Nexans sales rise on grid, data-centre demand; confirms outlook (updated)

Nexans SA

Today 06:27

Adds graphics,  CEO quotes in paragraphs 6, 10 details on transmission unit in paragraph 8, 2028 outlook in paragraph 9
By Mathias de Rozario and Rihab Latrache
Oct 22 (Reuters) - French energy infrastructure company Nexans NEXS.PA reported a 21.4% rise in third-quarter sales on Thursday, boosted by strong demand for grid and data-centre infrastructure.
Sales rose to €1.70 billion ($1.91 billion) in the July-September period, including €1.49 billion from electrification activities.
Shares in Nexans were down more than 6% at 1000AM GMT. Kepler Cheuvreux attributed the move to a broader market decline and a large unwinding of the AI trade globally.
Once primarily a cable manufacturer, Nexans has repositioned itself around electrification, spanning high-voltage transmission, power distribution grids and building connections.
Nexans' Connect business, which links electricity networks to end users, grew 36% to €749.8 million, helped by demand from hyperscale data centres in the US.
Nexans is seeking to benefit from the boom in AI-driven data-centre construction, supplying power cables and electrical infrastructure used in hyperscale facilities.
CEO Julien Hueber said data centres account for only about 5% of group sales but are growing strongly. Nexans is also investing around €62 million in medium-voltage accessories capacity in Europe and the US to capture growth from data centres and solar projects.
 Transmission, which builds high-voltage links such as offshore wind connections, saw organic sales fall 4.0% in the third quarter because of a high comparison base. The company expects the comparison to be even tougher in the fourth quarter but sees growth in 2027.
 Its outlook does not assume the execution of the Great Sea Interconnector, which would link Greece, Cyprus and Israel. “At this moment, discussion is at political and diplomatic level,” Hueber said on the call.
Nexans confirmed its 2026 guidance and still expects its adjusted EBITDA to climb above €1 billion by 2028.
       ($1 = 0.8894 euros)

 (Reporting by Mathias de Rozario and Rihab Latrache in Gdansk; Editing by Matt Scuffham)
 ((mathias.derozario@thomsonreuters.com))