Cenergy Holdings - Leading the Energy Transition

[Ituhippinen]

Cenergy Holdings SA (Ticker: CENER) (www.cenergyholdings.com) is a Belgian holding company focusing on energy transmission and distribution solutions. So, would it be an energy infrastructure company. Cenergy’s largest owner is Viohalco, which owns over 70% of the company’s shares. The company’s core business consists of manufacturing cables and steel products (especially pipes) for the energy sector. Cenergy operates through two divisions.

Cables (Hellenic cables): The segment includes electrical cable and conductor solutions, such as land cables, submarine cables (offshore wind power, oil/gas platforms), and telecommunication cables. It also provides cables for more specialized orders, such as for railways or data centers. Key customers include energy companies, grid operators, and industrial companies. The Hellenic Cables subsidiary is one of Europe’s largest cable manufacturers. This segment accounts for approximately 60-70% of the company’s revenue. In addition to cables, the company offers installation, maintenance, and technical support.

Steel Pipes (Corinth Pipeworks): Manufactures steel pipes mainly for the oil and gas industry (pipelines, offshore), water supply, and construction industry. To my understanding, this segment is one of the world’s leading manufacturers of steel pipes. The company specifically produces high-quality corrosion-resistant pipes for demanding conditions. The products are mainly used for oil and gas transportation and construction projects.

Geographical Diversification

The company operates globally, but its main markets are in Europe, especially Greece, Romania, and Bulgaria. The company aims for growth in North America, the Middle East, and Asia. The company’s headquarters are located in Greece. The company has factories in Greece, Romania, Bulgaria, and by 2027, the new US factory should also be in full operation. The company conducts a significant amount of business in Europe, and the EU’s Green Deal investment is not necessarily a bad driver for a company of this kind (EU climate neutral by 2050), which benefits from additional investments in the green transition. The company has customers from over 55 different countries (e.g., ExxonMobil, Shell).

Competitive Advantages

The company is a market leader in steel pipe manufacturing for the energy sector, and one of the largest cable manufacturers in Europe. The product range is extensive, covering both traditional and renewable energy construction needs, such as offshore wind power and oil pipelines. Production facilities are modern and cost-effective, located across Europe and soon in the United States. The company has a very strong order book (Q1 2025 EUR 3.4 billion), which indicates a demand for high-quality cables and pipes. The company also has over 50 years of experience in the industry and long-term relationships with major customers, which could help with customer retention.

Future

With the EU’s Green Deal, offshore wind power and electricity grids will be significantly modernized. These will drive the future growth of the cable segment for a long time. Virtually all energy infrastructure investments in Europe are potential opportunities from which the company can gather its share. Regarding pipes, oil is somewhat unfashionable, but in the short to medium term, the need for developing the oil and gas sector supports the growth of the pipe segment. Future challenges could include fluctuations in raw material prices and geopolitical risks. Political risks related to the green transition could also have an impact, but fortunately, the EU is so rigid in its decision-making that even if the idea of canceling the green transition were to arise, it would take years before anything happens .

Guidance

The company guides for 2025 adj. EBITDA to be EUR 300-330 million. After Q1, the company is confident that this target will be achieved.

I will return to edit and supplement the thread when I have time! For now, just this introductory opening, so it’s easier to start again next time when something is already prepared.

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When publishing this, I own shares in the company. It is possible that I have also misunderstood some of the information presented.

[Ituhippinen]

The company’s business has developed quite well over the past few years, as can be seen from the charts above. Revenue has grown by approximately 10-15% per year, and margins have also developed in the right direction. In the future (up to 2030), the European market is expected to see 11% annual growth in cables and 10-20% in steel pipes.

Market-aligned growth would be sufficient for the company to achieve its targets. Additional impetus for revenue growth will come from the US factory, which is expected to be fully operational by 2027 and should significantly increase production capacity.

A few more words about valuation.

Market cap 2.11BN eur
EV 2.27BN eur
Share price: 9.42e
TTM EPS 0.72e

The company is currently trading at an LTM P/E of ~13x. The average for the last three years has been ~17x. EV/EBIT 11x (3-year average ~12.5x).

The valuation is likely reasonable, but I wouldn’t call it expensive. If the company is seriously involved in the forefront of the energy transition and secures its share of European infrastructure packages, growth could be significantly faster.

[Ituhippinen]

Picked from the Annual Reports

As the last slow dance of the evening, a couple of things from the annual reports, which have now been thoroughly reviewed for 2020-2024.

