Asia tech stocks slide tracking Wall St losses amid AI doubts, govt. uncertainty
Investing.com -- Shares of Nexans (EPA:NEXS) (EPA:NEX) climbed 3.5% after the company reported first-quarter sales that were in line with consensus estimates and confirmed its guidance for 2025.
The positive market response can be attributed to the company’s organic growth and recent contract wins, as well as reassurance that U.S. tariff changes have not materially impacted its operations.
For the first quarter, Nexans posted sales of €1,815 million, marking a 4.1% organic increase and aligning with both the company’s and UBS estimates, while also surpassing the Visible Alpha consensus by approximately 4%. Notably, high voltage (HV) transmission outperformed expectations with a robust 21.7% organic growth, primarily driven by the delivery to the Revolution wind contract in the United States.
The company’s performance in the low voltage segment, referred to as Connect, also exceeded estimates with a 1.9% organic growth compared to the anticipated 1.5%. However, the medium voltage segment, known as Grid, experienced slower growth at 1.7% organically, falling short of the consensus expectations of around 3%. Management anticipates a rebound in this segment in the second quarter.
The Non-Electrification segment saw a decline with a 4.1% drop in organic growth, attributed to weaker automation and rail markets. Despite this, a recovery is expected throughout the year, with flat growth forecasted for the full year 2025.
Another positive note for investors is the backlog in HV Transmission, which showed a 9.7% increase from December 2024 to €8.1 billion, providing visibility into the company’s future until 2028. This was bolstered by the recent interconnector contract from Malta-Sicily, which will be produced at Nexans’ U.S. Charleston facility.
Nexans has maintained its guidance for the year, projecting an EBITDA range of €770 million to €850 million and a free cash flow (FCF) range of €225 million to €325 million. The unchanged outlook, combined with strong sales performance and a healthy backlog, contributed to the rise in Nexans’ stock during the trading session.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.