Nexans S.A.

H1 2026 standard sales were EUR 3.249 billion versus EUR 3.093 billion in H1 2025, a 5% increase overall and 1.5% organic growth. Adjusted EBITDA was EUR 388 million versus EUR 372 million restated in H1 2025, up 4.3%, with a margin of 11.9% of standard sales. By segment, PWR-Transmission sales were EUR 777 million and adjusted EBITDA was EUR 107 million, up 21% year on year, with margin of 13.7%; PWR-Grid sales were EUR 702 million and adjusted EBITDA was EUR 108 million, with margin of 15.4%; PWR-Connect sales were nearly EUR 1.4 billion and adjusted EBITDA was EUR 162 million, with margin of 11.8%. Free cash flow was EUR 165 million and cash conversion was 42.7%; leverage was 1.4x and liquidity was around EUR 2.5 billion. Full-year 2026 guidance was raised to adjusted EBITDA of EUR 770 million to EUR 840 million and free cash flow of EUR 235 million to EUR 325 million. Management said the guidance includes Republic Wire from June 1, excludes further acquisitions, does not assume execution of the Great Sea Interconnector in 2026, and includes loading of the MI line at the end of 2026.

Julien Hueber framed the half as evidence that Nexans’ profitable-growth strategy and Electrification pure-player model are working, especially in the U.S. and in fast-growing verticals like data centers, battery storage and solar. He repeatedly pointed to structural demand exceeding supply, the company’s expanded industrial footprint, and disciplined M&A as the core strategic pillars. His tone was constructive and confident, but he also said the company remains prudent on the back half given geopolitical uncertainty and is aiming for the midpoint of guidance rather than the top end.

Vincent Piquet highlighted the sales bridge from EUR 3.093 billion to EUR 3.249 billion, saying organic growth was 1.5%, scope added 3.8% and FX was slightly negative at 0.3%. On profitability, he said adjusted EBITDA increased from EUR 372 million restated to EUR 388 million, driven mainly by PWR-Transmission, while taxes were about EUR 60 million and the effective tax rate was 32.7%. He also said free cash flow of EUR 165 million and cash conversion of 42.7% were solid, CapEx remained relatively high due to Electra and other investments, leverage was 1.4x, and liquidity was around EUR 2.5 billion including cash, an undrawn revolver and undrawn EIB financing. He added that H2 depreciation should step down versus H1 due to specific items.

Analysts focused on whether H2 still needs to be stronger than H1, what drove the increase in guidance, and how backlog and the new Mediterranean MI project fit into the outlook. Management said H1 was stronger than expected, the raised guidance reflects both Republic Wire and broader outperformance, and they are aiming for the midpoint, not the top end. On backlog, Nexans said the reported EUR 7.7 billion did not yet include the new MI order, which is still in exclusive discussions and would only be added after regulatory approval; they also said the new project is sized to use the MI line for 18 months. Questions on Connect margins, Nordics and Republic Wire led management to say the Nordics remain weak but are showing early recovery signs in Q3, while Republic Wire integration is progressing well and medium-voltage capacity options in North America are being studied.