Weaker Euro Boosts Competitiveness for Euro Area Exporters

The weakening euro is making headlines beyond just currency traders, as higher global borrowing costs and concerns about French public finances draw attention to its impact on euro area exporters. Three large-cap companies, Nexans, Prysmian, and Andritz, are particularly benefiting from this trend due to their significant international operations.

Nexans, a French cable group with a market cap of €6.0 billion, supplies electrification and power network solutions worldwide. With revenues of around €3.8 billion from its primary operations, Nexans stands to gain as the weaker euro enhances its competitiveness in non-euro markets. The company’s focus on global electrification and infrastructure investments supports its revenue visibility, though financing costs and future margins remain key factors to watch.

Prysmian, an Italian cable manufacturer headquartered in Milan, generates approximately €8.3 billion from its industrial and construction sectors. With a market cap of €37.9 billion, Prysmian’s extensive international sales make it highly sensitive to currency fluctuations. The company’s long-term growth is driven by structural trends like electrification, decarbonization, and digital infrastructure, with pricing power and margins influenced by long-dated grid and data projects.

Andritz, an Austrian industrial machinery group, supplies equipment for pulp, metal, hydropower, and clean energy, with a market cap of €8.1 billion. The company’s diverse overseas contracts expose it to currency moves, which can reshape its reported results and cash generation. Hydropower, a key sector for Andritz, is experiencing a structural upcycle, supported by the global shift toward renewable energy and electrification.