Q2 2026 SGL Carbon SE Earnings Call

August 6, 2026

Speaker #2: Good afternoon, ladies and gentlemen, and welcome to the SGL Carbon Conference call first half results 2026. My name is Yusuf, the chorus call operator.

Operator: Good afternoon, ladies and gentlemen, and welcome to the SGL Carbon Conference Call, H1 Results 2026. My name is Yusuf, the conference call operator. I would like to remind you that all participants will be in listen-only mode and that this conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star followed by 1 on your telephone. For operator assistance, please press star followed by 0. The conference must not be recorded for publication or for broadcast. At this time, it's my pleasure to hand over to Claudia Kellert. Please go ahead.

Speaker #2: would like to remind you that all participants will be in listen-only mode, and that this conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time addressing STAR followed by 1 on your telephone. please press STAR followed by 0. The conference must not be recorded for publication or for broadcast.

Speaker #2: Kellert. Please go ahead.

Speaker #3: Yes, thank you. A very warm welcome from SGL side as well. Time is running. First half of 2026 is behind us, and today we want to discuss and present to you our first half figures and give you a short overview about our expectations for the second half of 2026.

Claudia Kellert: Yes, thank you. A very warm welcome from SGL side as well. Time is running. H1 of 2026 is behind us. Today we want to discuss and present to you our H1 figures and give you a short overview about our expectations for H2 of 2026. Even today, Andreas Klein, our CEO, and Thomas Dippold, our CFO, will lead the presentation and will be able to answer your questions. Now I hand over to Thomas. Please, it's your turn.

Speaker #3: Even today, Andreas Klein, our CEO, and Thomas Dippold, our CFO, will lead the presentation. We'll be able to answer your questions. And now, I hand over to Thomas.

Speaker #3: Please it's your turn.

Speaker #4: Thank you, Claudia. Hello from my side. This is Thomas Dippold, and it's my privilege and honor to guide you through our results for the first 6 months of the year.

Speaker #4: Thank you, Claudia. Hello from my side. This is Thomas Dippold, and it's my privilege and honor to guide you through our results for the first 6 months of the year. slide number 4, you can see the overall development of the group.

Thomas Dippold: Thank you, Claudia. Hello from my side. This is Thomas Dippold. It's my privilege and honor to guide you through our results for H1 of the year. On slide number four, you can see the overall development of the group. Our total turnover dropped by 30% or roughly EUR 60 million, coming from EUR 453 million to now EUR 394 million in H1 of 2026. Where does this come from? To a large extent, from the discontinuation of our loss-making Carbon Fibers business, which we still had in our books in H1 last year. Last year in June, we closed our site in Lavradio. They were producing stainless Moses Lake for the first 5, respectively 6 months of the year before the closure took place, therefore a like-for-like sales decline is derived from that, which is EUR 50 million.

Speaker #4: Our total turnover dropped by 30%, or roughly €60 million, coming from €453 million to now €394 million in the first six months of 2026.

Speaker #4: Where does this come from to a large extent? From the discontinuation of our loss-making carbon fiber business, which we still had in our books in the first 6 months last year.

Speaker #4: Last year, in June, we closed our site in Lavradio, so they were producing, same as Moses Lake, for the first 5 respectively 6 months of the year, before the closure took place.

Speaker #4: And therefore, a like-for-like, sales decline is derived from that, which is 50 million. The other 10 million, which our total turnover deteriorated from operational level, can be attributed to the high-margin business in graphite solution, where we still see a very sluggish development and the demand for this high-margin silicon carbide business didn't catch up until now.

Thomas Dippold: The other EUR 10 million, which our total turnover deteriorated from an operational level, can be attributed to the high margin business in Graphite Solutions, where we still see a very sluggish development, and the demand for the high margin silicon carbide business didn't catch up until now. Second, also our Process Tech business unit suffers from a very weak order intake and order book, which maybe turns a little bit better in the second half of the year. We come to that when we discuss the business units. What we have on the contrary is the following. We have compensation payments received. We also mentioned that in the Q1 call, you probably remember that we already collected the first EUR 7.7 million in Q1 2026, where we renegotiate the take-or-pay contract, the customer down payment contract with our customer.

