Prysmian S.p.A.

Reported Q2 EBITDA was EUR 730 million, with a 13.4% EBITDA margin and 9.4% organic growth. On a standard-metal basis, EBITDA margin was 15.4%, and EBITDA was up EUR 125 million year over year and EUR 130 million sequentially. The first-half group net profit reached EUR 569 million, described as the highest ever. Management raised full-year EBITDA guidance from EUR 2.7 billion to EUR 2.8 billion-EUR 2.9 billion and lifted free cash flow guidance to EUR 1.7 billion, citing a EUR 550 million Molex down payment, about EUR 250 million of metal headwind, and about EUR 200 million of higher CapEx versus the prior plan. Year-end net debt was guided to EUR 2.3 billion-EUR 2.4 billion, implying leverage of around 0.8x.

Massimo Battaini framed the quarter as proof that Prysmian’s strategy is working, highlighting the shift from cable maker to solution provider and the company’s growing exposure to data centers, transmission, and electrification. He emphasized that the Digital Solutions business is becoming the core growth engine, supported by long-term contracts, capacity expansion, and innovation. His tone was highly confident and upbeat, repeatedly describing the quarter as transformative and saying more upside is likely from new deals and future capacity.

Pier Facchini focused on earnings quality, margin expansion, and cash generation. He said the first-half organic growth was above 7%, Q2 organic growth reached 9.4%, and EBITDA margin at standard metal rose to 15.4%; he also noted the record EUR 569 million first-half net profit, helped by lower financial charges and a slightly better tax rate. On cash, he said the EUR 1.7 billion free cash flow target reflects the Molex down payment, stronger working capital performance, the EUR 250 million metal impact, and roughly EUR 200 million of extra CapEx, with year-end net debt expected at EUR 2.3 billion-EUR 2.4 billion.

Analysts pressed on the sustainability of Digital Solutions margins, the cadence of data-center revenue ramp, and how much of the new optical revenue is already contracted. Management said margin expansion should be fairly linear into 2029 and could reach 25%-30% in the upper part of the range, with more upside from connectivity and Channell; it also said the next wave of deals would be above the current EUR 10 billion framework. Questions on Power Grid margins centered on inflation and timing to reach 15%; management said the gap is mainly due to cost inflation and timing lags, not weak demand, and that margins should catch up as inflation eases. Analysts also asked about M&A, the New York secondary listing, tariffs, and hollow-core fiber commercialization; management said it is still evaluating M&A, the NY listing remains a priority but timing is not set, tariffs have helped local pricing versus imports, and hollow-core fiber has passed an Amazon installation test and could be scaled profitably.