Backlog.

The company itself states that backlog means this (annual report 2024):

Order backlog includes signed contracts, as well as contracts not yet enforced, for which the subsidiaries have either received a letter of award or been declared preferred bidder by the tenderers.

These will certainly not go 1:1 in the future either, but accelerating revenue growth could be expected if the majority of the backlog later moves into actual production. I consider it particularly important that the order backlog is growing nicely, allowing the company to choose the “best projects” to maintain margins.

Maryland, USA: New Production Facility

In the 2021 annual report, intentions were disclosed where Hellenic Cables (part of Cenergy) was negotiating a potential collaboration with Ørsted, aiming to establish a factory for submarine inter-array cables in Maryland, USA. The matter was “on hold” for a long time, and in the 2024 annual report, it was then stated that an agreement was reached in July 2024 of the past year. The budget was set at approximately 200 million USD. The factory was decided to be established at Wagner’s Point in Baltimore. The purpose of the production facility changed along the way, and it will now start pumping out LV (low voltage), MV (medium voltage), and HV (high voltage) land power cables. Production was planned to start by the end of 2027, and in connection with the Q1 2025 earnings report, it was stated that this is on schedule.

• Land purchased
• Coastal revetment done. Meaning the factory’s coastal areas have been prepared to withstand waves and corrosion.
• Equipment ordered for delivery by the end of 2026.
• Various electricity and water connections for the area agreed upon.
• Contractors acquired.
• Actual construction begins H2/2025.
• Everything has proceeded as planned.

One reason for the shift from submarine cables to land power cables was the needs of internal electricity grid projects in the United States. The factory is intended to support Cenergy’s “value-over-volume” strategy, where high-value-added cable solutions are sold instead of basic off-the-shelf bulk products. In my opinion, a factory in the US is certainly not a foolish solution, as the sentiment across the pond seems to be more “buy American”-oriented.

Achievement of the Company’s Previous Targets

In 2020, Cenergy announced its goal to improve its profitability, maintain a strong order backlog, and develop its production capabilities. Well, as can be seen from the chart above, the order backlog has grown strongly, and net margins have risen from 2.7% to 7.8% (2020-2024). The company’s EBITDA has increased from €101M in 2020 to €272M in 2024. At the same time, investments have also been made in production, with the new factory project being the latest example.

Strong Shift Towards Renewables

Based on the annual reports, Cenergy has made a strong and determined shift away from traditional oil and gas segments towards more sustainable energy production and transmission. Renewables consistently play a larger role in the structure of the order backlog.

Profitability Strategy “Value Over Volume”

As I highlighted above, the company does not aim for growth at any cost, but rather for selectively winning high-margin projects. This is reflected in a clear improvement in profitability and has strengthened the company’s return on capital.

Net Debt Reduction

For example, in 2020, net debt was still €331 million, but by the end of 2024, it was only €152 million, even though the pace of investment remained high during the same period (e.g., the US factory, additional capacity in Greece). This indicates strong cash flow management and a reduction in financial risk.

[vme93]

Given the timing, I assume the company caught the eye from Heikki Keskiväli’s recent listing. At least through that, it found its way onto my watchlist.
You did a great job for me by opening the thread with a good summary. After my own further investigations, I bought a small tracking position for the portfolio.

Credible business with a moderate valuation. Electrification is an absolute megatrend globally, but in a world dominated by data centers and AI, this “boring” background work that enables their realization receives less attention.

As a bonus, I also thought that the company could have an opportunity to become part of Ukraine’s reconstruction process when the time comes.

[Ituhippinen]

https://cenergyholdings.com/financial/financial-releases/

H1 results just dropped.

• Revenue exceeded €1 billion during the first half of the year, with margins improving across all business units.

• Adjusted EBITDA grew +43% year-on-year to €171 million (margin 16.7%).

  • Steel pipes: margin strengthened to 18.2% (improvement +2.1 percentage points).
  • Cables: margin rose to 16.3% (14.2% → 16.3%) particularly due to the completion of the capacity expansion at the Corinth submarine cable plant.
  • The US Maryland land cable plant is progressing as planned.

• Profit before tax: €124 million (+70% y/y).

• Net profit: €95 million (+69% y/y).

• Order book remained stable at over €3.3 billion.

• Guidance raised: 2025 Adjusted EBITDA is expected to be €310–340 million (previously €300–330 million).