Speaker #4: And second, also our process tech business unit suffers from a very weak order intake and order book, which, well, maybe turns a little bit better in the second half of the year, but we come to that when we discuss the business units.

Speaker #4: What we have in our contrary is the following: we have compensation payments received. We also mentioned that in the first quarter call, you'll probably remember that, that we already collected the first 7.7 million in the first quarter of 2026, where we renegotiate the take-or-pay contract, the customer down payment contracts with our customer.

Speaker #4: And another one has been renegotiated, which stands for 21 million. And this is also top line, but also profit and cash for the first 6 months of this year.

Thomas Dippold: Another one has been renegotiated, which stands for EUR 21 million. This is also top line, but also profit and cash for the first six months of this year. This is what's also in our top line. Our EBITDA pre deteriorates only by 3.7%, coming from EUR 72.5 million in H1 last year to now roughly EUR 70 million in H1 2026. Where does it come from? On the one hand side, of course, we got rid of the loss-making business in carbon fibers. We see on the other hand, the down payments or the contract renegotiations and the compensation payments in there. In the end, it also reflects the weak business in the high margin Graphite Solutions business and the Process Tech business. Our EBITDA pre-margin reaches 17.7%, which shows a very healthy margin, at least if you include the compensation payment.

Speaker #4: And this is what's already also in our top line. Our EBITDA 3 deteriorated only by 3.7%, coming from 72.5 million in the first 6 months last year to now roughly 70 million in 2026 H1, where does it come from?

Speaker #4: On the one hand side, of course, we got rid of the loss-making business in carbon fibers. We see on the other hand, the down payments or the contract renegotiations and the compensation payments in there.

Speaker #4: And in the end, it also reflects the weak business in the high-margin graphite solution business and the process tech business. Our EBITDA pre-margin reaches 17.7%, which shows a very healthy margin, at least if you include the compensation payment.

Speaker #4: Coming to graphite solution, the biggest business unit and they stand for more than 50% of our overall sales. There we see an increase in the sales coming from 221 million to 234.

Thomas Dippold: Coming to Graphite Solutions, the biggest business unit. They stand for more than 50% of our overall sales. There we see an increase in the sales coming from EUR 221 million to EUR 234 million. This is an increase by 6%, but it also includes, as I just said, the compensation payments for the adjustment of the supply contracts with the take-or-pay customers, mainly in the silicon carbide business. If we exclude this, we would see a slight decline in our turnover by -6%, which represents the weak economy that we're currently dealing in, and a rather stable or maybe a slightly negative business in all other market segments. Our EBITDA pre is up 14.2%, coming from EUR 14.8 million in H1 last year to now EUR 46.6 million in H1 2026, again, affected by the compensation payments.

Speaker #4: This is an increase by 6%. But it also includes, as I just said, the compensation payments for the adjustment of the supply contracts with the take-or-pay customers mainly in the silicon carbide business.

Speaker #4: If we exclude this, then we would see a slight decline in our turnover, by minus 6%, which represents the weak economy that we are currently dealing in.

Speaker #4: And a rather stable or maybe a slightly negative business in all other market segments. Our EBITDA 3 is up 14.2%, coming from 14.8 in the first 6 months last year, to now in H1 2026, 46.6, again affected by the compensation payments.

Speaker #4: Our EBITDA pre-margin in graphite solution reaches some very healthy almost 20%, again slightly negative impacted by currency effects. Process tech: again, a weak quarter, same as Q1.

