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Mersen recently reported its Q3 2025 results, which fell short of market expectations due to continued weakness in its solar power segment, prompting the company to lower its full-year sales growth, profit margin, and capital expenditure targets.
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This revision reflects ongoing uncertainty and a lack of visibility in the solar business, compelling analysts to reconsider their projections even though some still see potential for solid performance in 2025.
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With management cutting guidance after particularly weak solar activity, we’ll examine how these developments affect Mersen’s investment narrative and future prospects.
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To be a shareholder in Mersen right now means believing in the company’s ability to ride the global shift toward renewable energy and electrification, despite near-term challenges. The recent Q3 miss and lowered guidance directly impact the short-term catalyst of a solar segment rebound, while highlighting customer concentration risk, currently the most immediate threat to both revenue and profit visibility.
Among Mersen’s recent announcements, the July orders worth over €35 million for HVDC technology in offshore wind projects stand out, especially as weak solar results refocus attention on other renewable opportunities. This deal underscores that while solar faces uncertainty, growth in wind and grid infrastructure projects could help offset shortfalls and underpin the medium-term outlook.
By contrast, investors should be aware that despite early promise in non-solar renewables, customer concentration in volatile segments still leaves Mersen exposed if…
Read the full narrative on Mersen (it’s free!)
Mersen’s outlook anticipates €1.4 billion in revenue and €98.9 million in earnings by 2028. This relies on a 3.8% annual revenue growth rate and a €49.5 million increase in earnings from the current €49.4 million.
Uncover how Mersen’s forecasts yield a €28.37 fair value, a 23% upside to its current price.
Fair value estimates from 5 Simply Wall St Community members range from €15.52 to €38.89, reflecting sharply different views. With solar-linked risks still in play, your outlook may depend on how much weight you assign to recovery outside this segment.
Explore 5 other fair value estimates on Mersen – why the stock might be worth 33% less than the current price!
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