NV Bekaert SA (BEKB.BR): BCG Matrix [Dec-2025 Updated]

Bekaert's portfolio blends high-growth "stars" - from hydrogen electrolysis components and EV tire cord to Dramix fibers and ultra‑fine filtration - where heavy CAPEX and strong margins are driving future value, with robust cash cows like standard tire reinforcement and agricultural wire that generate steady cash to fund those bets; selective question marks in offshore wind, digital services and semiconductor coatings demand continued R&D and scale to prove their payoff, while commodity‑heavy dogs are being wound down or divested to free capital - a mix that signals disciplined allocation toward decarbonization and premium niches while pruning low‑return legacy lines.

NV Bekaert SA (BEKB.BR) - BCG Matrix Analysis: Stars

Stars

Bekaert's Hydrogen electrolysis components (Porous Transport Layers for PEM electrolysis) are a Star: the company holds a 30% global market share as of late 2025 in a segment growing at 50% year-on-year driven by the energy transition. Management allocated 25% of total CAPEX to scale production capacity in Belgium and China specifically for this product line. The unit reports an EBITDA margin >18% and a project-level ROIC projected at 15% by fiscal year-end. Production scale-up, supply-chain localization, and long-term OEM & electrolyzer manufacturer contracts underpin the Star position.

High performance EV tire cord is a Star within a high-growth EV-driven niche: the product now represents 15% of total rubber reinforcement revenue and Bekaert commands a 35% share in this specialized segment versus a lower share in standard tire cord. Market growth for EV-specific tire reinforcement is ~12% annually as OEMs pursue lower rolling resistance. The segment achieves a price premium delivering margins ~400 basis points above traditional tire cord. Recent CAPEX for advanced coating lines totaled €60 million in the 2025 fiscal period to increase throughput and technical coating capabilities.

• Revenue share (rubber reinforcement) - 15%
• Segment market share (EV-specific) - 35%
• Segment growth rate - 12% p.a.
• Margin premium vs standard - +400 bps
• 2025 CAPEX for coatings - €60 million

Dramix steel fibers for concrete reinforcement function as a Star in green construction: Dramix holds a 28% share of the global steel fiber market with market growth at 9% annually as sustainable construction replaces traditional rebar. Revenue from Dramix grew 14% in 2025, supported by infrastructure projects in North America and India. Operating margins are 16%, and the product line now incorporates 40% recycled steel content, reinforcing sustainability credentials and competitive differentiation.

Advanced fiber technologies for industrial filtration are a Star due to technical leadership and regulatory-driven demand: Bekaert's ultra-fine metal fibers hold a 22% global market share in filtration applications growing ~10% annually driven by tighter emissions standards. The segment contributes 8% to group EBITDA while consuming only 4% of total assets, reflecting high capital efficiency. R&D spend in this area is 7% of segment sales to sustain differentiation; return on sales consistently exceeds 15%.

• Global market share - 22%
• Market growth rate - 10% p.a.
• Contribution to group EBITDA - 8%
• Share of group assets used - 4%
• R&D intensity (of segment sales) - 7%
• Return on sales - >15%

NV Bekaert SA (BEKB.BR) - BCG Matrix Analysis: Cash Cows

Cash Cows

Standard rubber reinforcement provides stable cashflow.

Bekaert's traditional tire cord segment accounts for approximately 42% of group revenue in 2025, with a 25% global market share in tire reinforcement. Annual market growth is low at 2%, while the segment delivers an underlying EBIT margin of 12%. Capital expenditure requirements are modest, at roughly 4% of segment sales, reflecting a mature production base. The segment's cash conversion ratio stands at 85%, translating core profitability into liquid resources used to fund higher-growth initiatives in hydrogen and digitalization.

Agricultural wire solutions maintain regional dominance.

Bekaert's agricultural products (fencing, vineyard wire) capture about 40% market share across Europe and North America in a mature market with 1.5% annual growth. The segment produces a predictable revenue stream of approximately €500 million with an EBITDA margin of 14% driven by highly automated manufacturing and low variable costs. Investment needs are minimal; ROI on depreciated assets exceeds 20%, making this unit a principal funding source for group R&D and strategic diversification.

Industrial steel wire for diverse applications.

The general industrial wire division contributes roughly 20% of group turnover. Bekaert holds an 18% share in this fragmented global market, which grows near 2% annually. Underlying EBIT margin is approximately 10% due to disciplined cost management and lean operations. Asset utilization is optimized at 92% capacity, maximizing cash generation. Annual CAPEX is limited to maintenance levels, about 3% of segment revenue, preserving free cash flow.

Energy and utility cables for infrastructure.

Bekaert supplies specialized steel wire for power utilities and overhead cables with a 15% market share in relevant markets. The segment operates in a low-growth environment (~3%) but benefits from long-term utility contracts that stabilize demand. Annual revenue is around €300 million with a stable operating margin of 11%. Capital intensity is low because most production facilities are fully depreciated; the unit contributes an estimated 10% of the group's total free cash flow annually.

Cash cow portfolio metrics

Key operational and financial characteristics of cash cow segments

• High cash conversion and low CAPEX intensity preserve liquidity for corporate investments.
• Stable, low-growth markets (1.5-3%) reduce volatility and provide predictable cashflow forecasts.
• Margins across cash cows range from 10% to 14%, supporting internal funding without diluting capital structure.
• Asset bases are largely mature/depreciated, enabling high ROI and limited reinvestment needs (CAPEX 3-4% of sales typical).
• Regional leadership (e.g., 40% in agri, 25% in tire cord) underpins pricing power and resilience versus competitors.

