9M 2024 financial information+4% organic growth driven by
ElectrificationSet for a robust year
_PRESS
RELEASE_
- Standard sales of €5,226
million in the first nine months of 2024, up +4.0% organically year
on year and up +6.9% excluding Other activities
- Electrification businesses
up +7.9% organically in the third quarter of 2024, reflecting
early-bird strategic investments in the Generation &
Transmission segment
- Strong adjusted backlog for
Generation & Transmission, mainly subsea-driven, at
€6.2 billion, up +19% compared to September 2023
- Expansion of manufacturing
capacities through investments in onshore high-voltage and the
production of low-carbon medium-voltage cables in
France
- Strategic investment
agreement in France to increase copper production and recycling
capacity across Europe
- Ambitious Net-Zero 2050
climate targets approved by the Science Based Targets
initiative
- Full-year 2024 guidance as
updated in July 2024 confirmed
- Adjusted EBITDA of between €750 and
800 million
- Normalized Free Cash Flow of
between €275 and 375 million
- Capital Markets Day to be
held on November 13, 2024 in London and virtually, and US investors
day on November 20, 2024 in New York City
~ ~ ~
Paris, October 30, 2024 –
Nexans, a global leader in the design and manufacturing of cable
systems to power the world, announces its financial information for
the first nine months of 2024. Commenting on the Group’s
highlights, Christopher Guérin, Nexans’ Chief Executive Officer,
said:
“The first nine months of 2024 have laid strong
foundations for a robust financial year. Our Electrification
businesses continue to drive growth, up +7.9% organically in the
third quarter of 2024, showcasing that early strategic investments
in Generation & Transmission are already yielding benefits.
In order to reinforce the positioning of our
electrification strategy and keep pace with increasing electricity
demand, we have decided to invest €90 million in onshore
high-voltage capacity at our French and Belgian plants and €15
million in the production of low-carbon medium-voltage cables in
France. In addition, Nexans continues to lead the way in the
circular economy with a strategic investment agreement at the Lens
plant, enabling the recycling of over 80,000 metric tons per
year.
As we look ahead, I am confident that our
continued focus on performance and strategic execution will drive
long-term value for all stakeholders. At our upcoming Capital
Markets Day in November, where we will further outline the
initiatives that will shape Nexans’ trajectory in the years to
come.”
CONSOLIDATED SALES BY SEGMENT
(in millions of euros) At standard metal prices
Copper reference at €5,000/t |
9M 2023 |
9M 2024 |
|
Organic growth 9M 2024 vs.
9M 2023 |
Organic growth Q3 2024 vs. Q3
2023 |
Electrification |
2,768 |
3,344 |
|
+12.1% |
+7.9% |
Generation & Transmission |
593 |
899 |
|
+54.3% |
+36.2% |
Distribution |
889 |
923 |
|
+1.6% |
-0.1% |
Usage |
1,286 |
1,522 |
|
+0.5% |
-0.7% |
Non-electrification (Industry &
Solutions) |
1,352 |
1,294 |
|
-3.8% |
-8.4% |
Total Group (excl. Other activities) |
4,120 |
4,639 |
|
+6.9% |
+2.5% |
Other activities |
800 |
588 |
|
-14.2% |
-19.4% |
Group Total |
4,921 |
5,226 |
|
+4.0% |
-0.5% |
9M AND Q3 2024 HIGHLIGHTS
In the first nine months of 2024, standard sales
amounted to €5,226 million, up +4.0% compared to the same period of
2023 and up +6.9% excluding Other activities, which are being
scaled down in line with the Group’s strategy. Third-quarter 2024
standard sales amounted to €1,680 million, down -0.5% organically
and up +2.5% excluding Other activities compared to the third
quarter of 2023.
The Electrification businesses (Generation &
Transmission, Distribution and Usage) witnessed a strong organic
sales increase of +12.1% in the first nine months thanks to (i) the
ramp-up of the Halden plant (Norway) in the Generation &
Transmission segment, (ii) ongoing positive demand driven by
long-term trends in the Distribution segment, and (iii) a
resilient Usage segment.
Non-electrification sales were down -3.8% in the
first nine months of the year on account of a slowdown in the
Automation business and a high base effect in the Auto-harnesses
business. Other activities experienced a significant organic
decrease of -14.2% compared to the first nine months of 2023 in
line with the Group’s strategy.
SUSTAINABILITY
As a key player in electrification, Nexans is
committed to not only driving the future of power, but also to
integrating and promoting sustainability and safety across all its
operations and activities. Aligned with its fundamental principles
and commitments to achieving Net-Zero emissions by 2050, key
initiatives were implemented during third-quarter 2024:
- Nexans' ambitious
Net-Zero 2050 climate objectives were approved by the Science Based
Targets initiative, underscoring the company's leadership in
climate action.
- The Copper Mark, an
esteemed label for responsible copper production, was awarded to
Nexans' foundries in Montreal, Canada, and Lens, France,
highlighting the company's dedication to ethical and sustainable
practices.
