Mersen: Net Income Plummets by 76%
Mersen concluded the year 2025 with a revenue of 1,186 million euros, down by 3.2% in organic terms. While the group maintained its EBITDA margin before non-recurring items at 16%, net income collapsed to 14.1 million euros, impacted by a 45 million euro asset impairment with no cash impact. These mixed results reflect the turbulence in the SiC semiconductor sector and the Chinese solar market, with a recovery expected in 2026.
Mixed Results for 2025
The giant in advanced materials and electrical energy posted mixed results for 2025. Although the group maintained its EBITDA margin before non-recurring items at 16.0%, down slightly from 16.5% in 2024, consolidated revenue contracted by 3.2% organically to 1,186 million euros. This decline masks very contrasting sector dynamics: the markets for electrical distribution, wind energy, and rail transport showed solid performances, while the solar market saw a sharp decline due to excess inventory at Chinese photovoltaic cell manufacturers. The SiC semiconductor sector also experienced a significant setback, reflecting the delay in demand from the electric vehicle market. The impact of currency fluctuations amounted to over 40 million euros, notably due to the depreciation of the American and Canadian dollars and the Chinese renminbi.
Net Income Reveals a Tougher Situation
Beyond the apparent stability of margins, the net income figures reveal a more challenging situation. Net income attributable to Mersen shareholders collapsed to 14.1 million euros in 2025 from 59.0 million euros in 2024, a decline of 76%. This drop primarily stems from a 45 million euro asset impairment with no cash impact, including a 37 million euro loss on underutilized assets for manufacturing polycrystalline silicon carbide (p-SiC) substrates, following a downward revision of volumes expected by Soitec due to a slowdown in the electric vehicle market demand. The return on capital employed (ROCE) also weakened to 8.4% from 10.8% in 2024, reflecting the group's major investment cycle. On a positive note, the group returned to positive free cash flow in 2025, a year earlier than anticipated, thanks to a 29 million euro reduction in inventory and an optimization of working capital needs, brought down to 17.8% of sales from 19.7% in 2024.
Mersen Bets on Growth in 2026 with Cautious Guidance
Mersen is betting on a return to growth in 2026 with cautious guidance. The group anticipates organic revenue growth between 2% and 6%, driven by all its markets except the solar sector, which is expected to remain depressed at a low level. The EBITDA margin before non-recurring items is expected to be around 16% (± 50 basis points), while the operating margin before non-recurring items should reach 8.5% (± 50 basis points), penalized by a significant increase in depreciation. Capital investments are expected to significantly decrease to between 90 and 100 million euros. In the medium term, the group confirms its 2029 targets: revenue around 1.7 billion euros, an operating margin before non-recurring items of 12%, and a ROCE of 13%. Mersen will keep its dividend unchanged at 0.90 euro per share, validating its confidence in the future trajectory despite current turbulences.
