Mersen (MRN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 sales reached €305 million, down 2.5% reported and 6.4% organically, mainly due to declines in solar and SiC semiconductors, but with strong growth in wind, rail, and aeronautics.

• Acquisitions contributed approximately €10 million to sales, offsetting some declines and strengthening the US isostatic graphite position.

• The company maintains a strong international footprint, producing mainly in the countries where products are sold, limiting currency and tariff impacts.

Financial highlights

• Q1 sales: €305 million, -2.5% reported, -6.4% organic year-over-year.

• Price effect contributed about 1% in Q1; acquisitions and disposals netted €10 million in sales.

• Advanced Materials segment sales were €162 million, down 6.1% organically; Electrical Power segment sales were €143 million, up 2% reported.

• SiC semiconductor sales dropped to just over €10 million; solar sales fell below €15 million in Q1.

Outlook and guidance

• 2025 guidance confirmed: reported sales stable or up vs. 2024, organic growth between -5% and 0%, with a stronger H2 expected.

• EBITDA margin guidance: 16%-16.5%; recurring operating margin: 9%-9.5%.

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

• H2 expected to outperform H1, with improvements in electronics and process industries.