Nexans: Stock Story

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Tell us about the company 

Lucy Haddow: I'd like you to imagine the world 3,000 metres below sea level. The midnight zone of constant darkness. This is where Nexans, a French cable manufacturer, operates.

It's one of very few companies globally able to lay subsea cables at extreme depths. And the reason that this matters is because they're crucial for offshore wind and the energy transition.

What makes this stock special?

What makes Nexans special is that it's using its expertise in cable design and manufacturing that it has historically applied to automotive, mining and construction industries, amongst many others, to pivot its business and drive forward the energy transition. 

In particular, we're excited about the company's ability to A, shift to a potentially enormous opportunity in subsea electricity transmission. Globally, we are going to need to deploy more offshore wind capacity. And B, for the company to meet significant demand for sophisticated, specialized cables as electricity grids evolve. The reality is that this is an area in which many countries have chronically under-invested. 

So all of this, plus continuous investment in innovative products, contributes to Nexans’ being one of the very few go-to companies for state-of-the-art deep-sea projects. The barriers to entry are huge in this industry, given the need for consistent, reliable technology. Trust is key at 3,000 metres below sea level. 

What could the future hold?

We see a lot of potential for Nexans' future. Just recently, the company announced that an agreement between the Greek and Cypriot energy ministries on the Great Sea Interconnector project was being given the go-ahead. Nexans is going to supply the cables. Now, these are each going to have a length of 900 kilometres for what will be the largest and deepest subsea green electricity interconnector in the world. 

And what that will do is connect the power grids of Greece and Cyprus. So that's great in and of itself. But more importantly, it demonstrates that grid infrastructure projects are now getting the green light after a bit of hesitancy over the past few years around funding. 

This is a company that's primed for significant revenue and margin growth over the long term, as it doubles down on producing these sophisticated cables to support the long-term energy transition.

Risk factors

This communication was produced and approved in March 2025 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.

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