Nexans Business Model Canvas

Nexans actively partners with suppliers of essential raw materials such as copper and aluminum, crucial for its extensive cable manufacturing operations. These relationships are foundational to ensuring a consistent and high-quality input stream for production.

Furthermore, Nexans is forging strong ties with recycling partners to advance its circular economy goals. The company's investment in a state-of-the-art copper recycling facility underscores this commitment, aiming to boost the proportion of recycled copper in its products to 30% by 2028.

These collaborations are vital for securing a sustainable supply chain and directly support Nexans' broader decarbonization strategies, reducing reliance on virgin materials and minimizing environmental impact.

Nexans' key partnerships are multifaceted, encompassing strategic acquisitions, technology collaborations, supplier relationships, recycling alliances, and project-specific ventures. These alliances are crucial for market expansion, innovation, supply chain stability, circular economy initiatives, and the successful execution of large-scale infrastructure projects.

The company actively partners with technology innovators to integrate advanced solutions like AI into its offerings, as highlighted by their 'Sparking Electrification with Tech solutions' strategy. Furthermore, strong ties with raw material suppliers ensure consistent production, while recycling partnerships support their circular economy goals, targeting 30% recycled copper by 2028.

Nexans also cultivates industrial alliances for major infrastructure projects, such as subsea power cables for offshore wind farms, collaborating with EPC firms and specialized contractors. Their engagement with industry associations and sustainability initiatives, like the SBTi, further solidifies their leadership and commitment to responsible practices.

Nexans' commitment to research, development, and innovation is paramount, fueling their ability to deliver advanced cable solutions. This involves creating cutting-edge cable technologies, developing sophisticated monitoring devices, and integrating artificial intelligence to boost product performance and operational efficiency.

Innovation is a cornerstone of Nexans' strategy, guiding the continuous evolution of their product portfolio. In 2023, Nexans invested €200 million in R&D, a significant portion dedicated to developing next-generation cabling for sectors like renewable energy and digital infrastructure.

Nexans' key activities center on the design, manufacturing, and installation of advanced cabling solutions. This includes a strong emphasis on innovation for electrification and digital infrastructure, as seen in their 2024 focus on high-performance cables for offshore wind and data networks. The company also prioritizes the execution of large-scale electrification projects, utilizing specialized vessels and managing significant order backlogs, as evidenced by their investments in plant capacity and new vessels.

Furthermore, Nexans is actively engaged in portfolio optimization through strategic divestments, aiming to become an 'Electrification Pure Player' and reallocating resources to high-growth electrification markets. This strategic shift allows for greater focus on core areas like power grids and renewable energy. Finally, sustainability is a core activity, with ambitious decarbonization goals, including Net-Zero by 2050, and a strong push for copper recycling to enhance resource efficiency across their operations.

Nexans' intellectual property, encompassing a significant portfolio of patents in advanced cable design and manufacturing processes, is a cornerstone of its business model. This IP is critical for maintaining a competitive edge in specialized markets.

The company's technological expertise, particularly in high-voltage direct current (HVDC) transmission and the development of smart grid solutions, represents another vital resource. This deep knowledge base allows Nexans to tackle complex energy infrastructure projects.

In 2023, Nexans reported significant investments in research and development, underscoring its commitment to leveraging this intellectual capital. For instance, their focus on sustainable cable solutions and digital integration within energy networks highlights the practical application of their technological prowess.

Nexans' key resources include its advanced manufacturing facilities, specialized cable-laying vessels like the Nexans Aurora and the upcoming Nexans Electra, a strong portfolio of patents in cable design and manufacturing, and deep technological expertise in areas like HVDC transmission. These physical and intellectual assets are fundamental to its operations and market positioning.

The company's human capital, comprising nearly 28,500 employees, many of whom are skilled engineers, is vital for innovation, project execution, and operational excellence. Employee engagement initiatives, such as share ownership plans, further strengthen this resource by aligning individual interests with corporate success.

Financial capital is a critical enabler, evidenced by a record adjusted EBITDA of €1.9 billion in 2024 and a substantial adjusted backlog of €10.5 billion as of December 31, 2024. This financial strength supports investments in growth and ensures revenue visibility.

Nexans goes beyond simply supplying cables, offering a suite of comprehensive solutions. This includes managing entire turnkey projects, providing expert installation services, and ensuring efficient asset management for their clients.

These integrated services, bolstered by digital technologies, are designed to significantly boost the performance and operational efficiency of customers' vital infrastructure. For instance, Nexans' commitment to end-to-end support positions them as a strategic partner rather than just a component provider.

In 2024, Nexans reported that its Services segment, which encompasses these broader offerings, continues to be a key growth driver, reflecting the market's increasing demand for integrated solutions that optimize asset lifecycle management and operational uptime.

Nexans offers crucial cabling and connectivity solutions that facilitate the global transition to electrification and sustainable energy, enabling the integration of renewables and the development of smart grids.

Their expertise in high-voltage direct current (HVDC) cables, vital for long-distance renewable energy transmission, positions them as a key player in expanding offshore wind and intercontinental power links, a market that saw significant investment in 2024.

Nexans provides comprehensive, integrated solutions beyond just cables, including turnkey project management and installation services, which enhance customer asset performance and operational efficiency, as evidenced by their Services segment growth in 2024.

