Nexans (NEX) H1 2025 earnings summary

Executive summary

• Achieved 4.9% organic group sales growth in H1 2025 to €3,765 million, led by Electrification businesses with 7.8% organic growth and record adjusted EBITDA of €441 million (11.7% margin).

• Net income surged to €374 million, more than doubling year-over-year, driven by significant asset disposals and improved financial results.

• Free cash flow reached €282 million, with a 64% cash conversion ratio and net debt reduced to €48 million.

• Strategic acquisitions (Cables RCT) and divestments (Lynxeo, AmerCable) reinforced focus on electrification and generated significant capital gains.

• Employee share ownership reached 46%, with nearly 5% of capital held by employees.

Financial highlights

• Sales at current metal prices rose to €4,696 million, standard sales up 4.9% to €3,765 million.

• Adjusted EBITDA reached €441 million (11.7% margin), operating income €499 million, and ROCE at 21.6% group, 27.5% electrification.

• Net income at €374 million, EPS of €8.55 per share.

• Free cash flow at €282 million, net debt at €48 million, leverage ratio at 0.06x.

• Total liquidity at €2,840 million, with €2,040 million in cash and €800 million undrawn RCF.

Outlook and guidance

• 2025 adjusted EBITDA guidance raised to €810–€860 million (previously €770–€850 million).

• Free cash flow guidance upgraded to €275–€375 million (previously €225–€325 million).

• 2028 targets: adjusted EBITDA €1,150 million (+/- €75 million), FCF conversion >45%, ROCE >20%, leverage ≤1.0x.

• Strong visibility and confidence in H2 performance, driven by robust order book and transformation benefits.

• Excludes six months of Lynxeo, includes seven months of Cables RCT in 2025 guidance.