Carbon Stock: Deep Losses Amid Costly Restructuring

SGL Carbon, a specialist in carbon fiber materials, reported a drastic downturn in its first-half performance, plunging from a €29 million profit to a €31 million loss. The company’s stock plummeted nearly 10% to €3.25 as investors reacted to the grim figures. The losses stem from a costly restructuring of its carbon fiber division, which required €45 million in remediation efforts, compounded by €10 million in negative tax effects. External pressures, including U.S. tariff policies and weakening demand in the auto sector—particularly for electric vehicles—further strained results. Despite initial optimism about the EV boom driving demand for its silicon carbide components, sluggish sales have dashed hopes.

Glimmer of Hope in Restructuring Efforts

The company’s CEO noted a rare positive development: the carbon fiber division achieved a €5 million operating profit before special items, marking its first quarterly improvement in years. However, overall revenue fell 16% to €453 million, prompting the withdrawal of its 2025 forecast, with sales now expected to drop 10–15% year-over-year. While the restructuring shows early signs of progress, investors face a waiting game as the stock remains under pressure.