Nexans (NEX) Q3 2025 earnings summary

Executive summary

• Achieved robust organic growth of 5.8% year-over-year in the first nine months of 2025, with Q3 organic growth at 7.7%.

• Electrification businesses led performance, growing 9.4% organically in 9M 2025 and 12.6% in Q3 2025.

• New CEO Julien Hueber reaffirmed commitment to the existing strategy, emphasizing operational excellence, innovation, and disciplined execution.

• Announced acquisition of Electro Cables in Canada, expected to close in H1 2026, reinforcing presence in PWR-Connect and expected to be EPS accretive from day one.

• Innovation and sustainability initiatives highlighted at the Toronto Innovation Summit, focusing on electrification and carbon reduction.

Financial highlights

• Standard sales reached €5,331 million in 9M 2025, up 5.8% organically year-over-year.

• Q3 2025 delivered +7.7% organic growth, with electrification up 12.6%.

• PWR-Transmission achieved +25.3% organic growth for 9M 2025, with standard sales of €1,115m.

• PWR-Grid posted +6.7% organic growth for 9M 2025, with standard sales of €989m.

• Non-electrification segment declined by -6.0% organically for 9M 2025, while other activities, mainly metallurgy, grew 4.1% organically.

Outlook and guidance

• 2025 guidance confirmed: adjusted EBITDA between €810–860 million and free cash flow between €275–375 million.

• Guidance includes only six months of LinkShare and incorporates GSI project milestones.

• 2028 targets: Adjusted EBITDA of €1,150m (+/- €75m), FCF conversion >45%, ROCE >20%, dividend payout ≥30%, leverage ≤1.0x.

• Management confident in achieving guidance, citing quality of growth in grid and connect segments.

• Expects continued strong performance in Electrification, with targeted M&A to drive value creation.