Mersen (MRN) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 sales reached €296 million, reflecting a 3.1% organic year-over-year growth, marking a return to organic growth in line with expectations.

• Electrical Power segment led with 8.7% organic growth, driven by electrification, grid efficiency, data centers, and US electrical distribution.

• North America showed strong momentum with 8.2% organic growth, while Europe declined due to lower chemical deliveries; Asia returned to positive growth at 1.9%, led by India and Korea, despite weakness in China.

• Growth was supported by robust demand in data centers, grid quality, and energy transition sectors.

Financial highlights

• Organic growth for the quarter was 3.1%, with a 2% price increase and a negative currency impact of over €17 million, mainly from US dollar, RMB, and euro appreciation.

• Q1 2026 sales: Advanced Materials €158M (-1.4% organic), Electrical Power €138M (+8.7% organic).

• North America delivered 8.2% organic growth; Asia Pacific saw a 3.2% decline; Europe was down 1.9%.

• Data center sales doubled year-over-year in Q1, reaching €10 million.

• SiC sales rose from €10 million in Q1 2025 to €17 million in Q1 2026.

Outlook and guidance

• Full-year 2026 organic sales growth targeted between 2% and 6%, with stronger growth expected in H2.

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

• Capital expenditure planned at €90–100 million, a significant decrease from 2025.

• Guidance incorporates higher raw material costs, especially copper and silver, to be offset by price adjustments mainly in H2.

• Margins sensitive to volume growth, raw material costs, and non-recurrence of 2025 contract renegotiation benefits.