SGL Carbon to Boost Cash Flow with $70M US Facility Sale

SGL Carbon is set to benefit from a $70 million influx of capital following the completed sale of its former carbon fiber facility in Moses Lake, USA, to Refactor Moses Lake LLC. The deal, announced October 23rd, will see $45 million paid in 2026 and the remaining $25 million in 2027.

The sale generates an estimated pre-tax gain of approximately $46 million for SGL Carbon, based on the facility’s market valuation of around $24 million as of September 30, 2026. Critically, the transaction is expected to bolster the company’s free cash flow for 2026, increasing the forecast by $45 million – a significant revision from the prior expectation of matching the previous year’s $37 million. This positive cash flow impact prompted Jefferies to maintain a “Hold” rating on the stock with a price target of €5.50, citing the sale as an unexpected revenue boost.

The disposal of the Moses Lake facility is part of a broader restructuring initiated in August 2025, aimed at discontinuing unprofitable business activities within the Carbon Fibers business unit. While the sale will not impact SGL Carbon’s previously communicated sales and earnings forecasts for 2026, the increased free cash flow provides greater financial flexibility. The transaction’s positive impact on cash flow was reflected in a greater than 3% rise in SGL Carbon’s share price on the Frankfurt Stock Exchange.

The sale of the Moses Lake facility and the resulting financial benefits represent a strategic move for SGL Carbon, allowing the company to realize value from a non-core asset and strengthen its cash position. The $46 million gain, coupled with the $45 million cash inflow, will contribute to improved financial metrics in 2026, enabling the company to potentially reinvest in core areas or reduce debt. This development positions SGL Carbon to navigate ongoing pressures related to environmental regulations and industrial sector headwinds.