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Nexans reported Q3 23 sales in line with expectations across the board and reiterated its FY23 guidance. There was no news on divestments. The company tried its best to provide some transparency on the risk of offshore wind project stoppages. While there has been no indication that Orsted will discontinue its ongoing projects, we will be adding an additional volatility factor to our estimates for the Generation & Transmission business. The scenario discounted by the current share price looks ove
Companies: Nexans (NEX:EPA)Nexans SA (NEX:PAR)
AlphaValue
Nexans’ H1 23 results showed a very strong margin resilience resulting from the group’s premiumisation strategy. The Generation & Transmission division underperformed, and volumes have started to at last decline in the Usages unit. Nexans upgraded its guidance as expected, on the back of a strong Q1 and the award of EuroAsia. Announcements on divestments are likely to occur in H2. We confirm our positive rating and will raise our FY23 forecasts.
Nexans published Q1 23 revenue figures which were broadly in line with consensus estimates. Most of the organic growth was made on the back of the “non-electricfication” businesses, while G&T started FY23 on a weak tone and Usages saw the long-feared inflection of the demand in North America. We expect minor amendments to our figures as management unsurprisingly reiterated FY23 guidance, although it looks like a full set of results is needed to reassure investors that margins survive a cyclical
Nexans reported FY22 results in line with our high expectations while showing a strong beat on the normalized FCF line stemming from a large down payment collected in December. As a result, investors are likely to welcome a much better than expected DPS proposal at €2.1. The FY23 guidance is seen as cautious and backed by an expected strong H1. The H2 remains more uncertain on the sustainability of the conjunctural drivers that underpinned the FY22 figures. We expect a 3-5% EPS upgrade to our e
Nexans’ Q3 22 report sums up as: “beat and raise”. All divisions contributed to the growth except Telecom, but the steadily impressive momentum in the US for Usages and Distribution was the biggest driver. No figures were given below the top line but the guidance upgrade for FY22 suggests the good Q3 extended to profitability and FCF metrics. That said, M&A activity remains at a standstill with priority being given to divestments and a wait-and-sea stance as we approach 2023.
Nexans reported solid sales figures up by 16.3% excluding metallurgy. The confirmation of the guidance had been expected but confirmed the underlying the resilience of the group. A new round of the Shift performance programme was teased but the expected benefits are yet to be announced, leaving room for a potential mid-term guidance upgrade.
Companies: Nexans SA (NEX:PAR)Nexans SA (0IGF:LON)
Nexans reported solid FY21 results, slightly above its guidance in terms of EBITDA and FCF c.20% ahead of consensus. With this, Nexans has successfully closed its 2019-21 plan which saw a deep financial audit resulting in an effective improvement of the group’s business model. The outlook for FY22 is well oriented, keeping to a safe margin as usual, and factoring in temporary strategic capex as part of the 2024 horizon plan.
Nexans reported Q3 21 sales broadly in line with street expectations. The more moderate growth in sales than in previous quarters (+0.4% yoy organically) marked the beginning of the downsizing of the metallurgy business, which should halve by 2024. The order book is strong in each division, enhancing visibility. We remain confident in Nexans’s ability to reach its unchanged FY21 outlook and keep our positive stance on the stock. THe next step towards mid-term objectives is likely to be a divestm
Nexans reported its H1 21 results slightly ahead of expectations on all lines. The strong demand and improved price/mix fuelled the EBITDA expansion, and the FCF positive surprise. The record ROCE demonstrates how the past year’s investment are starting to pay off. The FY21 guidance upgrade supports market expectations, while the FY21 FCF target stands on the conservative side.
Nexans will massively rotate its portfolio to become a pure play in “electrification” by divesting €2bn of its top line and acquiring, for the same amount, activities in its current HV projects and B&T divisions. Guidance calls for a 10-12% EBITDA margin and EBITDA/cash ratio of over 40% by 2024. Such a project is ambitious and gives room for strong upsides, while the price paid for the new assets will make either its success or its failure.
Nexans’ sales shrank by 12.3% yoy, adding to the H1 20 contraction. The lack of any sign of recovery comes mainly from its High Voltage & Projects segment, where sales fell by 2.4% yoy in 9M 20 (vs. +11.6% yoy in H1 20) due to the strong basis of comparison in H1 20 and Q3 19. Despite this mixed bag of results, the company remains optimistic about the benefits brought by its Nexans Transformation Plan.
Companies: Nexans SA
Nexans’ revenue contracted by 11.5% yoy, mainly dragged down by its two largest segments (Building & Territories: -11% yoy, and Industry & Solutions: -17.3% yoy). Softening the contraction, Nexans’ cost reduction efforts and its SHIFT programme limited the fall of its EBITDA margin to 5.6% (vs. 6% in H1 19) and the net income margin to -1.9% (vs. -3.5% in H1 19). For the FY20 outlook, Nexans expects its EBITDA to land between €310m and €370m, keeping a positive FCF.
Thanks to the High Voltage business (especially Subsea HV), revenue contraction (brought by Building & Territories and Industry & Solutions) is limited. Furthermore, the company can count on a solid liquidity position of €1bn (not including the potential €280m loan guaranteed by the French State).
- The top-line in H1 19 confirms the positive trend seen in Q1 - Margins are on the rise, with the first benefits of cost-cutting - The transformation plan is deployed, successfully so far - FY19 net income will be negative, owing to the one-off costs due to the plan - Net debt up, but almost only on IFRS16 (no cash outflow)
- FY19 revenues came in line, despite a weak High Voltage & Projects - In particular, Low Voltage for the building sector and Telecom/Data were both up - Q1 19 also benefited from a low comparison basis - All in all, no major change to our numbers/valuation even if the latter remains low. In short, more needed (i.e. the first results) on the implementation of the plan announced last November.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nexans SA. We currently have 0 research reports from 2 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
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Liberum
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Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
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Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
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Canaccord Genuity
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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