Nexans (NEX) H1 2024 earnings summary

Executive summary

• Achieved €3.5 billion in H1 2024 standard sales, up 6.1% organically year-over-year, led by Electrification businesses and strategic initiatives.

• Adjusted EBITDA rose 16.4% to €412 million, with margin at 11.6%; net income increased to €176 million from €134 million.

• Integration of La Triveneta Cavi completed in June, immediately accretive to EPS and expected to generate €20–40 million in synergies and EBITDA contribution.

• Record engagement rate of 78% and a robust €6.7 billion backlog, with €4.7 billion firm orders and strong visibility through 2030.

• Upgraded 2024 guidance reflects strong H1 performance, successful acquisition integration, and continued market momentum.

Financial highlights

• H1 2024 sales at standard metal prices rose to €3,546 million from €3,322 million year-over-year.

• Adjusted EBITDA up 16% to €412 million; operating income at €291 million; net income at €176 million.

• Normalized free cash flow was €189 million, with a 46% EBITDA-to-cash conversion rate.

• Net debt increased to €810 million, mainly due to the La Triveneta Cavi acquisition and bond issuances; leverage ratio at 0.7x.

• ROCE at 19.7–22.5% for the Group and Electrification businesses.

Outlook and guidance

• 2024 adjusted EBITDA guidance raised to €750–800 million (from €670–730 million), including €40 million from La Triveneta Cavi.

• Normalized free cash flow guidance increased to €275–375 million.

• Guidance reflects seasonality, cautious view on GridseA Interconnector, and assumes H2 EBITDA slightly below H1 due to typical activity cycles.

• Generation & Transmission backlog at record levels, providing strong visibility through 2030.

• Positive market demand and high-voltage project execution seen as tailwinds; geopolitical and economic uncertainties, seasonality, and legacy contract execution as headwinds.