Mersen (MRN) H2 2025 earnings summary

Executive summary

• 2025 marked by resilience amid market slowdowns, especially in solar and SiC segments, but strong performance in electrical distribution, wind, rail, and data centers, with innovation and positioning in energy transition sectors.

• Leadership transition planned for May 2026, with Salvador Lamas taking over as CEO and a refreshed executive team.

• Notable business wins include new contracts in India (pantographs), CATL nomination for fuses, and a major US graphite contract.

• Strong focus on sustainability, with Scope 1 & 2 GHG emissions down 50% vs 2022 and recycling rates at 73%.

Financial highlights

• 2025 sales reached €1,186 million, down 3.2% organically, with negative FX impact of €40 million.

• EBITDA before non-recurring items at €190.4 million (16% margin), in line with guidance.

• Net income attributable to owners was €14.1 million, impacted by €45 million in asset impairments.

• Free cash flow turned positive at €6 million, a €61 million improvement from 2024, achieved one year ahead of plan.

• Debt increased slightly, leverage ratio at 2.2x, within policy and covenants.

Outlook and guidance

• 2026 organic sales growth expected between 2% and 6%, with stronger H2 performance.

• EBITDA margin guidance for 2026 at 16% ±50bps; operating margin before non-recurring items at 8.5% ±50bps.

• CapEx to decrease sharply to €90–100 million in 2026.

• By 2029, targets are €1.7 billion sales, 19% EBITDA margin, 12% operating margin, and 13% ROCE.