Thomas Dippold: Our EBITDA pre-margin in Graphite Solutions reaches some very healthy, almost 20%, again, slightly negative impacted by currency effects. Process Tech, again, a weak quarter, same as Q1. We see a huge drop in our overall turnover by almost 30%, 28.2% to be precise. We reached EUR 70.2 million in H1 last year, and we now drop to a little bit more than EUR 50 million in our top line. We still see a very weak market situation. The conflict in the Middle East doesn't help because it also makes sure that every investment decision in the chemical business is currently postponed or at least put on hold. We see large uncertainties, and they are really hitting us with the order placement from our chemical industry customers.

Speaker #4: We see a huge drop in our overall turnover, by almost 30%, 28.2 to be precise. We reached 70.2 million in the first 6 months last year, and we now drop to a little bit more than 50 million in our top line.

Speaker #4: We still see a very weak market situation, also the conflict in the Middle East doesn't help because it also makes sure that every investment decision in the chemical business is currently postponed or at least put on hold.

Speaker #4: So we see a large uncertainty and there really hitting us with the order placement from our chemical industry customers. We see a lot of maintenance postponements because the assets are not fully utilized.

Thomas Dippold: We see a lot of maintenance postponements because the assets are not fully utilized, none of the effect is really helping us, at least top line-wise, in the business of Process Tech. As a matter of fact, EBITDA pre is heavily impacted on that. The huge demand which we saw over the development over the last three years, where we could increase the margin quite a bit, and there was really a very strong demand, and our capacities were almost fully loaded and fully utilized. This has turned to the negative. Our EBITDA pre reaches EUR 7.3 million in H1 2026, whereas we had almost EUR 20 million in the same period of time last year. The market situation, as everybody on our level of the value chain, is underutilized.

Speaker #4: And none of the effects is really helping us, at least top-line-wise, in the business of Process Tech. And as a matter of fact, also EBITDA 3 is heavily impacted by that.

Speaker #4: The huge demand which we saw over the development over the last 3 years, where we could increase the margin quite a bit, and there was really a very strong demand and our capacities were almost fully loaded and fully utilized.

Speaker #4: This has turned to the negative. Our EBITDA 3 reaches 70.3 in the first 6 months of 2026, whereas we had almost 20 million in the same period of time, last year.

Speaker #4: The market situation is every body in our on our level of the value chain, is underutilized. There's price pressure from the few orders that are out there in the market, and the margin decreased then as a matter of fact, to 14.5%, coming from 28.3 in the same period last year.

Thomas Dippold: There's price pressure from the few orders that are out there in the market, the margin decreased then, as a matter of fact, to 14.5%, coming from 28.3% in the same period last year. Last but not least, on slide seven, we show you the development of our Fiber Composites business. As a reminder, Fiber Composites, since beginning of the year, is a combination of the former business units, Carbon Fibers and Composite Solutions. We merged the two businesses as we restructured Carbon Fibers to a profitable core. There you see also a sales decline by a little bit more than one third, coming from EUR 150 million last year to now roughly EUR 100 million in H1 2026. This is exactly the aforementioned decline coming from the restructuring.

Speaker #4: Last but not least, on slide number 7, we show you the development of our fiber composite business. As a reminder, fiber composite, since beginning of the year, is a combination of the former business units, carbon fiber, and composite solutions.

Speaker #4: We merged the two businesses as we restructured carbon fiber to a profitable core. And there you see also a sales decline by a little bit more than one-third, coming from 150 million last year to now roughly 100 million in H1 2026.

Speaker #4: This is exactly the aforementioned decline coming from the restructuring. This is 50 million which stands for the continued business that we had in the first 6 months last year until the closure of Lavradio and then subsequently in Q3.

Thomas Dippold: This is EUR 50 million, which stands for the continued business that we had in H1 last year until the closure of Lavradio, then subsequently in Q3, the idling of the capacities in Moses Lake, United States. This was expected. If you turn it around, you see that all our other business, or the continued business with carbon fiber, is at least flat. We can keep our sales. When you look at the bottom line at our EBITDA pre, there you see a huge improvement in profitability coming from EUR 10.6 million in H1 last year to now almost EUR 19 million. I think that clearly shows how successful we were with the restructuring of our carbon fiber business. We also kept our promises.

