Nexans raises 2025 guidance after strong H1 results

Published 30/07/2025, 08:58
© Reuters.

Investing.com -- Nexans SA (EPA:NEXS) on Wednesday reported a strong set of results for the first half of 2025, with the company raising its full-year guidance on the back of solid performance in its Transmission and Grids segments.

The French cable manufacturer posted second-quarter revenues of €1,950 million, in line with consensus estimates of €1,947 million.

Organic growth accelerated to 5.7% in Q2 compared to 4.1% in Q1, outpacing consensus expectations of 3.9%.

For the first half of 2025, Nexans reported adjusted EBITDA of €441 million, 4% above consensus estimates of €423 million. EBITDA margins reached 11.7%, exceeding expectations by 50 basis points.

Free cash flow was particularly strong at €282 million, significantly above the €112 million consensus, driven by down-payments in the Transmission segment.

Following these results, Nexans raised its 2025 outlook and now targets adjusted EBITDA of €810-860 million, up from its previous guidance of €770-850 million.

The midpoint of the new range is 3% above consensus estimates of €808 million.

The company also increased its normalized free cash flow target to €275-375 million from €225-325 million previously, with the midpoint 44% ahead of consensus expectations of €226 million.

The Transmission segment was a standout performer with Q2 revenues of €439 million, 8% above consensus, and organic growth of 21.6% driven by smooth project execution.

The segment’s adjusted backlog stood at €7.8 billion, stable sequentially and up 16% year-over-year with visibility through 2028.

The Grids segment also performed well, with Q2 revenues of €362 million, 6% above consensus, and organic growth of 9.3%. This segment showed strength in Americas and Accessories, with Europe accelerating.

In contrast, the Connect segment faced challenges with Q2 revenues of €585 million, 8% below consensus, and an organic decline of 1.4%.

The Industry & Solutions segment also struggled with Q2 revenues of €360 million, 4% below consensus, and an organic decline of 6.3% due to weak automation and rail markets.

The Other segment, which includes Metallurgy, outperformed with Q2 revenues of €204 million, 10% ahead of consensus, and organic growth of 11.8%. This segment benefited from strong orders from US customers ahead of tariffs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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