PARIS — Mersen has released its sales figures for the second quarter of 2026 and its results for the six months ended June 30, 2026.
“Mersen’s first-half results are testament to the Group’s excellent positioning. Thanks to the diversity of its end markets, the strength of its global presence, and the agility of its organization, the Group’s first-half sales rose to €611 million, representing organic growth of 3.9%. The Group successfully leveraged momentum across several markets, including data centers, power electronics, silicon semiconductors, aeronautics and rail. This performance demonstrates the relevance of our positioning at the heart of electrification as well as today’s major energy and industrial transitions. Despite an environment characterized by varying trends, Mersen maintained solid margin, while continuing to focus on operational discipline, and retained a sound financial structure. Owing to these strong results, we are raising our full-year guidance, while keeping a close eye on economic trends. I would like to sincerely thank our teams for their dynamism and our customers for the trust they have placed in us.” ~Salvador Lamas, Mersen’s Chief Executive Officer
Second-quarter 2026 sales
Mersen’s consolidated sales in the second quarter of 2026 amounted to €315 million [USD 363 million], up 4.6% at constant scope and exchange rates compared with the second quarter of 2025. The currency effect was negative at €4 million [USD 4.61 million], mainly due to the weakening of the US dollar and the Indian rupee over the period. Prices increased by around 3% over the period and offset higher costs for raw materials to a large extent.
The Electrical Power segment continued to record strong growth during the quarter, driven by the rapid expansion of electrification and data centers. The contribution of the Advanced Materials segment was down compared with the second quarter of 2025, during which it was buoyed by the significant positive impact of renegotiated SiC semiconductor contracts. The fact that this impact has been more limited in 2026 created an unfavorable base for comparison. Excluding this base effect, the segment achieved growth in the second quarter.
First-half 2026 sales
Mersen’s consolidated sales in the first half of 2026 totaled €611.5 million [USD 705 million], up 3.9% at constant scope and exchange rates compared with the first half of 2025. Prices increased by around 2.5% over the period.
Performance by segment
The Group’s performance in the first half confirmed the diversity of its growth drivers. Development trends in markets relating to electrical infrastructure, electrical distribution, data centers, Si semiconductors, rail and aeronautics remained strong and partially offset the current weakness of the solar, SiC semiconductor and chemicals markets.
Sales for the Advanced Materials segment amounted to €319.6 million [USD 368 million], representing a limited decline of 1.9% on an organic basis. The solar market saw low business levels as expected, while other renewable energy markets (wind and hydropower) experienced growth. Transportation markets, and especially aeronautics and rail, continued to show good momentum. In the semiconductor market, slower growth for SiC semiconductors due to the non-recurring impact of the contract renegotiations in 2025, was largely offset by the very strong performance of Si semiconductors. However, the chemicals market is still in decline, due to the difficult situation in this industry.
Electrical Power sales totaled €291.9 million [USD 336 million] in the first half, up 11.1% on an organic basis. Most markets contributed equally to this performance, with electrical distribution in the United States recording especially strong growth, largely driven by the demand for data centers. Power electronics projects continued their upward trend. The electric vehicle market saw growth, thanks to the ramp-up of deliveries for ACC.
Performance by region
In North America, sales grew by 6.3% on an organic basis. Electrical distribution continued to drive sales in the region, due to sharply rising demand for data centers. Aeronautics and wind power also saw strong growth. However, the chemicals market was down slightly, whereas the buoyant Si semiconductor market offset the weaker SiC semiconductor market.
Sales in Europe saw a limited decline of 1.7% on an organic basis. Slower growth in chemicals held back performance significantly. Excluding this sector, the region would have seen a rise of more than 2%. Results also varied by country, with higher sales in France and Italy and lower sales in Germany and Spain.
Lastly, in Asia, the Group’s sales were strong, growing by 7.6% on an organic basis. The main contributors to this performance were India and South Korea, driven respectively by the rail and Si semiconductor markets. In China, the slowdown in sales to solar cell manufacturers continued to weigh on results, and the chemicals market was also weak.
EBITDA and operating income, both before non-recurring items
EBITDA before non-recurring items came to €97.4 million [USD 112.27 million], close to the level in the year-earlier period (€97.8 million) [USD 112.73 million]. It represented 15.9% of sales, as against 16.0% in the first half of 2025. At comparable exchange rates, it improved by 3.6%.
Depreciation and amortization amounted to €40.9 million (€40.0 million in the first half of 2025) [USD 47.15 million (USD 46.11 million in the first half of 2025)], up 5.9% at comparable exchange rates, related to the investments of the growth plan.
Operating income before non-recurring items was €56.5 million in the first half of 2026 [USD 65.13 million in the first half of 2026], corresponding to an operating margin before non-recurring items of 9.2%, slightly lower than in the first half of 2025. At comparable exchange rates, it grew by 2%.
The positive volume/mix effect largely offset the non-recurring effect related to the renegotiation of SiC semiconductor contracts in 2025. Price increases and productivity gains absorbed the rising costs of raw materials, energy and labor to a significant extent.
Advanced Materials segment
EBITDA before non-recurring items for the Advanced Materials segment was €52.9 million [USD 60.98 million], compared with €63.4* million [USD 73.08 million] in the first half of 2025 (€60.9* million at comparable exchange rates) [USD 70.20 million at comparable exchange rates]. It represented 16.6% of sales, as against 18.8%* in the first half of 2025. This decline mainly reflects the non-recurrence in 2026 of the positive impact from contract renegotiation with SiC semiconductor customers in 2025. In addition, price increases and productivity gains during the period offset higher costs for raw materials and labor.
Operating income before non-recurring items for the Advanced Materials segment amounted to €25.3 million [USD 29.16 million], corresponding to an operating margin before non-recurring items of 7.9%, compared with 10.5%* for the first half of 2025.