Speaker #4: The idling of the capacities in Moses Lake, United States. And this was expected and if you turn it around, then you see that our all our other business, or the continued business with carbon fiber, is at least flat.

Speaker #4: And we can keep our sales. When you look at the bottom line, at our EBITDA³, there you see a huge improvement in profitability, coming from €10.6 million in the first 6 months last year to now almost €19 million. I think that clearly shows how successful we were with the restructuring of our carbon fiber business.

Speaker #4: We also kept our promises. You probably remember that if you follow our calls, we once mentioned that our restructuring cost shall not exceed 50 million euro over a course of 2 years.

Thomas Dippold: You probably remember that, if you follow our calls, we once mentioned that our restructuring cost shall not exceed EUR 50 million over a course of two years. We have accomplished that target. Our overall restructuring costs were a little bit more than EUR 40 million, we did it in less than one year, the overall restructuring. I think we clearly showed that it was a very rigid and consequent restructuring, we made it, so to speak, in time and in budget. In the profitability of our Fiber Composites business, you see that there's also a contribution from BSCCB, our equity consolidated JV with Brembo. It also increased their contribution there, but we don't show any sales. We just show our part of the net result in that.

Speaker #4: We have accomplished the target our overall restructuring cost were a little bit more than 40 million and we did it in less than 1 year.

Speaker #4: The overall restructuring. So I think we clearly showed that it was a very rigid and consequent restructuring and we made it, so to speak, in time and in budget.

Speaker #4: In the profitability of our fiber composite business, you see that there's also a contribution from BSCCB, our equity consolidated JV, with Brembo. o. It also increased their contribution there.

Speaker #4: But we don't show any sales we just show our part of the net result in that. If you well, if you take out this margin from the margin the EBITDA pre-margin, then we reach a very healthy 11.5 margin in our fiber composite business, which I think is quite remarkable that after 1 year of restructuring and the combination of these two business units.

Thomas Dippold: If you take out this margin from the margin, the EBITDA pre margin, we reach a very healthy 11.5% margin in our Fiber Composites business, which I think is quite remarkable, that after one year of restructuring and the combination of these two business units, we can achieve that. Last but not least, a few more KPIs on the bottom line of the P&L cash flow and also balance sheet ratios. Our net result improved drastically. It went back into black figures. Last year, it was affected by the restructuring, where after H1, we have reached a EUR -31 million net result. It turned positive again and improved drastically by more than EUR 40 million. We now reach EUR 11.8 million. It is a very stable back in black development.

Speaker #4: We can achieve that. And last but not least, a few more KPIs on the bottom line of the P&L, cash flow and also balance sheet ratios.

Speaker #4: Our net result improved drastically. It went back into black figures last year. It was affected by the restructuring, where after 6 months of the year, we have reached minus 31 negative net result.

Speaker #4: It turned positive again and improved drastically by more than €40 million. We now reach €11.8 million. So, it's a very stable 'back in black' development and without the impairments that we have seen last year.

Thomas Dippold: Without the impairments that we have seen last year, our net result would also have been positive in the same period of time. SGL continues to show black results also at the very bottom of the P&L. Same with the free cash flow. The free cash flow, yes, it includes the compensation payments, but even without them, we show on a quarterly basis, positive free cash flow results. This is a very strong achievement to have EUR 31.4 million as free cash flow after H1 in this year. A huge contribution, a huge improvement compared to last year. Last but not least, thanks to the strong free cash flow also, our net financial debt could be lowered by almost EUR 20 million. It now reaches a leverage ratio of 0.6. This is super stable and super healthy. Same with the equity ratio.

Speaker #4: Our net result would also have been positive in the same period of time. So SGL continues to show black results, also at the very bottom of the P&L.

Speaker #4: Same with the free cash flow. The free cash flow, yes, is includes the compensation payments, but even without them, we show on a quarterly basis positive free cash flow results.

