Mersen (MRN) H2 2025 earnings summary

Executive summary

• 2025 marked a year of resilience amid market slowdowns, especially in solar and SiC segments, but strong performance in electrical distribution, wind, rail, and data centers offset declines.

• Notable business wins included major contracts in India (pantographs), with CATL (fuses for batteries), and U.S. military graphite applications.

• Leadership transition planned for May 2026, with a new management team taking over.

Financial highlights

• 2025 sales reached €1,186 million, down 3.2% organically, with EBITDA before non-recurring items at €190.4 million (16% margin), in line with guidance.

• Net income attributable to owners was €14.1 million, impacted by €45 million in asset impairments, including a €37 million non-cash impairment for p-SiC.

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

• Capital expenditure reduced to €129 million in 2025, with further reductions planned.

• Working capital requirement dropped to 17.8% of sales, a historic low.

Outlook and guidance

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

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

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