(Paris:NEX),
2024: A record-breaking performance
Paving the way for 2025-2028 strategic roadmap
_PRESS RELEASE_
- 2024 standard sales of EUR7.1 billion (current sales of EUR8.5 billion), up +8.7% on a reported basis and +5.1% organically
- Acceleration in Electrification businesses, up +13.0% organically in 2024, reflecting early-bird investment and unabated focus on value-added solutions
- Q4 2024 standard sales of EUR1.9 billion, up +8.3% organically driven by all businesses
- A performance-driven journey beyond 2024 objectives and “Winds of Change” 2021-2024 Capital Markets Day targets:
- All-time high adjusted EBITDA of EUR804 million, up +21.0% year-on-year, and adjusted EBITDA margin at 11.4%
- Outstanding Normalized free cash flow at EUR454 million and 56% normalized cash conversion
- Outperformance of ROCE in Electrification businesses at 26.3%
- Record subsea-driven PWR-Transmission adjusted backlog standing at EUR7.4 billion
- Successful deployment of the Electrification Pure Player strategy: Completion of the La Triveneta Cavi acquisition, divestment of AmerCable early 2025, and business separation of Lynxeo within the Non-electrification business
- Net income at EUR283 million, up +27% versus 2023
- Strong balance sheet: net debt at EUR681 million and 0.85x leverage ratio
- Attractive return to shareholders: proposed dividend for 2024 of EUR2.60 per share, up +13%
- Initiation of 2025-2028 strategic roadmap “Sparking Electrification with Tech solutions” with a new Executive Committee and structure to drive the next chapter forward
- Full-year 2025 guidance announced
- Adjusted EBITDA of between EUR770 and 850 million
- Free Cash Flow of between EUR225 and 325 million
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Paris, February 19, 2025 – Today, Nexans, a global leader in the design and manufacturing of cable systems to power the world, published its financial statements for the fiscal year 2024, as approved by the Board of Directors at its meeting on February 18, 2025 chaired by Jean Mouton. Commenting on the Group's performance, Christopher Guerin, Nexans' Chief Executive Officer, said:
“In 2024, Nexans once again demonstrated its ability to deliver profitable and sustainable performance in a dynamic market environment. The Group set a new financial record, underscoring the success of its structural transformation and long-term strategic execution.
2024 also marks the successful completion of our 2021-2024 equity story “Winds of Change”, a period in which Nexans fundamentally transformed into a pure player in electrification. As we move to our next chapter up to 2028 “Sparking Electrification with tech solutions”, we are building on this solid foundation with a renewed ambition: to accelerate our growth, drive innovation, and lead the energy transition with sustainable and high-value solutions. Our commitment remains unchanged–creating long-term value for all our stakeholders. “
2024 KEY FIGURES
| (in millions of euros) | 2023 | 2024 |
| Sales at current metal prices | 7,790 | 8,546 |
| Sales at standard metal prices1 | 6,512 | 7,078 |
| Reported growth | -3.5% | +8.7% |
| Organic growth | -0.9% | +5.1% |
| Adj. EBITDA | 665 | 804 |
| Adj. EBITDA as a % of standard sales | 10.2% | 11.4% |
| Specific operating items | (53) | (22) |
| Depreciation and amortization | (179) | (217) |
| Operating margin | 432 | 566 |
| Reorganization costs | (49) | (62) |
| Other operating items | (9) | 10 |
| Operating income | 374 | 513 |
| Net financial income (loss) | (83) | (116) |
| Income taxes | (68) | (115) |
| Net income | 223 | 283 |
| Net debt | 214 | 681 |
| Normalized free cash-flow | 454 | 454 |
| ROCE | 20.7% | 21.1% |
2024 BUSINESS PERFORMANCE
Sales at standard metal prices reached EUR7,078 million in 2024, demonstrating strong organic growth of +5.1% at constant scope and currency compared to 2023. Excluding the Other activities segment, which is being strategically scaled down, organic growth stood at +8.1%. The Electrification businesses grew by +13.0% organically, driven largely by the PWR-Transmission segment's strong growth thanks to capacity expansion at the Halden plant in Norway. After a double digit organic growth in 2023, the Non-electrification business proved resilient with a small organic decline of -2.5%.
