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1. Company Snapshot

1.a. Company Description

Nexans S.A. manufactures and sells cables in France and internationally.It operates through four segments: Building & Territories, High Voltage & Projects, Telecom & Data, and Industry & Solutions.The Building & Territories segment provides cabling systems and smart energy solutions for buildings, smart cities/grids, e-mobility, local infrastructures, decentralized energy systems, and rural electrifications.


The High Voltage & Projects segment offers design, engineering, financing, asset management, and systems management solutions for offshore wind farms, subsea interconnections, and land high voltage, as well as smart solutions for the oil and gas sector.The Telecom & Data segment helps customers to deploy copper and fiber optic infrastructures, which include data transmission, telecom networks, hyperscale data centers, and LAN cabling solutions.The Industry & Solutions segment provides customized cabling and connectivity solutions to support OEMs and industrial infrastructure project managers in transport, automatic devices, renewable energy, resources, and other sectors.


It also offers wire rods, electrical wires, and winding wires.The company was incorporated in 1994 and is headquartered in Courbevoie, France.

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1.b. Last Insights on NEX

Breaking News: Nexans SA reported excellent 2025 full-year results, with an exceptional level of organic growth at 8.3% and a strong adjusted EBITDA margin of 11.9%. The company has entered exclusive negotiations for the sale of Autoelectric as part of its portfolio rotation. With a solid balance sheet, Nexans is poised to step up its M&A activity. The company is confident about 2026, with its Global Electrification Pure Player model fully deployed. Analysts at Berenberg have a buy recommendation on the stock, while others at UBS have a neutral rating.

1.c. Company Highlights

2. Nexans' 2025 Full-Year Results: Strong Financial Performance and Strategic Progress

Nexans reported a robust financial performance for 2025, with standard sales reaching €6.1 billion, representing an organic growth of 8.3% year-on-year. The adjusted EBITDA was €728 million, corresponding to an adjusted EBITDA margin of 11.9%. The company's cash generation was solid, with a cash conversion ratio of 47%, and ROCE reached 21.3%, confirming value creation. Group net income was €358 million, up 26.6% year-on-year, and free cash flow generation was €344 million. Earnings per share significantly beat estimates, although actual EPS was not disclosed in the report, the growth is a positive sign. The company's valuation metrics, including a P/E Ratio of 17.51 and an EV/EBITDA of 12.73, indicate a reasonable valuation.

Publication Date: Feb -22

📋 Highlights
  • Strong Financial Performance:: Standard sales reached €6.1 billion with 8.3% organic growth, adjusted EBITDA of €728 million (11.9% margin), and group net income of €358 million (up 26.6% YoY).
  • Solid Cash Generation:: Free cash flow of €344 million (47% cash conversion rate) and a low financial leverage ratio of 0.36x, supported by €358 million in liquidity.
  • Strategic Acquisitions:: Completed €260 million acquisitions (Electro Cables in Canada, RCT in Spain) and maintained a disciplined M&A strategy targeting mid-sized regional and adjacent cable businesses.
  • Sustainability Milestone:: Exceeded midterm CO2 reduction targets with a 49% decrease in Scope 1 and 2 emissions, aligning with long-term ESG goals.
  • Outlook and Guidance:: 2026 adjusted EBITDA guidance of €730–810 million and free cash flow of €210–310 million, with high-voltage demand expected to grow due to offshore wind and interconnection projects.

Segmental Performance

The Power Transmission segment delivered an exceptional level of organic growth, with standard sales of €1.6 billion and an adjusted EBITDA margin of 12.3%. Power Grid grew by 5.5% in 2025, with standard sales of €1.3 billion and an adjusted EBITDA margin of 16.4%. The Power Connect business grew organically by 3.6% year-on-year, with standard sales of €2.3 billion and an adjusted EBITDA margin of 12.3%. These results demonstrate the company's diversified revenue streams and its ability to drive growth across various segments.

Guidance and Outlook

Nexans' guidance for 2026 includes an adjusted EBITDA of €730-810 million and a free cash flow of €210-310 million. The company expects the first half of 2026 to be softer than the second half due to project phasing. The guidance excludes the contribution of a non-complete acquisition and does not assume the execution of a GSI project in 2026. The company's long-term targets remain unchanged, with a focus on industrial excellence and operational excellence to drive growth and margin expansion.

M&A Strategy and Capital Allocation

Nexans' M&A strategy focuses on midsized companies in countries where it already operates, as well as slightly bigger size M&As in new geographies and adjacent to cable businesses. The company is actively looking at opportunities in North America, the Middle East, and other parts of the world. The cash flow bridge shows a significant outlay for M&A, reflecting the company's commitment to its strategic growth initiatives. The dividend per share has increased steadily, reaching a proposed €2.9 per share for 2025, an 11.5% increase from 2024, reflecting the company's commitment to returning value to shareholders.

Operational Highlights and Challenges

The Grid business is expected to maintain its current margin level, driven by innovation and growth in specific verticals. The Transmission business is committed to continuous improvement, targeting high teens margins by 2027-2028. The Connect business faces pressure on price in Oceania and a softer market in the Nordics but expects improvement in 2026. The company's metallurgy business benefits from vertical integration, providing security of supply, recyclability, and control over prices.

