Mersen (MRN) Q4 2025 TU earnings summary

Executive summary

• Full-year 2025 reported sales reached €1,186 million, reflecting a 3.2% organic decline amid significant currency headwinds and mixed sector trends, with Q4 sales nearly stable year-on-year and sequential growth over Q3.

• Strong growth in wind, energy storage, power electronics, aeronautics, rail, and electrical distribution offset sharp declines in solar and SiC semiconductors, which fell over 40% year-over-year.

• Resilient performance in diversified end markets, with North America showing 0.7% growth and stability in transportation and power grid sectors.

• Strategic focus remains on CapEx discipline, operational efficiency, and selective investment to support long-term growth ambitions through 2029.

• Q4 2025 sales were €291 million, with a -0.5% organic decline year-over-year but a sequential improvement of +2.2% over Q3.

Financial highlights

• Currency effects, mainly from USD, RMB, and CAD, negatively impacted reported sales by over €40 million, partially offset by acquisitions, a 1.5% price increase, and a €22 million scope effect.

• EBITDA margin before non-recurring items held steady at around 16%, and operating margin is expected at about 9.2%, both within previously communicated guidance.

• CapEx for 2025 was reduced to approximately €135 million, below the low end of previous guidance.

• Advanced Materials segment sales were €613 million (-10.6% organic), while Electrical Power grew to €573 million (+6.0% organic).

• North America showed resilience with €510 million in sales (+0.7% organic), while Asia-Pacific declined by -13.0% organically.

Outlook and guidance

• 2026 capex is expected to be lower, supporting a return to positive free cash flow, with full 2026 guidance to be disclosed in March.

• No major rebound is expected in SiC or solar markets in 2026, with SiC recovery anticipated mid-2027.

• Medium-term ambition targets €1,700 million sales and 12% operating margin before non-recurring items by 2029.

• Strategic roadmap targets structurally attractive markets such as electrification, energy transition, and grid reinforcement.

• 2029 guidance confirmed.