SES Stock Forecast & Price Target

SES AI Corp is positioning itself favorably for future growth, with an expectation of robust performance in 2026 as it capitalizes on capital investments and the synergies from metals recycling. The company's recent EBITDA margin of 37.0% reflects a strong improvement, attributed to a favorable product mix and effective general and administrative cost initiatives. Furthermore, the anticipated commissioning of multiple growth projects, alongside a rebound in metals recycling, supports a positive outlook for SES AI's operational capabilities and financial metrics.

SES AI Corp faces significant challenges due to reduced customer activity and declining volumes across various operational segments, including produced water, oil recovery, and industrial landfills. The company's management has lowered full-year guidance for both EBITDA and discretionary free cash flow, reflecting a negative outlook driven by weaker commodity prices and ongoing macro uncertainties. Historical precedents indicate that SES AI's financial performance is vulnerable to oil and gas market downturns, as evidenced by substantial revenue declines in previous years.