Nexans: 4.9% Organic Growth in Electrification for Q1 2026
On Tuesday, Nexans released its financial information for the first quarter of 2026, showing a 4.9% organic growth in its electrification activities, while the group made a significant move with the acquisition of Republic Wire in the United States, a platform generating 520 million euros in annual revenue. This accelerated expansion alters the group's financial risk profile: debt is expected to reach 1.2x in net debt to adjusted pro forma EBITDA ratio, before returning to below 1.0x by the end of 2028.
A First Quarter Bolstered by Electrification Despite Moderate Revenue
Nexans' consolidated revenue stood at 1,496.8 million euros in Q1 2026, up 1.3% compared to Q1 2025. This increase is due to a 0.1% organic growth and a 3.3% contribution from acquisitions (Cables RCT in Spain, Electro Cables in Canada), with currency effects negatively impacting by -2.0%. The momentum is solely driven by the three main activities grouped under the Electrification label, which recorded a 4.9% organic growth. PWR-Transmission grew by 8.8% organically (standard revenue of 342 million euros, +11.1% in total), driven by the expansion of transmission projects and renewed operational agility after two years of exceptionally high performance. PWG-Grid saw a 5.7% organic increase (322 million euros standard, +2.9% in total), supported by data centers and framework agreements. PWR-Connect showed a gradual recovery with 2.5% organic growth (647 million euros, +7.2% in total thanks to acquisitions). In contrast, Other Activities (copper wires) experienced a 24.1% organic decline, a consequence of an atypical phasing in 2025 related to American order anticipations before the implementation of tariffs, followed by a contraction in the second half.
Robust Order Book but Restrictive Outlook for 2026
The PWR-Transmission segment has strong visibility until 2028 with an adjusted order book of 7.9 billion euros as of March 31, 2026, up 2.6% from December 31, 2025 (including 1.2 billion euros related to the Great Sea Interconnector project). This structured base provides predictability, strengthened by a robust project pipeline in Europe and the mid-2026 arrival of the Nexans Electra cable-laying vessel. However, the 2026 outlook confirmed by the group includes several caveats: it does not incorporate the execution of the Great Sea Interconnector project nor the contribution from uncompleted acquisitions. This caution suggests that the visible growth in the order book will not immediately translate into 2026 revenues. Moreover, Nexans anticipates a more moderate performance in the first half of 2026 compared to the second half.
Republic Wire: North American Expansion
Nexans announced on April 27 the acquisition of 100% of Republic Wire, an American manufacturer of low-voltage cables based in Ohio, for an enterprise value of approximately 680 million euros plus an earn-out of up to 43 million euros payable in 2028. Republic Wire generates about 520 million euros in annual revenue and has an automated industrial platform of 32,500 sqm as well as a recently completed 30,000 sqm distribution center, employing more than 200 staff. This acquisition is part of the group's strategy to accelerate its presence in the American low-voltage market (estimated at about 12 billion euros) within promising segments (data centers, residential, commercial). Combined with the acquisition of Electro Cables in Canada, it creates an integrated North American platform. Financially, the transaction represents 10.3x the adjusted 2027E EBITDA before synergies and 7.6x after synergies at cruise regime. Nexans anticipates synergies of about 23 million euros over three years, with 50% realized in the first year, for similar implementation costs (about 23 million euros). On a pro forma basis, the net debt to adjusted EBITDA ratio for 2025 would reach about 1.2x, before comfortably returning below 1.0x by the end of 2028 due to planned deleveraging. The closure is expected in early Q3 2026.