- In a strategic move
to bolster energy efficiency, Nexans partnered with Niehoff to
launch an innovative rod breakdown line at the Lens facility in
France, which is projected to cut energy usage by 25%. This
translates into a substantial reduction of approximately 840 tons
of CO2 emissions annually.
- In line with its
target of 100% decarbonized electricity consumption by 2030, Nexans
inaugurated a 1.7 MW solar farm at its Cortaillod plant in
Switzerland, with over 90% of the energy generated being used
onsite.
9M 2024 STANDARD SALES PER
SEGMENT
| GENERATION &
TRANSMISSION (17% OF TOTAL STANDARD SALES)
(in millions of euros) |
9M 2023 |
9M 2024 |
Q3 2023 |
Q3 2024 |
Sales at current metal prices |
611 |
919 |
215 |
284 |
Sales
at standard metal prices |
593 |
899 |
209 |
277 |
Organic growth (%) |
-2.1% |
+54.3% |
+17.8% |
+36.2% |
Generation & Transmission standard
sales came in at €899 million in the first nine months of
2024, up +54.3% organically compared to the first nine months of
2023, propelled by the ramp up of new capacity at the Halden plant
(Norway). In the third quarter of 2024, sales were up +36.2%
organically compared to the third quarter of 2023, reflecting
notably robust installation campaigns, Great Sea Interconnector
execution and contributions from Inspection, Maintenance and Repair
(IMR) works.
Customer activity remained robust, and in line
with its risk-reward selectivity approach, the segment’s
adjusted backlog reached €6.2 billion at September
30, 2024, up +19% compared to September 30, 2023. In the third
quarter, Nexans secured the final contract for the pioneering
electrical transmission link from the Orkney Islands in Scotland.
Additionally, a definitive agreement was reached between Greece and
Cyprus for the ambitious Great Sea Interconnector at the end of
September. This key development represents a crucial step forward
for the project, and Nexans is now anticipating the final notice to
proceed with the contract.
During the third quarter, the Group unveiled a
strategic €90 million investment at its facilities in France and
Belgium. This investment will increase the production of advanced
525kV onshore cables meeting the requirements of the TenneT frame
agreement. Progress continues apace on Nexans Electra, the
company's third cable-laying vessel. This state-of-the-art vessel
is set to markedly increase the company's installation capacity,
effectively addressing the business's expanding backlog.
| DISTRIBUTION
(18% OF TOTAL STANDARD SALES)
(in millions of euros) |
9M 2023 |
9M 2024 |
Q3 2023 |
Q3 2024 |
Sales at current metal prices |
1,026 |
1,077 |
331 |
344 |
Sales
at standard metal prices |
889 |
923 |
290 |
288 |
Organic growth (%) |
+2.9% |
+1.6% |
+0.0% |
-0.1% |
Distribution sales amounted to
€923 million at standard metal prices in the first nine months of
2024, up +1.6% organically, compared to the first nine months of
2023.
Europe has seen an uptick, thanks to the
establishment of new frame agreements and a surge in renewable
energy projects. This progress has been achieved notwithstanding
the temporary dip in activity due to the consolidation of
manufacturing operations in Finland during the third quarter. In
France, the Group invested €15 million in late August to increase
its capabilities in producing low-carbon medium-voltage cables in
order to support growth in electrification requirements in France
and in Western Europe. Additionally, the Group pioneered a
cutting-edge solar power solution in France, designed to support
the photovoltaic sector with a sustainable, low-carbon
alternative.
The Asia Pacific region has witnessed a rebound
primarily fueled by substantial investments in renewable energy and
grid enhancement projects, especially in Australia and New
Zealand.
In the Americas, the underlying market
conditions have continued to exhibit strength. Despite this, the
growth trajectory has moderated slightly, influenced by destocking
and the timing of substantial orders.
| USAGE (29%
OF TOTAL STANDARD SALES)
(in millions of euros) |
9M 2023 |
9M 2024 |
Q3 2023 |
Q3 2024 |
Sales at current metal prices |
1,704 |
2,006 |
527 |
730 |
Sales
at standard metal prices |
1,286 |
1,522 |
397 |
533 |
Organic growth (%) |
-6.1% |
+0.5% |
-12.6% |
-0.7% |
Usage sales amounted to €1,522
million at standard metal prices in the first nine months of 2024,
up +0.5% organically compared with the first nine months of
2023.
In North America (Canada), solid demand in
industrial markets during Q3 2024 supported the Group's growth.
While Europe faced headwinds with lower volumes and destocking in
certain markets, South America saw strong demand in Brazil and
Chile, while destocking in Columbia. In Africa, a robust recovery
in Morocco offset the subdued demand in Turkey.
In a strategic move to fortify its commitment to
30% recycled copper in its products by 2030, Nexans launched
CableLoop, an exclusive cable recycling and recovery service in
France and across Europe. CableLoop is a pioneering, end-to-end
solution that facilitates the collection of installation cable
off-cuts in distributors’ networks at the Group's recycling
centers. Here, these materials are transformed into high-quality
recycled raw materials, exemplifying the Group's dedication to
circular economy principles.