Speaker #4: And this is a very strong achievement to have 40 no, 31.4 6 months in this year. A huge contribution, a huge improvement compared to last year.

Speaker #4: And last but not least, thanks to the strong free cash flow, also a net financial debt could be lowered by almost 20 million euro.

Speaker #4: It now reaches a leverage ratio of 0.6, so this is super stable and super healthy. Same with the equity ratio—it increased to almost 40%.

Thomas Dippold: It increased to almost 40%. The ROCE remains stable at roughly 10%, and I think that was a very strong start into 2026. After H1, we are still happy with the way at least the balance sheet and also the bottom line of the P&L develops. Having said that, I hand over to Andreas for his remarks.

Speaker #4: The ROCE remains stable at roughly 10%. And I think that was a very strong start into 2026 after 6 months. We are still happy with the way at least the balance sheet and also the bottom line of the P&L develops.

Speaker #4: And having said that, I hand over to Andreas for his remarks.

Speaker #1: Thank you, and a warm welcome also from my side. First and foremost, I’m happy that, on the basis of the first half Thomas explained, we are well on track to deliver on our guidance for 2026.

Andreas Klein: Thanks. A warm welcome also from my side. First and foremost, I am happy that on the basis of H1 Thomas explained, we are well on track to deliver on our 2026 guidance. At the same time, SGL Growth 2030 is generating a lot of positive momentum, and that is only less than half a year after its rollout. We want to give you a couple of insights on where we stand and the momentum we have generated so far. In the area of semiconductor, next to the already explained talks with our customers on adapting the existing contracts and building the future collaboration, we currently see a positive momentum in the market, especially in China and SiC. That is mainly volume, but also a price stabilization we are seeing there currently. We have to wait a little bit.

Speaker #1: At the same time, SGL growth 2030 is generating a lot of positive momentum, and that's only less than half a year after its rollout.

Speaker #1: And we want to give you a couple of insights on where we stand and the momentum we have generated so far. In the area of semiconductor, next to the already explained talks with our customers on adapting the existing contracts and building the future collaboration, we currently see a positive momentum in the market, especially in China and SIC.

Speaker #1: And that's mainly volume, but also price stabilization we are seeing there currently. We have to wait a little bit; we have to be a little bit patient to see how sustainable this is.

Andreas Klein: We have to be a little bit patient how sustainable this is, but the momentum clearly is there, and that's a positive sign. On top of that successful market launch of our novel coating product continued, and it's clearly possible to say that there is outstanding customer feedback on the performance of these products, and this we will hopefully be able to leverage fully in the calendar year 2027. In the field of nuclear, we have announced on Monday that we have reached a new agreement with X-energy to expand our nuclear graphite production capacities, and that's mainly affecting our production site in Chedde, in France. This investment really positions us as a key supplier and also gives us capacities to develop even beyond our SGL Growth 2030 horizon into the future.

Speaker #1: But the momentum clearly is there and that's a positive sign. On top of that, successful market launch of our novel coating products continued and yeah, it's clearly possible to say that there is outstanding customer feedback on the performance of these products and this we will hopefully be able to leverage fully in the calendar year 2027.

Speaker #1: In the field of nuclear, we have announced on Monday that we have reached a new agreement with X-energy to expand our nuclear graphite production capacities.

Speaker #1: And that's mainly affecting our production site in Chett in France. And this investment really positions us as a key supplier and also gives us capacities to develop even beyond our SGL Growth 2030 horizon into the future.

Andreas Klein: In space, we are successfully progressing in establishing and also expanding customer relationships, and that's mainly affecting heat-resistant materials for rocket nozzle production. Very positive development penetrating the market here. In the area of defense, we are very active at various trade shows in the H1, really expanding our network in the industry, both in the drone, but also beyond applications. In the field of drone projects, we have developed first prototype parts, and we are currently in initial sampling and bidding processes. These processes are running well, and we expect to see first relevant contributions in 2028, if not earlier. Last but not least, in aero, we managed to double our production volume as a supplier of materials for retrofit floor panels.

