H1 2025: Outstanding delivery of Nexans’ model, 2025 guidance upgraded

Core Insights - Nexans reported a strong performance in H1 2025, achieving +4.9% organic growth, driven primarily by its Electrification businesses which grew by +7.8% organically [1][5][6] - The company achieved record adjusted EBITDA of €441 million, reflecting a +7.0% increase year-on-year, with an adjusted EBITDA margin of 11.7% [3][8][11] - Nexans successfully completed the divestment of Lynxeo and made a strategic acquisition of Cables RCT, enhancing its position in sustainable electrification [3][4][18] - The company upgraded its full-year 2025 guidance for adjusted EBITDA to between €810 million and €860 million, and free cash flow to between €275 million and €375 million [1][42] Financial Performance - H1 2025 standard sales reached €3.8 billion, with organic growth of +4.9% compared to H1 2024 [3][4] - Net income for H1 2025 was €374 million, significantly up from €176 million in H1 2024, largely due to net gains from asset disposals [14][15] - Free cash flow increased to €282 million in H1 2025 from €79 million in H1 2024, indicating strong cash generation capabilities [17][19] Segment Performance - The PWR-Transmission segment saw a remarkable organic growth of +21.7% in H1 2025, with adjusted EBITDA rising to €88 million [28][30] - PWR-Grid reported organic growth of +5.6% with adjusted EBITDA at €107 million, maintaining a high margin despite slight declines [32][34] - PWR-Connect achieved standard sales of €1.186 billion, with adjusted EBITDA increasing by +22.4% year-on-year [35][37] - The Non-Electrification segment experienced a decline of -5.2% in organic growth, reflecting challenges in the Automation and Rail markets [39] Strategic Initiatives - Nexans' strategic focus on sustainability was highlighted by its upgraded CDP score to A, reflecting its commitment to environmental leadership [22][23] - The company launched the ACT 2025 employee share ownership plan, achieving a participation rate of 46%, indicating strong employee engagement [27] - Nexans continues to prioritize M&A as a core part of its strategy, with net cash inflows from M&A activities amounting to €613 million in H1 2025 [18][19] Outlook - The company remains confident in its long-term growth trajectory, supported by a solid balance sheet and no leverage, with a leverage ratio of 0.06x [15][19] - Nexans is committed to executing its strategic roadmap and priorities, reaffirming its targets set during the 2024 Capital Markets Day [42]