Half Year 2025 Nexans SA Earnings Call Transcript

Jul 30, 2025 / 07:00AM GMT

Release Date Price: $138.95

Transcript

Key Points

Positve

Nexans (NEXNY) reported strong organic growth of 4.9% for the group, with Electrification achieving nearly 8% growth.
The company achieved an exceptional cash conversion ratio of 64% and a record return on capital employed of 21.6% for the group.
Nexans (NEXNY) successfully divested Lynxeo and made a strategic acquisition of RCT, enhancing its position in Southern Europe.
The company is advancing its use of artificial intelligence to improve costing, pricing, and demand planning, which is expected to enhance performance.
Nexans (NEXNY) has a strong liquidity position with over EUR2 billion in cash and no net debt, providing flexibility for future M&A activities.

Negative

The automotive segment and automation business within Industry & Solutions are still lagging, impacting overall growth.
There is a slight decline in the Power Grid margin from 16.2% to 15.9% year-on-year, attributed to phasing and mix effects.
The company faces potential risks from geopolitical tensions affecting the Greater Internet contracts, which could impact future revenues.
Nexans (NEXNY) is still working on transforming La Triveneta Cavi, which is currently dilutive to margins.
The company has not yet quantified the financial impact of its AI initiatives, indicating that benefits may take time to materialize.

Operator

Ladies and gentlemen, good morning, and welcome to Nexans' half-year 2025 earnings conference call. As a reminder, this conference is being recorded. (Operator Instructions) I would now like to turn the call over to your host, Mr. Christopher Guerin, Nexans' CEO, to begin today's conference. Please go ahead, sir.

Christopher Guerin

Nexans SA - Chief Executive Officer, Acting Executive Vice President - PWR Connect, Chairman of the Executive Committee

Thank you. Good morning, everyone, and welcome to Nexans half-year 2025 results presentation. I'm joined today by Jean-Christophe Juillard, Deputy CEO and CFO; and Elyette Roux, Executive VP for Power Grid and accessories.

I will turn you over to Audrey Bourgeois, our Investor Relations, for the conference call rules.

Audrey Bourgeois

Nexans SA - Vice President - Investor Relations

Thank you, Chris. I would like to remind participants that statements made during the conference call, which are not historical facts, are forward-looking statements within the

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