Nexans Bundle
What is Nexans' foundational innovation?
Nexans' story begins in 1879 with a groundbreaking watertight electrical cable. Developed by François Borel and Édouard Berthoud, this innovation was key to the company’s early vision.
This initial development set the stage for Société d'Exploitation des Câbles Électriques, the precursor to today's global entity. Their aim was to supply vital infrastructure to burgeoning sectors.
What is the brief history of Nexans?
Founded in 1879, Nexans has a rich history of innovation in cabling. The company officially became Nexans in 2000, evolving from its origins as Société d'Exploitation des Câbles Électriques. Today, it is a major player in the global market, with a significant presence in electrification and connectivity solutions, including products like the Nexans BCG Matrix.
What is the Nexans Founding Story?
The Nexans history begins in 1879 with the establishment of Berthoud, Borel et Cie by Swiss engineer François Borel and businessman Édouard Berthoud. This venture was directly inspired by Thomas Edison's groundbreaking invention of the incandescent light bulb, which spurred a significant need for dependable electrical infrastructure.
The Genesis of Nexans
The origins of the company now known as Nexans trace back to 1879, a pivotal year for electrical innovation. The founders recognized a burgeoning market for advanced electrical cables.
- Founded by François Borel and Édouard Berthoud.
- Established as Berthoud, Borel et Cie.
- Catalyst for founding was Thomas Edison's light bulb patent.
- Initial focus on revolutionary watertight electrical cables.
To bring their innovative watertight electrical cable to market, Borel and Berthoud founded the Société d'Exploitation des Câbles Électriques (SCE). This cable, designed with bitumen paper wrapping and a lead sheath, was crucial for the developing telecommunications and electric power sectors. The company's founding occurred during a period of intense industrialization and a rapidly growing demand for electricity, placing them at the vanguard of the electrification movement. Understanding the Revenue Streams & Business Model of Nexans provides further insight into their early strategic decisions and subsequent growth.
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What Drove the Early Growth of Nexans?
The early history of Nexans is deeply intertwined with the development of electrical infrastructure in France, beginning with significant consolidations and strategic acquisitions. This period laid the groundwork for its future global expansion and specialization in cabling solutions.
Early Consolidation and French Leadership
In 1897, La Compagnie Générale d'Électricité (CGE) secured a majority stake in SCE, establishing a dominant position in France's burgeoning electricity sector. This strategic move encompassed power generation, distribution, and manufacturing, setting the stage for future growth.
Evolution of Cable Manufacturing
CGE's cable manufacturing arm was renamed Compagnie Générale des Câbles (CGC) de Lyon in 1917. By 1925, Câbles de Lyon became an integral division of CGE, further centralizing its operations and expertise in cable production.
Mergers and International Expansion
A significant merger occurred in 1969 when CGE acquired Alcatel, forming CIT-Alcatel, which continued to develop the Câbles de Lyon business. In 1986, Câbles de Lyon was rebranded as Alcatel Câble, following its integration with cable operations from International Telephone and Telegraph (ITT).
Global Footprint and Brand Transformation
This era saw substantial international growth, including the establishment of new fiber optic cable facilities and acquisitions in the United States. The company continued its expansion, acquiring Câbles de Cortaillod in 1994. A pivotal moment arrived on October 9, 2000, with the renaming to Nexans, followed by its successful listing on Euronext Paris in 2001. Further global expansion included acquisitions in South Korea and Germany in 2001 and 2002 respectively, broadening its market reach and solidifying its position. Understanding the Target Market of Nexans is key to appreciating this growth trajectory.
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What are the key Milestones in Nexans history?
The Nexans history is rich with innovation and strategic adaptation, tracing its origins to the groundbreaking development of watertight electrical cables in 1879. This foundational achievement set the stage for a company that would consistently push technological boundaries, from early advancements in power and telecommunications to modern investments in AI and advanced cable solutions. Strategic acquisitions, such as La Triveneta Cavi in June 2024 and Cables RCT in Spain in June 2025, have bolstered its presence in key European markets, while initiatives like RecyCâbles (2008) and the Fondation Nexans (2013) underscore a deep commitment to sustainability and social responsibility.
| Year | Milestone |
|---|---|
| 1879 | Founders developed watertight electrical cables, a pivotal innovation for emerging industries. |
| 2001 | Became an independent entity following Alcatel's divestment of its cable and component activities. |
| 2008 | Established RecyCâbles, a joint venture that rapidly became a leader in cable and non-ferrous metal recycling in France. |
| 2013 | Launched the Fondation Nexans, the first foundation in its sector dedicated to supporting energy access for disadvantaged communities globally. |
| January 2025 | Divested AmerCable as part of a strategic shift to become a 'pure player' in electrification. |
| June 2025 | Acquired Cables RCT in Spain, expanding its capabilities in the European market. |
| June 2025 | Divested Lynxeo, further streamlining its focus on electrification. |
Nexans has consistently driven innovation, with a strategic roadmap for 2025-2028 emphasizing investments in AI and advanced cable solutions. The company's commitment to pioneering new technologies is a hallmark of its evolution, ensuring it remains at the forefront of the industry.
