Nexans (NEX) H2 2025 & Status update earnings summary

Executive summary

• Achieved a pivotal year in 2025 with 8.3% organic growth, strong margin expansion, and a full focus on electrification, completing portfolio rotation and classifying non-core businesses as discontinued operations.

• Closed strategic acquisitions in Canada (Electro Cables) and Spain (RCT), reinforcing presence in key geographies.

• Entered exclusive negotiations to divest AutoElectric, finalizing the transition to a pure electrification player.

• Advanced sustainability initiatives, exceeding midterm decarbonization targets and expanding circular economy solutions.

• Entering 2026 with confidence, fully focused on the Global Electrification Pure Player model.

Financial highlights

• Standard sales reached €6.1 billion, up 10.1% year-over-year, with organic growth of 8.3%.

• Adjusted EBITDA rose 27.3% to €728 million, with margin improving to 11.9% of standard sales (+161 bps).

• Net income from continuing operations increased 31.1% to €219 million; group net income up 26.6% to €358 million.

• Free cash flow reached €344 million, with a 47% cash conversion rate, and net debt reduced to €266 million.

• Dividend per share increased 11.5% to €2.90, with a 41.9% payout ratio.

Outlook and guidance

• 2026 guidance: Adjusted EBITDA between €730 million and €810 million; free cash flow between €210 million and €310 million.

• First half of 2026 expected to be softer due to project phasing, with stronger performance in the second half.

• 2028 targets: Adjusted EBITDA of €1,150 million (+/- €75 million), organic sales CAGR of 3-5%, ROCE >20%, FCF conversion >45%, leverage ≤1.0x, and dividend payout ≥30%.