From the Sector

• Weak demand from semiconductor customers weighs on Group sales and earnings performance
• Restructuring of Carbon Fibers business unit successfully on track
• EBITDA margin almost stable at 16.0% in half-year comparison 
• Sales forecast for 2025 slightly adapted, adjusted EBITDA expectations confirmed

Increasing uncertainty about the future development of global trade, tariff increases between the US and Europe, and weak demand in some of their markets are weighing on SGL Carbon's sales and earnings performance. On the other hand, the restructuring of SGL's Carbon Fibers business unit is showing initial signs of success. After six months of fiscal 2025, SGL Carbon generated sales of €453.2 million, down 15.8% on the previous year (H1 2024: €538.0 million).

The decline in sales within the Group is primarily attributable to negative volume effects, while currency and price effects played only a minor role. In particular, the continuing weak demand from semiconductor customers in the Graphite Solutions business unit weighed on sales development. Furthermore, the Carbon Fibers business unit reported lower sales as a result of the discontinuation of unprofitable business activities as part of the restructuring.

The cost savings resulting from the restructuring of Carbon Fibers and a slight improvement in adjusted EBITDA in the Process Technology business unit were unable to offset the shortfall in earnings contributions from the decline in the high-margin semiconductor business. Adjusted EBITDA, an important key figure for the Group, decreased by 16.2% compared to the first half of 2024 to €72.5 million (H1 2024: €86.5 million). The adjusted EBITDA margin remained almost unchanged at 16.0% compared to the previous year (H1 2024: 16.1%).

Taking into account depreciation and amortization of €25.8 million (H1 2024: €27.0 million) and non-recurring and special items of minus €49.9 million (H1 2024: €3.6 million), EBIT for the first half of 2025 amounted to €3.2 million (H1 2024: €55.9 million). The non-recurring and special items result in particular from restructuring expenses of €47.0 million.

The restructuring announced in February 2025 showed initial success in the first half of 2025, with positive adjusted EBITDA for the Carbon Fibers (CF) business unit. The discontinuation of loss-making business activities resulted in a 15.1% decline in sales to €93.5 million (H1 2024: €110.1 million) but also led to an increase in adjusted EBITDA for CF from minus €4.4 million to €5.2 million year-on-year.

"As part of the CF restructuring, production at our site in Lavradio (Portugal), which mainly produced acrylic fibers and precursors for carbon fibers, was closed down. Production and consequently also our business activities in the acrylic fibers and precursors product areas were completely discontinued at the end of June 2025. CF will focus in future on profitable products with greater differentiation from the international competition," said Dr. Stephan Bühler, member of the Executive Board responsible for this area.

It should be noted that the adjusted EBITDA of the CF business unit includes an earnings contribution of €4.7 million from its equity-accounted joint venture BSCCB (H1 2024: €7.9 million). The decline in BSCCB's earnings contribution is due to the costs of expanding production capacity and volatile demand from automotive customers. Excluding the earnings contribution of the equity-accounted BSCCB, adjusted EBITDA for CF would have been €0.5 million (H1 2024: minus €12.3 million).

The Composite Solutions (CS) business unit was also unable to avoid the increasing uncertainty in the automotive industry about future growth prospects. CS sales declined by 11.7% to €59.1 million in the first half of 2025 (H1 2024: €66.9 million). It should be noted that the first six months of the previous year still included sales from a contract with an automotive customer that expired in the second quarter of 2024.

As a result of lower volumes and the associated lower utilization of production capacities, CS's adjusted EBITDA decreased by €2.7 million to €5.4 million (H1 2024: €8.1 million) compared to the same period last year. Accordingly, the adjusted EBITDA margin of CS declined to 9.1% (H1 2024: 12.1%).

Outlook
Increasing trade barriers, especially due to US tariff policy, are having a negative impact on the business development of their customers and sales markets. In particular, the high level of uncertainty about future developments in the automotive industry is currently weighing on demand for the company’s products. This also includes expected sales of electric vehicles, which are the main drivers of demand for silicon carbide semiconductors. Special graphite components from SGL Carbon are required to manufacture these high-performance semiconductors.