The sales figures reflect the strategic
acquisitions of La Triveneta Cavi as of June 1, 2024, and Reka
Cables since April 2023. These acquisitions are integral to Nexans'
Electrification strategy, expanding the Group’s capabilities in key
regions.
| NON-ELECTRIFICATION
(Industry & Solutions) (25% OF TOTAL STANDARD
SALES)
(in millions of euros) |
9M 2023 |
9M 2024 |
Q3 2023 |
Q3 2024 |
Sales at current metal prices |
1,459 |
1,406 |
479 |
443 |
Sales
at standard metal prices |
1,352 |
1,294 |
443 |
404 |
Organic growth (%) |
+17.7% |
-3.8% |
+13.1% |
-8.4% |
In the Industry & Solutions segment,
standard sales for 9M 2024 amounted to €1,294
million, reflecting an organic year-on-year decline of -3.8%. This
was primarily attributed to a slowdown in Automation, which was
partially offset by robust growth in the Shipbuilding, Nuclear and
Rolling Stock markets. Auto-harnesses market remained resilient
despite a high base effect from last year.
| OTHER
ACTIVITIES (11% OF TOTAL STANDARD SALES)
(in millions of euros) |
9M 2023 |
9M 2024 |
Q3 2023 |
Q3 2024 |
Sales at current metal prices |
1,104 |
889 |
344 |
273 |
Sales
at standard metal prices |
800 |
588 |
260 |
177 |
Organic growth (%) |
-15.5% |
-14.2% |
-6.0% |
-19.4% |
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 €588 million in 9M 2024.
Standard sales were down -14.2% 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.
2024 OUTLOOK
As the world continues to embrace
electrification, Nexans is well-positioned to harness buoyant
market demand, supported by global megatrends and the Company's
commitment to delivering value-added solutions. Nexans' Generation
& Transmission segment boasts a strong risk-reward adjusted
backlog, ensuring solid visibility. The Group is poised to reap
benefits from the expanded capacity of the Halden plant in Norway,
positioning Nexans to meet the growing global demand for
high-voltage solutions. Looking ahead, the Generation &
Transmission business is on a trajectory of gradual improvement.
This progress is contingent upon the successful execution of
projects and the completion of legacy contracts. The Distribution
market is entering a significant hyper cycle of investment,
presenting Nexans with opportunities for growth and enhanced
profitability. Despite weak demand in certain geographies within
the construction sector, Nexans’ Usage segment remains resilient,
with strategic initiatives in place to mitigate the impact of these
macroeconomic conditions.
The Group expects to achieve the following
targets which were upgraded in July, excluding the impact of any
non-closed acquisitions and divestments:
- Adjusted EBITDA of between €750 and
€800 million (€670 - €730 million previously);
- Normalized Free
Cash Flow of between €275 and €375 million (€200 - €300 million
previously).
Nexans reaffirms its commitment to the 2021
Capital Markets Day targets and will continue to execute its
strategic roadmap and priorities.
SIGNIFICANT EVENTS SINCE THE END OF
SEPTEMBER
October 22, 2024 – Nexans
signed a strategic investment agreement in France to increase its
copper production and recycling capacity across Europe. With an
investment of over €90 million, wire rod production capacity will
increase by over 50% at the Lens plant, boosting its copper scrap
recycling capacity to manage up to 80,000 metric tons per year.
The third-quarter 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 9:45
a.m. CET. Please find below the access details:
Webcast
https://channel.royalcast.com/landingpage/nexans/20241030_1/
Audio dial-in
- International
switchboard: +44 (0) 33 0551 0200
- France: +33 (0)
1 70 37 71 66
- United Kingdom:
+44 (0) 33 0551 0200
- United States:
+1 786 697 3501
Confirmation code: Nexans
~ ~ ~
Financial calendar
November 13, 2024:
Capital Markets
Day, London and virtuallyNovember 20, 2024:
US investors day,
New York CityFebruary 19, 2025:
Full-year 2024
earnings
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 2023, Nexans generated €6.5 billion in standard sales.
The Group is a leader in the design and manufacturing of cable
systems and services across four main business areas: Generation
& Transmission, Distribution, Usage 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 |
Elodie Robbe-MouillotTel.: +33 (0)1 78 15 03
87elodie.robbe-mouillot@nexans.com |
Mael Evin (Havas Paris)Tel.: +33 (0)6 44 12 14
91mael.evin@havas.com |
NB: Any discrepancies are due to rounding
This press release contains forward-looking
statements which are subject to various expected or unexpected
risks and uncertainties that could have a material impact on the
Company’s future performance.
Readers are invited to visit the Group’s website
where they can view and download the Universal Registration
Document, which include a description of the Group’s risk
factors.
- Nexans_Third quarter 2024 Press release_Final
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