Nexans (NEX) Q1 2025 earnings summary

Executive summary

• Q1 2025 organic growth reached 4.1%, with standard sales at €1,815.4 million, led by Electrification's 6.8% growth and strong power transmission performance.

• Power transmission posted 21.7% organic growth, supported by major projects like the Celtic and Grade C interconnector and a €1 billion+ RTE agreement.

• Adjusted transmission backlog reached a record €8.1 billion, providing strong visibility through 2028.

• Integration of La Triveneta Cavi is delivering expected synergies, enhancing European presence and targeting €20 million recurring synergies.

• Divestment of Lynxeo is progressing, with closing expected by Q3 2025, supporting a pure electrification focus.

Financial highlights

• Electrification businesses delivered 6.8% organic growth; power transmission up 21.7% year-over-year.

• Total group standard sales for Q1 2025 were €1,815 million, up from €1,692 million in Q1 2024.

• Non-electrification segment declined 4.1% organically due to weak Automation and Rail demand.

• Other Activities segment grew 5.7% organically, mainly supported by Metallurgy.

• Power grid and power connect segments saw low single-digit growth due to phasing effects, with expected rebounds in Q2.

Outlook and guidance

• 2025 guidance confirmed: adjusted EBITDA €770–850 million and free cash flow €225–325 million.

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

• Electrification organic sales CAGR expected at 3–5% from 2024–2028.

• Strong Q2 momentum expected in connect and grid segments, with mid-single-digit organic growth targeted.

• Divestment of Lynxeo expected to close by mid-to-Q3 2025, impacting EBITDA guidance by €45 million for six months.