Mersen delays targets by two years on weak supplies demand for EVs

By Nathan Vifflin and Anna Peverieri

(Reuters) -Mersen pushed again its monetary targets till 2029 on Thursday on account of a brief slowdown within the electrical car and silicon carbide semiconductor markets.

Many chipmakers uncovered to silicon carbide, a extra environment friendly semiconductor materials used to extend the vary of EVs, have just lately reduce or delayed their monetary targets.

The French superior supplies provider expects to achieve gross sales of round 1.7 billion euros ($1.8 billion) and an working margin earlier than non-recurring objects of round 12% two years later than initially deliberate, it stated forward of its capital markets day.

“2025 will probably be a yr of transition for Mersen on account of a brief slowdown within the electrical car and SiC semiconductor markets,” it stated within the assertion.

The manufacturing of transistors and wafers – important elements within the semiconductor trade used extensively in EVs – is projected to get well within the second half of 2026, returning to beforehand anticipated ranges, Mersen CEO Luc Themelin stated on the capital market day.

On geopolitical tensions, CFO Thomas Baumgartner recognised the potential challenges posed by customs boundaries however highlighted that their affect must be minimal, as 80% of Mersen’s sourcing is secured by way of native suppliers.

However he stated that substantial disruptions affecting these suppliers may not directly affect the corporate’s operations.

Mersen’s shares rose 2.2% to twenty euros by 0929 GMT.

Analyst Sandrine Cauvin from Gilbert Dupont stated the change to Mersen’s targets meant there was much less room for additional unfavourable information down the road.

Cauvin stated the information didn’t come as shock after main Mersen clients like Wolfspeed (NYSE:WOLF) just lately flagged weaknesses within the silicon carbide market.

STMicroelectronics and Infineon (OTC:IFNNY), which like Wolfspeed are among the many world’s largest silicon carbide chipmakers, have additionally warned of a subdued 2025.

Cauvin stated the earnings visibility would stay low till there have been indicators of restoration within the EV and SiC markets.

($1 = 0.9499 euros)