The company's commitment to sustainability, demonstrated by initiatives like increasing recycled copper usage to 50% by 2024, helps clients meet their environmental targets and supports decarbonization efforts across various sectors.

With over 120 years of experience, Nexans offers proven reliability and expertise in complex, high-voltage projects, building customer trust through successful deliveries like the 2023 Viking Link interconnector.

Nexans truly puts its customers first, aiming to deeply understand what each client needs and then crafting solutions that offer extra value. This means they're moving beyond just selling cables to providing complete systems and smart tech that actually improve how their customers work.

For instance, in 2024, Nexans highlighted its commitment to developing integrated solutions for smart grids, a key area where efficiency and safety are paramount. Their focus is on making things faster, safer, and more effective for the businesses and utilities they serve.

Nexans fosters deep, collaborative relationships, especially with major utility and industrial clients, emphasizing long-term project partnerships. This direct engagement allows for tailored solutions and strategic alignment, crucial for complex infrastructure projects like those in smart grids, a key focus in 2024.

For specific product lines and smaller projects, Nexans utilizes specialized distribution networks. These partners are crucial for reaching diverse segments within the building, construction, and industrial sectors, ensuring efficient delivery of standard products and accessories.

Nexans utilizes a multi-faceted channel strategy, blending direct engagement for large projects with specialized distributors for broader market reach. Their global sales network, spanning 41 countries, ensures efficient service across diverse regions.

Digital platforms are crucial for information dissemination and investor relations, with ongoing investment in 2024 to enhance these capabilities. Strategic acquisitions, such as La Triveneta Cavi in 2024, further expand their market access and distribution networks, driving revenue growth.

The building and construction sector represents a core customer segment for Nexans, covering everything from individual homes to massive infrastructure undertakings. This includes commercial buildings, residential developments, and essential public works like roads and bridges, all of which rely heavily on a diverse array of wires and cables for power distribution, lighting systems, and crucial safety features. In 2024, the global construction market was valued at approximately $11.5 trillion, highlighting the sheer scale of this demand.

Nexans' offerings within this segment are designed to facilitate the efficient and reliable operation of these structures, ensuring power reaches every outlet and light fixture. The company's solutions are integral to the basic functionality and safety of modern buildings. The increasing emphasis on smart technologies and eco-friendly materials is a significant trend, with smart building solutions projected to grow substantially in the coming years.

Nexans serves a broad spectrum of customer segments, with a strategic pivot towards electrification. Key areas include energy infrastructure developers and operators, such as offshore wind farm developers and transmission system operators, who rely on Nexans for critical high-voltage and medium-voltage cabling. The building and construction sector is another major focus, encompassing residential, commercial, and public works projects that require diverse wiring solutions for power distribution and safety systems. Specialized industrial applications, including automotive, shipbuilding, and mining, also form a significant segment, demanding robust cables engineered for extreme conditions.

Original Equipment Manufacturers (OEMs) are a vital customer base, integrating Nexans' specialized cable solutions into their own manufactured products across sectors like renewable energy and industrial machinery. While Nexans historically supplied the telecommunication sector, this segment is no longer a primary focus following the divestment of its Telecom business, allowing Nexans to concentrate on its core electrification strategy.

Nexans dedicates significant resources to Research and Development (R&D), fueling innovation across its cable technologies, smart solutions, and sustainable material offerings. In 2024, the company continued its strategic focus on R&D, particularly in areas crucial for the energy transition, such as advanced materials and digital solutions.

These R&D investments are paramount for Nexans to maintain its competitive advantage and develop cutting-edge products. The company's commitment extends to exploring emerging technologies like Artificial Intelligence (AI) and driving the development of entirely new product lines designed to meet evolving market demands and environmental standards.

Nexans' cost structure is heavily influenced by raw material prices, particularly copper and aluminum, which are essential for their cable production. In 2023, the company's cost of sales reached €7,506 million, reflecting these material and manufacturing expenditures. To mitigate price volatility and enhance sustainability, Nexans is increasing its use of recycled copper, aiming for more stable and potentially lower input costs.

Significant investments are channeled into R&D, with a continued strategic focus in 2024 on areas vital for the energy transition, such as advanced materials and digital solutions. Additionally, Nexans is deploying €1.2 billion between 2025 and 2028 to expand production capacities and modernize facilities, particularly for high-voltage subsea cables. Selling, General, and Administrative (SG&A) expenses are managed through ongoing efficiency drives, including digitalization, which contributed to reduced administrative overheads in 2024.

Nexans generates significant revenue by selling a broad spectrum of cables essential for building and connectivity across various projects. This includes everything from residential wiring to complex infrastructure needs, forming a core part of their PWR-Connect segment.

These offerings encompass both standard power cables and specialized data connectivity solutions designed for modern buildings. The company's strategic acquisition of La Triveneta Cavi in 2021, for instance, significantly strengthened its position and revenue generation capabilities within this crucial segment.

Nexans' revenue streams are primarily built on the sale of specialized cables, with a significant portion coming from high-voltage and subsea cables essential for energy transition projects like offshore wind farms. The company also generates income from grid and distribution cables sold to utilities and contractors, as well as a broad spectrum of cables for building and connectivity through its PWR-Connect segment. Furthermore, Nexans offers value-added services such as project management, installation, and maintenance, which are crucial for large infrastructure projects and contribute to diversified income.