Nexans (NEX) H2 2025 & Status update earnings summary

Executive summary

• Achieved a pivotal year in 2025 with strong organic growth of 8.3%, standard sales at €6.1 billion, and a completed portfolio rotation focusing solely on electrification, including major acquisitions in Canada and Spain.

• Delivered robust organic growth, improved profitability, and strong cash generation, supported by disciplined capital allocation and operational excellence.

• Entered exclusive negotiations for the sale of Autoelectric, finalizing the transition to a pure electrification player.

• Sustainability initiatives exceeded midterm targets, reducing Scope 1 and 2 CO₂ emissions by 49% and advancing circular economy solutions.

• Entering 2026 with confidence, fully focused on the Global Electrification Pure Player model.

Financial highlights

• Standard sales reached €6,098 million, up 10.1% year-over-year, with organic growth of 8.3%.

• Adjusted EBITDA rose 27.3% to €728 million, with margin improving to 11.9% of standard sales (+161 bps).

• Net income from continuing operations increased 31.1% to €219 million; group net income up 26.6% to €358 million.

• Free cash flow reached €344 million, with a 47% cash conversion rate.

• Net debt reduced to €266 million, leverage ratio at 0.36x.

Outlook and guidance

• 2026 guidance: Adjusted EBITDA between €730 million and €810 million; free cash flow between €210 million and €310 million, with a softer H1 expected.

• 2028 targets reaffirmed: Adjusted EBITDA of €1,150 million (+/- €75 million), organic sales CAGR of 3–5%, ROCE >20%, FCF conversion >45%, leverage ≤1.0x, and dividend payout ≥30%.

• H1 2026 expected to be softer than H2 2026; guidance excludes Great Sea Interconnector project and not completed acquisitions.