Nexans Sets Impressive 2024 Financial Performance and Future Vision
Nexans Reports Groundbreaking Performance for 2024
Nexans has heralded a new era of financial achievement with its record-breaking performance in 2024. With standard sales reaching €7.1 billion, reflecting an impressive increase of 8.7% on a reported basis and 5.1% organically, the company continues to demonstrate its potential for robust growth. This growth trajectory is remarkable, especially within its Electrification businesses, which have surged by 13.0% organically in 2024.
Key Financial Highlights
The final quarter of 2024 alone accounted for €1.9 billion in standard sales, marking an 8.3% organic increase driven by an overall strong performance across all business segments. The numbers underscore Nexans' commitment to its strategic objectives outlined during its previous “Winds of Change” 2021-2024 plan, as well as its dedication to delivering tangible results beyond these goals.
Strategic Roadmap for 2025-2028
Nexans is set to embark on a forward-looking journey with its newly initiated strategic roadmap for 2025 to 2028, titled "Sparking Electrification with Tech Solutions". This plan will integrate a new Executive Committee structure designed to accelerate the company’s growth and innovation focus. As part of this strategic shift, the company has identified new avenues for sustainable development while also promising a robust return to its shareholders—proposing a dividend of €2.60 per share, representing a 13% increase.
Financial Performance Metrics
Central to the company’s financial performance is its all-time high adjusted EBITDA of €804 million for 2024, which reflects a remarkable 21.0% year-on-year growth. This translates into an adjusted EBITDA margin of 11.4%, showcasing the company’s efficiency and ability to enhance profitability across its core operations. Additional highlights include a normalized free cash flow of €454 million, emphasizing solid cash generation capabilities even amidst operational challenges.
Growth Across Market Segments
Nexans’ business segments have experienced varying degrees of growth, with the PWR-Transmission segment showing stellar performance. This particular segment achieved sales growth of 50.3% from the previous year, fueled by ongoing investments in capacity expansion at the Halden plant in Norway. The company’s ability to adapt and seize growth opportunities has been a hallmark of its operational strategy.
Electrification’s Central Role
Nexans' commitment to electrification efforts has never been clearer. The group has strategically integrated acquisitions, such as La Triveneta Cavi, to bolster its position in the Electrification market. This focus on electrification aligns with Nexans’ goal of creating high-value and sustainable energy solutions, highlighting its operational pivot from traditional business sectors towards electrification-centric strategies.
Sustainability Initiatives and Corporate Responsibility
In tandem with its financial performance, Nexans has also made headway in sustainability goals. The group's pursuit of a reduced environmental footprint has garnered recognition, including significant reductions in greenhouse gas emissions. The plans set forth for 2028 are ambitious but achievable, reflecting Nexans’ commitment to sustainable practices throughout its operations.
Future Outlook
For the upcoming year, Nexans has set forth guidance that targets an adjusted EBITDA ranging between €770 and €850 million, with a free cash flow forecast between €225 and €325 million. This is a clear indicator of the company's strategic foresight and financial discipline as it navigates a competitive landscape poised for change.
Frequently Asked Questions
What are Nexans' key financial achievements for 2024?
Nexans reported standard sales of €7.1 billion, an adjusted EBITDA of €804 million, and a 21% year-over-year growth.
How does Nexans plan to support electrification?
Nexans is focusing on electrification strategies through its new 2025-2028 roadmap, integrating technology solutions for sustainable development.
What changes are being made to shareholder returns?
The company proposed a dividend of €2.60 per share, reflecting a 13% increase, showing commitment to returning value to its shareholders.
Which segments of Nexans are experiencing growth?
The PWR-Transmission segment saw a remarkable 50.3% sales growth in 2024,, driven by enhanced operational capabilities and market demand.
What sustainability targets has Nexans outlined?
Nexans aims for significant reductions in GHG emissions and is committed to integrating circular economy principles into its operations by 2028.
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