Speaker #1: In space, we are successfully progressing in establishing and also expanding customer relationships. And that's mainly affecting heat resistant materials for rocket nozzle production so very positive development penetrating the market here.

Speaker #1: In the area of defense, we are very active at various trade shows in the first half, really expanding our network in the industry, both in the drone sector and also beyond applications.

Speaker #1: And in the field of drone projects, we have developed first prototype parts and we are currently an initial sampling and bidding processes. And these processes are running well and we expect to see first relevant contributions in 2028 if not earlier.

Speaker #1: Last but not least, in aero we managed to double our production volume as a supplier of materials for retrofit floor panels. And due to the structure of that industry this is really supposed to be a lever into further aero applications for SGL and for our lightweight products.

Andreas Klein: Due to the structure of that industry, this is really supposed to be a lever into further aero applications for SGL and for our lightweight products. In summary, it is great to see the SGL Growth 2030 progress so far, and we consider it being well on track towards our EUR 1 billion sales target in 2030. At the same time, we can confirm our guidance 2026, and that's irrespective of still challenging macroeconomics, of ongoing geopolitical uncertainties, and several key markets remaining weak. Thank you very much for your attention.

Speaker #1: So in summary, it is great to see the SGL growth 2030 progress so far. And we consider it being well on track towards our 1 billion euro sales target in 2030.

Speaker #1: At the same time, we can confirm our guidance 2026. And that's irrespective of still challenging macroeconomics of ongoing geopolitical uncertainties and several key markets remaining weak.

Speaker #1: Thank you very much for your attention.

Speaker #2: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone that confirms that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star one at this time. Our first question comes from Lars von Cleff, Deutsche Bank. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question.

Speaker #2: Anyone who has a question may press star one at this time. Our first question comes from Lars von Klef, Deutsche Bank. Please go ahead.

Speaker #3: Yes, thank you very much. Good afternoon. A couple of smaller questions if I may. Following the 29 million already received in H1, should we expect further compensation payments from the semiconductor customer for the remainder of 26?

Lars Vom-Cleff: Yes, thank you very much. Good afternoon. A couple of smaller questions, if I may. Following the EUR 29 million already received in H1, should we expect further compensation payments from the semiconductor customer for the remainder of 2026? If so, what amount should we build into our models in this case?

Lars Vom Cleff: Yes, thank you very much. Good afternoon. A couple of smaller questions, if I may. Following the EUR 29 million already received in H1, should we expect further compensation payments from the semiconductor customer for the remainder of 2026? If so, what amount should we build into our models in this case?

Speaker #3: And if so, what amount should we build into our models in this case?

Speaker #2: Hello Lars, this is Thomas. Yeah, we are currently in negotiation as I just said. We have reached agreement with two of the contracts we are in of course in discussions with others.

Thomas Dippold: Hello, Lars, this is Thomas. Yeah, we are currently in negotiation. As I just said, we have reached agreement with two of the contracts. We are, of course, in discussions with others. Some tend to just expand the contract, then, of course, it doesn't have an effect with a compensation payment. There might be something coming up in the next quarters. Let's put it this way, the big chunk of it has been renegotiated already.

Speaker #2: Some tend to just expand the contract, then of course it doesn't have an effect with a compensation payment. There might be something coming up in the next quarters.

Speaker #2: But let's put it this way, the big chunk of it has been renegotiated already.

Speaker #3: That's already helpful. Thank you very much. And then looking at the divisions and your guidance, I mean process technology sales declined 28% in the first half.

Lars Vom-Cleff: That's already helpful. Thank you very much. Then looking at the divisions and your guidance, Process Technology sales declined 28% in H1, divisional EBITDA pre more than halved. Unless I'm mistaken, you are still guiding for only a slight decline in both metrics for the full year. My question would be, does this guidance remain valid?