So there it is, a moderate positive adjustment/clarification to the full-year A-EBITDA. Growth has been absolutely superb in terms of revenue. (26% H1 vs 2024 H1).

Let’s turn off our brains for a moment and blindly look at EPS. After H1, it’s now at 0.45 euros, with 0.83 euros expected for 2025. Last year, H2 (2024) was clearly stronger than H1, yielding 0.43 EPS. If we expect to reach at least the same earnings per share as last year (no growth, no improving margins), Cenergy would still exceed EPS forecasts.

The performance is strong, there’s nothing not to like!

[Ituhippinen]

https://cenergyholdings.com/new/hellenic-cables-to-supply-66kv-inter-array-cables-for-east-anglia-two-offshore-wind-farm/

Press release from a few days ago. There’s no rush with this company; business is steady and efficient.

Cenergy / Hellenic Cables received an order from Seaway7 for \~165 km of 66kV inter-array subsea cables (manufacturing in Corinth in 2026, deliveries in H1 2027). This does not significantly alter the overall financial picture of the company’s business, but it is strategically positive: it improves capacity utilization, strengthens the customer relationship with Seaway7/ScottishPower, and expands its reference in the offshore segment. The most significant benefit is operational and a proven competitive product, not a one-time cash spike.

[Sijoittaja-alokas]

Good opening message and good messages in this thread. Thanks!

Cenergy’s development has been very impressive, especially concerning margins and the order backlog. My understanding is that Cenergy’s performance has been strong, with both margins and the order backlog looking robust.

How do you see the visibility for the next couple of years – will demand continue at the current level… or is a more stable period ahead before the next growth spurt? On the other hand, you said there’s no hurry with this company, so should one look further than just a couple of years ahead?

[Ituhippinen]

@Sijoittaja-alokas

How do you see the visibility for the next couple of years – will demand continue at the current level… or is a more stable period ahead before the next growth spurt?

It’s difficult to say without insider information, of course, but I believe in continued strong growth based on the need to renew energy infrastructure. Offshore wind power and electricity grids need to be modernized, and this goes directly into Cenergy’s coffers. The green transition is not a new thing, but I believe it is only at the beginning of its journey: pipes and cables will 100% certainly be laid in the coming years to transport energy (including oil). The backlog at least provides a very nice order book for the next few years, so in that respect, I’m not worried at all.

@Sijoittaja-alokas

On the other hand, you said that there’s no hurry with this company, so should we look further than just a couple of years ahead?

It depends on how long your binoculars are! In the near future, the company will likely thrive nicely, accompanied by the EU’s Green Deal. Furthermore, we won’t be moving away from oil anytime soon, so oil pipelines will also be renewed. Despite this, the latter will more likely run out eventually, and the company’s core business will continue to roll on the strength of the green transition.

You’re getting a bit of a repetition of the initial post in my answer, because the company’s business has remained pretty much the same: there’s no rushing in this industry!

[Ituhippinen]

https://cenergyholdings.com/new/trading-update-q3-2025/

Q3 results are in!

Highlights

• Revenue Growth of 23% compared to 9M2024 at EUR 1.55 billion, fuelled by strong performance in both segments.
• Strong Profitability reflected in all profitability metrics with adjusted EBITDA for the 9M2025 period reaching EUR 261 million (+35% YoY) with corresponding margins close to 17%.
• Increasing Net Profit: Net profit reached EUR 148 million (+47% YoY), outpacing revenue growth, with Earnings per Share (EPS) of €0.70 (+32%).
• Stable Order backlog at EUR 3.3 billion on September 30th, 2025.
• Upgraded guidance: EUR 335 – 350 million adjusted EBITDA for FY2025.

Another new positive surprise regarding the bullshit earnings (adj. EBITDA): H1 was updated to a range of 310-340 million EUR, now 335-350 million EUR.

Great performance! Production capacity is running at full throttle in both segments, and production capacity expansions are expected, especially from the cable side. The company expects a strong end of the year, and the order backlog provides a good outlook for the coming quarters.

[vme93]

The quarterly report was very strong in my opinion, but the market didn’t like it. The order book for Q3 2024 was lower, so perhaps that’s the reason for the decline, or maybe the preceding rise was simply too much.

In any case, I doubled my position a couple of weeks ago and continue as a satisfied shareholder.

[Ituhippinen]

https://cenergyholdings.com/new/hellenic-cables-to-supply-inter-array-cables-for-the-bc-wind-offshore-wind-project-in-poland/

Cenergy Holdings announces that Hellenic Cables, its cables segment, was awarded a contract by DEME for the supply of inter-array cables for the BC-Wind offshore wind project in Poland.

