06, indicating a healthy debt position.

3. NewsRoom

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How the Investment Narrative for SGL Carbon Is Evolving After Recent Analyst Downgrades

Nov -28

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How Recent Developments Are Rewriting the Story for SGL Carbon

Nov -13

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SGL Carbon SE (SGLFF) Q3 2025 Earnings Call Highlights: Restructuring Success Amid Sales Decline

Nov -06

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Construction Carbon Fiber Fabric Market Global Forecast 2025-2030, Profiles of Toray Industries, Hexcel, Mitsubishi Chemical, SGL Carbon, Teijin, Hyosung, Solvay, Formosa Plastics, Gurit, and Sika

Oct -16

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Plate and Frame Heat Exchangers Market Size, Share and Business Outlook Report (2025-2034) Featuring Analysis of Hisaka Works, Kelvion Holding, Danfoss, SGL Carbon and More

Sep -29

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Fiber Reinforced Polymer (FRP) Composites Industry Report 2025-2030: American Fiberglass Rebar, Mitsubishi Chemical, SGL Carbon and DowAksa Lead Growth in Transportation, Construction and Aerospace

Sep -24

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Aerospace Composites Industry Dynamics and Competition Analysis 2025-2030 Featuring Profiles of Hexcel, Toray Industries, Teijin, SGL Carbon, Mitsubishi Chemical Group and More

Sep -15

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Are Investors Undervaluing SGL Carbon SE (ETR:SGL) By 35%?

Sep -15

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.99%)

6. Segments

Graphite Solutions

Expected Growth: 6%

SGL Carbon SE's Graphite Solutions segment growth is driven by increasing demand for lithium-ion batteries in electric vehicles, renewable energy systems, and portable electronics. Additionally, growing adoption of graphite-based solutions in industrial applications, such as foundry and refractory industries, contributes to the segment's growth.

Carbon Fibers

Expected Growth: 8%

SGL Carbon SE's 8% growth in Carbon Fibers is driven by increasing demand from the automotive and aerospace industries for lightweight materials, government regulations on fuel efficiency, and growing adoption in renewable energy applications such as wind turbines. Additionally, investments in R&D and capacity expansions are expected to further boost production and sales.

Composite Solutions

Expected Growth: 5%

SGL Carbon SE's Composite Solutions segment growth is driven by increasing demand for lightweight materials in the automotive and aerospace industries, as well as growing adoption of renewable energy sources such as wind power. Additionally, the segment benefits from its strong market position, innovative product portfolio, and expanding customer base.

Process Technology

Expected Growth: 4%

SGL Carbon SE's Process Technology segment growth is driven by increasing demand for energy-efficient and environmentally friendly solutions, adoption of digitalization and automation in industrial processes, and growing need for advanced materials in industries such as chemical processing, oil and gas, and renewable energy.

Corporate

Expected Growth: 3%

SGL Carbon SE's corporate segment growth is driven by increasing demand for lightweight materials in the automotive industry, expansion in the aerospace sector, and strategic investments in digitalization and process optimization, resulting in improved operational efficiency and cost savings.

7. Detailed Products

Carbon Fibers

High-performance carbon fibers for lightweight and high-strength applications

Graphite Specialty Materials

High-purity graphite materials for semiconductor, LED, and solar applications

Carbon-Ceramic Brake Discs

High-performance brake discs for automotive and aerospace applications

Fuel Cell and Battery Components

Advanced materials and components for fuel cells and batteries

Composite Materials

Lightweight and high-strength composite materials for aerospace and industrial applications

Graphite Electrodes

High-quality graphite electrodes for electric arc furnaces and ladle furnaces

8. SGL Carbon SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SGL Carbon SE is moderate due to the availability of alternative materials and technologies in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major automotive and industrial companies, which gives them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with its suppliers and the availability of alternative suppliers in the market.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors and the ongoing consolidation in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.41%
Debt Cost 3.95%
Equity Weight 67.59%
Equity Cost 11.21%
WACC 8.86%
Leverage 47.94%

11. Quality Control: SGL Carbon SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Tessenderlo

A-Score: 5.0/10

Value: 7.8

Growth: 2.3

Quality: 3.1

Yield: 3.8

Momentum: 5.5

Volatility: 7.7

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Robertet

A-Score: 4.8/10

Value: 3.5

Growth: 7.1

Quality: 6.0

Yield: 1.2

Momentum: 1.0

Volatility: 9.7

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Grupa Azoty Zaklady Chemiczne Police

A-Score: 3.3/10

Value: 7.5

Growth: 2.3

Quality: 1.6

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

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SGL Carbon

A-Score: 3.1/10

Value: 8.1

Growth: 3.8

Quality: 2.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.7

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Ercros

A-Score: 3.1/10

Value: 9.4

Growth: 1.2

Quality: 2.6

Yield: 1.9

Momentum: 1.0

Volatility: 2.3

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Lenzing

A-Score: 2.6/10

Value: 8.7

Growth: 1.6

Quality: 1.6

Yield: 0.6

Momentum: 1.5

Volatility: 1.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.94$

Current Price

2.94$

Potential

-0.00%

Expected Cash-Flows