Nexans (NEX) H1 2024 earnings summary

Executive summary

• Achieved €3.5 billion in H1 2024 standard sales, up 6.1% organically year-over-year, led by Electrification businesses and strategic initiatives.

• Adjusted EBITDA rose 16.4% to €412 million, with margin at 11.6%, and net income increased to €176 million from €134 million.

• Integration of La Triveneta Cavi completed in June, immediately accretive to EPS and expected to deliver €20 million in synergies, enhancing European presence.

• Record engagement rate of 78% and a robust order backlog of €6.7 billion, with significant electrification-driven growth and visibility through 2030.

• Upgraded 2024 guidance for adjusted EBITDA and normalized free cash flow, reflecting strong H1 results and successful integration of La Triveneta Cavi.

Financial highlights

• H1 2024 sales at standard metal prices rose to €3,546 million from €3,322 million year-over-year.

• Adjusted EBITDA increased to €412 million from €354 million (+16%), with margin at 11.6%.

• Net income reached €176 million, up from €134 million in H1 2023.

• Normalized free cash flow was €189 million, with a 46% EBITDA-to-cash conversion rate.

• Net debt increased to €810 million, mainly due to the La Triveneta Cavi acquisition; leverage ratio at 0.7x.

Outlook and guidance

• 2024 adjusted EBITDA guidance raised to €750–800 million (from €670–730 million), with La Triveneta Cavi expected to contribute around €40 million.

• Normalized free cash flow guidance increased to €275–375 million (from €200–300 million).

• Guidance reflects seasonality, cautious assumptions on GridseA Interconnector, and strong business momentum.

• Generation & Transmission backlog at €6.7 billion, providing strong visibility through 2030.

• Positive market demand and high-voltage project execution seen as tailwinds; geopolitical and economic uncertainties, seasonality, and legacy contract execution as headwinds.