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Investing.com -- Nexans SA (EPA:NEX) on Thursday reported mixed third-quarter results, with overall revenues slightly ahead of consensus but showing divergent performance across business segments.
The cable manufacturer posted revenues of €1,566 million, 1% above consensus expectations of €1,552 million, with organic growth reaching 7.7% versus the anticipated 6.2%.
Nexans’ Transmission segment delivered the strongest performance, with revenues of €368 million exceeding consensus by 10%. The segment achieved 33% organic growth, significantly outpacing expectations of 22%, driven by smooth execution, favorable mix, and increased installation campaigns.
However, this strength was offset by weakness in the Connect segment, which reported revenues of €551 million, 5% below consensus estimates. Connect delivered only 4% organic growth against expectations of 6%, with strong performance in Canada, Latin America, and Middle East/Africa counterbalanced by challenging European markets, particularly in the Nordics.
The Grids segment posted revenues of €314 million, slightly ahead of consensus, with organic growth of 9% in line with expectations. Growth accelerated as anticipated, helped by the ramp-up of frame agreements in Europe and continued growth in Accessories.
The Industry segment reported revenues of €167 million, 4% above consensus, despite organic growth declining 8% versus an expected 4% drop. The auto-harness activity was impacted by weak automotive markets worldwide.
Nexans confirmed its upgraded outlook for 2025, targeting adjusted EBITDA of €810-860 million and normalized free cash flow of €275-375 million.
The company also announced the acquisition of Electro Cables in Canada, a provider of low voltage cables for high-performance solutions with approximately €125 million in current sales.
The cash-financed acquisition is expected to be earnings-per-share accretive from year one, with closing anticipated in the first half of 2026.
Nexans’ adjusted backlog stood at €7.9 billion, representing a 27% year-over-year increase and a 1% sequential improvement.
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