Nexans - Q1 2025, promising start to the year

Core Insights - Nexans reported a strong start to 2025 with first-quarter organic growth of +4.1%, driven primarily by its electrification segment, which achieved +6.8% organic growth [2][6][9] - The company confirmed its 2025 guidance, projecting adjusted EBITDA between €770 million and €850 million and free cash flow between €225 million and €325 million [6][30][26] - Nexans is strategically divesting non-core assets, such as Lynxeo, to focus on electrification, enhancing its capability to deliver integrated solutions [3][13] Financial Performance - First-quarter 2025 standard sales reached €1,815.4 million, reflecting a +4.1% increase year-on-year [6][9] - The electrification businesses, including PWR-Transmission, PWR-Grid, and PWR-Connect, showed robust growth, with PWR-Transmission segment sales increasing by +21.7% [6][15][10] - The adjusted backlog for PWR-Transmission reached a record €8.1 billion, up +9.7% from the previous quarter [6][16] Strategic Developments - Nexans secured a major framework agreement valued at over €1 billion with RTE for the supply of HVDC cables to connect offshore wind farms to the French transmission network [6][14] - The integration of La Triveneta Cavi is progressing well, delivering expected synergies and enhancing the company's market position [12][6] - The company is actively pursuing targeted M&A opportunities aligned with its core mission to enhance sustainable long-term value [3][5] Market Position and Outlook - Despite global economic uncertainties, Nexans maintains confidence in its growth trajectory, supported by a strong backlog and strategic focus on electrification [7][5] - The company is well-positioned to capture growth opportunities, particularly with the upcoming operational launch of its third cable-laying vessel, Nexans Electra, expected in 2026 [17][6] - Nexans continues to strengthen its profile as a global electrification pure player, reinforcing its commitment to sustainable energy solutions [6][34]