Nexans S.A. (NEX.PA) | Investment Case

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.

Show Full description

1.b. Last Insights on NEX

Nexans' recent performance has been impacted by a leadership transition, with Julien Hueber stepping in as CEO and Christopher Guérin stepping down. The company's 9M 2025 financial results showed robust electrification businesses, up 9.4% organically, driving group organic growth to 5.8%. However, the sudden CEO transition may have raised concerns among investors. Additionally, Nexans' share buyback program, launched in November 2025, covering a maximum of 128,000 shares, may have a positive effect on shareholders. Vincent Piquet's appointment as CFO was also announced.

1.c. Company Highlights

Last Price	129.6
Change Percentage	-0.23%
Open	130.2
Previous Close	129.9
Market Cap ( Millions)	5577
Volume	118357
Year High	141.9
Year Low	74.4
M A 50	123.66
M A 200	112.41

FCF Yield	10.51%
Dividend Yield	2.01%
ROE	25.81%
Debt / Equity	110.42%
Net Debt / EBIDTA	6.52%
Price To Book	3.07
Price Earnings Ratio	12.15
Price To FCF	9.52
Price To sales	0.62
EV / EBITDA	7.64

2. Nexans Delivers Strong Financial Performance in 2024 with Robust Growth and Strategic Advancements

Nexans reported a stellar financial performance in 2024, achieving record-breaking results that underscored the company's successful strategic transformation. The company posted an adjusted EBITDA of €804 million, representing a margin of 11.4%, which surpassed its upgraded projections. This strong profitability was complemented by a record non-normalized free cash flow of €313 million and a normalized free cash flow of €454 million, reflecting efficient cash flow management and operational excellence. Organic growth stood at 5.1%, with the Electrification division leading the charge with a 13% increase, highlighting the company's ability to capitalize on growing demand for electrification solutions.

Publication Date: Feb -28

                                    📋 Highlights
                                    Record Financial Performance:
                                                Nexans achieved €804 million in adjusted EBITDA with a margin of 11.4%, exceeding upgraded projections. Non-normalized free cash flow reached a record €313 million, with normalized free cash flow at €454 million.
Strong Backlog and Visibility:
                                                The PWR-Transmission division reported a record backlog of €7.4 billion, providing visibility through 2028, with organic growth of 5.1% driven primarily by the Electrification segment at 13% growth.
Strategic Portfolio Optimization:
                                                Nexans strengthened its portfolio through acquisitions like La Triveneta Cavi and divestments like AmerCable, while reducing its carbon footprint by 29% ahead of schedule and implementing a new organizational structure for enhanced efficiency.
2025 Outlook and Guidance:
                                                Adjusted EBITDA is expected to range between €770-850 million, with free cash flow of €225-325 million, representing a 34% EBITDA cash conversion. The guidance range is wider due to uncertainties around the Great Sea Interconnector (GSI) project.
GSI Project Progress and Risks:
                                                Seabed surveys for the GSI project have restarted, with strong stakeholder support and anticipation of a notice to proceed by early 2025. Management included a worst-case scenario in the guidance, but expressed confidence in the project's continuation.

                                

Strategic Initiatives and Portfolio Optimization

Nexans further strengthened its portfolio through strategic acquisitions and divestments, enhancing its growth trajectory and operational efficiency. The acquisition of La Triveneta Cavi and the divestment of AmerCable exemplified the company's disciplined approach to portfolio management. Additionally, Nexans made significant progress in its sustainability goals, reducing its carbon footprint by 29% ahead of schedule. The company also implemented a new organizational structure to better align its operations with long-term strategic objectives. The backlog in the PWR-Transmission division reached a record €7.4 billion, providing visibility through 2028 and underscoring the strong demand for Nexans' products and services.

2025 Outlook and Guidance

Looking ahead to 2025, Nexans provided a robust outlook, with adjusted EBITDA expected to range between €770 million and €850 million. The company also anticipates a free cash flow of €225-325 million, representing a 34% EBITDA cash conversion rate. This guidance incorporates all capital expenditures, including €100 million allocated for the third vessel and investments in recycling and new plants. The wider guidance range reflects uncertainties, particularly surrounding the Great Sea Interconnector (GSI) project, which remains a key focus area for management.

Valuation and Shareholder Returns

Nexans' strong financial performance and disciplined execution have positioned the company for long-term success. The company's trailing price-to-earnings (P/E) ratio of 16.61 reflects a reasonable valuation given its growth prospects. The enterprise value-to-EBITDA (EV/EBITDA) ratio of 5.2 indicates that the market has priced in the company's robust earnings and cash flow generation. With a dividend yield of 2.3% and a free cash flow yield of 4.78%, Nexans offers an attractive combination of growth and income for shareholders.

3. NewsRoom

Information on share capital and voting rights - November 2025

Dec -01

Source:

Nexans appoints Vincent Piquet as Chief Financial Officer

Nov -24

Source:

Disclosure of trading in own shares from November 18, 2025 to November 21, 2025

Nov -24

Source:

Assessing Nexans After 20.9% Rally and Major Renewable Energy Contracts in 2025

Nov -20

Source:

A Fresh Look at Nexans (ENXTPA:NEX) Valuation After Recent Share Price Momentum

Nov -20

Source:

Nexans launches a share buyback program

Nov -18

Source:

Information on share capital and voting rights - October 2025

Nov -03

Source:

Nexans - 9M 2025, Powering the future with growth and strategic leadership transition

Oct -23

Source:

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Signify

A-Score: 5.8/10

Value: 8.5

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Nexans

A-Score: 4.8/10

Value: 6.8

Growth: 6.8

Quality: 5.0

Yield: 3.1

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Prysmian

A-Score: 4.8/10

Value: 2.8

Growth: 7.3

Quality: 4.0

Yield: 2.5

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

NKT

A-Score: 4.4/10

Value: 5.5

Growth: 7.4

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

nVent Electric

A-Score: 4.3/10

Value: 1.4

Growth: 5.4

Quality: 6.6

Yield: 2.5

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

Landis+Gyr

A-Score: 3.9/10

Value: 6.5

Growth: 0.4

Quality: 3.7

Yield: 5.6

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.63%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.08%

Nexans S.A. - FR0000044448

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NEX

1.c. Company Highlights

Strong Momentum

Average Quality

Average Yield

Stable Momentum

Fairly Valued

Average Growth

Earnings Miss

Revenues Miss

Revenues Beats

Earnings Beats

Medium Volatility

2. Nexans Delivers Strong Financial Performance in 2024 with Robust Growth and Strategic Advancements

Strategic Initiatives and Portfolio Optimization

2025 Outlook and Guidance

Valuation and Shareholder Returns

3. NewsRoom

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%

Industry & Solutions

Expected Growth: 1.8%

Other

Expected Growth: 1.2%

Building & Territories - Distribution

Expected Growth: 2.2%

Generation & Transmission

Expected Growth: 2.8%

7. Detailed Products

Power Cables

Telecom Cables

Industrial Cables

Aerospace Cables

Nuclear Cables

Railway Cables

Wind Farm Cables

High-Temperature Cables

Fire-Resistant Cables

8. Nexans S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

129.6$

Current Price

129.6$

Potential

12.e Scoring ^Insights

12.f DCF ^BETA