NV Bekaert SA (BEKB.BR) - BCG Matrix Analysis: Question Marks

Dogs - assets with low relative market share in low-growth markets, requiring either divestment, harvesting, or selective turnaround investment. The following items within Bekaert's portfolio currently sit in or near the Dog/Question Mark boundary and demand portfolio-level decisions based on capex intensity, margin trajectory and strategic fit.

Floating offshore wind mooring systems - emerging sub‑segment where Bridon Bekaert Ropes Group is positioning to capture future scale. Market CAGR: 35% through 2030. Bekaert current share: <10% of this nascent segment. R&D intensity: ~8% of segment revenue. Current operating margin: ~5% (compressed by startup costs). Key dependency: successful execution on large-scale deep-water projects globally; capital deployment focused on hybrid synthetic/steel mooring lines and certification for harsh-environment projects.

Digital supply chain services - Be Connect platform targeting industrial IoT and digital services. Addressable market: ~€2.0 billion. Current market share: negligible; revenue growth: ~40% year-on-year from small base. Profitability: not yet; CAPEX for software/cloud: €15 million in 2025. Strategic objective: transition from product-centric to service-centric revenue, increase customer retention and generate recurring revenue streams.

• 2025 CAPEX: €15m (software development, cloud infra)
• Revenue growth (current): 40% YoY
• Addressable market: €2.0bn industrial IoT
• Current profitability: negative / reinvestment phase

Hydrogen combustion burners for residential heating - pilot product line for 100% hydrogen-ready burners. Market infancy with projected CAGR: 25% over next decade. Bekaert pilot market share: ~5%. Margins: currently negative due to investments in testing labs, safety certification and consumer channel development. Required spend: R&D, certification, marketing to displace established boiler manufacturers.

• Projected market CAGR: 25% (10 years)
• Bekaert pilot share: ~5%
• Initial margin profile: negative
• Primary investments: specialized testing labs, safety certification, marketing

Advanced coating for semiconductor manufacturing - specialized wire coating solutions for semiconductor supply chains. Niche market growth: ~15% annually. Bekaert market share: <4% (late entrant). Technical/qualification barriers: high; required CAPEX for clean room and qualification: ~€20 million. Current ROI: low due to long qualification cycles; successful penetration would enable access to high-margin electronics applications.

• Market growth: 15% p.a.
• Bekaert share: <4%
• Required CAPEX: €20 million (clean room, qualification)
• Payback profile: extended due to long customer qualification

Portfolio considerations for these Dog/Question Mark candidates:

• Prioritize selective follow-on investment where potential market size and margin uplift justify incremental capex (floating wind, semicon coatings).
• For digital services and hydrogen burners, measure customer traction and unit economics within defined milestones before committing further scale capex.
• Establish kill/scale decision points tied to contract wins, qualification milestones and three‑year IRR thresholds to avoid value-destructive long-term subsidies.

NV Bekaert SA (BEKB.BR) - BCG Matrix Analysis: Dogs

The following section addresses the 'Dogs' quadrant of NV Bekaert's portfolio - low-growth, low-share legacy businesses that are underperforming on profitability, ROI and strategic relevance.

Commodity fencing products face intense competition. The legacy fencing segment in Western Europe has seen market share erode to below 8% (current share: 7.8%) due to low-cost imports. Market growth is effectively stagnant at 0.5% CAGR. Underlying EBIT margin for this unit has dropped to 3.0%, compared with a group average EBIT margin of ~12%. Management has restricted CAPEX to maintenance levels only (CAPEX ≈ 1.8% of the segment's revenue). Revenue from this segment represents approximately 6% of group revenue. The business unit is under strategic review for potential divestment or restructuring to protect overall profitability.

Traditional heavy mining ropes in decline. Demand for traditional steel ropes used in deep-shaft mining is contracting by ~4% annually as mining operators adopt automation and alternative extraction technologies. Bekaert's market share in this legacy niche is approximately 12.0%, down from higher historical levels as competitors consolidate. ROI for the segment has declined to ~4.0%, one of the lowest in the portfolio. High fixed costs tied to large-scale rope manufacturing plants result in margin compression and low asset turnover. This unit contributes less than 5% to group revenue and is losing strategic relevance.

Low-end construction wire in emerging markets. In several emerging markets, Bekaert faces severe price competition in basic construction wire, holding a ~6% share of the commodity segment. While the commodity market grows modestly at ~3% annually, margins are frequently near zero or negative. In 2025 the company closed two high-cost facilities, reducing footprint; revenue from this line declined ~20% year-on-year as resources are reallocated toward higher-value Dramix products. The unit is being actively managed for exit to release working capital for investment in Stars and higher-margin offerings.

• Current market share: 6.0%
• Market growth: 3.0% CAGR
• Margins: ~0% to negative
• 2025 facility closures: 2 facilities
• Revenue change (latest 12 months): -20%
• Strategic action: manage for exit

Standard sawing wire for legacy solar wafers. The market for standard steel sawing wire has been largely displaced by diamond wire technology, causing a market contraction of approximately 15% recently. Bekaert retains ~5% share of this contracting market, which now generates negligible revenue. Operating margins have turned negative due to underutilization of specialized machinery and fixed asset write-down pressure. All CAPEX for the product line has been halted and the company is decommissioning legacy production lines. This segment represents a classic 'dog' being phased out of the global portfolio.

Management actions across Dogs (summary of active measures):

• Strategic review and divestment planning for the fencing segment.
• Evaluate downsizing or asset consolidation for heavy mining ropes to reduce fixed cost burden.
• Exit low-margin construction wire markets; redeploy cash and working capital toward Dramix and other Stars.
• Complete decommissioning and write-down process for standard sawing wire; cease related CAPEX and reallocate capacity.
• Maintain maintenance-level CAPEX only where necessary to preserve saleable assets; target >10% reduction in SG&A allocated to these units within 12 months.