Mersen posted fourth-quarter revenue performance that beat analyst projections, registering a modest like-for-like sales decline of 0.5% versus expectations for a 3.9% contraction. The French capital goods group achieved a full-year 2025 like-for-like sales decrease of 3.2%, landing at the top end of the companys revised guidance range of -5% to -3%.
The company said that weakness concentrated in its silicon carbide (SiC) and Solar exposures - which together account for 9% of group sales - masked stronger underlying trends. Stripping out that 9% of sales, the remainder of Mersens portfolio grew by an estimated 5-6% like-for-like in Q4 and roughly 4% for the full year 2025.
Segment performance
Within Mersens reporting structure, the Electrical Power division was the standout in the quarter, expanding 6.8% on a like-for-like basis. Management cited solid demand in power conversion and electrical distribution, with particular strength in projects serving data centers and electrical grids.
By contrast, the Advanced Materials division recorded a like-for-like decline of 6.6% in Q4. While negative, that fall was materially less severe than the 14.3% drop some analysts had forecast.
Turning to the SiC business specifically, sales in Q4 rose to 15 million from 10 million in Q3. Despite this sequential improvement, company leadership cautioned that they do not expect a meaningful rebound across 2026, and see significant acceleration in SiC volumes arising only in 2027.
Profitability, cash flow and guidance
Mersen projects an adjusted EBIT margin of 9.2% for 2025, squarely inside its communicated margin band of 9.0% to 9.5%. The business has also trimmed its capital expenditure plans, lowering the 2025 capex target to 135 million from the 140-150 million range announced in October. Management indicated the reduced capex should support slightly positive free cash flow in 2025.
Looking further ahead, Mersen reiterated that free cash flow is expected to return to positive territory in 2026. The company also reaffirmed all of its 2029 targets, including 1.7 billion in sales and an adjusted EBIT margin of approximately 12%.
Interpretation
The quarter highlights a mixed operating picture: electrical infrastructure end-markets provided tangible uplift while advanced-materials exposures tied to SiC and Solar remain sources of pressure. Managements decision to reduce capex and project a near-term return to positive cash generation underscores a cautious balance between protecting liquidity and positioning for medium-term growth targets.