Prysmian shines with a record quarter and an upward revision to its guidance

(Il Sole 24 Ore Radiocor) - In the spotlight Prysmian on the Milan Stock Exchange following the release of its second-half results. The share price initially opened lower, falling by more than 3 per cent, before – after fluctuating several times – turning upwards. In detail, the group reported results slightly better than expected, with second-quarter net profit of 323 million, up 17.9 per cent, whilst adjusted EBITDA stood at 730 million (+20.7 per cent). The company has stated that this is its best quarter ever. Revenue for the period stood at 6.021 billion, representing organic growth of 9.4 per cent. As for the first half of the year, organic revenue growth stood at +7.2% to 11.23 billion, whilst adjusted EBITDA rose to 1.33 billion from 1.13 billion in the first half of 2025, with a margin of 14.8% (up from 13.8%). Net profit for the first half of the year was 584 million, up by 34%.

Prysmian has also revised its guidance for 2026 upwards: the group now expects adjusted EBITDA to be between 2.8 and 2.9 billion euros, compared with the previous guidance of 2.625–2.775 billion. The free cash flow target has also been raised, and is now expected to be between 1.65 and 1.75 billion, compared with the previous range of 1.3–1.4 billion. ‘Sustainability-linked’ revenues are forecast to account for between 47 per cent and 49 per cent of the group’s total revenues. The guidance – as explained in a press release – assumes there will be no substantial changes to the geopolitical landscape, no extreme fluctuations in the prices of production inputs and no significant disruptions to supply chains.

“The 2026 results are in line with expectations,” comment the analysts at Intermonte, adding that the upward revision of the guidance “is also in line with expectations regarding EBITDA”. “The free cash flow guidance is above estimates, but this may reflect the bringing forward of certain payments on the one hand and the timing of new capital expenditure on the other,” the experts continue. Banca Akros also notes “the new EBITDA guidance is perfectly in line with the current market consensus, whilst the free cash flow target is above expectations by around €300 million, likely due to an improvement in net working capital dynamics that the company expects in the second half of 2026”.

Speaking during a conference call with journalists following the publication of the quarterly results, whilst the share price was falling, CEO Massimo Battaini explained that “the market is taking profits” given that “the share price rallied and trended upwards between February and March, driven by strong expectations regarding the expansion of data centres”. In fact, since the start of the year, the share price has risen by over 30%. The chief executive then clarified that “nothing has changed in our fundamentals: the solid second-quarter results were driven in particular by data centres, and this will underpin our results in the third and fourth quarters”.

According to Battaini, however, the market is also pricing in “a possible slowdown in the pace of data centre construction”. The CEO’s comments have likely reassured investors, helping to reduce the share’s losses. Battaini went on to emphasise that data centres represent the “biggest opportunity at the moment” and that “a listing in the United States remains the top priority”.