Navigating Market Uncertainty: Nexans' Resilience in 2024

In the ever-evolving landscape of global business, companies face numerous challenges and opportunities. For Nexans, 2024 presented a unique set of market conditions that required strategic navigation and adaptability. Despite a slight organic decline in sales, Nexans demonstrated remarkable resilience, growth in adjusted EBITDA and margin, and a strong generation of free cash flow and reduction in debt leverage. Let's delve into the key factors that contributed to Nexans' impressive performance in 2024.



Market Conditions and Strategic Navigation

Nexans' slight organic decline in sales in 2024 was largely driven by market conditions in China, where market conditions remained uncertain, leading to a double-digit decline in demand. Despite this challenge, Nexans managed to return to positive order growth and continued to drive margin expansion and cash-flow generation. The company's focus on executing its value creation plan, bringing industry-leading innovations to the market, and driving a simplified, more agile operating model helped it navigate these market conditions. Additionally, Nexans' strong balance sheet, with net debt at €681 million and a 0.85x leverage ratio, allowed it to maintain financial stability and attractiveness to shareholders.



Growth in Adjusted EBITDA and Margin

Nexans achieved growth in adjusted EBITDA and margin despite the sales decline by implementing several strategies to improve operational efficiency. These strategies included cost-cutting measures, improved product substance, investment in R&D, expansion of strategic collaborations, and a focus on high-value solutions. By implementing these strategies, Nexans was able to achieve growth in adjusted EBITDA and margin, demonstrating its commitment to driving operational efficiency and improving overall performance.



Strong Generation of Free Cash Flow and Reduction in Debt Leverage

In 2024, Nexans generated strong free cash flow and reduced its debt leverage, which significantly contributed to its overall financial performance. The key drivers behind these achievements can be attributed to operational efficiency, growth in electrification businesses, successful strategic initiatives, strong cash conversion, and a reduction in specific operating items. These factors combined to generate strong free cash flow and reduce debt leverage in 2024, contributing to Nexans' overall financial performance.

In conclusion, Nexans' resilience in 2024 is a testament to the company's ability to navigate market uncertainty and maintain a strong financial performance. By focusing on strategic initiatives, operational efficiency, and a commitment to driving growth, Nexans has demonstrated its ability to adapt and thrive in a challenging market environment. As the company looks ahead to 2025 and beyond, it is well-positioned to continue its growth trajectory and deliver value to shareholders.