In the fourth quarter of 2024, Nexans achieved remarkable organic growth of +8.3% compared to the fourth quarter of 2023, and growth of +11.7% excluding the Other activities segment driven by all business segments. Showcasing the strength of its core business focus, the Electrification businesses outperformed with +15.6% organic growth in the fourth quarter of 2024.
Net acquisitions/disposals had an impact on standard sales of +EUR219 million reflecting i) the integration of La Triveneta Cavi into the PWR-Connect segment from June 1, 2024, ii) the acquisition of Reka Cables since April 2023 bolstering PWR-Grid and PWR-Connect segments, and iii) the divestment of the Telecom business since October 2023 in line with Nexans' vision to become an Electrification Pure Player.
In the fourth quarter of 2024, Nexans continued to deliver on the implementation of its strategy to refocus its activities. The Group announced the execution of an agreement to sell AmerCable, a leading manufacturer of electrical power, control and instrumentation cables for harsh environments, for an enterprise value of US$280 million, which was completed on January 2, 2025. The Group also completed the business separation of its specialty industrial cable operations formerly Nexans Industry Solutions & Projects now named Lynxeo.
Adjusted EBITDA reached a record high of EUR804 million in 2024, up by a solid +21.0% versus EUR665 million in 2023. This strong performance underscored the profitability enhancements across all business segments. The adjusted EBITDA margin reached an all-time high of 11.4%, surpassing the previous year's strong performance of 10.2%. This achievement illustrates the Group's strategic focus on operational excellence, selectivity and value-driven growth. Electrification businesses achieved 12.9% adjusted EBITDA margin, outperforming the 2023 achievement of a 12.5% margin.
In 2024, specific operating items amounted to a negative EUR22 million. They included EUR19 million related to share-based payment expenses, and EUR3 million related to additional costs on long-term projects impacted by past reorganizations.
EBITDA including share-based payment expenses – as per the 2021 Capital Markets Day definition -amounted to EUR785 million in 2024, versus EUR652 million in 2023. The Group's EBITDA margin stood at 11.1% in 2024, in line with the Group's 2021 Capital markets day target of 10%-12%.
ROCE (including the 12-month contribution of La Triveneta Cavi and AmerCable) pursued its strong trajectory, reaching 21.1% for the Group, and 26.3% for the Electrification businesses.
Operating margin totaled EUR566 million in 2024, representing 8.0% of sales at standard metal prices (versus 6.6% in 2023).
The Group ended 2024 with operating income of EUR513 million, compared with EUR374 million in 2023. The main changes were as follows:
- Reorganization costs amounted to EUR62 million in 2024, compared with EUR49 million in 2023, partly due to the transformation of the PWR-Transformation business and business separation of Lynxeo.
- Other operating items represented an income of EUR10 million in 2024, versus an expense of EUR9 million in 2023, of which:
- The core exposure effect amounted to a positive EUR44 million in 2024, versus a negative EUR12 million in 2023, reflecting the increase in copper prices over the year.
- Acquisition-related costs of EUR22 million in 2024, mainly related to the acquisition of La Triveneta Cavi. In 2023, acquisition-related costs of EUR10 million were mainly related to the acquisition of Reka Cables in Finland.
The net financial expense amounted to EUR116 million in 2024, compared with EUR83 million during the same period last year. The increase primarily reflects the successful issue of two bonds, a EUR575 million bond maturing in 2029 and a EUR350 million bond maturing in 2030, as well as negative foreign exchange impacts.
Income tax expense stood at EUR115 million, up from EUR68 million in 2023. The tax rate amounted to 29% of income before tax in 2024.
Net income amounted to a record EUR283 million in 2024, versus EUR223 million in 2023, up +26.6%, representing EUR6.39 per share.
CASH FLOW AND NET DEBT AT DECEMBER 31, 2024
Normalized free cash flow stood at EUR454 million in 2024, reflecting the Group's solid operating performance. Calculated based on normalized free cash flow, the adjusted EBITDA to cash conversion rate was 56%.
Cash from operations was a strong EUR670 million in 2024, versus EUR511 million in 2023. Change in working capital amounted to EUR178 million, versus EUR287 million in 2023 which was supported by the positive impact of cash collection in the PWR-Transmission segment and sustained efforts on inventory reduction. Thus, operating working capital represented 0.5% of the Group's annualized full year sales at December 31, 2024 (0.3% at December 31, 2023), well below its normative level of less-than or equal to6%. Normalized free cash flow also included a negative reorganization cash impact of EUR72 million in 2024, versus a negative EUR98 million in 2023.
