EQS-News: SGL Carbon: Still on track to meet ...

Margins and net income improved, but sales dropped sharply in H1 2026.

Risk flags

• ●The main operational risk is the ongoing decline in consolidated sales, which fell 13.0% year-over-year in H1 2026. While the company attributes this to discontinued unprofitable activities, the lack of detailed segment or bridge data leaves uncertainty about the sustainability of remaining revenue streams.
• ●Disclosure risk arises from the absence of granular data linking the sales decline to specific discontinued operations. Without this detail, investors cannot fully assess the quality of the sales base or the risk of further declines.
• ●Execution risk remains around the delivery of full-year 2026 guidance. With only H1 results available and no realised full-year figures, the company’s ability to achieve €720–770 million in sales and €110–130 million in adjusted EBITDA is not yet demonstrated.

Bottom line

SGL Carbon’s H1 2026 results show improved margins, a return to net profitability, and lower debt, but these positives are offset by a sharp 13.0% drop in sales. The company’s narrative of progress is partially supported by realised cost savings and compensation income, but the lack of detailed disclosure on the drivers of sales decline limits visibility into future earnings quality. Guidance for 2026 is reiterated, not raised, and remains to be proven in the second half. No evidence is presented of new contracts or step-change growth in the targeted high-growth sectors. For investors, the most important takeaway is that margin and debt improvements are real, but top-line pressure and disclosure gaps temper the outlook. More granular reporting on discontinued operations and segment trends would be needed to strengthen the investment case.

Announcement summary

(LSE/AIM:0MPL) SGL Carbon SE reported consolidated sales in the first half of 2026 totaling €394.2 million, down 13.0% from the prior year (H1 2025: €453.2 million). Adjusted EBITDA for H1 2026 was €69.8 million, a decline of 3.7% compared to €72.5 million in H1 2025, with an adjusted EBITDA margin of 17.7% (H1 2025: 16.0%). Net financial debt decreased from €98.9 million at the end of 2025 to €79.3 million as of June 30, 2026, and the equity ratio remained nearly constant at 39.7%. Capital expenditures in the first half of 2026 totaled €19.6 million, below depreciation and amortization of €24.5 million. The company projects consolidated sales of between €720 million and €770 million and adjusted EBITDA of between €110 million and €130 million for fiscal year 2026. SGL Carbon’s largest business segment, Graphite Solutions, generated sales of €234.1 million in H1 2026, up 5.9% from H1 2025, including €28.7 million in compensation payments recognized in income. The company remains on track to meet its 2026 annual targets.

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