Cables as a Key Enabler of the Growing Green Economy

The cable industry is a fast-growing sector, supported by four secular tailwinds: the accelerating transition to renewable energy, rising electricity consumption, power grid modernization, and digital transformation. Demand for electricity cables is being driven by the rapid shift toward renewable energy. By 2050, electricity demand is expected to double, while the share of renewable energy in the global energy mix is projected to rise from 30% to 70%. Annual investments in power grid upgrades are also expected to double. At the same time, digital transformation is expected to result in a 2.5-fold increase in the number of fiberized premises and towers.

The Western cable market is dominated by three players: Prysmian, Nexans, and NKT. Together, they hold around 60% of the global subsea cable market.

Italian company Prysmian is the global leader in cables for the energy and telecom sectors, as well as in optical fibre. The group generates EUR 20 billion in sales and operates in more than 50 countries, employing 34,000 people. The roots of the company go back more than 150 years, but in its current form, Prysmian was created in 2005 from Pirelli’s Cable and Systems business. It subsequently expanded through both organic growth and acquisitions, including Draka in 2011, General Cable in 2017, and Encore in 2024. The latter acquisition provided Prysmian with a state-of-the-art vertically integrated factory in the US, including its own copper mill.

Cable-laying vessel Giulio Verne

Source: Prysmian (https://www.prysmian.com/en/media/media-library/photos)

Of Prysmian’s sales, 40% is derived from North America, 48% from Europe, the Middle East and Africa, 7% from Latin America, and 5% from Asia Pacific. The company has four divisions: Transmission (17% of revenues), Power Grid (19%), Electrification (56%), and Digital Solutions (8%).

During its March 2025 Capital Markets Day, management presented targets for 2028. The group is aiming for EBITDA of EUR 2.95–3.15 billion, implying a CAGR of 12.2% between 2024 and 2028, free cash flow of EUR 1.5–1.7 billion, and compounded annual earnings per share growth of 15–19% over the same period. Revenues from Solutions are expected to represent 55% of total revenues. Given the strong improvement in results in 2025, it is possible that Prysmian will already achieve some of its 2028 financial targets one year ahead of schedule.

Prysmian has a solid balance sheet, with net debt to EBITDA at 1.3x at the end of 2025. The company is also highly profitable, with a 9% adjusted EBIT margin. It has an order backlog in excess of EUR 17 billion.

French cable company Nexans was spun off from Alcatel in 2001. In 2025, it generated revenues of EUR 6.1 billion. With the recent disposal of Autoelectric, the company completed a portfolio rotation under which EUR 1.5 billion in sales was added and EUR 2.2 billion in sales was divested between 2020 and 2025. Since 2021, Nexans has significantly simplified its business: it reduced its footprint from 80 to 54 sites and cut its headcount from 25,000 to 13,000 employees. It now serves 12 subsectors, compared with 34 in 2021. Electrification EBITDA increased by a factor of 2.1x, while free cash flow rose by 1.9x between 2021 and 2025. Nexans also recently reshuffled its leadership team, appointing a new CEO, Julien Hueber, and a new CFO, Vincent Piquet.

Nexans’ exposure to the fast-growing North American market is relatively limited. Of its sales, 53% comes from Europe, 16% from North America, 14% from Latin America, 10% from Africa and the Middle East, and 7% from Asia Pacific.

One very important contract for Nexans is the GSI (Great Sea Interconnector) project, a 1,208 km HVDC cable system linking Greece, Cyprus, and Israel. The project was suspended in 2025 following objections from Turkey, and its timeline is now expected to be rescheduled. This creates a risk of fleet underutilization for Nexans.

Danish company NKT specializes in the design, manufacture, and installation of low-, medium-, and high-voltage power cable solutions. The company has been listed on the Copenhagen Stock Exchange since 1898 and employs 6,500 people. In 2025, NKT delivered 6% organic sales growth, reaching EUR 3.6 billion in reported sales, or EUR 2.7 billion at standard metal prices, and EBITDA of EUR 390 million, corresponding to a 14.3% margin. The group has an order backlog of EUR 10.2 billion.

For 2026, NKT expects sales of EUR 2.63–2.78 billion at standard metal prices and EBITDA of EUR 360–410 million. The group’s medium-term ambitions for 2030 call for an organic sales CAGR of 7% versus 2024 and EBITDA in excess of EUR 900 million. This is expected to be driven by significant margin expansion, as projects won in 2023 and thereafter were secured at better prices. In addition, ramp-up costs will weigh on 2026 margins, with an estimated drag of 200 basis points. The margin contribution from the new capacity will not be fully realized until 2029, although it should already contribute positively to overall profitability in 2027 and 2028. NKT continues to expect that its average addressable high-voltage market will exceed EUR 10 billion per year between 2024 and 2030.

The cable industry is experiencing rapid growth, fueled by the global shift toward renewable energy, grid modernization, and digital transformation. Three major Western players, Prysmian, Nexans, and NKT, dominate the market, together controlling 60% of the strategically important subsea cable segment. While these companies report strong order backlogs and ambitious financial targets for 2028–2030, they must balance these growth opportunities against operational risks such as geopolitical project delays and uneven regional market exposure.