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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.
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