Cenergy Holdings' Maryland Cable Factory Construction Progresses Amid Reduced Capex and Strong Profit Margins in 2025

The construction of Cenergy Holdings' cable factory in Maryland is progressing steadily, even as the company has announced a cyclical reduction in capital expenditures for the first half of 2025. Management emphasized during the analysts' briefing that this reduction does not detract from the firm’s strong order backlog and profitability. With adjusted EBITDA projected to range between €310 million and €340 million for 2025, Cenergy is poised for continued growth.

In the first half of 2025, profit margins in the cable sector climbed to 16.3%, up from 14.2% during the same period last year. This improvement is largely attributable to the increased contribution of cable projects to overall revenues and their inherent profitability.

Stable demand for cable products has played a crucial role in sustaining these margins. Meanwhile, the steel pipe sector reached an impressive adjusted EBITDA margin of 18.2%, nearly two percentage points higher than in the first half of 2024. This success stems from targeted investments aimed at bolstering production capacity, resulting in increased output and a more favorable mix of higher-margin projects.

Looking ahead, the cable sector appears to have strong medium-term prospects in both Europe and the U.S., supported by a robust order backlog. The recent expansion of production capacity for submarine cables and ongoing enhancements to terrestrial cable production lines in Greece are pivotal to this growth.

The company notes that rising energy production, growing electricity demand, and improvements in electrical networks are trends that will govern the sector for the next decade, further highlighting the strategic importance of cable manufacturing. Demand remains strong for low and medium voltage and telecommunications cables, with orders increasing through long-term framework contracts.

In the steel pipe sector, Corinth Pipeworks expects the gas fuel market to expand, positioning it as a key transition fuel that will drive carbon capture and storage pipeline projects in the short term, along with hydrogen infrastructure initiatives in the medium term. Corinth Pipeworks has solidified its status as a market leader in these areas. The sector’s order backlog has risen significantly to €560 million, up from €430 million at the end of 2024, bolstered by new significant assignments in the U.S., the U.K., and the Netherlands, confirming the sector's competitiveness in delivering integrated high-performance pipeline solutions.

In the first half of 2025, Cenergy Holdings reported sales of €1.022 billion, with adjusted EBITDA rising by 43% year-on-year to €171 million, resulting in a profit margin of 16.7%. The company's profitability was further enhanced by the successful execution of energy projects and an improved sales mix, with consolidated pre-tax profit reaching €124 million—up 70%—and net profit after tax amounting to €95 million—up 69%—demonstrating a robust growth trajectory.