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Nexans Lifts 2026 Guidance on Strong H1 Results, Shares Jump
Shares of French cable manufacturer Nexans (NEXS) surged nearly 6% on Tuesday after the company reported strong first-half 2026 results and raised its full-year financial guidance, citing resilient demand and successful strategic execution.
Upgraded Outlook Drives Gains
The most significant driver for the stock's re-rating was the company's improved outlook for the full year. According to its H1 2026 interim results announcement, Nexans lifted its key profitability and cash flow targets:
- Adjusted EBITDA: The forecast was raised to a range of €770 million to €840 million, up from the prior €730 million to €810 million.
- Free Cash Flow: The outlook was increased to €235 million to €325 million, compared to the previous guidance of €210 million to €310 million.
This guidance upgrade was supported by first-half performance that exceeded analyst expectations. The company reported standard sales of €3.249 billion, a 5.0% year-over-year increase, and an adjusted EBITDA of €387.7 million.
Operational Strength and Backlog
AdNexans attributed its strong performance to its profitable growth strategy, underpinned by strong demand in electrification markets. The company highlighted several key operational successes that improve its near-term revenue visibility.
A new MI line contract has secured production capacity at its manufacturing facilities through mid-2028, contributing to an adjusted backlog that now stands at €7.7 billion. Furthermore, Nexans noted that the successful acquisition of Republic Wire, which closed in early June, has expanded its footprint in the key North American market.
Market Reaction
The positive earnings release and upgraded forecast sent Nexans shares climbing 5.9% to trade at €132.4 during the session. The stock opened at €129 and reached an intraday high of €134.1.
While the move occurred within a broadly constructive environment for European equities, the sharp increase in Nexans' valuation was driven primarily by its strong company-specific fundamentals and improved financial outlook.
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