Mersen (MRN) H2 2025 earnings summary

Executive summary

• Sales reached €1,186 million in 2025, down 3.2% organically, with resilience in transportation, wind power, electrical distribution, and power grid markets offsetting declines in solar and SiC semiconductors.

• Strong growth in electrical distribution, wind energy, rail, and data centers offset declines in solar and SiC; notable business wins include Indian rail pantograph, CATL nomination, and US graphite contract.

• Significant progress in India and new contracts with major players like CATL and DLA.

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

Financial highlights

• EBITDA before non-recurring items was €190.4 million (16.0% margin), in line with guidance; operating income before non-recurring items was €109.1 million (9.2% margin).

• Net income attributable to shareholders was €14.1 million, impacted by €45 million in asset impairments, mainly on the p-SiC project.

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

• Capital expenditure reduced to €129 million in 2025, with 85% related to the semiconductor market.

• Working capital requirement at a historic low of 17.8% of sales.

Outlook and guidance

• 2026 guidance: organic sales growth between 2% and 6%, EBITDA margin before non-recurring items around 16% (±50 bps), and operating margin before non-recurring items at 8.5% (±50 bps).

• Capital expenditure for 2026 expected between €90 million and €100 million, down from €129.3 million in 2025.

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

• Energy transition expected to drive growth, with 65% of sales targeted from this segment by 2030.