Recurring capital expenditure amounted to EUR257 million in 2024, representing 3.6% of Group's standard sales. Normalized free cash flow included financial interest for EUR88 million, versus EUR73 million in 2023, and other investing impacts for a positive EUR4 million, versus a negative EUR16 million in 2023.
Free cash flow before M&A and equity operations was EUR313 million in 2024, versus EUR234 million in 2023, and included strategic capital expenditure in the PWR-Transmission business for EUR121 million, corresponding mainly to the ongoing investment in a third cable-laying vessel, and to the finalization of the expansion of the Halden plant in Norway. The other differing items between Normalized free cash flow and Free cash flow before M&A corresponded to normative project tax cash-out for EUR19 million (EUR28 million in 2023).
Net cash flow from M&A amounted to a net outflow of EUR532 million in 2024, primarily related to the acquisition of La Triveneta Cavi in June. In 2023, this figure was a net outflow of EUR79 million related to the acquisition of Reka Cables.
Equity operations represented a net outflow of EUR164 million including the payment of the 2023 dividend of EUR2.30 per share for a total amount of EUR102 million, and share buybacks for EUR33 million. There was a net outflow of EUR9 million related to unfavorable foreign exchange fluctuations and new lease liabilities.
Net debt increased to EUR681 million at December 31, 2024, from EUR214 million at December 31, 2023, representing a 0.85x leverage ratio (net debt / adjusted EBITDA) and 0.95x leverage ratio as per the covenant definition2.
The Board of Directors resolved to propose to the Annual General Meeting of May 15, 2025, a dividend payment of EUR2.60 per share in respect of 2024, resulting in a +13% increase versus the prior year, progressively increasing the dividend as a mark of its confidence in the Group's prospects.
SUSTAINABILITY
As a leader in electrification, Nexans is dedicated to shaping the future of its industry while prioritizing sustainability and safety throughout its operations. The Group unveiled its 2028 Environment, Social and Governance roadmap up to 2028 at its Capital Markets Day. Significant progress was achieved in 2024:
- Decarbonization initiatives yielding positive results: 38% reduction in Scope 1 & 2 GHG emissions (42% reduction target in 2028) and 40% reduction in Scope 3 GHG emissions (30% reduction target in 2028);
- Circular economy as a key strategic focus: copper recycled content reached 21% in 2024 (25% target in 2028);
- Gender diversity in graded positions at the core of human resources strategy: 16% of women in senior management in 2024 (30% target in 2028);
- Employee engagement at the heart of Nexans' performance: a continuous Engagement Rate improvement since 2021, reaching 78% in 2024 (greater-than or equal to78% target in 2028);
- Ethical business practices fully embraced: 100% completion rate of compliance awareness training achieved in 2024.
Nexans' environmental performance continued to be recognized by leading non-financial rating agencies, positioning the Group among the top performers in its industry. Nexans has maintained a high CDP Climate rating of A- and, in its first year of water-related scoring, achieved a strong B rating. Moreover, the Group's Ecovadis score was in the upper part of the Top 5% for 2024. These results underscore Nexans' unwavering commitment to sustainability as a core pillar of its strategy.
2024 PERFORMANCE BY SEGMENT
| PWR-TRANSMISSION (18% OF TOTAL STANDARD SALES)
| (in millions of euros) | 2023 | 2024 | Q4 2024 |
| Sales at standard metal prices | 870 | 1,287 | 389 |
| Organic growth | +0.8% | +50.3% | +41.9% |
| Reported growth | -9.2% | +47.9% | +40.3% |
| Adjusted EBITDA | 83 | 142 | |
| Adjusted EBITDA as a % of standard sales | 9.5% | 11.0% |
PWR-Transmission standard sales came in at EUR1,287 million in 2024, up +50.3% organically compared to 2023, boosted by the completion of the Halden, Norway, plant capacity expansion at the beginning of the year, which doubled XLPE technology capacities. In the fourth quarter of 2024, Nexans achieved organic growth of +41.9% compared to the fourth quarter of 2023.
