Nexans is making a bold move by entering exclusive negotiations to sell Autoelectric, and it's a decision that has sparked curiosity and debate. This proposed transaction is a significant step for the company, and it's one that will have a lasting impact on its financial outlook.
The deal involves a series of share and asset sales, with the aim of acquiring Autoelectric's harness business. It's a complex process, and Nexans has engaged expert advisors to guide them through it. Evercore is on board as the exclusive financial advisor, and Linklaters is providing legal counsel, ensuring that Nexans navigates this transaction with precision.
But here's where it gets controversial: the proposed transaction is subject to regulatory approvals, and if all goes according to plan, it could be completed as early as mid-2026. The terms of the deal, however, remain undisclosed, adding an air of mystery to the proceedings.
Under IFRS 5, the proposed transaction will classify Autoelectric as an Asset Held for Sale in the 2025 consolidated financial statements. This classification has a ripple effect, as it means that the Industry and Solutions Businesses, which include Amercable, Lynxeo, and Autoelectric, will be classified as discontinued operations. This change will be reflected in both the 2025 and 2024 financial statements to maintain consistency.
The 2025 guidance, as updated on July 30th, 2025, initially forecasted Autoelectric as a consolidated segment for the entire year. However, with the proposed transaction, this guidance needs to be realigned. Lynxeo, which was consolidated for the first half of 2025, will also be excluded from the continuing operations scope, as it was disposed of on June 30th, 2025.
As a result, the 2025 guidance is now aligned with the new scope of continuing operations, excluding the discontinued operations as defined by IFRS 5. This change is reflected in the adjusted EBITDA and FCF ranges for 2025, as shown in the table below.
Adjusted EBITDA for 2025:
| Low Range (M€) | High Range (M€) |
| --- | --- |
| Initial Guidance (July 2025) | 810 | 860 |
| Excluding Discontinued Operations | 100 | 100 |
| New Scope Guidance (July 2025) | 710 | 760 |
FCF for 2025:
| Low Range (M€) | High Range (M€) |
| --- | --- |
| Initial Guidance (July 2025) | 275 | 375 |
| Excluding Discontinued Operations | - | - |
| New Scope Guidance (July 2025) | 275 | 375 |
The remaining details of the proposed transaction will be disclosed in Nexans' 2025 consolidated financial statements, providing further insight into this significant move.
Despite these changes, Nexans remains confident in its long-term goals, confirming that its 2028 guidance remains unchanged.
This decision by Nexans raises intriguing questions: Is this a strategic move to streamline operations? How will the exclusion of these businesses impact Nexans' overall performance? And what does this mean for the future of the company? Feel free to share your thoughts and insights in the comments below!
