Nexans

NEX

Equity

ISIN FR0000044448 / Valor 1242479

Euronext - Euronext Paris (2024-11-21)

EUR 109.00-0.91%

Nexans
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Nexans is a global player in the cable and optical fiber industry, focusing on the design, manufacture, and distribution of products that are essential for the development and operation of electrical grids and telecommunications networks. The company has recently been involved in significant projects that underscore its expertise and capacity in the field. For instance, it has been selected by a leading Italian utility to deliver a comprehensive suite of low- and medium-voltage underground cables, emphasizing its commitment to sustainability by using 100% low-carbon aluminum in the production process at its Italian factory in Battipaglia. Additionally, Nexans has secured a first call-off under a 2GW TenneT framework agreement, involving the engineering, procurement, construction, and installation (EPCI) of high-voltage direct current (HVDC) cables for offshore grid connection systems, BalWin3 and LanWin4, which will transmit a total of 4 Gigawatts of offshore wind energy to Germany. The company is also engaged in the RENOV research project, aiming to develop innovative recycling solutions for cross-linked industrial plastics used in power cables and accessories, highlighting its involvement in advancing sustainable manufacturing practices within its industry sector.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

Nexans reported sales at standard metal prices of €3,546 million for the first half of 2024, reflecting a solid organic growth of +6.1% at constant scope and currency compared to the same period in 2023. This growth was primarily driven by the Electrification businesses, which saw a +14.1% increase, largely due to the strong performance of the Generation & Transmission segment following the Halden plant expansion.

Adjusted EBITDA

Adjusted EBITDA for Nexans in H1 2024 reached €412 million, marking a significant increase of +16.4% from €354 million in H1 2023. The adjusted EBITDA margin also improved, reaching an all-time high of 11.6%, up from 10.7% in the previous year. This improvement underscores the company's focus on operational excellence and value-driven growth.

Net Income

Nexans reported a net income of €176 million for the first half of 2024, up from €134 million in H1 2023. This increase in net income was supported by a higher operating income of €291 million, compared to €217 million in the same period last year, and was influenced by factors such as the core exposure effect and acquisition-related costs.

Cash Flow and Net Debt

Normalized free cash flow for Nexans stood at €189 million in H1 2024, reflecting the company's strong operating performance. However, net debt increased to €810 million at June 30, 2024, from €214 million at December 31, 2023, primarily due to the acquisition of La Triveneta Cavi and other strategic investments.

Dividend and Equity Operations

Equity operations for Nexans in H1 2024 represented a net outflow of €118 million, which included the payment of the 2023 dividend of €2.30 per share, totaling €101 million, and share buybacks amounting to €17 million. These actions reflect the company's commitment to returning value to shareholders while managing its capital structure.

Summarized from source with an LLMView Source

Key figures

56.7%1Y

21.5%3Y

202%5Y

Performance

33.9%1Y

35.9%3Y

38.7%5Y

Volatility