Nexans: Pure Electrification Player, Full Line, Raised Guidance
H1 2026 shows powerful execution: MI line reloaded, Republic Wire integrating, and a clear path to mid-2028.
NEX.PA · Earnings Call · 2026-07-29
The Pure Player Transformation Completes
Nexans' H1 2026 results mark the culmination of its multi-year transformation into a pure player model — a phrase management uses to describe its single-minded focus on electrification. The divestment of Autoelectric on July 3, 2026, completed the exit from automotive wiring, and the company now reports as a focused electrification specialist. As CEO Julien Hueber stated in his prepared remarks:
we also recently completed the divestment of Autoelectric on July 3, marking the successful completion of our transformation into a full-fledged Electrification Pure Player.
The results underpin the strategy: standard sales reached EUR 3.2 billion (+1.5% organic), adjusted EBITDA rose to EUR 388 million (11.9% margin), and cash conversion came in at 42.7%. Electrification, the core business, delivered 4.5% organic growth and a robust 13.2% adjusted EBITDA margin. The company's ROCE stood at 15%, while leverage remained conservative at 1.4x, leaving ample headroom for further M&A.
The MI Line: From GSI Postponement to Mediterranean Load
Perhaps the most significant operational shift in H1 2026 was the resolution of the Great Sea Interconnector (GSI) uncertainty. After the project was postponed in early 2026, management had to source alternative work for its mass-impregnated (MI) cable line. In February, Julien told analysts, “we are still quoting on some MI projects on those. We have considered that some of them, we have a good chance to succeed.” — Julien Hueber, CEO · 2026-02-19 True to those words, by the end of June the company had secured a new interconnection project in the Mediterranean Sea, loading the MI line until mid-2028. During the call, Julien confirmed:
“we are now the preferred bidder, and we are in exclusive discussion with our customers. And as soon as the regulatory process will be finalized, it will be an official award and then it will become in the backlog. It's using our capacity for 18 months.” — Julien Hueber, CEO · 2026-07-29
This is a crucial development because it replaces the lost GSI revenue and provides clear visibility for the high-margin transmission business through 2028. Management's ability to reposition the line within six months underscores its market agility and strong customer relationships—a stark contrast to the earlier delays faced when GSI stalled.
Growth Engines: Grid, Connect, and M&A
Beyond the MI line, Nexans is investing aggressively to capture structurally strong demand. PWR-Grid is expanding its European capacity by ~40% between 2025 and 2028, driven by grid modernization and renewables. As Julien noted, “close to 50% of the world PWR-Grid will not be fit for purpose to handle this renewable energy by 2030.” — Julien Hueber, CEO · 2026-07-29 The PWR Grid segment grew 4.9% organically in H1 with a 15.4% margin, supported by strong demand in accessories, data centers, and solar.
PWR-Connect also delivered a standout quarter: organic growth of 7.3% and margin improvement to 11.8% from 11% in H2 2025. The mix is improving as Italy and Latin America ramp up, though the Nordics remain soft. Management expects further expansion as they transform recent acquisitions like LTC.
M&A remains a core pillar. The Republic Wire acquisition is integrating well, with synergies already emerging. CFO Vincent Piquet stated, “we are progressively bringing in our know-how, our culture of operational and industrial excellence, and we're already working on generating the first synergies.” — Vincent Piquet, CFO · 2026-07-29 The company raised its 2026 adjusted EBITDA guidance by EUR 40 million to EUR 770–840 million, and Vincent clarified, “we've included the impact of Republic, and there is more than Republic in that EUR 40 million that reflects the strong performance of H1 and the positive outlook we have on H2.” — Vincent Piquet, CFO · 2026-07-29
Strategic Outlook and Risks
The company is confident in its ability to keep growing. The PWR Transmission business is on track to reach high-teens margins by 2028, supported by a record adjusted backlog of EUR 7.7 billion. The new vessel Electra, operational since June, adds 13,000 tons of cable capacity, enhancing execution flexibility.
However, risks remain: the geopolitical environment, particularly around Iran, could affect pricing and supply chains, and the Nordics market has not yet recovered. Management is cautious but optimistic, targeting the midpoint of its guidance range.
Overall, Nexans has turned a potential crisis—the GSI postponement—into an opportunity, and its pure-play positioning is paying off. The company is firing on all cylinders: transmission, grid, connect, and M&A, all aligned with the global electrification megatrend.