Under the contract, Hellenic Cables will be responsible for the design, engineering, manufacturing, testing, and supply of approximately 70km, including spares, of 66kV inter-array submarine cables, as well as the supply of the associated cable accessories.

The cables will be produced at Hellenic Cables’ state-of-the-art submarine cables manufacturing facility in Corinth, Greece with completion of production expected by the end of 2027.

[Ituhippinen]

Q4 results just hit the airwaves and the full year is wrapped up!

https://cenergyholdings.com/new/financial-results-for-the-year-ended-31-december-2025/

A truly excellent result! Strong revenue growth, a strong order backlog, and adj. EBITDA guidance was met handsomely. Adj. EBITDA EUR 348m (guidance EUR 335-350m), so a new positive profit warning was just a few million away.

Strong guidance for next year as well, with adj. EBITDA targeted between EUR 370-400m.

And we’re even getting a huge dividend!!

Both segments are rolling along nicely! Waiting for the annual report.

“2025 marks another year of strong progress for Cenergy Holdings, showcasing our relentless drive to push boundaries and deliver another set of strong results in the energy infrastructure sector. Our ability to tackle complex projects head-on, paired with an acute focus on our strategic priorities, powered exceptional growth and value creation across both segments.

This year, we accelerated major capacity expansions at our onshore and offshore cable manufacturing facilities — most are now completed, with the remainder set to wrap up in the first half of 2026. These investments have already boosted our production capabilities, giving us the agility and confidence to realize our robust backlog and seize new growth opportunities in energy transmission and grid modernization.

At the same time, we continued to strengthen our global footprint. The construction of our new cables plant in the United States is advancing on schedule, positioning us to tap into the dynamic North American energy infrastructure market starting in H2 2027.

The commitment and talent of our team continue to be the cornerstone of our growth, and I am grateful for their efforts that propel Cenergy Holdings forward. With a solid order backlog, enhanced production capabilities, and a steadfast focus on precise execution, we are prepared to enter the next phase of our growth. Our primary mission remains unchanged: adhering to disciplined processes, achieving operational excellence, and generating sustainable long-term value for our shareholders.”

CEO Alexis Alexiou

[Ituhippinen]

Q1 2026 in the books!

https://cenergyholdings.com/new/trading-update-q1-2026/

Looks like a strong report at first glance! EBITDA margin is at record levels, the order backlog has remained around the EUR 3 billion mark, and they’ve churned out a nice chunk of net profit. Not bad!

Why was the EBITDA margin so high? The biggest single reason was the increased share of (high-margin) offshore cables, and a successful sales mix in general. So, this isn’t just an accounting trick, but the business actually becoming more profitable…?

Another reason is the end of the ramp-up phase for the additional capacity commissioned in Q1 2025. Now the new capacity can be utilized to the fullest, and it shows immediately as operational leverage: the same infra now produces more without costs increasing in the same proportion. Yeah buddy!

What also warms the heart is that it wasn’t just subsea cables selling with a good margin. The pipe side also achieved better margins! This gives confidence that it’s not just about one good order on one side, but that both segments are pushing out product with great momentum (ps. gross margin 17.1% → 23.9%).

However, a word of caution before we start brewing the “cable coffees”:

margin was partly influenced by project execution phasing and may normalize as the year progresses

So, one must believe that a 19.7% a-EBITDA margin is not the new normal, but also involved some good luck with timing. Despite this, the underlying trend is in a better direction. If the upcoming US capacity is completed well and on time, and this improved sales mix remains strong in terms of sales, the market might eventually start believing that Cenergy has permanently managed to raise its margins to the better side of 15%.

Solid start to 2026 with high-quality earnings

• Revenue for Q1 2026 reached EUR 511 million, up 5% year-on-year (y-o-y).
• Adjusted EBITDA reached EUR 100.4 million, up 33% y-o-y, with a record margin of 19.7%.
• Net profit after tax increased to EUR 74 million, 81% higher than Q1 2025.
• Order backlog [1] remains at approx. EUR 3.3 billion as of 31 March 2026, providing strong medium-term visibility.
• Strategic investments realized: the US land cables plant progresses as planned and the steel segment acquired an LSAW steel pipes facility in Hartlepool, UK.
• The Group confirms its FY 2026 guidance for adjusted EBITDA of EUR 370 – 400 million.

