Prysmian exceeds its targets and raises its guidance once again

Another record quarter for Prysmian, which has met its 2028 targets for adjusted EBITDA and cash flow two years ahead of schedule, thanks in part to the momentum from the North American market and data centres – a sector for which the CEO, Massimo Battaini, sees no signs of a slowdown on the horizon and which, indeed, recorded a further acceleration in July. The group has revised its guidance for the end of this year, which now forecasts – thanks in part to the contribution of the newly acquired Atkore – adjusted EBITDA of between 3.075 and 3.125 billion and free cash flow of between 1.750 and 1.850 billion. The new targets for further growth and business expansion, set for 2030, will be presented to the market at the company’s next Capital Markets Day, scheduled for ‘the third or fourth quarter of 2027’, as Battaini announced yesterday.

The Italian industrial cable manufacturer closed the third quarter with an adjusted EBITDA of 851 million, up 32.1 per cent, with organic growth accelerating to 13.1 per cent. The margin on revenue, which reached 6.417 billion in the same period, rose to 16.8 per cent, up from the previous 14.8 per cent. In particular, the Transmission division (which specialises in the design, manufacture and installation of subsea and terrestrial cables for long-distance power transmission) continued to perform well, with a margin of 20 per cent (17.8 per cent in the third quarter of last year) and organic growth of 23.1 per cent. Demand in the Power Grid segment also remains solid (+7.5 per cent), whilst Encore Wire’s service model, together with demand from data centres (an area in which, as Battaini emphasised yesterday whilst speaking to journalists, ‘we are now the market leaders in the US’) is driving organic growth (+14.2 per cent) and profitability (margin of 17.6 per cent compared with the previous 14.5 per cent) in Industrial & Construction, within the Electrification business unit. Margins are rising (to 25 per cent from the previous 19.6 per cent) and organic growth continues (+17.3 per cent) in the Digital Solutions division as well, an area in which the group has taken a crucial step forward in recent years with the acquisition of the US-based company Channel. “The good news is the strong contribution from every single business,” commented Battaini. Industrial & Construction, in particular, “is the star of the quarter,” said the CEO, with the North American market having “exceeded all best expectations, thanks to strong demand from data centres, which we were able to capitalise on through Encore Wire’s capabilities”. What makes the difference is the ability to supply large volumes quickly and on time. “This is what data centres want,” he explained, “and it is what has enabled us to gain further market share.”

More generally, “the comprehensiveness of our business portfolio is one of Prysmian’s strengths,” explained the CEO; “we connect countries via subsea cables, modernise networks and provide solutions that enable digital infrastructure. Today we are even stronger thanks to the acquisitions of Atkore, which strengthens our offering in the United States, and Xtera, which paves the way for us to become a leader in the telecoms subsea cable sector. “Having become, thanks to our latest acquisitions, a solutions provider, we stand out from other cable manufacturers in terms of competitiveness and profit margins. It is in this direction that we are looking, where appropriate, for new M&A opportunities.”

Finally, the dual listing remains “a great opportunity” for Prysmian, which is continuing to assess the project without setting a deadline for a decision. The company had announced its intention to list on Wall Street two years ago, only to subsequently slow down and put the project on hold. “We will weigh up the pros and cons with the board of directors,” said Battaini. “With the acquisition of Atkore, we now have an even greater presence in the United States. We will announce our decision when the time is right. Please give us time to complete our assessment of the project.”