In light of the current economic environment and the expectations for developments in the sales markets in the upcoming months and taking into account restructuring measures in the Carbon Fibers business unit, the sales forecast for fiscal year 2025 is adjusted on July 14, 2025. Consolidated sales for the full fiscal year 2025 are expected to decline by 10% to 15% compared with the previous year (2024: €1,026.4 million). Previously, SGL Carbon had expected sales to decrease by up to 10% (slight decline) compared with the previous year.

Due to the discontinuation of loss-making business activities in the Carbon Fibers business unit and cost savings as part of the successful restructuring and associated improvement in profitability, the forecast for the Group's adjusted EBITDA for fiscal year 2025 remains unchanged in the range of €130 million to €150 million.

On the 1st and 2nd of July, 19 textile, clothing, leather, and footwear representatives from 8 European countries gathered at Amsterdam Fashion Institute in the Netherlands to drive forward the Erasmus+ Blueprint AEQUALIS4TCLF project. This bold initiative is set to transform the TCLF industries through a strategic, educational, and social lens, paving the way for more resilient, inclusive, and future-ready sectors.

One of the project’s key deliverables is the upcoming European TCLF Skills Strategy, designed to respond to the impact on companies’ workforce of the rapidly technological, circular and social transformations. Drawing on both qualitative and quantitative insights from stakeholders, ranging from businesses and policymakers to education providers, the updated strategy will inform the development of consecutive tailored national skills strategies. These strategies will then be rolled out by national project partners, with strong support from industry, education and institutional actors.

AEQUALIS4TCLF is also pioneering change in the classroom. Eight brand-new curricula focused on sustainable and digital fashion have already been developed, and then respective training content are under development. To ensure accessibility and engagement, partners are creating an array of innovative learning resources, from interactive e-books and videos to hands-on activities and assessments. All materials will be available online and free of charge, equipping learners and educators alike for the green and digital transitions.

At its heart, AEQUALIS4TCLF is also a social project. A rich programme of workshops, both online and in person, is being rolled out across all partner countries, addressing critical topics such as diversity, innovation, and wellbeing in the workplace. Meanwhile, a TCLF network-building effort is underway to boost collaboration at both local and European levels. This includes the creation of regional TCLF Pacts for Skills, tailored to the unique needs of local economies, and two European-level networks: one uniting education providers to share best practices and foster excellence, and another engaging regional public authorities in supporting TCLF education for the new era.

The AEQUALIS4TCLF project is co-funded by the Erasmus+ programme of the European Union.

Indorama Ventures Public Company Limited, an international sustainable chemical company, announced it has recycled more than 150 billion post-consumer PET bottles since 2011. This significant milestone underscores the company’s long-term commitment to circular economy practices and its sustained investment in global recycling infrastructure. 

With more than 20 recycling facilities across 11 countries, supported by strong business partnerships and optimized operations, Indorama Ventures collectively recycles 789 bottles every second — transforming used PET into high-quality recycled PET (rPET) resins and other circular materials. These are used across various industries globally, supporting Indorama Ventures and its customers in achieving their sustainability goals. 

Since beginning its recycling journey in 2011, Indorama Ventures has accelerated its impact. The company reached its first major milestone of 50 billion bottles recycled in March 2020 and doubled that figure to 100 billion bottles in 2023, just three and a half years later. Now the company has reached the 150 billion mark which reflects both growing global demand for recycled content and the company’s strategic investments in infrastructure, partnerships, and innovation to scale up recycling at speed. 

By recycling 150 billion PET bottles, Indorama Ventures has helped avoid an estimated 3.8 million tons of CO₂ emissions over the product lifecycle and diverted 2.8 million tons of plastic waste from landfills and the environment.  

By partnering with a wide network of collection organizations, Indorama Ventures ensures a consistent supply of high-quality post-consumer PET, supporting the integrity of circular supply chains. In parallel, the company works with leading technology providers to deploy advanced recycling solutions that improve processing efficiency and reduce environmental impact. 

As global demand for recycled materials grows, Indorama Ventures reaffirms its commitment to expanding recycling capacity, investing in innovation, and working with stakeholders across the value chain to accelerate the shift toward a circular economy.