Mersen (MRN) H2 2025 earnings summary

Executive summary

• 2025 sales reached €1,186 million, down 3.2% organically, with resilience in transportation, wind, electrical distribution, and power grid offsetting over 40% declines in solar and SiC semiconductor markets.

• EBITDA margin before non-recurring items was 16.0% (€190.4 million), in line with guidance, despite negative currency impacts, increased amortizations, and market headwinds.

• Net income attributable to shareholders was €14.1 million, impacted by €45–53 million in non-current items, including a €37 million non-cash impairment for p-SiC.

• Major contract wins included Indian rail pantographs, CATL nominations, and a US graphite contract, supporting future growth.

• Governance transition underway with a new management team taking over in 2026.

Financial highlights

• EBITDA margin held at 16%, matching guidance, with group EBITDA before non-recurring items at €190.4 million.

• Operating income before non-recurring items was €109.1 million (9.2% margin), impacted by lower volumes and higher amortization.

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

• Dividend payout set at €0.90 per share (39% payout ratio), unchanged from 2024.

• Leverage ratio at 2.2x, within policy range, with net debt at €382.5 million and average debt maturity of five years.

Outlook and guidance

• 2026 guidance: organic sales growth of 2–6%, EBITDA margin before non-recurring items at 16% ±50bps, operating margin at 8.5% ±50bps, and capex between €90 million and €100 million.

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

• Energy transition markets expected to represent 65% of sales by 2030.