Nexans Boston Consulting Group Matrix

Nexans' overall electrification businesses are a powerhouse, showcasing impressive organic growth of 7.8% in the first half of 2025. This performance highlights the company's successful pivot to becoming a pure player in electrification, a strategy that's clearly paying off.

These businesses are not just growing; they're also demonstrating significantly improved profitability. This financial health is directly linked to Nexans' strategic focus on electrification, which taps into powerful global trends like rising electricity demand and the urgent need for decarbonization.

By concentrating on electrification, Nexans has positioned its entire portfolio in a high-growth, high-market share segment. This strategic alignment ensures the company is well-placed to capitalize on the ongoing energy transition and the increasing reliance on electricity worldwide.

Nexans' Power Transmission (Subsea Cables) segment is a clear Star, experiencing robust growth driven by the global push for renewable energy, particularly offshore wind, and the need for efficient interconnections. The demand for high-capacity subsea cables is soaring as more renewable energy projects come online and grid modernization efforts accelerate, positioning Nexans for significant expansion. As of June 2025, Nexans reported a record adjusted backlog of €7.8 billion within this segment, offering excellent revenue visibility extending well into 2028.

High-Voltage Direct Current (HVDC) cable systems are a star performer in the energy transition, essential for efficiently moving large amounts of power over long distances. Nexans is a key player, evidenced by its significant €1 billion framework agreement with RTE in March 2025 for HVDC cables linking offshore wind farms to the French mainland grid.

Nexans' overall electrification businesses are a powerhouse, showcasing impressive organic growth of 7.8% in the first half of 2025, highlighting a successful pivot to becoming a pure player in electrification. These businesses are demonstrating significantly improved profitability, directly linked to Nexans' strategic focus on electrification, which taps into powerful global trends like rising electricity demand and the urgent need for decarbonization.

Renewable Energy Cable Solutions represent a significant growth area for Nexans, aligning perfectly with global decarbonization efforts. The demand for specialized cables powering offshore and onshore wind farms, as well as solar installations, is robust, fueled by ambitious climate targets. The global renewable energy market saw significant investment in 2023, with offshore wind alone attracting over $80 billion in new capital expenditure.

Nexans' mature industrial application cables, serving stable sectors like manufacturing and utilities, are likely cash cows. These products benefit from the company's strong brand recognition and long-standing customer ties, ensuring consistent revenue streams.

Nexans' standard power distribution cables for established urban and industrial networks, alongside their building and construction cabling, exemplify strong Cash Cows. These segments benefit from significant market share and consistent revenue generation, as evidenced by the global building and construction cable market's approximate $85 billion valuation in 2024, where Nexans holds a leading position.

Mature industrial application cables and legacy telecommunications infrastructure components also operate as Cash Cows. Their stability is driven by strong brand recognition, long-standing customer relationships, and the ongoing need for maintenance within existing, extensive networks, ensuring predictable cash flow with minimal reinvestment.

Nexans' external copper wire sales are categorized as a Dog in their BCG Matrix. The company's strategic move to reduce these sales via tolling agreements highlights a deliberate effort to mitigate their dilutive impact on overall profitability. This suggests that this particular business segment is characterized by low margins and a diminishing strategic importance.

Nexans' external copper wire sales are classified as a Dog within their BCG Matrix. The company is actively reducing these sales through tolling agreements, indicating a strategic move to minimize their negative impact on overall profitability. This segment is characterized by low margins and a diminishing strategic importance as Nexans pivots towards electrification.

The divestment of AmerCable in January 2025 and Lynxeo in June 2025 exemplifies Nexans' strategy to shed non-core assets. These businesses, not directly contributing to electrification, likely represented low-growth or low-market share segments. By exiting these areas, Nexans aims for a near-complete focus on its core electrification mission.

Legacy copper cabling solutions, for instance, are seeing a decline as fiber optics become the industry standard. These older technologies face shrinking market share and limited growth, fitting the profile of a Dog in Nexans' portfolio management.

Nexans' portfolio rotation strategy, aiming for a near 100% focus on electrification, involves divesting businesses with low strategic fit. These divested segments typically exhibit lower growth rates or market positions compared to Nexans' core electrification businesses.

Nexans is actively exploring mergers and acquisitions in the Asia Pacific region, a strategic move driven by the area's burgeoning energy infrastructure development. This expansion targets markets with high growth potential where Nexans seeks to establish a stronger foothold and capture greater market share.

These Asia Pacific markets are considered question marks within Nexans' BCG Matrix, signifying their potential to become future stars. Significant investment is required to nurture this potential, aiming to transform these nascent opportunities into leading positions within Nexans' portfolio.

The Asia Pacific region's energy sector is projected to see substantial investment, with estimates suggesting over $1.7 trillion in infrastructure spending by 2030, according to various industry reports. Nexans' M&A activities here are designed to capitalize on this trend, particularly in areas like renewable energy transmission and digital grid solutions.

Nexans' ventures into emerging markets like the Asia Pacific region and advanced smart grid technologies are categorized as Question Marks. These areas exhibit high growth potential but require significant investment to develop strong market positions. Nexans' strategic M&A activities in Asia Pacific and its focus on smart grid solutions are aimed at transforming these nascent opportunities into future stars. The company's success hinges on effectively navigating these dynamic sectors and securing substantial market share.