NEXANS Shares Rise 2.17% at Close, Supported by Quarterly Results
Nexans announces its third-quarter results this Thursday, marked by a sustained electrification momentum. The stock rebounds by 2.17% at the end of the session to €122.60, rising above the previous closing level of €120. This increase reflects the strength of the published data and the confirmation of the outlook for the full year.
Quarterly Performance and Market Reaction
The stock's rise follows this morning's publication of the results for the first nine months. In the third quarter, revenue grew organically by 7.7% to €1.56 billion, driven by a 12.6% organic growth in the electrification segment. Over the entire period, revenues reached €5.331 billion, up 5.8% organically on an annual basis, while electrification continues its dynamic with a 9.4% organic increase. Despite limited trading volume on Thursday, with only 0.37% of capital traded, the stock shows short-term improvement. Over seven days, Nexans has advanced by 2.34%, and over three months, the performance has reached 6.06%. These gains sharply contrast with a largely penalized year, with the stock down 8.3% over twelve months. For context, the CAC 40 appreciated by 0.23% on Thursday and shows an annual performance of 9.17%, highlighting a challenging period for Nexans since the start of 2024. The group has confirmed its 2025 targets: an adjusted EBITDA between €810 and €860 million and a free cash flow between €275 and €375 million, reflecting management's confidence in the deployment of its strategy.
Strategic Acquisition in Canada
This Thursday also marks the announcement of a strategic acquisition in Canada. Nexans has signed an agreement to acquire 100% of Electro Cables, a family-owned business based in Ontario with approximately €125 million in annual revenue. This operation strengthens the group's North American positioning, particularly in the PWR-Connect segment of low-voltage cables. Electro Cables has expertise in high-value-added solutions, aimed at infrastructure, data centers, and electrification of transport projects. This acquisition occurs in a favorable context for the group. The order book for the PWR-Transmission activity reaches €7.9 billion, up 27% compared to September 2024, driven particularly by submarine activity. These indicators reflect sustained demand in electricity transmission cables, fueled by the global energy transition and increasing investments in renewable energies. The financing of €250 million granted by the European Investment Bank in September also supports the group's ambitions in terms of innovation and development.
Technical Analysis of the Stock
Technically, the stock is trading at €122.60, below its 50-day moving average of €129.66 but above its 200-day moving average of €108.34. The gap of €21.74 between these two averages indicates a gradual consolidation after a significant correction. The Relative Strength Index (RSI) stands at 36, indicating a moderately oversold zone. The MACD remains in negative territory with a line at -2.52 and a signal line at -1.92, although the narrowing histogram at -0.60 suggests a potential moderation of signals. The Bollinger Bands frame the stock between €115.39 and €135.50, placing it near the short-term support. The 1-month volatility is established at 13.98, signaling measured fluctuations.
