In This Article:
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Organic Growth: 4.1% for the group, reaching EUR1.8 billion in Q1 2025.
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Power Transmission Organic Growth: 21.7% in Q1 2025.
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Adjusted Backlog: EUR8.1 billion at the end of March 2025.
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Power Grid Organic Growth: 1.7% in Q1 2025.
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PWR Connect Organic Growth: 1.9% in Q1 2025.
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Adjusted EBITDA Guidance: EUR770 million to EUR850 million for 2025.
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Free Cash Flow Guidance: EUR225 million for 2025.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nexans (NEXNY) reported a strong start to 2025 with a 4.1% organic growth, reaching EUR 1.8 billion in Q1.
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The electrification business, particularly power transmission, showed robust growth with a 21.7% increase in Q1.
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The company secured a significant order from the ERT frame agreement, valued above EUR 1 billion.
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Successful integration of La Triveneta Cavi is delivering expected synergies, contributing positively to performance.
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Nexans (NEXNY) is on track with its transformation program, aiming to become a pure player in electrification, supported by strategic divestments like Linio.
Negative Points
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The non-electrification segment experienced a slow start due to challenges in the automation and railway markets.
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There is a phasing effect impacting the power grid segment, particularly in Europe, which may affect short-term growth.
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The company faces potential risks from geopolitical events affecting projects like the GSI interconnector.
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Nexans (NEXNY) is exposed to market fluctuations in Europe, with lower demand impacting segments like Power Connect.
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The potential cancellation of US offshore wind projects like Empire Wind 1 could impact financial performance, though mitigated by termination fees.
Q & A Highlights
Q: Could you provide an update on the GSI interconnector project and its financial impact? A: Christopher Guerin, CEO: We have not received a notice to proceed yet, but we are in close cooperation with the client and continue production. We received a down payment in April, allowing us to produce cables until the end of August. There is no significant change in the project, and we are not part of the geopolitical negotiations. Financially, we are covered by termination fees if the project is canceled.
Q: How does Nexans plan to benefit from the German investment plan, and what is your exposure to the US market? A: Elyette Roux, Corporate VP: We have a historical presence in Germany for power grid and accessories, and we expect positive growth from the German investment plan. In the US, our exposure is 19% of North American sales, including Canada and high voltage in Charleston. The bulk of sales comes from Canada.