Nexans (NEX) H2 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, surpassing upgraded projections and long-term targets, with standard sales of €7.1 billion, driven by strategic transformation and electrification focus.

• Electrification businesses grew 13% organically, now representing over 74% of the group, with adjusted EBITDA margin at 12.9%.

• Successfully integrated three acquisitions, expanding electrification revenue by €1.3 billion, and divested non-core businesses, including AmerCable and Lynxeo.

• Net income reached €283 million, up 27% year-over-year, and adjusted EBITDA hit €804 million (+21%).

• Launched 2025–2028 roadmap, targeting accelerated growth, innovation, and ESG progress, including a 29% reduction in GHG emissions since 2019.

Financial highlights

• Adjusted EBITDA reached €804 million (11.4% margin), up 21% year-over-year; normalized free cash flow at €454 million, both record highs.

• Standard sales grew 8.7% reported and 5.1% organically, with Q4 organic growth at 8.3%.

• Net income increased by 27% to €283 million; operating income rose to €513 million.

• Return on capital employed improved to 21% for the group and 26% for electrification.

• Leverage ratio increased to 0.85x, with €1.3 billion cash and total available liquidity exceeding €2 billion.

Outlook and guidance

• 2025 guidance: adjusted EBITDA €770–850 million, free cash flow €225–325 million, reflecting scope changes and GSI project uncertainty.

• Dividend proposed to increase by 13% to €2.60 per share, with a 35% payout ratio.

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

• Electrification expected to accelerate with 3–5% organic sales CAGR and €350 million incremental adjusted EBITDA by 2028.

• Confident in maintaining a book-to-bill ratio of 1:1 in Power Transmission and continued backlog growth.