Posted By Jessica Weisman-Pitts
Posted on November 13, 2024
By Nathan Vifflin
(Reuters) – French power and data cable specialist Nexans released revised financial guidance for 2028 and a roadmap to benefit from surging demand, boosting its shares on Wednesday.
In a statement to coincide with its Capital Markets Day event in London, the group said it expects to reach adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.15 billion euros ($1.22 billion) in 2028, plus or minus 75 million.
Its shares were up 4.9% at 0851 GMT, placing it at the top of the most actively traded stock index SBF120 on the French bourse.
The 120-year-old company, which produces land and subsea cables, is seeking to position itself for increased demand linked to the transition to cleaner energy, AI and other new technology.
Its statement said it would focus on “amplifying its position in electrification through new tech solutions, and new market segments.
Analysts of Kepler Cheuvreux and ODDO BHF said the targets beat expectations, but Kepler added also pointed out higher expenditures.
To fuel growth, Nexans said Capital Expenditures (CAPEX) will reach 1.2 billion euros between 2025 and 2028, and it will focus on its grid, and end-user divisions.
The world’s largest cable maker Prysmian said last month it saw growing sales in its transmission, grid and industrial consumption segments.
($1 = 0.9424 euros)
(This story has been corrected to say that results beat Kepler Cheuvreux’s expectations, not ‘in-line,’ in paragraph 6)
(Reporting by Nathan Vifflin in Gdansk; editing by Milla Nissi and Barbara Lewis)
