Prysmian S.p.A.

Prysmian said Q2 EBITDA was EUR 730 million, with a 13.4% EBITDA margin and 9.4% organic growth. Organic growth in the first half was above 7%, and second-quarter segment growth was 14% in Transmission, 13% in Power Grid, 9% in Industrial & Construction, and 18% in Digital Solutions. Group net profit reached EUR 569 million in the first half, and management said this supports full-year net profit above EUR 1.2 billion. Full-year EBITDA guidance was raised from EUR 2.7 billion to EUR 2.85 billion, with a new range of EUR 2.8 billion-EUR 2.9 billion, and free cash flow guidance was raised to EUR 1.7 billion from EUR 1.35 billion. Management said the free cash flow outlook includes a EUR 550 million down payment from Molex, around EUR 250 million of metal impact, and about EUR 200 million of extra capex versus the prior plan; year-end net debt is expected around EUR 2.3 billion-EUR 2.4 billion, implying about 0.8x leverage. On guidance, management said Transmission is expected to add about EUR 200 million EBITDA versus last year, and Digital Solutions should add EUR 50 million-EUR 80 million versus the prior guidance.

Massimo Battaini framed the quarter as proof that Prysmian’s strategy is working: expand transmission, deepen North American leadership, and shift from cable manufacturer to solutions provider. His tone was highly confident and upbeat, especially around data centers, saying Prysmian has a unique position because it can serve data centers with the full product range they need. He also emphasized sustainability progress, including 46% of revenue linked to sustainable solutions and a 42% reduction in Scope 1 and 2 emissions versus the 2019 baseline.

Pier Facchini focused on the earnings quality and cash bridge. He highlighted first-half net profit of EUR 569 million, EBITDA growth of EUR 125 million year over year and EUR 130 million sequentially, and said the full-year net profit estimate is now above EUR 1.2 billion. On cash, he said the prior EUR 1.35 billion free cash flow guidance moves to EUR 1.7 billion mainly because of the EUR 550 million Molex down payment, improved working capital, offsetting a EUR 250 million metal headwind, and about EUR 200 million of incremental capex. He also pointed to year-end net debt of roughly EUR 2.3 billion-EUR 2.4 billion and leverage of around 0.8x.

Analysts pressed on Digital Solutions margins, the timing and durability of the data center revenue ramp, and whether the EUR 10 billion optical deal size leaves room for more upside. Management said the margin path should be linear through 2029, with Digital Solutions moving above 25% and potentially into the 25%-30% range, and confirmed that the current EUR 10 billion is already largely covered by signed deals for the next 5-6 years, with more contracts possible on top. Questions also focused on Power Grid margins, where management said the gap to prior peak margins is mainly due to inflation timing and pass-through lags, and on Europe/LatAm, where they described LatAm as a normalization after unusually strong prior margins and Europe as a target for mild restructuring and footprint optimization.