Alfa Laval extends partnership with EDF for French nuclear projects

LUND, Sweden - Alfa Laval announced on Wednesday it has extended its partnership with Électricité de France SA (EDF) to support the construction of six new EPR2 nuclear reactors across sites in Penly, Gravelines, and Bugey, France. The company, which currently trades at $2.87 per share and is considered slightly overvalued according to InvestingPro Fair Value estimates, has seen its stock rise 7.73% year-to-date despite recent market volatility.

The agreement, signed at the World Nuclear Exhibition in Paris, will involve Alfa Laval providing its gasketed and semi-welded plate heat exchanger technology for the new facilities. The companies will implement a standardized approach for all EPR2 reactors to optimize capital expenditure and construction efficiency.

Alfa Laval has been supplying solutions to the nuclear industry since 1964 and has worked with EDF since the 1970s. The partnership aims to leverage modular technology and serial production to reduce complexity and enable faster implementation across all sites.

"The success of the EPR2 program depends on the collective commitment of all players in the nuclear industry," said Catherine Back, Director of the EPR2 project at EDF, according to the company’s press release.

Tom Erixon, CEO and President of Alfa Laval, stated, "Decarbonization of the global energy supply will require massive electrification efforts with low-emissions power generation, and nuclear energy will be one of the key contributors." This strategic focus appears to be paying dividends, with Alfa Laval reporting impressive 18.44% revenue growth in the last twelve months and maintaining a "GREAT" financial health score of 3.11 according to InvestingPro metrics.

EDF currently operates 57 active nuclear reactors in France. The company reported that 94 percent of its 520TWh output was decarbonized in 2024, with a carbon intensity of 30gCO2/kWh.

The collaboration comes as nuclear energy continues to be positioned as a significant component in meeting low-carbon electricity demands globally. The financial terms of the agreement were not disclosed in the company’s announcement.For investors interested in Alfa Laval, the company offers an attractive 3.96% dividend yield and carries a positive analyst consensus recommendation of 1.29. InvestingPro subscribers can access 12+ additional ProTips, detailed financial health assessments, and exclusive Fair Value models to better evaluate investment opportunities in the energy transition sector.

In other recent news, Alfa Laval has formed a strategic alliance with Lund University. This partnership is designed to enhance collaboration on innovation and sustainability challenges. According to a press release, the alliance aims to create a more structured framework for joint research initiatives. This collaboration builds upon decades of existing cooperation between the two organizations. The partnership will utilize the Triple Helix model, which integrates resources from industry, academia, and the public sector. These developments reflect Alfa Laval’s ongoing commitment to innovation and sustainability.

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