Watertight Electrical Cables
The development of watertight electrical cables in 1879 by its founders was a revolutionary step, enabling advancements in telecommunications and electric power infrastructure.
AI and Advanced Cable Solutions
As part of its 2025-2028 strategic roadmap, Nexans is actively investing in artificial intelligence and developing cutting-edge cable solutions to meet future industry demands.
Recycling and Sustainability
The establishment of RecyCâbles in 2008 marked a significant commitment to circular economy principles, creating a leading joint venture for cable and non-ferrous metal recycling.
Energy Access Initiatives
The Fondation Nexans, created in 2013, demonstrates a dedication to social impact by supporting energy access for underserved communities worldwide, a pioneering effort in its sector.
Strategic Divestments
The divestment of non-core assets like AmerCable in January 2025 and Lynxeo in June 2025 signifies a strategic pivot towards becoming a focused 'pure player' in the electrification market.
Market Focus
Acquisitions such as La Triveneta Cavi in June 2024 and Cables RCT in Spain in June 2025 are instrumental in strengthening its position within key European markets and expanding its specialized capabilities.
Nexans has navigated significant challenges, including the market downturn following the 2001 internet bubble burst and the recent strategic restructuring to focus on electrification. The Industry & Solutions segment experienced a 5.2% organic decline in H1 2025 due to weakened demand in automation and rail markets, highlighting the impact of broader economic factors.
Market Downturns
The company faced a challenging period in 2001 due to the bursting of the internet bubble, which necessitated a significant strategic realignment.
Strategic Transformation
A major challenge involved transforming into a 'pure player' in electrification, requiring the divestment of non-core businesses to sharpen its market focus.
Segment Performance
The Industry & Solutions segment saw a 5.2% organic decline in H1 2025, reflecting softer demand in specific market sectors like Automation and Rail.
Disruptions and Adaptations
Navigating market volatility and adapting business models to evolving industry trends, such as the energy transition, are ongoing challenges that require agile strategic responses.
Financial Performance Amidst Change
Despite these shifts, the company demonstrated resilience, achieving a record adjusted EBITDA of €441 million in H1 2025, a 7.0% increase year-on-year, and a net income of €374 million, underscoring effective strategic execution.
Competitive Landscape
Understanding and responding to the dynamics within the Competitors Landscape of Nexans is crucial for sustained growth and market leadership.
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What is the Timeline of Key Events for Nexans?
The Nexans company's journey began in 1879 with the founding of Berthoud, Borel et Cie, focusing on watertight electrical cables. This marked the establishment of Société d'Exploitation des Câbles Électriques (SCE), laying the groundwork for its future expansion and evolution. The Nexans history is a testament to innovation and adaptation in the electrical cable industry.
| Year | Key Event |
|---|---|
| 1879 | Berthoud, Borel et Cie was founded, developing watertight electrical cables, and Société d'Exploitation des Câbles Électriques (SCE) was established. |
| 1897 | La Compagnie Générale d'Électricité (CGE) acquired a majority stake in SCE, integrating its operations. |
| 1917 | CGE's cable manufacturing division was rebranded as Compagnie Générale des Câbles (CGC) de Lyon. |
| 1969 | CGE's acquisition of Alcatel led to the formation of CIT-Alcatel, further developing Câbles de Lyon. |
| 1986 | Alcatel Câble was created, consolidating Câbles de Lyon and ITT's cable activities. |
| 2000 | The Group adopted the new name, Nexans, signifying a new era. |
| 2001 | Nexans successfully completed its listing on the Paris stock exchange. |
| 2008 | Suez and Nexans partnered to establish RecyCâbles, a joint venture focused on cable recycling. |
| 2013 | Nexans committed to the United Nations Global Compact and established the Fondation Nexans. |
| 2018 | The company initiated a strategic pivot, concentrating on electrification. |
| 2024 | Nexans achieved record financial results, with an adjusted EBITDA of €804 million and normalized free cash flow of €454 million, also completing the acquisition of La Triveneta Cavi. |
| January 2025 | The divestment of AmerCable was finalized. |
| June 2025 | Nexans completed the divestment of Lynxeo and acquired Cables RCT in Spain. |
| H1 2025 | Nexans reported total Group standard sales of €3,765 million, with 4.9% organic growth, and a record adjusted EBITDA of €441 million. |
Strategic Focus on Electrification
Nexans is strategically positioned to capitalize on the growing demand for electrification, driven by the global net-zero transition. The company's roadmap, 'Sparking Electrification with Tech Solutions,' aims for significant growth.
Financial Performance and Guidance
The company reported a record adjusted EBITDA of €441 million in H1 2025 and upgraded its full-year 2025 guidance. This includes an expected adjusted EBITDA of €810-860 million and free cash flow of €275-375 million.
Expansion and Sustainability Goals
Nexans plans to expand its power grid and power connect businesses, leveraging AI and digital solutions. The company is committed to sustainability, targeting a 42% reduction in Scope 1 & 2 GHG emissions by 2028.
Fleet Modernization and Future Capacity
The construction of Nexans' third cable-laying vessel, Nexans Electra, is on schedule for completion in 2026. This will significantly boost its capacity for offshore wind farm and subsea interconnection projects, aligning with its Mission, Vision & Core Values of Nexans.
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