Post Q1 Update and Republic Wire Deal

Research evidence excerpt

Post Q1 Update and Republic Wire Deal

for the trajectory to hold. Similarly,

Connect margins should continue to suffer in 2026e, given the lack of recovery in the high-

margin Nordic region, also mentioned at peers. Exhibit 1 - Nexans is looking to create a

position in the highly consolidated US market,

Setting course for the US market. With the Republic Wire deal, Nexans is establishing a larger dominated by Prysmian (post General Cable

presence in the more attractive North American market with a clear asset inside the US. We and Encore deals) and Southwire

see DD accretion in 2027e with the full integration and ramping up on the new capacity that 100%90%

should deliver strong growth over coming years. Republic Wire's current products show quite 80%70%

a standard offering, and we expect a lot of work and likely capex will be needed to locally 60%50%

deliver to data centres and utility customers, who should all be open to new suppliers, given the 40%30%

tight supply-demand situation in the US. Any change on US tariffs could drive margin benefits, 20%10%

Low voltage copper building wire Power Distributionallowing Republic Wire to leverage Nexans' Canadian copper rod mill, a disadvantage for now 0%

against larger & vertically integrated competitors. . Southwire Prysmian Cerrowire Republic Wire Other

Source: Jefferies estimates

Increasing estimates on M&A, PT to €162 - Hold. We increase EBITDA estimates by ~2% in

2026e and ~10-12% in 2027-2028e with the full impact of the Republic Wire deal, sitting MSD

ahead of VA cons. The group is executing well and is getting closer to delivering on its 2028

ambitions with the deal (JEFe adj. EBITDA €1.07bn vs. guide ~€1.15bn). However, we keep a