Nexans now expects its earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) to be between 750 and 800 million euros, compared with a previous range of 670 to 730 million euros.
In addition, normalized free cash flow is now forecast at between 275 and 375 million euros, compared with 200 to 300 million euros previously.
Nexans CEO Christopher Guérin notes that the group has achieved profitability in six months equivalent to that achieved in one year in 2019.
Nexans, focused on the manufacture and installation of power transmission cables, is benefiting from the growing demand linked to the connection of renewable energies to power grids.
In addition to financial forecasts, Nexans recently appointed a new director to head up its US branch.
The French company has also strengthened its presence in Europe through the acquisition of Triveneta Cavi.
Sales growth
In the first half of the year, Nexans posted a 6.5% increase in sales to 3.54 billion euros, compared with 3.32 billion euros in the first six months of 2023.
Adjusted for changes in metal prices, sales rose to 4.22 billion euros from 4 billion the previous year.
Nexans’ net debt stood at 810 million euros at June 30, compared with 214 million euros at December 31, 2023, mainly due to the acquisition of the Italian company Triveneta Cavi.
Despite this increase, Christopher Guérin asserts that the Group still has significant investment capacity, and expects debt to be reduced rapidly thanks to very positive cash generation.
Investment and recycling
Nexans continues to invest in its production and recycling capacities.
The Group already owns the largest copper recycling plant in France, located in Lens, and plans to announce a major investment to increase this capacity in the near future.
These initiatives are in line with Nexans’ strategy of focusing on its most strategic segments and strengthening its position in the power transmission sector.
Nexans’ strategic orientation and solid financial results demonstrate the company’s resilience and adaptability in a dynamic economic environment.
By focusing on power transmission and gradually abandoning less strategic segments, Nexans is consolidating its leading position in the global industrial cable market.
