3 European Reshoring Stocks Tied To Grid Spending And Supply Chain Shifts

Rising trade tensions between China and the EU, a China EU trade surplus up 24% year on year in the first half, and talk of tougher tariffs are putting supply chains and export heavy business models under fresh scrutiny. For investors, this sharpens the focus on European reshoring and nearshoring, where production and sourcing sit closer to end markets rather than relying heavily on China. This article looks at 3 stocks from a European Industrial Reshoring screener that are directly exposed to these developments and aims to help you decide whether they deserve a closer look or a place on your watchlist.

NKT (CPSE:NKT)

Overview: NKT is a Copenhagen based power cable company that designs, manufactures, installs, and services low, medium, and high voltage cables and accessories used in electricity grids, offshore and onshore wind, solar projects, and industrial infrastructure across Europe and beyond.

Operations: NKT reports revenue of €3.6b from its cable solutions and related services, with results presented under a consolidated segment adjustment.

Market Cap: DKK47.5b

NKT sits at the heart of Europe’s push for energy security and reshoring, with a €10.1b high voltage backlog and major capacity expansions underway to support grid upgrades, offshore wind, and data center power needs. Recent projects in Germany, Denmark, and North America show how its cables and services are tied directly to large, long term infrastructure work. At the same time, a bigger share of higher margin accessories and lifecycle services is helping improve earnings quality. Heavy capital spending, reliance on external funding, and a concentration of European grid operator customers leave little room for execution missteps. For investors, the real question is whether NKT’s growth plans and valuation leave enough cushion once those risks are factored in.

NKT’s large grid and data center backlog suggests a story that could be bigger than many investors assume, but the real tension sits in its valuation versus funding needs, and the DCF valuation analysis for NKT hints at where that balance may quietly tip.

Nexans (ENXTPA:NEX)

Overview: Nexans is a Courbevoie based cable manufacturer that supplies power and data cables for energy grids, buildings, offshore wind farms, subsea interconnections, and industrial projects across Europe and globally. It also provides design, engineering, financing, and asset management services around these systems.

Operations: Nexans generates most of its revenue from the PWR Grid & Connect segment, with about €3.3b from PWR Connect, €1.7b from PWR Transmission, €1.6b from PWR Grid, and €1.3b from Other Activities.

Market Cap: €5.8b

Nexans sits at the intersection of Europe’s electrification push and its desire to reduce reliance on external suppliers. This positioning makes it an interesting candidate for investors watching the reshoring theme. The pivot to a pure electrification focus, recent low carbon aluminium sourcing agreements, and a balance sheet described as near zero net debt support the case for cleaner, more resilient grid infrastructure within Europe. At the same time, earnings growth expectations rely heavily on margin and efficiency gains in a sector exposed to raw material swings, project delays, and compliance demands. For anyone weighing these trade offs in more detail, the tension between Nexans’ growth story, its risks, and how the stock is currently priced is where the real work begins.

Nexans’ push into pure electrification with near zero net debt is only half the story; the real question is what the 4 key rewards and 2 important warning signs reveals about one pressure point most investors may be glossing over

Cenergy Holdings (ENXTBR:CENER)

Overview: Cenergy Holdings is a Brussels based manufacturer of high specification cables and steel pipes used in power grids, offshore and onshore wind, telecom networks, and pipelines for oil, gas, hydrogen and carbon capture projects across Europe and overseas.

Operations: Cenergy Holdings generates about €2.3b of revenue from Cables and €666.4m from Steel Pipes, partly offset by €881.3m of inter segment revenue eliminations.

Market Cap: €4.5b

Cenergy Holdings sits at the crossroads of Europe’s push for energy security, grid upgrades, and reshoring, with high value cable projects and steel pipes tied to renewables, interconnectors, and newer areas like hydrogen and carbon capture. Earnings quality has been strong and revenue growth forecasts outpace the Belgian market. However, a high debt load, volatile share price, and steel pipes margins that management already flags as unsustainable in the long run raise questions about how resilient those profits are if conditions change. The company appears well positioned for European industrial reshoring and local content rules. The key issue for investors is how its elevated P/E, balance sheet risk, and fossil fuel exposure compare with that growth narrative over time.

Cenergy Holdings’ growth story across grids, renewables, hydrogen and carbon capture looks powerful, but its high debt, volatile share price, and elevated P/E raise harder questions. The 4 key rewards and 2 important warning signs (1 is major!) only starts to answer these questions.

The three stocks in this article are just a starting point, and the full European Industrial Reshoring screener surfaced 8 more European reshoring companies with equally compelling stories that could be worth a closer look. Use Simply Wall St to filter for the catalysts that matter to you, identify the reshoring, nearshoring, and domestic manufacturing narratives described here, and analyze which ideas feel like the highest conviction fits for your own watchlist.

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If Nexans or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond These Stocks

Fresh ideas can attract attention quickly, and by the time momentum is widely recognized, the most attractive entry points may no longer be available. Review these under the radar picks before they receive broader attention.

• Spot early movers with resilient balance sheets by checking a curated list of solid balance sheet and fundamentals (418 results) that highlights companies designed to remain durable when conditions get tougher.
• Explore potential income opportunities by reviewing a hand picked 458 dividend fortresses that focuses on higher yielding businesses that may appeal to investors seeking steadier cash flows.
• Track developments in infrastructure spending by using a focused 35 power grid technology and infrastructure stocks that concentrates on companies connected to grid upgrades and evolving energy systems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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