The segment's adjusted EBITDA reached EUR142 million in 2024, up +72.3% compared to the same period last year. The adjusted EBITDA margin showcased a significant increase to 11.0% in 2024, versus 9.5% in 2023. As expected, the margin upturn throughout the year was supported notably by Revolution Wind successful installation campaign, Inspection Maintenance and Repair (IMR) projects as well as continued execution of the Great Sea Interconnector project.
Customer activity remained dynamic, and in line with the Group's risk-reward selectivity approach, the segment's adjusted backlog reached EUR7.4 billion at December 31, 2024, up +21.4% compared to December 31, 2023. The strong order intake was notably fueled by a substantial contract for the Gotland electricity connection project, an important contract for East Anglia TWO offshore wind project in the southern North Sea, and the LanWin 2 final award as part of the frame-agreement with TenneT for around EUR1 billion. This record-high adjusted backlog is more than 90% subsea-driven (subsea interconnection and offshore wind projects) and provides multi-year visibility with around 90% of the topline of the business secured for the 2024-2028 period.
The robust visibility of manufacturing and installation asset loads has been extended through 2030, with both Charleston and Halden plants more than 90% loaded up to 2028. Construction of Nexans' third cable-laying vessel, Nexans Electra, is on-track and will be completed in 2026. This state-of-the-art vessel is a strategic asset that will significantly enhance capacity to address the substantial growth in the business' backlog. The Group also unveiled a strategic EUR90 million investment at its facilities in France and Belgium to increase the production of advanced 525kV onshore cables meeting the requirements of the TenneT frame agreement.
| PWG-GRID (18% OF TOTAL STANDARD SALES)
| (in millions of euros) | 2023 | 2024 | Q4 2024 |
| Sales at standard metal prices | 1,186 | 1,243 | 320 |
| Organic growth | +4.5% | +3.1% | +7.6% |
| Reported growth | +9.0% | +4.8% | +7.7% |
| Adjusted EBITDA | 156 | 170 | |
| Adjusted EBITDA as a % of standard sales | 13.2% | 13.6% |
Standard sales in the PWR-Grid segment rose organically by +3.1% compared with 2023 to EUR1,243 million. Fourth quarter 2024, saw strong organic sales growth of +7.6% compared to the same quarter last year. Europe benefited from increased demand and the securing of new frame-agreements. The Middle East and Africa region was boosted by renewable energy projects. North America was stable with a good second half, while South America encountered some project delays. The Accessories business was a solid contributor throughout the year.
Adjusted EBITDA rose by a sharp +9.0% year-on-year to EUR170 million supported by selectivity on new frame-agreements, operational excellence and the contribution of the Reka Cables acquisition completed in April 2023. The adjusted EBITDA margin reached an unprecedented 13.6% in 2024 compared with 13.2% in 2023, reflecting selective growth and successful business transformation.
| PWR-CONNECT (29% OF TOTAL STANDARD SALES)
| (in millions of euros) | 2023 | 2024 | Q4 2024 |
| Sales at standard metal prices | 1,679 | 2,073 | 551 |
| Organic growth | -6.3% | +1.4% | +4.2% |
| Reported growth | -8.6% | +23.5% | +40.2% |
| Adjusted EBITDA | 229 | 283 | |
| Adjusted EBITDA as a % of standard sales | 13.6 % | 13.7% |
Standard sales in the PWR-Connect segment amounted to EUR2,073 million in 2024, up +1.4% organically. Europe suffered from lower demand in some residential markets, despite sustained momentum in commercial and infrastructure segments. Near East & Africa and South America remained very strong while North America (Canada) rebounded in the second half of the year. In fourth-quarter 2024, Nexans achieved organic growth of +4.2% compared to fourth quarter 2023 and +0.5% compared to the third quarter of 2024.
The 2024 figures reflect the contributions of La Triveneta Cavi, starting from June 1, 2024, and Reka Cables, since April 2023. These acquisitions are integral to Nexans' Electrification strategy, expanding the Group's capabilities and reinforcing its market position in key regions.