Electrical Power segment
EBITDA before non-recurring items for the Electrical Power segment was €54.7 million [USD 63.05 million], compared with €43.3* million [USD 49.91 million] in the first half of 2025 (€40.8* million at comparable exchange rates) (USD 47.03* million at comparable exchange rates). It represented 18.7% of sales, markedly higher than in the first half of 2025 (15.9%*), thanks to a strong volume effect. In addition, price increases and productivity measures largely offset higher costs for raw materials and labor in the first half. Further price increases are expected in the second half of the year to offset the remainder of the rise in costs for raw materials.
Operating income before non-recurring items for the Electrical Power segment amounted to €43.6 million [USD 50.26* million], up 32% from the first-half 2025 figure of €33.1* million [USD 38.15* million]. This corresponds to an operating margin of 14.9%, a significant improvement on the first half of 2025 (12.2%*).
*The current collector product line was transferred from the Electrical Power segment to the Advanced Materials segment on January 1, 2026. Figures for 2025 have been restated.
Net income
Net income attributable to Mersen shareholders came to €30.8 million [USD 35.50 million] in the first half of 2026, compared with €29.3 million [USD 33.77 million] in the first half of 2025, an increase of 5%, or 10.3% at comparable exchange rates.
Non-recurring expenses totaled €1 million [USD 1.15 million], lower than in the first half of 2025 (€4.9 million) [USD 5.65 million].
The net financial expense was €13.8 million [USD 15.91 million], in line with the first-half 2025 figure of €13.5 million [USD 15.56 million].
The income tax expense was €10.6 million [USD 12.22 million], corresponding to an effective tax rate of 25%, equal to the rate in the first half of 2025.
Cash flows
The Group recorded net cash generated by operating activities in the amount of €35.7 million [USD 41.15 million], compared with €78.7 million [USD 90.72 million] in the first half of 2025. This change was due to a significant increase in working capital requirement (€44.6 million, compared with €7.5 million in the first half of 2025) [USD 51.41 million, compared with USD 8.65 million in the first half of 2025].
The rise in working capital requirement during the first half was mainly due to three factors. First of all, high business volumes led to a considerable increase in inventories, accompanied by the impact of a high level of invoicing in the month of June for trade receivables. Secondly, the value of inventories rose due to rising prices for copper and silver. Lastly, the reimbursement of advance payments from a number of SiC semiconductor customers had an impact of about €7 million on working capital requirement in the first half. These items were partially offset by an increase in assigned receivables. The Group anticipates a gradual improvement in working capital requirement in the second half of the year.
The WCR ratio came to 20.2%, slightly higher than its level as of June 30, 2025 (19.2%).
Income tax paid was €10.8 million [USD 12.45 million], higher than the figure as of June 30, 2025 (€6.9 million) [USD 7.95 million]. The difference is due to accelerated tax depreciation in the United States in 2025, which reduced the amount of income tax paid.
In the first half of 2026, capital expenditure amounted to €21.9 million [USD 25.24 million] and related to growth projects, safety and environmental initiatives at Group sites, as well as plant and equipment maintenance, upkeep and modernization.
Investments in intangible assets, totaling €6.3 million [USD 7.26 million], related to the plan to digitize and modernize information systems, as well as to capitalized costs for growth projects.
Net debt as of June 30, 2026 stood at €400 million [USD 461.08 million], slightly higher than the December 31, 2025 figure (€382 million) [USD 440.33 million] due to a significant increase in working capital requirement, offset by tight control over capital expenditure.
The Group’s return on capital employed (ROCE) was 8.3% in the first half of 2026, compared with 8.4% for full-year 2025.
Financial structure
The Group maintained a sound financial structure over the period, with a leverage ratio of 2.3x (versus 2.2x as of December 31, 2025) and a gearing ratio of 48% (similar to the ratio as of December 31, 2025). The average maturity of the Group’s financing is 5.4 years. In the first half, the Group redeemed the remaining balance of €68 million [USD 78.38 million] on a German Schuldschein private placement originally arranged in 2019, using cash from the US private placement (USPP) arranged in 2025.
Market trends
The rapid development of markets relating to power grids, data centers, transportation and electrical distribution attests to the multiplicity of the Group’s growth drivers. More specifically, the Group anticipates the following trends in the second half of the year:
- significant growth in the Si semiconductor market, with a continuing low level of deliveries for our SiC semiconductor customers;
- projects in power conversion for electricity transmission and electrical current quality;
- positive trends in transportation markets, thanks to rail projects, the momentum of the aeronautics market, and the ramp-up of deliveries for ACC;
- a solar market remaining at a low level;
- market conditions for chemicals less favorable than initially expected.
2026 guidance
While keeping a close eye on developments in the global macroeconomic environment, the Group is raising its full-year guidance for 2026, namely:
- Organic sales growth between 4% and 6% (previously between 2% and 6%)
- EBITDA margin before non-recurring items between 16% and 16.5% of sales (previously between 15.5% and 16.5%)
- Operating margin before non-recurring items between 9.0% and 9.5% of sales (previously between 8.0% and 9.0%)
- Capital expenditure between €80 million and €90 million (previously between €90 million and €100 million) [USD 92.22 million and USD 103.74 million (previously between USD 103.74 million and USD 115.27 million)]
Medium-term targets to be reached by 2029
The Group confirms its medium-term outlook, determined on the basis of exchange rates prevailing in February 2023, namely:
- Sales of around €1.7 billion [USD 1.96 billion]
- Operating margin before non-recurring items of 12%, which may vary by ±50 basis points
- EBITDA margin before non-recurring items of 19%, which may vary by ±50 basis points
- ROCE of 13%, which may vary by ±50 basis points