Lars Vom Cleff: That's already helpful. Thank you very much. Then looking at the divisions and your guidance, Process Technology sales declined 28% in H1, divisional EBITDA pre more than halved. Unless I'm mistaken, you are still guiding for only a slight decline in both metrics for the full year. My question would be, does this guidance remain valid?

Speaker #3: Divisional EBITDA pre more than halved. Unless I'm mistaken, you are still guiding for only a slight decline in both metrics for the full year.

Speaker #3: So my question would be: does this guidance remain valid?

Speaker #2: What we see in process tech, we see a little bit of stabilization in the order situation. And right now, but on the low level.

Thomas Dippold: What we see in Process Tech, we see a little bit of stabilization in the order situation right now, but on the low level. We always said that the lead time for the, at least projects, maybe not in maintenance. There still might be the need for maintenance and some parts and service business also in H2. If it catches up, this could improve the situation on short-term basis. When we talk about the project, all projects that we get awarded right now will be turned into sales maybe beginning of 2027. We see the development of Process Tech in the remaining six months of the year on the level where we are right now, maybe a little bit better, but not a magic turnaround story.

Speaker #2: We always said that the lead time for the at least projects, maybe not in maintenance, there still might be the need for maintenance and some parts and service business also in the second half of the year if it catches up.

Speaker #2: This could improve the situation. On short-term basis, but when we talk about the projects, all projects that we get awarded right now will be yeah will be turned into sales and maybe beginning of 2027.

Speaker #2: So we see the development of process tech in the remaining six months of the year on the level where we are right now. Maybe a little bit better, but not yeah magic turnaround stories.

Speaker #3: Yeah, that's helpful. Thank you. And then maybe a similar question on fiber composites. Here we saw EBITDA pre rising almost 80% in H1. Yet you are guiding for only a slight improvement for the full year.

Lars Vom-Cleff: That's helpful. Thank you. Then maybe a similar question on Fiber Composites. Here we saw EBITDA pre-rising almost 80% in H1. Yet you are guiding for only a slight improvement for the full year. To me, that looks rather conservative after six months

Lars Vom Cleff: That's helpful. Thank you. Then maybe a similar question on Fiber Composites. Here we saw EBITDA pre-rising almost 80% in H1. Yet you are guiding for only a slight improvement for the full year. To me, that looks rather conservative after six months

Speaker #3: To me, that looks rather conservative after six months.

Thomas Dippold: This is true, you also have to see that a lot of the EBIT improvement can be attributed to the loss-making business in the first six months of last year, which we just stopped and turned around. You can't duplicate that in the second half of the year after the business has been closed. Of course, it doesn't make any losses anymore. This positive effect you can have only once. Of course, then subsequently for Moses Lake, it also goes until August last year. The big loss-making unit was, of course, Lavradio, and this is what we closed amidst or towards the end of Q2 last year. This is the kind of compensation in there. You also have to bear in mind that our BSCCB contribution is also EUR 3 million higher than it was last year.

Speaker #2: This is true, but you also have to see that in a lot of the EBIT improvement is can be yeah attributed to the loss making business in the first six months of last year, which we just stopped and turned around.

Speaker #2: And you can't duplicate that in the second half of the year after the business has been closed. Then of course it does make any losses anymore.

Speaker #2: And this positive effect you can have only once and of course then subsequently for Moses Lake it also goes until August last year. But the big loss making unit was of course Lavradio and this is what we closed midst or towards the end of Q2 last year.

Speaker #2: And this is the kind of compensation in there. And you also have to bear in mind that our BSCCB contribution is also 3 million higher than it was last year.

Speaker #2: So we have to, a little bit, compare it like for like. Then maybe what we guided there can be better reconciled.

Thomas Dippold: We have to a little bit compare it like for like, then maybe what we guided there can be better reconciled.

