- Nexans has increased its full-year adjusted EBITDA forecast to a range of €810 million to €860 million, up from the previous €770 million to €850 million.
- The new estimate for adjusted EBITDA of €801 million has been surpassed by the revised forecast.
- The company also raised its expectations for adjusted free cash flow to between €275 million and €375 million, compared to the previous range of €225 million to €325 million.
- First half results showed adjusted EBITDA of €441 million, marking a 7% increase year over year, which beat the estimate of €424 million.
- Net income for the first half was €374 million, significantly higher than the €176 million from the previous year.
- Organic revenue growth was recorded at 4.9%, exceeding the estimate of 3.26%.
- Standard sales reached €3.77 billion, a 6.2% increase year over year, slightly below the estimate of €3.79 billion.
- Power Transmission sales were €747 million, up by 20% year over year, exceeding the estimate of €711.2 million.
- Power Grid sales reached €674 million, a 3.9% year over year increase, beating the estimate of €655 million.
- Power Connect sales came in at €1.19 billion, rising by 21% year over year, but slightly below the estimated €1.25 billion.
- Sales in Non-Electrification, which includes industry and solutions, fell by 18% year over year to €721 million, missing the estimate of €741.9 million.
- Other activities reported sales of €437 million, marking a 3.6% year over year growth, beating the estimate of €415.1 million.
- Net debt at the end of the period was significantly reduced by 94% year over year, standing at €48 million.
- The FY guidance does not account for six months of Lynxeo, includes seven months of Cables RCT, and excludes potential future changes in scope.
Nexans SA on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been covering Nexans SA and their recent performance. In a report titled “Nexans S.A.- Its Revenue Stabilization & Growth in Metallurgy Is Powering Our ‘Buy’ Rating!“, Baptista Research highlights that Nexans has made significant strides through strategic expansions and divestments. These moves have bolstered Nexans’ market presence and operational capabilities, leading to strong financial results in 2024 and setting new records. The company’s focus on electrification and portfolio reshaping has resulted in profitable growth and successful strategic transformations.
A look at Nexans SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores have assessed Nexans SA‘s long-term outlook across various key factors. With a Growth score of 4 and Momentum score of 4, Nexans SA is seen as poised for expansion and with positive market momentum. This indicates a potential for strong performance and future growth in the industry.
Additionally, Nexans SA received a Dividend score of 3, underlining its stability in providing dividends to investors. Coupled with a Resilience score of 3, the company shows strength in weathering market fluctuations. Although the Value score is at 2, indicating some room for improvement in terms of its valuation, Nexans SA‘s overall outlook appears optimistic, driven by its diverse product offerings across various industries.
Summary: Nexans S.A. is a cable manufacturer specializing in power transmission, distribution, telecommunications, and other cables. The company serves a wide range of industries including telecommunications, energy, aeronautics, construction, automobile, information technology, petrochemicals, and medical equipment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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