Q3 2024 Nexans SA Earnings Call Transcript
Key Points
- Nexans (NEXNY) reported a 4% organic growth in revenue for the first nine months of 2024, with electrification businesses showing a strong 12% growth.
- The company has announced significant investments, including EUR80 million in recycling capabilities and EUR90 million in a new tower for onshore cables, indicating a commitment to sustainability and capacity expansion.
- Nexans (NEXNY) has a record backlog of EUR6.2 billion, driven by strong demand in the electrification sector and new framework agreements.
- The company confirmed its guidance for adjusted EBITDA of EUR700 million to EUR800 million for 2024, reflecting confidence in its financial performance.
- Nexans (NEXNY) is strategically positioned to benefit from the growing demand for recycled copper, which could offer a price premium and align with sustainability goals.
- The company experienced a weak Q3 with a slight decline in organic growth, attributed to aggressive inventory reduction and delivery delays.
- Non-electrification sectors, particularly automation and automotive harnesses, showed a decline, impacting overall growth.
- There are concerns about potential copper scarcity, which could affect supply and pricing dynamics in the future.
- Nexans (NEXNY) faces geopolitical risks related to the Great Sea Interconnector project, particularly concerning international waters and potential tensions with Turkey.
- The company remains cautious about the impact of the upcoming US elections on renewable energy policies, which could affect its business in North America.
Ladies and gentlemen, good morning, and welcome to Nexans' nine-months 2024 financial information conference call. As a reminder, this conference call is being recorded. (Operator Instructions)
I would now like to turn the call over to your host for today's conference call, Mr. Christopher Guerin, Nexans' CEO. Please go ahead, sir.
Good morning, ladies and gentlemen, and thank you for participating in Nexans conference call. I'm Christopher Guerin, CEO of Nexans. With me is Jean-Christophe Juillard, Deputy CEO and CFO; and Ãlodie Robbe-Mouillot, VP, Investor Relations. Let me turn over to Ãlodie that will go over -- that will go over the conference roles.
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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