Last close As at 05/08/2026
EUR40.26
▲ −0.66 (−1.61%)
Market capitalisation
EUR840m
Research: Industrials
Mersen shares rose 12% as it raised its FY26 guidance on higher sales and stronger margins while cutting its capex budget to €80–90m. Organic sales growth is now guided at 4–6%, EBITDA margin at 16.0–16.5% and operating margin before non-recurring items at 9.0–9.5%. H1 organic growth of 3.9% was led by data centres, silicon semiconductors, power electronics and transportation, offsetting weak performance at solar, SiC and chemicals. Electrical Power, 48% of H1 sales, is the near-term driver, while Advanced Materials, at 52%, offers recovery optionality.
Group H1 sales of €611.5m grew 3.9% organically, although a €22m currency headwind limited reported growth to 0.2%. Electrical Power drove the increase, with sales up 11.1% organically to €291.9m and operating margin rising 270bp to 14.9%, supported by higher volumes and the c 3% group-wide price increase implemented in Q2. Management views this margin level as sustainable. Data centre revenue exceeded €20m in H1 and is expected to more than double year-on-year to above €40m in FY26, while silicon semiconductor sales, used in ion implantation, are guided to exceed €60m. Advanced Materials sales declined 1.9% organically, reflecting a 15–20% fall in chemicals, no recovery in solar and the absence of 2025's SiC contract renegotiation, which reduced the group margin by c 100bp.
H1 capital expenditure fell to €21.9m from €64.1m and FY26 guidance was cut to €80–90m, as management signals a shift from building capacity to generating returns on Advanced Materials investment. A €44.6m working capital build (June invoicing, plus copper and silver inventory revaluation) left net debt at €399.7m and leverage at 2.3x. Management guides to an H2 unwind and higher free cash flow, evidence that the investment phase is converting into cash. Bolt-on M&A has restarted in Europe, North America and Asia excluding China; the 2029 plan assumes c €100m of acquired revenue.
On consensus blended-forward multiples, Mersen trades at c 14.5x P/E and 7.0x EV/EBITDA, compared with European peer means of 17.2x and 8.8x, respectively. Its closest listed comparators, Morgan Advanced Materials and SGL Carbon, trade at 12.0x and 14.3x P/E and 6.5x and 4.7x EV/EBITDA, broadly in line with Mersen. Near-term delivery will depend on the expected H2 working capital unwind, while the longer-term re-rating potential rests on whether Mersen can achieve its 2029 operating margin target of 12%, compared with 9.2% in H1.
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Consensus estimates |
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| Year end | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (€) | DPS (€) | P/E (x) | Yield (%) | EV/EBITDA (x) |
| 12/25 | 1,186.0 | 190.4 | 30.5 | 0.57 | 0.90 | 71.2 | 2.2 | 7.3 |
| 12/26e | 1,224.0 | 198.2 | 85.6 | 2.45 | 0.91 | 16.6 | 2.2 | 7.0 |
| 12/27e | 1,305.0 | 219.7 | 102.8 | 3.01 | 1.07 | 13.5 | 2.6 | 6.3 |
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Research: TMT
4imprint’s (FOUR’s) H126 results show more-encouraging trends through H126 from a new orders perspective. While negative year-on-year, the decline has moderated. In addition, management has been successful at passing on targeted price increases to mitigate the cost pressures from tariffs, delivering better margin protection than it expected at the start of the year. The better-than-expected H126 performance leads to an upgrade to management’s adjusted profit before tax (PBT) guidance of c 9% versus our prior estimate. A continuation of these more-encouraging trends would support further upgrades.