[Ituhippinen]

Cenergy’s major shareholder, Viohalco, announced yesterday that it is selling 6 million Cenergy shares to institutional investors through an accelerated bookbuild. The bookrunner managing the transaction reported yesterday evening that the offering was several times oversubscribed at a price of approximately €24.2 per share. Demand has therefore been strong at that price level, and for this reason, I suspect today’s sharp decline of around 7% is a direct result of this.

[Ituhippinen]

Cenergy also reporting results tomorrow! Let’s hope they keep strengthening their FY 2026 guidance. Preferably, of course, they raise their a-EBITDA guidance.

[Ituhippinen]

The results were already out yesterday, and today they will be supplemented by a conference call.

https://cenergyholdings.com/investors/financial-reports/latest-results/

Highlights

• Revenue reached EUR 1.15 billion in H1 2026, 13% higher year-on-year, with both segments growing strongly.
• Adjusted EBITDA increased by 26% to EUR 216 million, supported by a 19% margin due to disciplined execution and a favourable project mix.
• Profit before income tax grew by 43% to EUR 177 million, while profit after tax reached EUR 138 million (+45% y-o-y).
• Order backlog reaches new highs around EUR 3.9 billion.
• The healthy first-half performance leads to an upgrade of the FY 2026 a-EBITDA guidance to EUR 390-420 million.

@Ituhippinen

Let’s hope they keep strengthening the FY 2026 guidance. Preferably, of course, by raising the a-EBITDA guidance.

Great company—all you have to do is ask, and there it is, the positive profit warning! The previous a-EBITDA guidance was EUR 370-400 million, now it’s indeed 390-420.

A really strong H1 overall for both cables and pipes. The strong performance of cables, in particular, is reflected in the results (revenue +13%, a-EBITDA +36%!!). For pipes, it’s steady progress (revenue +11%, a-EBITDA +2%).

• Management remains positive about long-term prospects.
• A large framework agreement secured in Greece for the cable segment takes the order backlog to new record levels (approx. EUR 3.9 billion).
• Growth investments are progressing as expected in Maryland, USA (cable factory) and Hartlepool, UK (steel pipe capacity).

Really excellent performance from Cenergy! A small beat and raise relative to forecasts is always nice for an investor

[vme93]

Indeed, an excellent result in many respects. Cenergy doesn’t seem to provide separate Q2 figures, so when comparing the Q1 and H1 results, one notices that the growth between Q1 and Q2 is, however, moderate, and, among other things, the profit before taxes has declined. The guidance tells a similar story, based on which the adjusted EBITDA (a-EBITDA) would be significantly weaker in H2 than it was in the past year. It remains to be seen whether this is a cautious outlook or if the beginning of the year has been exceptionally strong. Or can anyone say if the beginning of the year is generally the strongest period in the industry?

A major plus is that huge order volume, which, as I recall, stalled for a few quarters, and at least I started to get a bit worried whether it would even slide into a decline.

[Ituhippinen]

@vme93

The guidance also tells a similar story, according to which adjusted EBITDA (a-EBITDA) would be significantly weaker in H2 than it was in the past year. One might wonder whether this outlook is cautious or if the beginning of the year has been exceptionally strong. Or can anyone tell if the beginning of the year is generally the strongest period in the industry?

Good points, I admit I started digging into this for a moment as well when the price reaction was different than I expected.

As I recall, there is no recurring pattern of a weaker or better half between the two halves of the year; rather, it’s more about the timing of projects and when they land.

The guidance didn’t increase as much as one might have expected based on H1 → automatically implying a weaker H2 in expectations. However, let’s remember that it wasn’t even a year ago when Cenergy issued a second positive profit warning in connection with the Q3 report, having already issued one earlier. In my book, management therefore provides conservative guidance and does not want to disappoint, at the very least. After all, it’s nicer to beat guidance than to miss it. Take this with a grain of salt.

The H1 project mix was apparently exceptionally favorable in terms of profitability → as this normalizes, we might give up a little on margins.

As you might be able to gather from the above, I am not overly worried about the H2 earnings performance. Historically, it is not structurally weaker by default, so the hope is that the company could still surprise positively if projects fall into place well over the next two quarters. At this stage, I should add that I haven’t listened to today’s earnings call to see if this was commented on.

This entire comment should be read with caution, as I am a bitter Cenergy bull who trimmed my position between 16 and 17 euros “because the valuation was tight.”

Luckily, I’m still along for the ride!