Nexans (NEXNY) Full Year 2025 Earnings Call Highlights: Strong Growth and Strategic …

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Fri, February 20, 2026 at 12:01 AM GMT+9 3 min read

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NEXNY

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**Revenue:** 6.1 billion with an organic growth of 8.3% year on year.

**Adjusted EBITDA:** 728 million, representing an adjusted EBITDA margin of 11.9%.

**Cash Conversion Ratio:** 47%.

**Return on Capital Employed (ROCE):** 21.3%.

**Leverage Ratio:** 0.36 times.

**Free Cash Flow:** 344 million.

**Net Income:** 358 million, up 26.6% year on year.

**Power Transmission Organic Growth:** 29.8% for the full year.

**Power Grid Organic Growth:** 5.5% in 2025.

**Power Connect Organic Growth:** 3.6% year on year.

**Dividend Per Share:** Proposed 2.9 per share for 2025, an increase of 11.5% compared to 2024.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Nexans (NEXNY) achieved strong financial performance in 2025, with group sales reaching 6.1 billion and an organic growth of 8.3% year-on-year.

The company reported an adjusted EBITDA of 728 million, representing an 11.9% margin, indicating improved profitability.

Cash generation was solid, with a cash conversion ratio of 47%, reflecting strong cash discipline and quality of earnings.

Nexans (NEXNY) completed two major acquisitions in Canada and Spain, enhancing its electrification footprint and offering growth opportunities.

The company exceeded its mid-term sustainability targets, achieving a 49% reduction in CO2 emissions for Scope 1 and 2, driven by energy efficiency and renewable energy usage.

Negative Points

The industrial solution businesses are now classified as discontinued operations, impacting the financial statements for 2025 and 2024.

The Connect segment faced pressure in Asia Pacific and Oceania, affecting profitability, particularly in the second half of 2025.

The metallurgy segment was impacted by US tariffs, resulting in a negative 6 million impact on a full-year basis.

The company anticipates a softer first half of 2026 due to project phasing, which may affect financial performance.

Nexans (NEXNY) is still quoting for projects to mitigate the impact of the GSI project rescheduling, creating uncertainty in the backlog.

Q & A Highlights

Q: Can you clarify the guidance on EBITDA between the bottom and top end, and how much is included in the bottom end and top end of guidance? A: Julien Hueber, CEO: GSI is not included in our guidance. We are quoting different projects to offset the GSI element. Some of these projects are included in the guidance, but not fully, as the timing is not yet clear.

Story Continues  

Q: What are the main components of improvement in profitability in the Connect segment for 2026? A: Julien Hueber, CEO: The lower margin in the second half was due to price pressure in Oceania and softer market conditions in the Nordics. We expect improvement by mid-2026. Additionally, newly acquired businesses are being transformed to improve profitability.

Q: How confident are you in reaching high 10s margins in the transmission segment by 2027-2028, and what are the key steps to achieving this? A: Vincent Piquet, CFO: We are confident due to better quality of execution and selectivity in deals. The new deals we are executing on now have better margin accretion, supporting our goal of reaching high 10s margins.

Q: What is the current status of the GSI project, and is there any compensation for idle capacity? A: Julien Hueber, CEO: The rescheduling with customers is ongoing, and all produced cables belong to the customers, so there is no financial impact on Nexans. Vincent Piquet, CFO: All produced cables have been paid for, making it financially neutral for us.

Q: Can you provide more details on the mitigation measures for the GSI project, and what are the margin profiles for repair work compared to large interconnection projects? A: Julien Hueber, CEO: Mitigation measures include industrial adjustments, winning small repair orders, and quoting for new MI projects. The profitability of these new projects is expected to be similar to GSI.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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