3. NewsRoom

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Nexans (NEXNY) Full Year 2025 Earnings Call Highlights: Strong Growth and Strategic ...

Feb -19

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Solar Cable Market Trends and Growth Report 2026 Featuring Profiles of Key Players - Prysmian Group, Nexans, JinkoSolar, KEI Industries, Phoenix Contact and More

Feb -19

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2025 Full-Year results: Excellent financial performance reflecting the strengths of Nexans’ business model

Feb -19

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How The Narrative Around Nexans (ENXTPA:NEX) Is Shifting With New Targets And Risks

Feb -06

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Nexans wins a strategic seven-year contract with Enedis to support the modernization and expansion of the medium-voltage network in France

Feb -04

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Information on share capital and voting rights - January 2026

Feb -02

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A Look At Nexans (ENXTPA:NEX) Valuation After Recent Board And Executive Committee Changes

Jan -24

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Resignation of Mr. José Francisco Pérez Mackenna from his position as Director of Nexans

Jan -22

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.07%)

6. Segments

Building & Territories - Usage

Expected Growth: 2.5%

Nexans S.A.'s Building & Territories segment growth of 2.5% is driven by increasing demand for energy-efficient buildings, rising urbanization, and government initiatives for sustainable infrastructure development. Additionally, growing need for reliable and efficient power distribution, and increasing adoption of smart building technologies also contribute to the segment's growth.

Industry & Solutions

Expected Growth: 1.8%

Nexans S.A.'s Industry & Solutions segment growth of 1.8% is driven by increasing demand for low-carbon electrification, renewable energy integration, and energy efficiency. Growing investments in smart grids, e-mobility, and data centers also contribute to this growth. Additionally, the segment benefits from Nexans' innovative cable solutions and strong relationships with key customers in the industrial and infrastructure markets.

Other

Expected Growth: 1.2%

Nexans S.A.'s 1.2% growth in the 'Other' segment is driven by increasing demand for specialty cables in the renewable energy sector, particularly in wind farms and solar parks. Additionally, growth in the industrial automation market and rising investments in infrastructure development projects also contribute to this growth.

Building & Territories - Distribution

Expected Growth: 2.2%

Nexans S.A.'s Building & Territories - Distribution segment growth of 2.2% is driven by increasing demand for energy-efficient buildings, urbanization, and infrastructure development. Additionally, the rising need for reliable and efficient power distribution systems, coupled with government initiatives promoting sustainable development, contribute to the segment's growth.

Generation & Transmission

Expected Growth: 2.8%

Nexans S.A.'s Generation & Transmission segment growth of 2.8% is driven by increasing global electricity demand, grid modernization, and renewable energy integration. Growing need for high-voltage cables and accessories, as well as investments in smart grids and energy storage, also contribute to this growth.

7. Detailed Products

Power Cables

Nexans S.A. offers a wide range of power cables for various applications, including high-voltage transmission, medium-voltage distribution, and low-voltage power distribution.

Telecom Cables

Nexans S.A. provides a variety of telecom cables for telecommunications, data transmission, and broadband networks.

Industrial Cables

Nexans S.A. offers industrial cables for automation, control, and power supply in industrial environments.

Aerospace Cables

Nexans S.A. provides specialized cables for the aerospace industry, including aircraft, spacecraft, and defense applications.

Nuclear Cables

Nexans S.A. offers nuclear-grade cables for nuclear power plants and other nuclear applications.

Railway Cables

Nexans S.A. provides cables for railway infrastructure, including signaling, power supply, and communication systems.

Wind Farm Cables

Nexans S.A. offers specialized cables for wind farm applications, including power transmission and distribution.

High-Temperature Cables

Nexans S.A. provides high-temperature cables for applications requiring high thermal resistance, such as in aerospace, automotive, and industrial environments.

Fire-Resistant Cables

Nexans S.A. offers fire-resistant cables for applications requiring enhanced fire safety, such as in public buildings, transportation, and industrial environments.

8. Nexans S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Nexans S.A. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of large and established customers in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the industry, including regulatory requirements and capital investments.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors in the market, leading to a competitive landscape.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.29%
Debt Cost 6.24%
Equity Weight 57.71%
Equity Cost 11.16%
WACC 9.08%
Leverage 73.27%

11. Quality Control: Nexans S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Signify

A-Score: 5.8/10

Value: 8.7

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 3.0

Volatility: 5.0

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NKT

A-Score: 5.4/10

Value: 7.8

Growth: 7.4

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

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Nexans

A-Score: 5.3/10

Value: 6.6

Growth: 6.8

Quality: 5.3

Yield: 3.1

Momentum: 7.0

Volatility: 3.0

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Prysmian

A-Score: 5.2/10

Value: 3.9

Growth: 7.3

Quality: 5.2

Yield: 2.5

Momentum: 8.5

Volatility: 4.0

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nVent Electric

A-Score: 4.5/10

Value: 1.5

Growth: 5.8

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 2.3

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Landis+Gyr

A-Score: 3.5/10

Value: 6.7

Growth: 0.4

Quality: 2.5

Yield: 5.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

124.9$

Current Price

124.9$

Potential

-0.00%

Expected Cash-Flows