In This Article:
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Total Sales: EUR1.244 billion, a record with a CAGR of 10% annually since 2020.
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EBITDA: EUR206 million, a record for the group, with a margin of 16.5%.
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Net Income: EUR61.5 million, impacted by non-recurring costs and financial expenses.
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Dividend: EUR0.90 per share, with a payout ratio of 37% of net income.
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Capital Expenditure: EUR204 million, primarily for growth in SiC semiconductors and EVs.
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Debt: EUR370 million, with a leverage of 1.8 times.
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Cash Flow Generation: Up 8% in 2024, driven by inventory reduction and advanced payments.
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Operating Margin: Decreased by 80 bps in 2024 due to increased amortization and investment costs.
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Advanced Materials Segment EBITDA Margin: Over 21% despite a decrease in operating profit.
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Electrical Power Segment Margin: Increased by 40 basis points to 10.5%.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mersen SA (CBLNY) achieved record sales of EUR1.244 billion in 2024, marking a significant growth since 2020 with a CAGR of 10%.
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The company successfully acquired three companies, enhancing its growth profile and market presence.
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EBITDA reached EUR206 million, a record for the group, with a solid margin of 16.5%.
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Mersen SA (CBLNY) demonstrated strong cash generation, leading to a proposed dividend of EUR0.9 per share.
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The company has secured financing for its 2029 plan, ensuring financial stability and future growth potential.
Negative Points
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There was a slowdown in the solar market, particularly in China, affecting overall growth in Asia.
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Operating income for the advanced materials segment decreased by EUR9 million due to increased amortization and negative mix-volumes.
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Net income declined due to non-recurring costs and increased financial expenses, partly due to higher debt levels.
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The electrical power segment, while showing margin improvement, still faces challenges with profitability in the EV sector.
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The company anticipates a slowdown in 2025, with organic growth expected to be between minus 5% and zero.
Q & A Highlights
Q: How quickly will Mersen grow its sales in 2025, and what is the outlook for the first two months of the year? A: Thomas Baumgartner, CFO, explained that organic growth might be negative at the beginning of the year but is expected to become slightly positive in the second half. Financial expenses will increase due to higher average debt levels, and free cash flow is not expected to be positive after dividend payouts.
Q: What is the visibility on key markets such as process industries, chemistry, power distribution, aeronautics, and rail transport for 2025? A: Luc Themelin, CEO, stated that visibility is good due to long-term customer relationships. The process industries and power distribution in North America are strong, while aeronautics and rail are growing. However, chemistry may not perform as well as in 2024.