Mersen Delays Financial Targets

By Nathan Vifflin and Anna Peverieri

(Reuters) – Mersen has postponed its financial targets to 2029 due to a temporary slowdown in the electric vehicle (EV) and silicon carbide (SiC) semiconductor markets.

Many chipmakers reliant on silicon carbide, a more efficient semiconductor material that enhances EV range, have recently adjusted or postponed their financial targets.

The French advanced materials supplier anticipates reaching sales of approximately 1.7 billion euros ($1.8 billion) and an operating margin before non-recurring items of around 12%, two years later than initially planned, as stated ahead of its capital markets day.

> "2025 will be a year of transition for Mersen due to a temporary slowdown in the electric vehicle and SiC semiconductor markets," the company stated.

Mersen CEO Luc Themelin indicated that the production of transistors and wafers—essential components in the semiconductor industry used widely in EVs—is expected to recover in the second half of 2026, returning to prior anticipated levels.

Regarding geopolitical tensions, CFO Thomas Baumgartner acknowledged potential challenges from customs barriers but emphasized that their impact should be minimal, as 80% of Mersen's sourcing is through local suppliers. However, he noted that significant disruptions affecting these suppliers could indirectly impact company operations.

Mersen's shares rose 2.2% to 20 euros by 0929 GMT.

Analyst Sandrine Cauvin from Gilbert Dupont stated that this adjustment to Mersen’s targets reduces the likelihood of further negative news in the future. She pointed out that the updates were expected after major Mersen customers like Wolfspeed recently indicated weaknesses in the silicon carbide market.

STMicroelectronics and Infineon, two of the world’s largest silicon carbide chipmakers alongside Wolfspeed, have also warned of a weakened 2025.

Cauvin concluded that earnings visibility will remain low until signs of recovery in the EV and SiC markets emerge.

($1 = 0.9499 euros)