Adjusted EBITDA reached EUR283 million in 2024, up +23.8% year-on-year. Adjusted EBITDA margin was a robust 13.7%, thanks to structural performance improvement initiatives, selectivity and value-added solutions.
| NON-ELECTRIFICATION (Industry & Solutions) (24% OF TOTAL STANDARD SALES)
| (in millions of euros) | 2023 | 2024 | Q4 2024 |
| Sales at standard metal prices | 1,750 | 1,701 | 406 |
| Organic growth | +13.7% | -2.5% | +2.1% |
| Reported growth | +12.3% | -2.8% | +1.9% |
| Adjusted EBITDA | 185 | 207 | |
| Adjusted EBITDA as a % of standard sales | 10.6% | 12.2% |
In the Industry & Solutions segment, standard sales for 2024 amounted to EUR1,701 million, reflecting a low organic decrease of -2.5% year-on-year, while fourth-quarter 2024, up +2.1% compared to fourth-quarter 2023.
The performance reflects a slowdown in the Automation market in Europe, which was partially offset by a stable Shipbuilding, Rollingstock and Nuclear business. The Auto-harnesses business was stable during the year.
Adjusted EBITDA for the segment increased by +11.9% and reached EUR207 million, resulting in an adjusted EBITDA margin of 12.2% in 2024, compared to 10.6% the previous year. This improvement reflected a positive mix and pricing effect resulting from the successful transformation of the business.
| OTHER ACTIVITIES (11% OF TOTAL STANDARD SALES)
| (in millions of euros) | 2023 | 2024 | Q4 2024 |
| Sales at standard metal prices | 1,026 | 774 | 186 |
| Organic growth | -17.9% | -14.4% | -14.9% |
| Reported growth | -21.2% | -24.5% | -17.3% |
| Adjusted EBITDA | 13 | 2 |
The Other activities segment – corresponding for the most part to copper wire sales and corporate costs that cannot be allocated to other segments – reported standard sales of EUR774 million in 2024. Standard sales were down -14.4% organically year-on-year, mainly linked to the Group's strategy to reduce copper wire external sales through tolling agreements in order to mitigate their dilutive effect.
The segment's adjusted EBITDA decreased to EUR2 million in 2024, versus EUR13 million in 2023, reflecting notably temporary higher corporate costs related to the business separation of Lynxeo.
2025 OUTLOOK
In 2025, following the divestment of AmerCable in January 2025 and in line with the new 2025-2028 strategic roadmap unveiled in November 2024, Nexans expects to achieve, excluding non-closed acquisitions or divestments:
- Adjusted EBITDA of between EUR770 and 850 million
- Free Cash Flow of between EUR225 and 325 million
SIGNIFICANT EVENTS SINCE THE END OF DECEMBER
January 2, 2025 – Nexans announced the completion of the sale of AmerCable, a leading manufacturer of electrical power, control and instrumentation cables for harsh environments, to Mattr, for an enterprise value of US$280 million.
The 2024 press release and presentation slides are available in the Investor Relations Results section at Nexans – Financial results.
A conference call is scheduled today at 9:00 a.m. CEST. Please find below the access details:
Webcast
https://channel.royalcast.com/landingpage/nexans/20250219_1/
Sell-side analysts wishing to participate to the Q&A session at the end of the conference need to pre-register to receive connection details (dial-in numbers and passcode) by email.
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FINANCIAL CALENDAR
April 30, 2025: Q1 2025 financial information
May 15, 2025: Annual General Meeting
July 30, 2025: Half-year 2025 earnings
October 23, 2025: Q3 2025 financial information
About Nexans
For over a century, Nexans has played a crucial role in the electrification of the planet and is committed to electrifying the future. With approximately 28,500 people in 41 countries, the Group is paving the way to a new world of safe, sustainable and decarbonized electricity that is accessible to everyone. In 2024, Nexans generated EUR7.1 billion in standard sales. The Group is a leader in the design and manufacturing of cable systems and services across four main business areas: PWR-Transmission, PWR-Grid, PWR-Connect and Industry & Solutions. Nexans was the first company in its industry to create a Foundation supporting sustainable initiatives, bringing access to energy to disadvantaged communities worldwide. The Group is recognized on the CDP Climate Change A List as a global leader on climate action and has committed to Net-Zero emissions by 2050 aligned with the Science Based Targets initiative (SBTi).
Nexans. Electrify the Future.
Nexans is listed on Euronext Paris, compartment A.
For more information, please visit www.nexans.com
Contacts
| Investor relations | Communication
|
| Audrey Bourgeois Tel.: +33 (0)1 78 15 00 43 audrey.bourgeois@nexans.com
|
Mael Evin (Havas Paris) Tel.: +33 (0)6 44 12 14 91 mael.evin@havas.com
|
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