Nexans (NEX) H1 2026 earnings summary

Executive summary

• Standard sales reached €3,249 million in H1 2026, up 5.0% year-over-year, with 1.5% organic growth and 3.8% from acquisitions, driven by electrification and strategic U.S. expansion through Republic Wire.

• Adjusted EBITDA increased 4.3% to €388 million, with a margin of 11.9% of standard sales; electrification margin at 13.2%.

• Net income from continuing operations was €123 million, down 14.3% year-over-year; total net income was €106 million, impacted by lower discontinued operations gains.

• Completed Republic Wire acquisition, expanding North American sales and footprint; finalized Autoelectric divestment, completing electrification transformation.

• Upgraded full-year 2026 guidance for adjusted EBITDA (€770–840 million) and free cash flow (€235–325 million).

Financial highlights

• Net sales grew 5% to €3,249 million, with adjusted EBITDA margin at 11.9% and electrification margin at 13.2%.

• Free cash flow was €165 million, with a cash conversion ratio of 42.7% and leverage ratio of 1.4x.

• Net debt increased to €1,038 million at June 30, 2026, mainly due to acquisitions; liquidity at €2,506 million, including €1,456 million cash.

• Net income from discontinued operations decreased due to Autoelectric losses.

• Basic EPS was €2.37, down from €8.55 in H1 2025.

Outlook and guidance

• 2026 adjusted EBITDA guidance raised to €770–840 million (from €730–810 million); free cash flow guidance increased to €235–325 million.

• Guidance includes Republic Wire from June 2026 and excludes future acquisitions.

• 2028 targets: group adjusted EBITDA €1,150 million (+/- €75 million), ROCE >20%, leverage ≤1.0x.

• Backlogs in Grid and Connect segments remain strong, supporting confidence for H2.

• Commitment to 2024 Capital Markets Day targets reaffirmed.