Business
Mersen : 2026 guidance raised after strong momentum in the first half
Mersen : 2026 guidance raised after strong momentum in the first
About this update from Mersen Sa
The Group recorded net cash generated by operating activities in the amount of €35.7 million, compared with €78.7 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). 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, higher than the figure as of June 30, 2025 (€6.9 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 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, 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, slightly higher than the December 31, 2025 figure (€382 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.