Lars Vom-Cleff: Understood and much appreciated. Then maybe a quick last one, more or less rather housekeeping. On the corporate division, most difficult division to forecast. You expect a significant year-on-year decline after a EUR 3.4 million loss last year, modeling 2026. Can we simply extrapolate the EUR 3 million H1 loss and arrive at a full year 2026 estimate of roughly -EUR 6 to 7 million, or would that be too easy?

Lars Vom Cleff: Understood and much appreciated. Then maybe a quick last one, more or less rather housekeeping. On the corporate division, most difficult division to forecast. You expect a significant year-on-year decline after a EUR 3.4 million loss last year, modeling 2026. Can we simply extrapolate the EUR 3 million H1 loss and arrive at a full year 2026 estimate of roughly -EUR 6 to 7 million, or would that be too easy?

Speaker #3: Understood and much appreciated. And then maybe a quick last one. More or less rather housekeeping. On the corporate division, most difficult division to forecast.

Speaker #3: You expect a significant year-on-year decline after 3.4 million loss last year. Modeling 26, can we simply extrapolate the 3 million H1 loss and arrive at a full year 26 estimate of roughly negative 6 to 7 million or would that be too easy?

Thomas Dippold: It's not too easy. It can be seen in this way. You have to see in corporate, I understand a little bit why it's difficult for you to predict that or to model that because we have a little bit of sales in there. The sales are more or less a result plus cash, because we collect a lot of rental income in there. What you see as sales are some services which we do for BSCCB on our site in Meitingen, but the big chunk of it are rental income. We have increased a little bit of rent because we rented out some unused buildings in our Meitingen site to external parties, which moved in there and now produce on our site, which is of course helping there.

Speaker #2: It's not too easy. It can be seen in this way. You have to see in corporate I understand a little bit why it's difficult for you to yeah predict that or to model that because we have a little bit of sales in there.

Speaker #2: And the sales more or less result plus cash, because we collect a lot of rental income in there. So, what you see as sales are some services which we do for BSCCB and our site in Meitingen.

Speaker #2: But the big chunk of it are rental income. And we have increased a little bit of rent because we rented out some unused buildings in our Meitingen site.

Speaker #2: To external parties which moved in there and now produce on our site which is of course helping there. And but you can expect that we keep our corporate cost and our overhead cost on a very strict review and you won't see major increases there.

Thomas Dippold: You can expect that we keep our corporate cost and our overhead cost on a very strict review, and you won't see major increases there.

Speaker #3: Okay, perfect. That's really helpful. I'll go back into the line.

Lars Vom-Cleff: Okay, perfect. That's really helpful. I'll go back into the line.

Lars Vom Cleff: Okay, perfect. That's really helpful. I'll go back into the line.

Speaker #2: Thank you.

Thomas Dippold: Thank you.

Speaker #1: As a reminder, if you wish to register for a question, please press star followed by one on your telephone. Ladies and gentlemen, there are no further questions.

Operator: As a reminder, if you wish to register for a question, please press star followed by one on your telephone. Ladies and gentlemen, there are no further questions. I would now like to turn the conference back over to Claudia Kellert for any closing remarks.

Speaker #1: I would now like to turn the conference back over to Claudia Kellert for any closing remarks.

Speaker #4: Thank you. Yeah. No further questions. Then I think all our reporting papers answer all the questions. Thanks for your participation. You will find the presentation and our reporting on our webpage and maybe if additional questions will rise so please call the investor relations teams.

Claudia Kellert: Thank you. Yeah, no further questions. I think all our reporting papers answer all the questions. Thanks for your participation. You will find the presentation and our reporting on our webpage. Maybe if some additional questions will rise, please call the investor relations team. Thank you, and have a nice afternoon. Bye-bye.

Speaker #4: Thank you. And have a nice afternoon. Bye-bye.

Speaker #1: Ladies and gentlemen, the conference is now over. Thank you for choosing QuartzCall and thank you for participating in the conference. You may now disconnect your lines.

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

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Q2 2026 SGL Carbon SE Earnings Call

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