Nexans Reports 4% Organic Growth in First Nine Months Driven by Electrification

Cable manufacturer Nexans reported a 4.0% organic sales increase for the first nine months of 2024, bringing total sales to €5,226 million. The company attributed this growth primarily to its electrification businesses, which saw a 7.9% organic rise in the third quarter compared to the previous year. The order backlog for the generation and transmission segment also saw substantial growth.

Nexans reaffirmed its full-year 2024 financial guidance, projecting adjusted EBITDA between €750 and €800 million and normalized free cash flow between €275 and €375 million. The company is making strategic investments to support its electrification strategy, including €90 million for onshore high-voltage capacity in France and Belgium, and €15 million for low-carbon medium-voltage cable production in France.

Furthermore, Nexans has entered into a strategic investment agreement for its Lens plant in France to increase copper production and recycling capacity in Europe by over 80,000 metric tons annually. The company's Net-Zero 2050 climate targets have also received approval from the Science Based Targets initiative.

While third-quarter sales increased by 2.5% excluding "Other activities," overall Group sales saw a slight organic decrease of 0.5% year-on-year. Electrification segments, encompassing generation, transmission, and distribution, performed well. However, non-electrification business lines, such as automation and automotive harnesses, experienced a decline. Nexans also announced upcoming Capital Markets Day and Investor Days in November.

The company expects a robust year-end performance and continues to focus on its sustainability initiatives and strategic execution to meet the demands of an increasingly electrified world.