3 Cable Stocks Riding The Undersea Security Spending Boom
Undersea cables used to be background infrastructure. Now they sit on the front line of security, with governments pouring money into protecting the seabed and the data and energy that run through it. That shift creates fresh risk and potential opportunity for investors who move before this theme becomes crowded. This article walks through 3 stocks that are directly exposed to this subsea security story.
The stocks highlighted below are only a small sample of what this theme touches, and the full screen surfaced 70 more companies with equally focused subsea cable narratives that this article does not cover. If you want to identify and analyze the highest conviction subsea ideas, go straight to the Subsea Communications and Cable Infrastructure screener.
NKT (CPSE:NKT)
Overview: NKT designs, manufactures, installs, and services high voltage power cables, including subsea systems that connect offshore energy projects and grids underwater.
Operations: NKT reports a primary business segment adjustment of €3,762 million and intersegment transactions of €168 million within its cable operations.
Market Cap: DKK49.3 billion
NKT provides direct exposure to the undersea power cable build out, with a business model that links offshore wind, interconnectors, and grid resilience to the same piece of hardware: the subsea cable itself.
"NKT has launched a fully qualified 525 kV HVDC subsea power cable system for operation at a 90 °C conductor temperature, which supports higher transmission capability and broadens its offer for offshore wind, hybrid interconnectors and long distance transmission projects."
What happens to NKT’s earnings power if a single unseen pressure on future project margins moves in the right direction?
If that margin pressure is the real fulcrum, read the full narrative for NKT to see how NKT’s subsea buildout story could be getting mispriced.
Nexans (ENXTPA:NEX)
Overview: Nexans is a global electrification and cable specialist that supplies subsea, high voltage, grid and building cables plus related services.
Operations: Nexans generates about €3.8b from PWR Grid & Connect PWR Connect, €1.8b from PWR Transmission, €1.7b from PWR Grid and €1.3b from Other Activities.
Market Cap: €6.0b
Nexans gives you a pure electrification story that also ties directly into subsea cables, which is exactly what this theme is about.
"The ongoing acceleration of global electrification, renewable energy adoption, grid modernization, and significant investments in infrastructure (especially in Europe and emerging markets) continue to drive strong organic growth in Nexans' Electrification, Power Grid, and Transmission segments, supporting a robust order backlog and increased revenue visibility for coming years."
What happens to Nexans’ earnings power if a single unseen pressure on future subsea project margins moves in the right direction?
If that margin risk is exactly what you are weighing, the full narrative for Nexans shows how Nexans could see accelerating projects reshape its subsea earnings mix.
Prysmian (BIT:PRY)
Overview: Prysmian produces and installs power and telecom cables worldwide, including submarine energy and data links that underpin subsea infrastructure.
Operations: Prysmian generates €8.3b from Industrial & Construction, €4.2b from Power Grid, €3.4b from Transmission, €3.0b from Specialties, €1.9b from Digital Solutions and €0.6b from Other Electrification activities.
Market Cap: €35.8b
Prysmian plugs directly into the subsea cable theme because it connects offshore power projects and global data routes while also wiring grids and data centers on land.
"Prysmian’s Transmission business grew 28.7% organically in 2025, reached €582 million of adjusted EBITDA, and exited the year with a backlog of about €17 billion, including the newly announced Eastern Green Link 4 contract in the UK."
The key question for investors is how Prysmian’s earnings power might change if a single unseen pressure on future subsea project margins shifts.
If that margin shift is what you care about, read the full narrative for Prysmian to see how Prysmian’s subsea momentum could be masking underappreciated upside potential.
Seeking Alternatives Before The Crowd?
Fresh themes move fast. Breakout trends gain momentum, prices start flying, and late entries get caught chasing. Use these curated screens while it matters and get in early.
- Spot stronger balance sheets before they are widely talked about by running through a curated list of solid balance sheet and fundamentals (197 results) that filters for sturdier fundamentals and cleaner finances.
- Track the next wave of automation demand by scanning a hand picked set of 95 robotics and automation stocks that ties real-world adoption to earnings potential and execution quality.
- Position ahead of potential capital rotation into financial resilience using a focused 227 resilient stocks with low risk scores that highlights sturdier business models with measured risk profiles.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com