Mersen (MRN) H1 2025 earnings summary

Executive summary

• First-half 2025 sales reached €610.4 million, down 4% organically and 2.2% reported year-over-year, with improved Q2 momentum and strong transportation and power electronics offsetting solar and semiconductor weakness.

• EBITDA margin was 16% and operating margin before non-recurring items 9.5%, both in line with annual guidance, reflecting robust profitability despite lower volumes.

• Net cash from operating activities rose over 40% year-over-year to €78.7 million, driven by inventory optimization; net debt remained stable at €380 million, with leverage at 2.2x.

• CEO transition announced: Salvador Lamas to succeed Luc Themelin after the 2025 AGM.

• US private placement financing arranged, extending average debt maturity to 4.9 years; refinancing of 2026 Schuldschein in planning.

Financial highlights

• Consolidated sales: €610.4 million, down 4% at constant scope and exchange rates, reported decline of 2.2% year-over-year.

• EBITDA before non-recurring items: €97.8 million (16.0% of sales), down 7% year-over-year.

• Operating income before non-recurring items: €57.8 million (9.5% margin), compared to €70.1 million (11.2%) in H1 2024.

• Net income attributable to shareholders: €29.3 million, down from €38.9 million in H1 2024.

• Operating cash flow increased over 40% year-over-year to €78.7 million, with a WCR ratio improvement to 19.2%.

Outlook and guidance

• Full-year 2025 guidance confirmed: reported sales expected to be stable or slightly positive, with organic growth between -5% and 0%.

• EBITDA margin guidance: 16–16.5%; operating margin: 9–9.5% for the year.

• Capital expenditure planned at €160–170 million, including €15 million deferred from 2024.

• H2 expected to see continued momentum in wind power, a slight solar rebound, and higher SiC deliveries.