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Investing.com -- Nexity shares rallied Friday after the company reported a return to positive operating profit in the first half of 2025, ahead of expectations.
“Nexity reported 1H25 earnings yesterday showing an operating profit on a comparative basis,” Bernstein wrote in a note to clients.
Second-quarter revenue was broadly in line with estimates. However, operating profit came in positively, at €6 million, compared to a loss of €54 million a year earlier.
Bernstein attributed the earnings beat to €20 million in cost savings during the half and a “catch-up effect,” as the group’s transformation plan had heavily impacted the prior year.
“Operating leverage has benefited from: 1) cost savings of €20m in 1H25; 2) a catch-up effect, as 1H24 was heavily impacted by the transformation plan,” the analysts said.
The firm added in its note that Nexity (EPA:NEXI) confirmed its 2025 guidance, which includes a target for positive full-year EBIT versus a €120 million loss in 2024.
The company is ahead of schedule on its cost-cutting programme, now aiming for €40 million in full-year savings.
Still, Bernstein noted some concerns remain. Net financial debt rose to €398 million from €330 million in December 2024.
“There are pluses (positive first-half operating income, better guidance on bookings) and minuses (absence of deleveraging and no details on guidance),” Bernstein said.
Despite the challenges, Bernstein said the earnings “should reassure the market and enable the share price to rise again today.”