Nexans Reports Strong 9M 2024 Growth Driven by Electrification

Nexans Reports Strong 9M 2024 Growth Driven by Electrification

Nexans has announced significant financial results for the first nine months of 2024, revealing a fruitful strategy that focuses on electrification. The company reported standard sales of €5,226 million, reflecting an organic growth of +4.0% compared to the same period last year, and an even stronger +6.9% growth when excluding other activities.

Electrification Segment Boosting Sales

The electrification businesses experienced remarkable performance, with a standout increase of +7.9% in organic sales during the third quarter. This growth underscores the early strategic investments made in the Generation & Transmission segment, which is vital for meeting global energy demands.

Nexans' adjusted backlog for Generation & Transmission reached a robust €6.2 billion, marking a 19% increase over September from the previous year. The surge is attributed mainly to subsea-driven projects, highlighting the company's leadership in providing innovative cable solutions.

Investment in Growth and Sustainability

To expand its manufacturing capabilities, Nexans is investing €90 million in enhancing onshore high-voltage capacity at its facilities located in France and Belgium, along with an additional €15 million dedicated to producing low-carbon medium-voltage cables in France. These investments are directly linked to fulfilling increasing electricity demands and reinforcing the electrification strategy.

Nexans is also committed to sustainability, recently achieving approval for its Net-Zero 2050 climate targets from the Science Based Targets initiative. This commitment reflects the company’s strategy to integrate sustainability into all areas of operations.

2024 Guidance and Market Outlook

Nexans confirmed its full-year guidance for 2024, aiming for an adjusted EBITDA of between €750 and €800 million and a normalized free cash flow between €275 and €375 million. This outlook remains optimistic, reflecting confidence in the company’s ongoing projects and investments.

Upcoming key dates include the Capital Markets Day on November 13, where Nexans will further discuss its strategic direction and initiatives. US investors will also have the opportunity to learn about the company's performance at an investor day scheduled for November 20.

Highlights of the 2024 Financial Performance

Throughout Q3 2024, Nexans’ electrification sector stood out with increased sales driven by high demand for cable systems related to renewable energy. The company's strong foundation in these markets is crucial as the world transitions towards sustainable energy solutions.

The Generation & Transmission segment led the way with a remarkable +54.3% organic growth compared to Q3 2023. This growth can be largely credited to enhanced production capabilities and strategic project executions, including notable contracts linked to energy projects in Europe.

Geographical Insights and Innovations

In Europe, Nexans is bolstering its operations with innovative solutions in solar power, directly supporting renewable initiatives. Meanwhile, the Asia-Pacific region has witnessed increased activities in renewable energy projects, particularly in Australia and New Zealand.

Moreover, Nexans is launching a pioneering cable recycling service, CableLoop, designed to meet its 2030 target of incorporating 30% recycled copper content into products. This initiative reinforces the company’s dedication to contributing to a circular economy while enhancing its product offerings.

Conclusion: Positioned for Future Growth

The future appears bright for Nexans, with its dedication to electrification and sustainability driving its growth strategy. The ongoing performance in the electrification sector, along with future investments and innovative solutions, is set to ensure continued success in meeting global energy needs.

Frequently Asked Questions

What were Nexans' total sales for the first nine months of 2024?

Nexans reported total standard sales of €5,226 million for the first nine months of 2024.

How much organic growth did Nexans achieve in Q3 2024?

Nexans achieved an organic growth rate of +7.9% in Q3 2024 within its electrification businesses.

What key investments is Nexans making to boost production capacity?

Nexans is investing €90 million in onshore high-voltage capacity and €15 million in low-carbon medium-voltage cable production.

When are the upcoming investor events for Nexans?

Nexans will hold its Capital Markets Day on November 13, 2024, and a US investor day on November 20, 2024.

What sustainability goals has Nexans committed to?

Nexans aims for Net-Zero emissions by 2050 and plans to use 30% recycled copper in its products by 2030.

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